DENVER A company long controlled by a prominent Greeley-area farming family is suing Denver-based energy producer PDC Energy Inc. (Nasdaq: PDCE), alleging that it was underpaid royalties for production on its property for 25 years.
In the complaint filed Monday in Denver County District Court, Farr Farms Co. claims that it has consistently been paid less than what it is owed in royalties based on the market price of the oil because the Denver-based company deducted midstream and downstream costs from the farms’ payments without proper disclosure.
The lease for the minerals was first enacted in 1981. PDC acquired that lease in 2005 from a now-defunct oil producer. The suit does not specify how much Farr Farms claims it is owed.