Investor sues over unpaid energy royalties
GALVESTON - An oil and gas investment company claims its partners have not paid it the royalties owed under an agreement.
Furie Petroleum Co. LLC alleges Jason B. Lane, Jason B. Lane Energy Partners LLC, Silver Spur Royalty Co. LLC and Fab Five Royalty Co. LLC are interfering in its relationships with its investors, recent court documents say.
Furie Petroleum alleges the defendants are responsible for failing to present opportunities, misappropriating entrusted funds and failing to cause leases to be purchased, titled and closed, a lawsuit filed July 18 in Galveston County District Court says.
The original petition shows Furie invests money in various energy-related projects in and around Texas, stating the plaintiff's prospects depend on a good working relationship.
It further explains that Furie entered into an agreement in November 2008 with defendants Silver Spur and Fab Five regarding the acquisition of mineral interests.
Furie says it provided tens of millions of dollars to Silver Spur and Fab Five for the purpose of the acquisition and development of mineral interests, but the companies did not properly turn them over in accordance to their agreement.
"Indeed, various interests have, in violation of the duties owed to Furie under the agreement, been acquired in the name of JBL, but never subsequently assigned to Furie, Silver Spur and Fab Five, all as required by the agreement," the suit says.
The plaintiff additionally asserts that "all defendants have combined and conspired to cause (it) to pay excessive prices for the interests that it has acquired," and it "caught the defendants in multiple lies and misrepresentations regarding their activities relative to the subject agreement."
"Lane has undertaken to interfere in the relationship between Furie and its investors by making and threatening to make false and misleading statements to those investors," the suit says.
"In so doing, Lane has acted without privilege, justification or excuse, and with the intent to compel Furie not to pursue claims against him and the other defendants."
Consequently, Furie seeks unspecified monetary damages and a jury trial.
Reynolds, Frizzell, Black, Doyle, Allen & Oldham LLP is representing the plaintiff.
Galveston County 122nd District Court Judge John Ellisor is presiding over the case.
Case No. 11-cv-1170