Blaine County well payment fight leads to Federal court ruling

Another squabble over oil production payments from a Blaine County well has led to a ruling in Muskogee U.S. District Court.

It came in a lawsuit (CIV-17-334-SPS) filed by Chieftain Royalty Company based in Oklahoma City against Marathon Oil Company.  Chieftain Royalty accused Marathon of delaying payments and denying interest payments.

U.S. Magistrate Judge Steven P. Shreder granted Marathon , a Houston based energy company, a move to dismiss a count of fraud but refused to dismiss counts involving breach of statutory duty and failure to investigate and pay.

He also said Chieftain Royalty has raised a claim for punitive damages and it would be premature to dismiss the claim.

The suit accuses Marathon of not only being late with payments but refusing to pay interest on the late payments. Marathon sought to have all of the counts dismissed but now the case is moving closer to trial.

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