Texas Gas Royalties Case Belongs in Federal Court, 5th Cir. Says

A class action with more than 200 people alleging that an oil and gas company underpaid them in excess of $100 million in royalties belongs in federal court, an appeals court ruled.

The plaintiffs failed to show that the principal injuries from the alleged royalty underpayments were “incurred” in Texas, the US Court of Appeals for the Fifth Circuit said March 1.

Devon Energy Production Co. LP leases land in Dewitt County, Texas, the opinion said. The company markets and sells hydrocarbons produced from wells on the land and pays royalties to the plaintiffs.

The landowners argued the case belongs ...