Energy companies claim Southeastern Land breached rights transfer agreements

By Noddy A. Fernandez | Jun 18, 2018

PITTSBURGH — Several energy companies are suing Southeastern Land LLC, citing alleged breach of contract.

PITTSBURGH — Several energy companies are suing Southeastern Land LLC, citing alleged breach of contract.

Consol Energy Inc., Consol of Kentucky Inc., Island Creek Coal Co., Laurel Run Mining Co. and CNX Land LLC filed a complaint June 1 in the U.S. District Court for the Western District of Pennsylvania, alleging that the defendant failed to comply with its contractual obligations under a sales agreement and permit operating agreement.

According to the complaint, between July 19, 2016 and Aug. 1, 2016, the plaintiffs executed the sales agreement conveying specified rights and obligation to the defendant in connection with the sellers' Miller Creek operations in Logan and Mingo counties, West Virginia. 

In addition, the plaintiffs claim the defendant agreed to comply with the terms of the permit operating agreement, but allegedly failed to transfer the majority of the permits by a agreed deadline, causing the sellers to pay up to $37 million to maintain bonds that were not transferred.

The plaintiffs allege that Southeastern Land still has not fulfilled all of its permit transfer obligations under the agreements.

The plaintiffs request a trial by jury and seek payment of bond premiums and permit transfer penalties, an award of pre-judgment and post-judgment interest, attorneys' fees, court costs and other relief to which they may be entitled. They are represented by John McIntyre, Patrick Emery and Aleksandra Phillips of Reed Smith LLP in Pittsburgh, Pennsylvania.

U.S. District Court for the Western District of Pennsylvania case number 2:18-cv-00725-JFC

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