Texas oil company denies wrongdoing in Idaho royalty lawsuit

A Texas-based oil and gas company being sued in federal court by Idaho mineral rights owners over royalty payments says it has done nothing wrong and the lawsuit should be dismissed.

Alta Mesa and other companies associated with it in court documents filed Wednesday deny any wrongdoing involving oil and gas leases in southwestern Idaho.

The initial lawsuit filed in Idaho’s Third District Court in May said the company underpaid natural gas royalties to leaseholders by altering royalty accounting methods.

Alta Mesa moved the lawsuit to federal court because the various companies being sued were organized under Texas or Delaware laws, and none of the partners of the companies are Idaho residents.

Federal law allows lawsuits filed in state court to be moved to federal court if the defendants are not residents of that state.