PITTSBURGH - An energy corporation sued a gas and oil drilling company on Jan. 20 for allegedly overcharging for expenses to operate oil wells even when the wells weren't producing.
Ohio Valley Energy Systems Corporation filed the lawsuit against DL Resources, Inc. alleging a breach of contract in U.S. District Court for the Western District of Pennsylvania.
Ohio Valley owns a 50 percent interest on about 1,100 acres of property in McKean County. DL Resources operated the oil wells on the property.
The plaintiff alleged DL Resources failed to operate the wells according to the contract between the two companies. Alleged violations included
-Failing to test and repair pumps as necessary;
-Failing to allocate appropriate personnel to operate the pumps; and
-Failing to run the pumps in a consistent manner in order to produce oil and gas.
DL Resources also allegedly charged $250 per month per oil well for operating expenses even if the wells weren't producing “in a profitable manner."
Ohio Valley alleged it has tried to resolve the issues and to terminate an operating agreement between the two businesses, but a resolution hasn't been made. The company is asking the court for more than $75,000 in damages plus court costs.
The plaintiff is represented by Michael P. Leahey and Daniel R. Michelmore of Jackson Kelly in Pittsburgh.
United States District Court for the Western District of Pennsylvania case number 1:15-cv-00029