MDN File Photo A Hess Bakken Investments II well near Palermo, shown Sept. 14, 2024, is one of many wells operated by Hess affiliates in the Bakken oil fields in northwestern North Dakota.

As Hess Corp. was changing ownership this past summer, long-standing lawsuits around the company’s business dealings in the Bakken were closed in some cases and newly filed in others.

Two cases in North Central District Court were dismissed after settlement agreements were reached.

A Securities and Exchange Commission filing by Vitesse Energy indicates a settlement will provide the company a one-time cash payment of $24 million from Hess. The filing also states Vitesse has elected to take virtually all of its gas production from Hess-operated wells in-kind and has entered into new long-term gas gathering, processing and marketing agreements with Hess affiliates.

Vitesse had sued in North Central District Court in Ward County in 2020, claiming it suffered millions of dollars in damages due to what it alleged were Hess’s deceptive practices to overstate its midstream costs related to gathering, processing, treating and transportation of hydrocarbons.

A number of lawsuits brought against Hess, both in North Dakota and Texas, have alleged Hess defendants deducted and continued to deduct exorbitant and unreasonable costs for post-production services and paid owners of nonoperating, working interests and royalty interest significantly less on average than other operators.

The other settlement was reached in the 2022 lawsuit filed by Alcazar Energy in North Central District Court in Mountrail County. Details regarding that settlement were not available. The company’s attorneys did not respond to requests for information. The lawsuit was a consolidated case involving 14 companies that raised allegations similar to the Vitesse lawsuit.

In the wake of the Vitesse settlement, three additional cases were filed in North Central District Court in Mountrail County against Hess and affiliates and Chevron, which acquired Hess this past July.

Triple T, Granite Ridge and The Dublin Company filed lawsuits in July and August.

A hearing was scheduled for Thursday, Nov. 6, related to the defendants’ motion to disqualify the plaintiffs’ expert witness, who was a Hess employee prior to 2009. Plaintiffs describe the employee, Ajey Chandra, as a leading expert on midstream matters who worked for Hess prior to incidents alleged in the lawsuits. In the Vitesse case, Chandra analyzed the company’s agreements with Hess and concluded post-production costs have been “wildly out of market,”according to the plaintiffs’ court brief filed in the consolidated cases.

Triple T (TTT), Stanley, states it has nonoperating, working interests and overriding royalty interests in more than 600 productive wells operated by HBI in North Dakota. TTT is alleging racketeering, fraud and deceit by Hess defendants..

The Dublin Company and Kent Lynch, both Williston, allege in their lawsuit that HBI and Chevron have continued the improper and illegitimate post-production deductions. Dublin owns nonoperating, working interests in about 23 productive wells, overriding royalty interests in about 114 productive wells and royalty/nonparticipating interests in about 108 productive wells opened by HBI in the Williston Basin. Lynch owns nonoperating, working interests in about 37 productive wells, overriding royalty interests in about 220 productive wells and royalty interests in about 147 productive wells, all operated by HBI in the Williston Basin.

Granite Ridge of Dallas stated it owns nonoperating, working interests in 94 productive wells operated by HBI in North Dakota.

Each of the lawsuits seek financial damages and an order restricting the defendant from future excessive charges

Court records show a federal case in North Dakota District Court remains in litigation. Sandy River Resources is a consolidated case involving multiple companies and class action royalty owners.