Lease Owner Claims Devon Energy Underpays Oil Royalties

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Devon Energy Production Company, L.P. is the defendant in a proposed class action lawsuit that claims it failed to properly calculate and pay royalties on oil it collected from the plaintiff’s property. The plaintiff says he owns four horizontal oil wells from which the defendant collects large volumes of an oil and water mixture that is separated and sold. According to the suit, the defendant then pumps the water mixture to salt water disposal wells, allows it to further separate, and collects more oil from the fluid for which it does not pay royalties to the plaintiff. The suit argues that Devon illegally failed to pay lease owners for the oil recovered at the disposal wells and robbed them of “their share of production.”