Trustee objects to XOM/XTO's charge of 80% of settlement: Arbitration
Truly a positive development with regards to all three of the lawsuits, and the rightful distribution of profits from well production. Also seems to indicate B of A's intention to fulfill its obligation to act in the unit holders’ best interest, and to concur with our view that the trust didn’t actually benefit from the unjust enrichment. The $200,000 reserved to hire the outside law firm, Knight and Thomson, might end up being very well spent!
BTW, probably, and hopefully a coincidence, but a letter dated 18 July from Helms and Underwood on my behalf demanded the Trustee initiate necessary actions to keep XTO from allocating settlement obligations to the Trust. The two law firms (which should have similar client interests to protect against XTO) talked during the last week of July.
Also still an issue is the possibility of back distributions I suspect may be due to unit holders.
Appears the trustee has listened to unit holders and looked at the facts. It is doubtful they would take this step without having a very good case. I am pleased they have listened and are taking steps to protect the interests of the unit holders.
But so far the trustee only addresses XTO's assertion that unit holders should pay to offset what appears to be only XTO's unjust enrichment. We have at least two other issues on the table: NGL proceeds and potential overcharging by Timberland. So keep writing letters to Nancy.
It is public information. Those of us who are stockholders get this information regularly.
XTO got caught with their hand in the till. It will take a court order to make them grow up and face the restitution they owe us. The arbitration will only last so long. Then we will have to get the courts involved.