LAKE CHARLES – The owner of an oil, gas, and mineral lease in Chalkley Field in Cameron Parish is seeking reimbursement from the other lease holders over alleged court costs in a settlement suit.
Eland Energy Inc. of Dallas filed lawsuit March 18 in U.S. District Court for the Western District Louisiana Lake Charles Division against Midwest Resources Inc, Midwest Resources 93-1 Oil & Gas Income Limited Partnership, Midwest Resources 94-1 Oil & Gas Income Limited Partnership, Midwest Resources 95-1 Oil & Gas Income Limited Partnership, and Midwest Resources 96-1 Oil & Gas Income Limited Partnership, alleging breach of contract.
According to the complaint, Eland and the defendants owned working interest in the Chalkley Fields lease, with Eland leasing 50 percent the area for oil, gas, and minerals. Both Eland and the Midwest Resource group, the suit says, were parties to an operating agreement Nov 30, 1995, (but effective Sept 1, 1995) which governs the parties’ rights and obligations in connection with their ownership and operation in connection with the Chalkley Field leases. The lawsuit states the agreement lists Eland as designated operator, and stipulated that any and all costs and expenses related to handling, settling or discharging of a claim or lawsuit will be a jointly paid by all the parties in relation to the Chalkley Field lease.
Eland has been defending itself and Midwest Resources group in a lawsuit relating to an alleged contamination from oil and gas exploration. Eland alleges Midwest Resources acknowledged its responsibility for the proportionate share of the costs and expenses of the suit shortly after the lawsuit was filed.
However, Eland alleges the defendants have refused to pay their proportionate share of the court expenses despite multiple requests. Eland asserts, as of March 1, the costs and expenses of the suit has reached $1 million with defendants' portion more than $500,000. On Feb 1, Midwest Resources allegedly sent a letter to Eland stating its refusal to pay its part of the costs.
Eland seeks a declaratory judgment stating the defendants are liable for and are obligated to pay their proportion of the costs, expenses, attorney fees, damages, legal costs and any other rewards deemed just by the court. It is represented by attorney Lauren C. Mastio of Jones Walker LLP in New Orleans.
U.S. District Court for the Western District of Louisiana Case number 2:16-CV-00368