Companies in litigation over oil and gas well royalties

Kelly Holleran Jul. 25, 2011, 6:00am

Three corporations have filed suit against the individuals who they claim stole money from them when the individuals produced natural gas without paying the corporations.

Samson Lone Star, PYR Energy Corp. and Trail Mountain claim they own interests in minerals that can be found under an unspecified 84 acres of land in Jefferson County.

In 2002, defendant Kody Oil Co. began to acquire oil and gas leases on the same piece of land. It began to assign royalty interests to several people, including defendants Patricia Harrison, John Harrison, Duayne Cooper, Jay S. Long and Linda Long, beginning in 2003, according to the complaint filed July 13 in Jefferson County District Court. Jay and Linda Long subsequently conveyed all of their working interests to defendant Linjay Enterprises, the suit states.

The wells, which were operated by defendants Redwood Operating, Live Oak Operating and Production and Independent Producers Alliance Corporation of Texas, began producing natural gas and other hydrocarbons, the complaint says.

While the defendants received all of the money from the wells' production, the plaintiffs claim they received none.

"Despite Plaintiff's ownership and entitlement to production revenues, these defendants have refused to pay any monies to Plaintiff," the suit states.

The plaintiffs allege violations of the Texas Theft Liability Act, conversion, unjust enrichment, fraud and negligence against the defendants.

In their complaint, the plaintiffs are seeking actual and exemplary damages, plus attorneys' fees, pre- and post-judgment interest, costs and other relief the court deems just.

M.C. Carrington and Jeremy R. Stone of Mehaffy Weber in Houston will be representing them.

The case has been assigned to Judge Milton Shuffield, 136th District Court.

Case No. D190-498

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