Energen Resources Corp. Accused of Underpaying Gas Royalties to NM Well Owners

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Energen Resources Corporation is on the receiving end of a proposed class action that alleges the defendant underpaid royalties to the owners of wells from which the company extracted and sold natural gas. According to the complaint, Energen was bound by contract to pay landowners one-eighth of the proceeds from the sale of gas found on their properties. The complaint argues that the defendant didn’t include in its royalty calculations the “residue gas, natural gas liquid products, and condensate” that were produced from the plaintiff’s wells between September 1, 2007 and March 31, 2015.

Furthermore, the case claims the defendant made unlawful deductions from the plaintiff’s royalty payments by subtracting expenses incurred through gathering, compressing, and processing the gas, as well as charging the plaintiff for the New Mexico Natural Gas Processors Tax – costs that allegedly should have been covered by the defendant under its contract with the plaintiff.