Law Firm of Wohl & Fruchter Commences Investigation into Systematic Underpayments by XTO Energy Inc. of Monies Owed to Hugoton

  Law Firm of Wohl & Fruchter Commences Investigation into Systematic
  Underpayments by XTO Energy Inc. of Monies Owed to Hugoton Royalty Trust

Business Wire

NEW YORK -- December 13, 2012

The law firm of Wohl & Fruchter LLP has commenced an investigation into
whether XTO Energy Inc. (XTO) has systematically failed to pay amounts due to
Hugoton Royalty Trust (the Trust) (NYSE:HGT) in breach of the net overriding
royalty conveyances (the conveyances) that form the principal assets of the

Under the terms of the conveyances, the Trust is entitled to 80% of the net
proceeds from the sale of all hydrocarbons from the underlying properties.

In the case of the Hugoton area, most of the production is sold to a
subsidiary of XTO, Timberland Gathering & Processing Co. (Timberland), under
the terms of a contract entered into in March 1996.

XTO recently settled a lawsuit brought by royalty owners of wells operated by
XTO, Fankhouser v. XTO Energy, Inc., Case No. CIV-07-798-L, in the United
States District Court for the Western District of Oklahoma. One of the Court’s
findings in the Fankhouser case was that Timberland was not making any payment
for natural gas liquids (NGLs) extracted from the gas stream under the March
1996 contract. By contrast, the Court found that in contracts XTO entered into
at arm’s length with third parties, “XTO specifically negotiated for payment
to it of the value of the NGLs in addition to the value of the residue gas.”

Under the terms of the settlement in the Fankhouser case, XTO agreed to begin
paying royalty owners for the net value of NGLs in the gas stream from their

Wohl & Fruchter’s investigation concerns whether the exclusion of NGLs under
XTO’s related-party contract with its subsidiary, Timberland, has also
resulted in the failure to compensate the Trust for the value of the NGLs, in
violation of the conveyances.

Additional information is available at

Persons with relevant information, and unitholders of the Trust with questions
about this investigation, are invited to contact our Firm.

About Wohl & Fruchter

Wohl & Fruchter LLP represents plaintiffs in litigation arising from fraud and
other fiduciary breaches by corporate managers, as well as other complex
litigation matters. Please visit our website,, to learn
more about our Firm, or contact one of our partners.

This release may be deemed to constitute attorney advertising.


Wohl & Fruchter LLP
Ethan Wohl, 212-758-4097
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