Landowners to receive $5.5M to settle suit over oil, gas rights in Fayette County
About 60 Fayette County landowners who signed leases for oil and gas rights 14 years ago will receive a combined $5.5 million in a settlement reached with a drilling company.
The settlement calls for Chief Exploration and Development, now known as Cyprus Exploration and Development, to pay the landowners for leases that were signed between August and October 2008. The landowners filed a class-action lawsuit in 2011 after bonus and rent payments were not made.
Attorney James Lederach said the landowners live in Bullskin, Saltlick and Springfield townships.
“All these people up on the mountain will be happy,” he said.
The plaintiffs had sought $7 million, according to court filings, after lease agreements signed with Western Land Services through landman Jim Maguire were not honored by Chief Exploration and Development. A preliminary settlement was approved last month and is set to be finalized Dec. 1.
Chief Exploration and Development denied the allegations but agreed to settle, according to court filings. Their attorney could not be reached Thursday. Western Land Services and Maguire were not part of the lawsuit.
Lederach said he believes all of the affected landowners have been notified of the settlement.
Renatta Signorini is a TribLive reporter covering breaking news, crime, courts and Jeannette. She has been working at the Trib since 2005. She can be reached at rsignorini@triblive.com.
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