Add-Back Disputes
TLLM Family Limited Partnership v. Ovintiv USA, Inc., United States District Court for the Northern District of Texas
Represented Ovintiv against landowners in royalty dispute. The landowners alleged that their respective leases did not permit Ovintiv to deduct postproduction costs from landowners’ royalties. Landowners also alleged that Ovintiv had underpaid royalties due to an incorrect ownership interest calculation. Ovintiv moved to dismiss the landowners’ claims because their leases did, in fact, allow for deduction of postproduction costs under well-established Texas law. Ovintiv also moved to dismiss Plaintiffs’ claims because their complaint failed to plead sufficient facts to allege Ovintiv miscalculated their ownership interests. The United States District Court for the Northern District of Texas granted Ovintiv’s motion to dismiss but allowed the landowners to replead their ownership interest calculation claim. Plaintiffs did replead, but ultimately voluntarily dismissed their claims.
Type of Case: Accounting & Audit Disputes, Add-Back Disputes, Royalty Litigation, Lease Ownership Disputes
Cheapside Minerals, Ltd. v. Devon Energy Production Company, L.P. & GeoSouthern Energy Corporation, Southern District of Texas, Victoria Division Represented Devon Energy Production Company, L.P. and GeoSouthern Energy Corporation related to a royalties lawsuit in which plaintiffs purport to seek over $100 million in unpaid royalties. After the case was successfully removed to federal court under the Class Action Fairness Act over the opposition of plaintiffs, the parties entered a confidential settlement.
Type of Case: Royalty Litigation, Add-Back Disputes, Postproduction Cost Disputes