Talisman Energy Facing Texas Federal Lawsuit Over Unpaid Oil, Gas Royalties

Posted on Monday, October 10, 2016

Royalty owners say Talisman manipulated reports of Eagle Ford production volumes

VICTORIA, Texas – Attorneys representing oil and gas royalty owners with interests in the Texas Eagle Ford Shale have filed a federal lawsuit against Talisman Energy USA Inc. based on claims that the company manipulated oil and gas production volumes by as much as 20 to 30 percent and consistently shorted royalty payments.

Attorneys from Texas-based Provost Umphrey Law Firm, L.L.P., are representing Eugene and Kimberly Cran of DeWitt County in their claims against Warrendale, Pennsylvania-based Talisman.

Talisman is accused of secretly altering wellhead production data by arbitrarily reducing the measured volumes of oil and gas by as much as 20 percent. The royalty owners say Talisman further reduced the measured volumes in the spring of 2015, shortly after the company was purchased by Spanish energy giant Repsol in a deal valued at more than $13 billion. 

The lawsuit filed on Oct. 3 includes claims against Talisman for breach of contract, fraud, conversion and unjust enrichment, among others. A jury trial has been requested by Mr. and Mrs. Cran, who are represented by attorneys Bryan O. Blevins Jr. and Michael Hamilton of Provost Umphrey in Beaumont, Texas, and Ernest Freeman and Stephen Scholl of The Freeman Law Firm, P.C., in Houston.

“When Talisman entered the U.S. market, they were totally unprepared to manage fractional ownership interest by individual royalty owners whose rights and remedies are governed by their lease terms,” says Mr. Blevins, lead counsel for the Crans and a litigator who has represented clients in Texas and across the U.S. for more than 25 years. “Our clients have been and are still being significantly and purposely underpaid by Talisman for their mineral rights, and our goal is to make sure that the appropriate parties are held accountable. Talisman’s manipulation of production volumes and shorted royalty payments were intentional and may have been related to the Repsol acquisition.”

This is the second oil and gas royalty class action filed this year by Provost Umphrey and the firm’s lawyers.

The case is Cran v. Talisman Energy USA Inc., No. 6:16-CV-00064, in the U.S. District Court for the Southern District of Texas, Victoria Division.

About Provost Umphrey Law Firm

For 50 years, our firm’s mission has remained to seek justice for those most in need – those who have suffered harm or loss due to the wrongful conduct of others. Our attorneys fight for our clients nationwide with offices in Beaumont and Houston, Texas, and Nashville, Tennessee. We continue to be one of the most successful trial law firms in the nation by remaining Hard-Working Lawyers for Hard-Working People. To learn more, visit http://www.provostumphrey.com.

For more information on the Talisman lawsuit, contact Bruce Vincent at 800-559-4534 office, 214-728-6747 cell, or at bruce@androvett.com.

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