Company Sues Natural Gas Producer

An eastern Kentucky company sues the region's largest natural gas producer, claiming it underpaid landowners millions of dollars in royalties.

Pikeville-based Applachian Land Company says equitable land improperly takes out production costs and severance taxes from the market price on gas produced on private land.

The suit claims equitable shorted landowners 45 million dollars.

Equitable says it’s consistent with their contracts and business practices in Kentucky.


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  • by brenda Location: down the street on Jul 14, 2008 at 05:55 AM
    The fact that it's in their contracts is one issue. I believe the larger issue is that withholding severance taxes from royalty owners is illegal under state law.
  • by Andy Location: Pikeville on Jul 14, 2008 at 05:10 AM
    Plus the fact, we can't buy N. Gas for our homes.Not a cubic foot to heat our homes,while its pumped out of here all points East and North.This is great place, but you can't buy a lump of coal either.Its all for someone else.
  • by Angus Location: Brokeback Mtn. on Jul 13, 2008 at 04:42 PM
    Whats new with this practice? Most of those companies like Interstate, Equitable, and Chesapeake do the same tricky math and contracts. Only a lawyer could decipher their jargon and read the fine print. Those gas company owner are multi-millionaires over and over. Oh, well. Guess I will go check the couch for enough change to get a half-gallon gas.

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