DALLAS, Texas — Argent Trust Company, acting as Trustee of the Permian Basin Royalty Trust, has submitted a second amended petition in a Tarrant County court as part of its ongoing lawsuit against Blackbeard Operating LLC. The legal dispute centers around oil and gas properties in Crane County, Texas, where the Trust claims ownership of a 75% net overriding royalty.
The new petition seeks to recover more than $9 million, alleging that Blackbeard improperly calculated and withheld royalty payments owed to the Trust. Specific claims include inappropriate deductions for overhead costs, labor expenses, and saltwater disposal fees. Additionally, the Trustee asserts that Blackbeard did not account for all volumes of oil, gas, and minerals extracted from the land, and failed to provide the annual reports required by the original conveyance agreement. The complaints pertain to production periods ranging from April 2020 through December 2023.
A joint venture audit for production in 2024 is currently in process, which may lead to further claims as additional discrepancies are revealed. Some issues identified in earlier petitions have been resolved through this audit.
The trial in Tarrant County is slated for November 17, 2025, at 8:30 a.m. Central Time. Discovery is underway, involving on-site audits of the Waddell Ranch properties, expert witness assessments, and a review of documentation from Blackbeard.
The outcome of this case is crucial not only for the Trust but also for the operational practices in the industry. Should the court rule in favor of the Trust, it may set a precedent affecting how royalties are calculated and reported.
In an effort to keep stakeholders informed, the Trustee made clear that certain statements regarding future expectations may not materialize as anticipated due to various risks and uncertainties. Key variables that could impact the Trust’s performance are detailed in their most recent annual and quarterly reports.
For inquiries, Jana Egeler, Vice President of Argent Trust Company, can be reached toll-free at 1-855-588-7839.
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