Tyler County landowner receives $4.9 million in damages for lost royalties
Wednesday, March 11, 2015
Due to a Federal Court’s decision that an oil and gas company didn’t follow through with lease agreements, a Tyler County, West Virginia, land owner has been awarded $4.9 million, according to WTOV.
In 2011, the landowner leased his oil and gas rights to Cunningham Energy, LLC. In 2011, Cunningham filed against the landowner. The landowner filed a counterclaim, stating that Cunningham hadn’t complied with a “drilling commitment” in the leases.
The court found that Cunningham hadn’t satisfied the lease terms, and thus awarded the landowner with damages in the amount of money that the landowner would have received if Cunningham had drilled the wells.
Via: WTOV > Tyler County landowner awarded nearly $5 million verdict for lost royalties
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Shale FAQ
How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.