Professional Documents
Culture Documents
"I think SEPCO decided that Denny had made too good of a deal,
and I think there were some corporate politics. SEPCO decided to
basically run them [the defendants] off," Peters says.
"There has never been any financial incentive for the company to
cheat its royalty owners. If [the company] didn't have royalty
Mars says he'll turn back to that lawsuit once the class-action
case is over.
In the class-action case, he adds, the company will argue that the
PSC has already decided the issues in favor of the royalty owners.
would certainly make you very reluctant to do business with someone who
is guilty of what SEPCO alleged."
The lawsuit seeks damages of more than $60 million for thousands of
royalty interest owners who have contracts to sell to SEECO natural gas
pumped from wells in Franklin, Crawford, Washington, Logan and Johnson
counties. Essentially, the complaint contends SEECO underpaid royalty
holders to sweeten its deal with Arkansas Western Gas.
The case was filed two years ago against Southwestern Energy; its
exploration division, SEECO Inc.; and its natural-gas utility, Arkansas
Western Gas Co. The suit alleges fraud, breach of good faith and fair
dealing duties, tortuous interference with contractual relations, civil
conspiracy and unjust enrichment.
Counterclaim
In the original lawsuit, SEPCO accuses the defendants of
racketeering, fraud, breach of contract and fiduciary duty, negligence
and intentional interference regarding 3-D seismic mapping - to scope
out possible drilling sites in the Boure Basin in southern Louisiana.
Most of the defendants have reached settlements, but Whinery decided to
fight back, and he's seeking damages of $70 million.
Contentious History
Lease agreements with property owners are "the heart and soul of
every natural gas production company," he says.