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Royalty Owners Win $126 Million Ruling
Monday, January 12, 2009 7:55 PM


(Source: Tulsa World)trackingBy Rod Walton, Tulsa World, Okla.

Jan. 12--Helmerich & Payne Inc. must pay Beckham County royalty owners $126 million in damages and lost profits for uncompensated natural gas wells that were drained in the 1980s, a Tulsa County judge ruled.

District Judge P. Thomas Thornbrugh's decision last week nearly doubled the award by a jury after the trial ended in November. Thornbrug agreed that actual damages should be around $6.8 million, but added that the lost profits and interest from that original amount should total $119 million, according to court records.

Helmerich & Payne attorneys responded Monday, saying they believe that actual damages will be paid by Cimarex Energy Co. Helmerich & Payne spun off part of its exploration and production business to form publicly traded Cimarex in 2002.

Cimarex assumed all of the assets and liabilities related to H&P's exploration and production operations, according to a company release. Cimarex will appeal the judge's ruling.

Members of the Krug family and Bobbie Ruth Eubanks filed the class-action lawsuit in 1998. They alleged that H&P shut in gas wells on their properties during a contract dispute with ANR Pipeline Corp, its gas purchaser.

The plaintiffs were never compensated, although that gas was drained once the dispute was settled, according to reports.

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Copyright (c) 2009, Tulsa World, Okla.

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