This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Law Firm Of Wohl & Fruchter Commences Investigation Into Systematic Underpayments By XTO Energy Inc. Of Monies Owed To Hugoton Royalty Trust

The law firm of Wohl & Fruchter LLP has commenced an investigation into whether XTO Energy Inc. (XTO) has systematically failed to pay amounts due to Hugoton Royalty Trust (the Trust) (NYSE:HGT) in breach of the net overriding royalty conveyances (the conveyances) that form the principal assets of the Trust.

Under the terms of the conveyances, the Trust is entitled to 80% of the net proceeds from the sale of all hydrocarbons from the underlying properties.

In the case of the Hugoton area, most of the production is sold to a subsidiary of XTO, Timberland Gathering & Processing Co. (Timberland), under the terms of a contract entered into in March 1996.

XTO recently settled a lawsuit brought by royalty owners of wells operated by XTO, Fankhouser v. XTO Energy, Inc., Case No. CIV-07-798-L, in the United States District Court for the Western District of Oklahoma. One of the Court’s findings in the Fankhouser case was that Timberland was not making any payment for natural gas liquids (NGLs) extracted from the gas stream under the March 1996 contract. By contrast, the Court found that in contracts XTO entered into at arm’s length with third parties, “XTO specifically negotiated for payment to it of the value of the NGLs in addition to the value of the residue gas.”

Under the terms of the settlement in the Fankhouser case, XTO agreed to begin paying royalty owners for the net value of NGLs in the gas stream from their properties.

Wohl & Fruchter’s investigation concerns whether the exclusion of NGLs under XTO’s related-party contract with its subsidiary, Timberland, has also resulted in the failure to compensate the Trust for the value of the NGLs, in violation of the conveyances.

Additional information is available at  http://www.wohlfruchter.com/cases/hgt.

Persons with relevant information, and unitholders of the Trust with questions about this investigation, are invited to contact our Firm.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,918.07 -165.73 -0.97%
S&P 500 1,977.61 -10.37 -0.52%
NASDAQ 4,440.4020 -31.7060 -0.71%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs