Devon Energy to Pay $28 Million to Settle Texas Gas Royalty Suit

Devon Energy Production Co. is offering to pay $28 million to resolve a dispute with Texas well owners who say they were underpaid royalties, according to a motion for approval of a class action settlement filed in a federal court in the state.

Devon improperly calculated and intentionally underpaid millions of dollars of royalties to plaintiffs for processing gas extracted from wells at a Bridgeport, Texas, plant owned by its affiliate, Devon Gas Services, from 2008 through 2014, according to the complaint.

The lawsuit filed in the U.S. District Court for the Northern District Texas says DGS deducted a 17.5% ...