Mineral Rights Owners Sue Exxon Over Production Lease Payments |
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A class action lawsuit has been filed on behalf of royalty based mineral rights owners with an interest in certain oil and gas production units in Kansas. The suit alleges that Exxon Mobil Oil Corporation, and certain affiliate and subsidiary companies, have injured the rights of the plaintiffs by deliberately underpaying them on their mineral leases. The suit seeks back payments and other damages for the plaintiffs.
The complaint alleges that payments on the mineral leases are subject to a formula clearly set forth in the terms of the lease. Notwithstanding this formula, plaintiffs allege that Exxon Mobil improperly deducted its production costs from the royalty it was required to pay to the plaintiff leaseholders, theirby reducing their payments in violation of the lease.
Plaintiffs seek recovery of the improperly withheld payments as well as liquidated damages, attorneys fees and costs.
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