Permian Basin Royalty Trust, acting as Trustee, has recently filed a lawsuit against Blackbeard Operating, LLC in the District Court of Tarrant County, Texas. The Trust is seeking to recover over $15 million in damages resulting from alleged unauthorized deductions made by Blackbeard from the Trust’s royalty payments.
The Trustee regularly conducts audits of revenues and expenses associated with the Trust’s royalty payments. During the audit for the period from 2020 to 2022, the Trustee identified various exceptions, including incorrect overhead charges, the application of overhead charges to non-producing wells, duplicate charges for services, materials, and utilities, as well as other expenses considered ineligible by the Trustee. Despite attempts to resolve these disputed charges outside of court, no agreement has been reached thus far.
While the outcome of the litigation remains uncertain, the Trust’s legal action emphasizes its commitment to safeguarding the interests of its stakeholders. The Trust’s primary objective is to ensure that the interests of beneficiaries are protected and that any unauthorized deductions are rectified.
It is important to note that forward-looking statements have been made by the Trustee in relation to the plans for the Trust and the litigation process. These statements are subject to various factors and risks that may cause actual results to differ considerably from anticipated outcomes. The Trustee has disclosed these risks in its filings with the Securities and Exchange Commission, including its annual report on Form 10-K.
Although the Trustee’s views expressed in this press release are as of the current date, it recognizes that subsequent events and developments may impact these views. Although the Trustee may choose to update its forward-looking statements in the future, it explicitly disclaims any obligation to do so.
For further information or inquiries, please contact Jana Egeler, Vice President of Argent Trust Company, the Trustee of Permian Basin Royalty Trust, at the toll-free number 1.855.588.7839.
The article discusses the legal action taken by Permian Basin Royalty Trust against Blackbeard Operating, LLC. The Trust is seeking to recover over $15 million in damages resulting from alleged unauthorized deductions made by Blackbeard from the Trust’s royalty payments.
In addition to the details provided in the article, it is important to consider current market trends in the oil and gas industry. The Permian Basin, located in West Texas and Southeastern New Mexico, is one of the most prolific oil and gas producing regions in the United States. It has experienced significant growth in recent years, with increased drilling activity and production levels.
The Trust’s lawsuit against Blackbeard Operating highlights the potential challenges and controversies associated with royalty payments in the industry. Operators are responsible for accurately calculating and distributing royalty payments to mineral rights owners. Disputes can arise when operators make unauthorized deductions or fail to properly account for expenses related to the production of oil and gas.
The outcome of the litigation is uncertain, and it will be important to monitor the developments in the case. If the Trust is successful in recovering the damages, it could set a precedent for other mineral rights owners to take legal action against operators for unauthorized deductions.
On the other hand, if Blackbeard Operating is able to defend against the Trust’s claims, it could impact the Trust’s ability to recover the damages sought. This could have financial implications for the Trust and its stakeholders.
It is important to note that the Trustee has made forward-looking statements regarding the plans for the Trust and the litigation process. These statements are subject to various factors and risks that may cause actual results to differ from anticipated outcomes. The Trustee has disclosed these risks in its filings with the Securities and Exchange Commission.
For more information or inquiries about the lawsuit or the Trust, interested parties can contact Jana Egeler, Vice President of Argent Trust Company, the Trustee of Permian Basin Royalty Trust, at the toll-free number 1.855.588.7839.
For more information on the Permian Basin and its significance in the oil and gas industry, you can visit Schlumberger’s Permian Basin webpage. Schlumberger is a leading provider of technology and services to the oil and gas industry and their webpage provides valuable insights and data on the Permian Basin.
It is also worth exploring the official website of the Permian Basin Royalty Trust itself for further information on the Trust and its activities. The website can be accessed at www.pbt-permian.com.