Attorneys for Bailey & Glasser LLP and Appalachian Mountain Advocates have requested $4.4 million in fees from a settlement requiring Diversified Energy Co. to dramatically expand its efforts to plug inactive oil and gas wells acquired from EQT in six states.

The filing, submitted Friday in West Virginia federal court, outlines how the fees, $2 million in costs, $96,000 in service awards, and $100,000 in administrative expenses would utilize the majority of a $6.5 million fund set aside in the settlement. The remaining agreement mandates Diversified plug 2,600 inactive wells by 2035—more than quadrupling its prior obligations.

"Plaintiffs' counsel expended 18,582 hours and almost $2 million in litigation expenses to achieve this unprecedented settlement," the plaintiffs' brief stated. "The settlement guarantees Diversified will plug 2,020 more wells than required, benefiting class members."

The settlement, which gained preliminary approval in November, targets idle gas wells in West Virginia, Ohio, Kentucky, Pennsylvania, Virginia, and Tennessee that Diversified acquired from EQT. The $6.5 million fund is allocated solely for fees, costs, and service awards, leaving Diversified’s plugging obligations untouched, the brief emphasized.

Property owners, led by Mark McEvoy and Susan Tawney, initiated the proposed class action in July 2022. They accused Diversified Energy of abandoning over 2,000 unproductive wells leaking methane on their properties. The suit also alleged EQT and Diversified orchestrated a $600 million gas asset transfer to sidestep cleanup liabilities.

The legal battle, characterized by motions to dismiss, interventions by mineral rights owners and the West Virginia Department of Environmental Protection, and Fourth Circuit appeals, required significant expert analysis. Plaintiffs' experts evaluated costs associated with the transfer and the financial burden of capping the wells.

"Based on Diversified's estimate of $25,000 per well, its increased plugging obligation represents a $50.5 million benefit," the brief argued. "The requested fees account for just 8.6% of this value, underscoring their reasonableness."

The $4.4 million request is less than half the "lodestar" calculation, which valued plaintiffs' attorneys' work at $9 million, the filing said. Bailey & Glasser and Appalachian Mountain Advocates each contributed about 9,300 hours of work, valued at $5.5 million and $3.5 million respectively, based on their hourly rates.

The filing also seeks $3,000 service awards for each of the 32 named class representatives, citing their active involvement in depositions, discovery, and case strategy despite limited personal financial recovery from the settlement.

"The plaintiffs pursued this litigation to ensure well plugging, not monetary damages," the brief said. "Their commitment made this recovery possible."

Plaintiffs' counsel declined to comment on the fee request Monday. Diversified's representatives did not immediately respond to requests for comment.

The plaintiffs are represented by John W. Barrett of Bailey & Glasser LLP and Amanda Demmerle and Joseph M. Lovett of Appalachian Mountain Advocates.

Diversified Energy is represented by Daniel T. Donovan, Ragan Naresh, Kenneth A. Young, and Dustin L. Womack of Kirkland & Ellis LLP and Howard M. Persinger III of Persinger & Persinger LC.

The case is McEvoy et al. v. Diversified Energy Co. PLC et al., case number 5:22-cv-00171, in the U.S. District Court for the Northern District of West Virginia.