DALLAS, May 8, 2024
/PRNewswire/ -- Argent Trust Company, as Trustee of the Permian
Basin Royalty Trust (NYSE: PBT) ("Permian" or the "Trust") today
announced that it has initiated a lawsuit by filing a petition in
the District Court of Tarrant County,
Texas against Blackbeard Operating, LLC ("Blackbeard"), the
operator of properties in the Waddell Ranch, in Crane County, Texas, in which the Trust holds
a 75% net overriding royalty.
Pursuant to the petition, the Trustee seeks to recover more than
$15 million in damages to the Trust
resulting from overhead costs and other expenses the Trustee
alleges were impermissibly deducted
from royalty payments to the Trust. The Trustee routinely engages
in audits of the revenues and expenses with respect to the Trust's
royalty payments. In connection with its audit for the period from
2020-2022 the Trustee identified exceptions to certain expenses
deducted from the Trust's royalty payments, including among other
things, incorrect overhead charges, application of overhead charges
to non-producing wells, duplicate charges for services, materials,
and utilities, as well as other expenses the Trustee alleges are ineligible charges. Attempts to resolve
the disputed charges outside of court have been unsuccessful to
date.
Forward-looking Statements
Any statements in this press release about plans for the Trust,
the outcome of litigation or disputes, and other statements
containing the words "estimates," "believes," "anticipates,"
"plans," "expects," "will," "may," "intends" and similar
expressions, other than historical facts, constitute
forward-looking statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Factors or risks that could cause the Trust's actual results to
differ materially from the results we anticipate include, but are
not limited to the risks set forth under the heading "Risk Factors"
in the Trust's annual report on Form 10-K and its other filings
with the Securities and Exchange Commission.
Actual results may differ materially from those indicated by
such forward-looking statements. In addition, the forward-looking
statements included in this press release represent the Trustee's
views as of the date hereof. The Trustee anticipates that
subsequent events and developments may cause its views to change.
However, while the Trustee may elect to update these
forward-looking statements at some point in the future, it
specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing the Trustee's views as of any date subsequent to the
date hereof.
CONTACT: Jana Egeler, Vice President, Argent
Trust Company, Trustee,
Toll Free – 1.855.588.7839
View original
content:https://www.prnewswire.com/news-releases/permian-basin-royalty-trust-announces-lawsuit-against-blackbeard-operating-llc-302140538.html
SOURCE Permian Basin Royalty Trust