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Estate of Tawney v. Columbia Natural Resources, LLC

The Tawney Case In 2006, plaintiffs, Estate of Garrison G. Tawney, Richard L. Ashley, Janice E. Cooper, Clifford R. Cooper, Myrtle Jones, Larry G. Parker, and John W. Parker, all oil and natural gas royalty owners of West Virginia, filed suit against Columbia Natural Resources (CNR) claiming CNR had "fraudulently, intentionally, and knowingly" underpaid royalties by deducting post-production costs and by entering into futures contracts that resulted in "below-market-value sale prices." CNR routinely subtracted fees for gathering and transporting the gas to interstate pipelines, as well as, assessed volume deductions. The Plaintiffs argued the deductions were improper under the leases, which consisted of "varying language on calculation of royalties."

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