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.