Argent Trust Company, as Trustee of the Permian Basin Royalty Trust, announced a settlement agreement in connection with litigation against Blackbeard Operating, LLC.
The Trust sought to recover more than $9 million in damages due to Blackbeard's failure to properly calculate and pay royalties.
The settlement includes a payment of $9,000,000 from Blackbeard to the Trust, with specific payment terms and agreements regarding future royalty calculations.
Settlement Agreement Reached
Blackbeard agreed to pay $9,000,000 to the Trust, with structured payment terms and additional agreements regarding royalty calculations.
Value to Trust Unitholders
The settlement provides value to Trust unitholders and ensures predictability in future royalty payments.
Agreements on Reporting and Audits
The parties agreed on reporting requirements for Blackbeard and granted the Trust the option to conduct annual site audits at its expense.
Forward-Looking Statements Disclaimer
The Trustee included a disclaimer on forward-looking statements, highlighting potential factors that could impact actual results.
- The settlement resolves a significant legal dispute between Permian Basin Royalty Trust and Blackbeard Operating, providing clarity and closure on the litigation.
- Trust unitholders can now expect a structured payment plan from Blackbeard, enhancing transparency and trust in the relationship between the parties.
The settlement of the Blackbeard litigation marks a positive outcome for Permian Basin Royalty Trust, securing financial recompense and setting clear guidelines for future royalty payments. This agreement enhances trust and stability in the Trust's operations and benefits its unitholders.