Lawsuits filed by oil and gas lessors against producers, alleging underpayment of royalties, are becoming more common. The recent wave of lawsuits against Chesapeake Energy is just one example Both the federal government and lessors in Texas and other states have alleged that resource producers often use questionable accounting techniques, such as deducting post-production costs, to avoid paying the full amount of royalties due.\u00a0<\/p>\n
For their part, oil and gas producers usually claim they are following the terms of their leases. However, many producers have agreed to higher payments in response to demands or lawsuits by lessors.<\/p>\n
The current wave of lawsuits and other disputes may owe its origin in some part to one Texan who made a mission of uncovering alleged fraud in oil and gas royalty payments. In 1996, Harrold Eugene Wright filed lawsuits against some of the largest oil companies in the United States, claiming contract fraud. He battled (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Lawsuits filed by oil and gas lessors against producers, alleging underpayment of royalties, are becoming more common. The recent wave of lawsuits against Chesapeake Energy is just one example Both the federal government and lessors in Texas and other states…<\/span><\/p>\n