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.
