Landowners Say XTO Energy’s ‘Ruse’ Cuts Their Royalties

Law360 (March 26, 2020, 8:00 PM EDT) -- An ExxonMobil Corp. unit was slapped with a proposed class action in Pennsylvania federal court alleging it bilked landowners in the state out of royalties they were owed through a “ruse” to artificially inflate fees.

Four Pennsylvania landowners accused XTO Energy Inc. on Wednesday of violating their lease agreements by using its subsidiary, Mountain Gathering LLC, to transport the natural gas from their properties. They said using the affiliate to transport the gas lets XTO pocket an outsized share of the sale proceeds and “evade the language it wrote in the leases.”

“The prices XTO paid to Mountain Gathering for gathering...

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