SE Texas Record

Thursday, October 17, 2019

Texas residents sue for millions of allegedly unpaid oil revenues

By Kelly Holleran | Dec 31, 2012

Texas residents allege a major gas company is denying them the rights to substantial amounts of money they should be making from the production of oil. 

Donna L. Davis as trustee of the Rhonda Lee Davis Irrevocable Trust, Glenna Lee Satterfield, Leah McCurry, Robert A. Garbrecht co-trustee of the Faustine M. Garbrecht Revocable Trust, Glenn H. McCarthy Jr. and Legacy Royalties filed a lawsuit Dec. 19 in Jefferson County District Court against BP America Production Co. and Cimarex Energy.

In their complaint, the plaintiffs claim they are entitled to 1/16 of the more than $100 million worth of oil drilled on a tract of Jefferson County land.

According to the complaint, the plaintiffs’ predecessors owned a mineral interest in land where BP and Cimarex are currently drilling wells.

Under the deeds signed in 1933, the plaintiffs’ predecessors were entitled to a non-participating royalty interest, the suit states. This meant that they would receive 1/16 of the value of any oil produced on the land, the complaint says. The deeds are still in effect and are now owned by the plaintiffs, they claim.

“Cimarex Energy has now drilled several producing wells in the units that include the BP/Cimarex Leases and the plaintiff’s NPRI (non-participating royalty interest),” the suit states.

“Although BP and Cimarex have collectively realized payments for the production from the wells that exceed $100 million, much of which results from the sale of oil, they have refused to pay plaintiffs their just and due royalty interest and deny that plaintiffs are entitled to payment of any future royalty.”

In their complaint, the plaintiffs want the court to declare that they, and not BP, are entitled to the royalty payments.

The plaintiffs allege breach of contract against the defendants.

They are asking the court to quiet their title and are seeking declaratory relief, damages within the jurisdictional limits of Jefferson County District Court, attorney’s fees, pre- and post-judgment interest, costs and other relief the court deems just.

E.F. Mano DeAyala of Buck Keenan LLP in Houston will be representing them.

Judge Gary Sanderson, 60th District Court has been assigned to the case.

Case No. B193-729

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