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Ruling May Affect Hundreds of Mineral Owners in Pennsylvania

by Elizabeth Alford on March 3, 2016

Landowners in Butler County, Pennsylvania recently won a court victory that enables them to continue in their fight to gain back royalty payments.

Related: Texas Supreme Court Sides with Mineral Owners

Last July, two landowners filed a lawsuit claiming XTO Energy improperly deducted operating expenses from royalty payments leaving them with less than the one-eighth of the proceeds they were promised in their leases. XTO pushed back against the breach of contract claims by filing a motion to dismiss, but a judge last month ruled the case could continue. The complaint indicated that there are potentially more than 100 plaintiffs that might be entitled to more than $5 million for the same scenario.

The plaintiffs’ attorney, David Borkovic told a local news agency that the decision could have implications for the gas industry.

“What is significant about this is that XTO, and perhaps others in the industry, thought the Pennsylvania Supreme Court ruling from a couple years ago gave them a green light to charge expenses, and actually, what this case shows now is you have to read the lease,” said David Borkovic. 

Connect with other mineral owners in Butler County, PA

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