Diversified Energy Co. class action lawsuit overview:
- Who: Diversified Energy Co. has agreed to pay up to $6.5 million as part of a class action settlement with a group of landowners.
- Why: The landowners argued Diversified abandoned more than 2,000 unproductive gas wells that are leaking methane on their land.
- Where: The class action lawsuit was filed in West Virginia federal court.
Diversified Energy Co. and EQT Corp. have agreed to pay up to a combined $6.5 million as part of a settlement agreement made to end claims Diversified abandoned more than 2,000 unproductive and methane-leaking gas wells and was unable to pay the cost of plugging all the approximately 12,000 wells sold to it by EQT.
In addition to the monetary payment, Diversified also agreed to cap at least 2,600 wells located in West Virginia, Ohio, Kentucky, Pennsylvania, Virginia and Tennessee by 2035.
A group of landowners asked a West Virginia federal judge to approve the settlement earlier this month, arguing Diversified’s promise to plug the wells reflects what the class action lawsuit was always about.
“This case is and always has been about well-plugging, and the settlement’s key feature — Diversified’s Plugging Promises — reflects that,” the plaintiffs said, in a memorandum in support of unopposed motion of preliminary approval filed Nov. 8.
Diversified only obligated to cap off 580 non-producing wells, in absence of settlement, landowners say
In absence of the settlement, Diversified is currently only under obligation to cap approximately 580 non-producing wells in the affected states, according to the plaintiffs’ memorandum.
The settlement agreement would also protect Diversified from trespass claims over the 10-year period it conducts its plugging program, which must be done in compliance with all “applicable state plugging and safety regulations.”
Landowners with a “bona fide health, safety, or environmental concern” will also be able to apply for an expedited well-plugging for up to 10 wells per year, according to the settlement.
The settlement agreement comes after several failed attempts to dismiss the initial class action lawsuit along with both an amended and again-amended version, reports Law360.
Top Class Actions is currently conducting a class action lawsuit investigation for consumers who had to pay additional fees to have their electricity, water or natural gas service reconnected after it was disconnected on account of a nonpayment.
Is an unproductive Diversified Energy Co. gas well leaking methane on your land? Let us know in the comments.
The plaintiffs are represented by Athanasios Basdekis, Brian A. Glasser, John W. Barrett, Panida A. Anderson, Brian R. Swiger and William Flynn of Bailey & Glasser LLP and John Michael Becher and Joseph M. Lovett of Appalachian Mountain Advocates.
The Diversified Energy Co. class action lawsuit is McEvoy, et al. v. Diversified Energy Co. PLC, et al., Case No. 5:22-cv-00171, in the U.S. District Court for the Northern District of West Virginia.
Don’t Miss Out!
Check out our list of Class Action Lawsuits and Class Action Settlements you may qualify to join!
Read About More Class Action Lawsuits & Class Action Settlements:
2 thoughts onDiversified Energy Co. seeks approval for $6.5M settlement in class action lawsuit
Please add me
please add to list