Natural Gas Cos. Hit With Royalty Payment Class Action In Pa.

By Alex Wolf (November 1, 2016, 5:58 PM EDT) -- A Carrizo Oil & Gas Inc. subsidiary and a partnering investor have for several years violated leasing agreements with Pennsylvania landowners by regularly paying gas royalties based on below-market prices and passing on post-production costs, according to a class action complaint removed to federal court Monday.

In a suit originally filed in a Susquehanna County, Pennsylvania, court, plaintiff James Slamon accused Carrizo (Marcellus) LLC, Reliance Marcellus II LLC and Reliance Holdings USA Inc. of breaching oil and gas leasing agreements by failing to pay lessors 18 percent of the greater of the market value of the gas or the gross amount...

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