Attorney Gregory D. Jordan Comments on Energy Services Firm’s Countersuit Against Leaseholder



Austin Oil and Gas Attorney, Gregory D. Jordan

Austin Oil and Gas Attorney, Gregory D. Jordan

Austin, TX (Law Firm Newswire) August 1, 2016 – An energy services company has filed a countersuit in Texas state court against an oil leaseholder, claiming the leaseholder raised frivolous claims to divert attention from its history of nonpayment.

In the original suit, 1776 Energy Partners LLC claimed that Riley Exploration LLC breached a master services agreement that obligated Riley to maintain, develop and, if necessary, renew leases for certain Texas oil and gas producing properties. 1776 claimed that Riley failed to exercise an extension option and let the leases expire. Riley’s countersuit alleges that the original claims are groundless and harassing, saying 1776 is to blame for letting the leases expire.

“Contracts involving oil and gas leases can be complex,” said Gregory D. Jordan, an Austin oil and gas attorney with the Law Offices of Gregory D. Jordan. “This complexity and the big money that is often at stake means that disputes are not uncommon.”

Riley’s countersuit claims that 1776’s ability to drill, develop or sell its acreage has been impeded by a 2012 lawsuit with Longview Energy Co., in which Longview won a constructive trust over thousands of acres of leases and a $95 million judgment. That decision was reversed on appeal and is pending Texas Supreme Court review. Riley argues that since the lawsuit, 1776 has allowed tens of thousands of acres of leases to expire, and failed to pay bills on time. Riley claims that in 2013, when 1776 terminated the master services agreement, 1776 owed Riley over $1.7 million. Riley further claims that 1776 failed to pay Riley’s legal costs as agreed in a series of lawsuits and enforcement actions from the Texas Railroad Commission.