Pennsylvania Record

Sunday, September 22, 2019

Gas rights owners claim Chesapeake Appalachia LLC has failed to compensate them for production


By Bree Gonzales | Feb 15, 2019

WILLIAMSPORT — Gas and mineral rights owners are suing oil and gas companies, citing alleged erroneous accounting of and insufficient payment for their share of production.

Kave Consulting LLC and Pozzo LLC filed a complaint on Feb. 4, in the U.S. District Court for the Middle District of Pennsylvania against Chesapeake Appalachia LLC, Equinor USA Onshore Properties Inc., Alta Marcellus Development LLC, Mitsui E&P USA LLC, and Larchmont Resources LLC, alleging they have not paid plaintiffs or any predecessor in title to the plaintiffs for production of any substance from the premises stated in the suit or any well(s) in proximity to those premises.

According to the complaint, Kave Consulting LLC and Pozzo LLC are owners of an undivided one-half interest in oil, gas and mineral rights on a site in Leroy Township, Bradford County. Defendants who own the other one-half interest allegedly have produced and sold oil and/or natural gas from the common property without accounting or payment to the plaintiffs. 

The plaintiffs hold Chesapeake Appalachia LLC and others responsible because the defendants allegedly have benefitted from the production of natural gas (or other substances) from the wells through or in proximity to the premises and owe the plaintiffs an accounting of their profits with respect to the plaintiffs’ interest in the oil, gas and minerals of the premises.

The plaintiffs seek damages upon each cause of action in an amount to be determined at trial, but in any event, not less than $75,000; pre-judgment and post-judgment interest; direction that defendants account to plaintiffs for all income corresponding to plaintiffs’ interest in the premises and to pay such income to plaintiffs with interest; additionally, awarding their costs, expenses, disbursements and attorney’s fees. They are represented by Damian Rossettie of Landy & Rossettie PLLC in Sayre.

The U.S. District Court for the Middle District of Pennsylvania Case No. is 4:19-cv-00196-MWB.

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