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Ohio Utica Shale

Beck Energy facing class-action suit on Monroe County leases

By Bob Downing Published: July 17, 2013

From the ShaleOhio blog by the Ohio law firm Bricker & Eckler:

Ravenna-based Beck Energy Corp. may ask the 7th District Court of Appeals in Youngstown to hear a class-action lawsuit filed by hundreds of landowners with property spanning across 21,000 acres in Ohio's Monroe County, The (Youngstown) Vindicator reports.

The landowners allege that Beck Energy used a "blanket oil and gas lease drafted in 1983 that tied up their mineral rights where the company initially planned to drill into the Clinton Sandstone formation – but never did – leaving the land undeveloped."

Siding with the landowners, a Monroe County Common Pleas Court judge "voided the 21,000 acres of leasehold and said Beck breached the contract by failing to develop the land in a timely manner."

With litigation pending, Beck Energy sold the deep mineral rights to some of the 21,000 acres to Exxon Mobil subsidiary XTO Energy, agreeing to "defend title to the leases."

Among the 14 industry-affiliated groups that filed a friend of the court brief supporting Beck's argument that the leases be reinstated was the Ohio Oil and Gas Association (OOGA).

For more, read the full story.
 

 

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