BP Unit Underpaying Okla. Gas Royalties, Suit Says

By Keith Goldberg (September 28, 2016, 6:39 PM EDT) -- A BP PLC unit was hit with a proposed class action in Oklahoma federal court Wednesday for allegedly stiffing natural gas royalty owners by improperly deducting processing costs to make the gas marketable for sale.

Named plaintiff John Cecil claims that BP America Production Co. is breaching its lease obligations in underpaying royalties, by deducting processing costs and post-production midstream services. BP is also not paying royalties on all the products produced from the stream of gas coming from wells, the suit says.

"BP has settled similar claims on a nonclass basis in Oklahoma, yet only doing so for those that...

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