PDC Energy sues landowner over alleged royalties fraud

DENVER and WELD COUNTY — PDC Energy Inc. (Nasdaq: PDCE) is suing an Arkansas woman who it said wrongfully claimed and received $1.64 million in well royalties in 2017 and 2018.

According to its complaint filed in the U.S. District Court of Colorado Friday, Denver-based PDC alleges that it received a claim in 2017 from Arkansas resident Beverly Smitherman, who claimed royalty interest in the revenues made from production at 18 wells in unincorporated Weld and Adams counties between Thornton and Brighton.
A year later, PDC claims, a third-party trust disputed Smitherman’s claim on the mineral revenues, which led to her royalties being suspended in September 2018.
PDC paid Smitherman just more than $1.64 million in royalties from August 2017 to September 2018. The company claims that Smitherman and her attorney initially acknowledged being paid the royalties in error in December of that year, but have since refused to return the funds.
PDC is asking the court to require Smitherman to return the royalties and pay attorney fees and additional damages as deemed proper.
The listed attorneys for Smitherman did not respond to a request for comment Monday.

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