Sept 3 (Reuters) - Anadarko and other natural gas
exploration and production companies have defeated a federal
lawsuit in Pennsylvania accusing them of underpaying royalties
to property owners holding interests to thousands of acres of
leased land.
U.S. District Judge Karoline Mehalchick in Scranton ruled on
Friday that the plaintiffs had no standing to pursue claims
under federal antitrust law, and also that they had not shown
the companies agreed to form an enterprise to defraud them.
The landowners include dozens of individuals and family
member trusts with land above the natural gas-rich underground
Marcellus Shale in Pennsylvania. The plaintiffs lease their land
to gas explorers and producers.
The lawsuit, filed in 2015, claimed the defendants carved up
geographic markets among themselves to minimize competition for
gas mineral rights, operating rights and gathering services,
which include pipes that transport raw natural gas from a well
to a processing plant.
The plaintiffs said the gas companies imposed "unreasonable
and artificially inflated gas gathering and transportation
fees," which reduced royalty payments.
Mehalchick dismissed antitrust and other claims, including
alleged violations of federal racketeering law. She gave the
plaintiffs 28 days to file any amended lawsuit.
The plaintiffs' lawyers and attorneys for Anadarko and other
defendants, including Williams Partners, formerly known as
Access Midstream Partners, did not immediately respond to
requests for comment.
Houston-based Occidental Petroleum ( OXY ), which acquired Anadarko
in 2019 for $38 billion, did not immediately respond to a
request for comment. Occidental was not a defendant after it was
dropped from the lawsuit last year.
The defendants had all denied any wrongdoing.
The plaintiffs said they hold royalty interests in natural
gas produced from more than 12,000 acres of land.
Anadarko in April told the court that the landowners had
attempted "to turn a basic contract dispute over royalty
payments into an antitrust scheme." Anadarko said the plaintiffs
had failed to show how "unrelated, legitimate business
agreements" amounted to an antitrust violation.
Mehalchick said the plaintiffs' lawsuit "does not support
that each defendant was even aware of each other's conduct,
never mind had a unity purpose."
The case is A&B Campbell Family LLC et al v. Chesapeake
Energy ( CHK ) et al, U.S. District Court, Middle District of
Pennsylvania, No. 3:15-cv-00340-KM.
For plaintiffs: Thomas McNamara of Indik & McNamara; Taunya
Knolles Rosenbloom of Law Offices of Taunya M. Knolles
Rosenbloom; and Christopher Jones of Griffin, Dawsey, DePaola &
Jones
For Anadarko: Steven Bizar, Michael Doluisio and Elisa
Beneze of Dechert
For Access Midstream: Kayci Hughes of Crowe & Dunlevy, and
John Summers