Accounting & Audit Disputes
Mewbourne Oil Company, Custer County District Court, Oklahoma, and the Oklahoma Court of Civil Appeals
Represented Mewbourne in disputes under multiple joint operating agreements (JOAs). Plaintiff alleged that Mewbourne had breached the JOAs based on alleged failures to provide documents in response to JOA audits. Filed and argued a motion for summary judgment related to COPAS accounting guidelines. Following oral argument, the district court granted Mewbourne’s summary judgment. Also represented Mewbourne in two follow-on appeals related to the district court proceedings and the Oklahoma Court of Civil Appeals affirmed both decisions. The Oklahoma Supreme Court subsequently denied plaintiff’s petition for certiorari.
Type of Case: JOA Disputes, Accounting & Audit Disputes, Appellate Litigation
Tarrant Regional Water District v. Bedrock Production, LLC et al., in the 141st Judicial District Court, Tarrant County, Texas
Represented Bedrock Production in a royalty lawsuit brought by lessor in the Barnett Shale. Lessor alleged underpayment of royalties following an audit and sought over $33 million in damages. Lessor’s claims hinged on an aggressive interpretation of a royalty provision dictating that the lessee had to calculate royalties based on the average of the three highest prices paid for production in an entire Texas Railroad Commission District. Our team exposed issues with Plaintiff’s damages model during expert depositions. Following these depositions, the parties reached a confidential settlement, and Plaintiff dismissed all claims with prejudice.
Type of Case: Accounting & Audit Disputes, Postproduction Cost Disputes, Royalty Litigation
Legacy Reserves, LP & Marathon Oil Company, in the Justice Court, Precinct 1, Limestone County, Texas
Represented Legacy Reserves and Marathon Oil in a royalty lawsuit brought by heirs to a lessor in the Haynesville Shale. Plaintiffs’ claims sought thousands of dollars that had been escheated to the Texas Comptroller of Public Accounts as unclaimed funds. Defendants filed a motion for summary disposition to dispose of Plaintiffs’ claims due to limitations and lack of damages. Following these filings, the parties reached a confidential settlement, ending the dispute.
Type of Case: Accounting & Audit Disputes, Royalty Litigation
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
Mewbourne Oil Company, Western District of Oklahoma
Representing Mewbourne in dispute brought by non-operator alleging Mewbourne failed to follow accounting procedures in multiple JOAs and failed to fully pay non-operator for its share of production revenue. Case is ongoing.
Type of case: JOA Disputes, Accounting & Audit Disputes
Confidential Arbitration, in the American Arbitration Association
Represented major oil and gas company in a contract dispute with a significant oilfield services company over the provision of wellheads used on oil and gas wells in major shale plays. Filed arbitration demanding millions of dollars based on overcharges related to the provision of oilfield equipment. Oilfield services company counterclaimed, seeking more than $37 million in damages. Following a six-day final hearing, obtained a unanimous order from panel in favor of client. Subsequently settled case in exchange for payment of nearly 100% of contract damages and interest sought in the arbitration.
Type of Case: Oilfield Service & Vendor Litigation, Accounting & Audit Disputes, Energy Arbitrations
Confidential Arbitration, in the American Arbitration Association
Represented major oil and gas operator in an arbitration against one of its largest oilfield service providers based on disposal services provided in the Permian Basin. Sought more than $5 million for repayment of improper overcharges and defended against counterclaim seeking nearly $1.5 million in damages. Settled case in exchange for seven-figure settlement in operator’s favor.
Type of Case: Oilfield Service & Vendor Litigation, Accounting & Audit Disputes, Energy Arbitrations
Confidential Pre-Arbitration Dispute
Represented Fortune 500 oil and gas exploration company in an audit dispute with a joint-venture partner. Joint-venture partner sought nearly $50 million under the parties’ joint operating agreements based on amounts billed to the joint-venture account. Following exchange of materials and position papers, mediated and resolved dispute on a confidential basis.
Type of Case: Accounting & Audit Disputes
Confidential Arbitration, in the American Arbitration Association
Represented oil and gas company in arbitration against major oil and gas operator related to the purchase of shale assets and associated joint interest billings (JIBs). Sought more than $30 million related to monies owed under a Purchase and Sale Agreement (PSA) and related Transition Services Agreement (TSA). Settled case in exchange for substantial payment in client’s favor.
Type of Case: JIB Disputes, PSA Disputes, Energy Arbitrations, Accounting & Audit Disputes