A group of mineral rights royalty owners in Texas has filed suit against BP America Production Company and Cimarex Energy, claiming that they are owed millions of dollars in unpaid royalties for oil produced from a tract of Jefferson County land.
The plaintiffs claim in the lawsuit that they are owed one-sixteenth of the revenue for oil produced from drilled on the land, as their predecessors were entitled to the same interest according to 1933 deeds that the plaintiffs now own. The lawsuit was filed December 19 by Donna L. Davis, acting as the trustee of the Rhonda L. Davis Irrevocable Trust, and others, in Jefferson County Civil District Court.
According to the complaint, Cimarex and BP have earned more than $100 million by drilling for oil on the tract in question. The companies have refused to pay mineral rights royalties to the plaintiffs, saying they are not owed.
The complaint alleges breach of contract and seeks declaratory relief, damages, interest and attorney’s fees. The lawsuit has been assigned to Judge Gary Sanderson of the 60th District Court.
BP is the fourth-largest company in the world, and the third-largest oil and gas company. Its U.S. operations account for one-third of its business. Cimarex Energy is a Denver-based drilling company.