XTO Energy Sued in Pennsylvania for Underpaid Royalties
Two Butler County property owners filed a lawsuit Tuesday in federal court against XTO Energy alleging insufficient payment of royalties from natural gas drilling operations.
The plaintiffs, Richard Marburger as trustee of the Olive M. Marburger living trust and the Thiele family, allege XTO Energy has been deducting operating expenses from their royalty payments, which their lease agreement states they would not do.
“The lease is a contract, and they breached it. They made a promise, and they broke it,” attorney David Borkovic said.
The suit was filed by Jones, Gregg, Creehan and Gerace, a Pittsburgh-based law firm.
It was filed as a class-action lawsuit and the complaint says there are potentially more than 100 plaintiffs and more than $5 million in the controversy.
Because the plaintiffs live in Pennsylvania and XTO is based in both Delaware and Texas, the suit was filed in U.S. District Court for the Western District of Pennsylvania.Click here to continue reading.
This lawsuit follows in the pattern of multiple lawsuits that have been filed against Chesapeake Energy for similarly making enormous deductions of royalty payments for operating expenses.
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