Property owners claim SWEPI owes $222,000 in oil and gas rental fees

By Bree Gonzales | Jun 25, 2018

WILLIAMSPORT — Three property owners are suing oil company SWEPI LP, citing alleged breach of contract and breach of covenant of good faith and fair dealing in connection with an alleged refusal to pay rental fees.

WILLIAMSPORT — Three property owners are suing oil company SWEPI LP, citing alleged breach of contract and breach of covenant of good faith and fair dealing in connection with an alleged refusal to pay rental fees.

Brian Allen, Dale Allen and Sandra Allen filed a complaint June 8 in the U.S. District Court for the Middle District of Pennsylvania, alleging that the oil company refused to pay the defendants on several occasions.

According to the complaint, the plaintiffs had financial challenges from 2005 to 2015 and were forced to file bankruptcy as a result of the defendant's alleged refusal to pay the agreed rental fees on a series of oil and gas leases.

The plaintiffs said SWEPI knew that it was obligated to pay the rental fee in question, as evidenced by a $222,000 check, which was later stopped, that it sent to the plaintiffs on July 22, 2010 in connection with a 2008 lease.

The plaintiffs are demanding a judgment in the amount of $222,000, plus interest, consequential damages, attorney's fees and court costs. They are represented by Dimitri Karapelou of the Law Offices of Dimitri L. Karapelou LLC in Philadelphia.

U.S. District Court Middle District of Pennsylvania case number 4:2018-cv-01179

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