EQT Corp., the U.S.’s largest natural gas producer, today announced it’s reached a tentative settlement agreement with West Virginia landowners who are part of a statewide class action lawsuit concerning royalties.
To resolve the royalty claims for the class period, which spans 2009 through 2017, EQT has agreed to pay $53.5 million into a settlement fund to be established to disburse payments to class participants. Each class member will have the opportunity to opt out if they so choose.
Under the settlement, EQT has agreed to stop taking future post-production deductions on leases determined by the court to not permit deductions, Kallanish Energy reports. EQT and the class representatives also agreed future royalty payments will be based on a clearly defined index pricing methodology.
Certain class participants may also elect to adopt EQT’s standard lease pooling modification in return for a 2% (up to a maximum of 18%) increase in their royalty.
Finalization of the settlement, which would resolve claims asserted in the lawsuit Kay Company LLC, et al. v. EQT Production Co., et al., a case pending in U.S. District Court for the Northern District of West Virginia, will follow the customary court approval process and the issuance of court-approved notices to class members.
The settlement is subject to federal court approval and achieving a minimum percentage of participation by the class members.
This post appeared first on Kallanish Energy News.