News

March 7, 2016

Burns Charest Helps Eagle Ford Mineral Owners Sue for Royalty Underpayment and Declaration on Lease Termination

Mr. Blackstone Dilworth, his family members and related parties—mineral owners of approximately 15,900 acres in the heart of the Eagle Ford shale oil and gas play—have hired Daniel Charest and Burns Charest LLP to lead a legal action for unpaid royalties. The lawsuit involves oil and gas leases across three separate ranches, the Prince Ranch, the 76 Ranch, and the Dilworth Ranch, in McMullen County, Texas. Mr. Dilworth is owner of the San Isidro Development Company, L.C, based in Sandia, Texas.

Burns Charest filed suit on March 2, 2016, against Chesapeake Operating LLC, the operator, as well as Chesapeake Exploration LLC, OOGC America LLC, and Jamestown Resources LLC, the lessees and working interest owners. Captioned Dilworth v. Chesapeake Operating, L.L.C, Cause No. M-16-0011-CV-C, the case is pending in the 343rd Judicial District, McMullen County, Texas. None of the defendants have answered to date.

“As oil prices fall we’ve seen more sensitivity to post-production costs, price selection, volume measurements, and other lease-administration issues. This case stands as just one of many that fits that description,” said Mr. Charest. “The owners have sought damages and asserted breaches by the lessees that could terminate the three leases. The land owners just want to enforce their rights. If that means the leases have terminated, they are prepared for that.”