Permian Basin Royalty Trust, represented by Argent Trust Company, has initiated legal action against Blackbeard Operating, seeking more than $9m in damages for alleged underpayment of royalties.

The lawsuit pertains to oil and gas production in the Waddell Ranch area of Texas. It is the second Amended Petition in the District Court of Tarrant County, Texas.

The Trust accused Blackbeard Operating of incorrectly calculating and failing to pay the required royalties for production months from April 2020 through December 2023.

The trustee's allegations include improper deductions for overheads, labour expenses and saltwater disposal fees.

Furthermore, the trustee contends that Blackbeard did not pay royalties on all volumes of oil, gas and other minerals produced, nor did it provide the annual reports mandated by the Conveyance.

While a joint venture audit of the 2024 production months is currently in progress, the trustee has reserved the right to add any further claims that may emerge from the audit.

Some claims from the trustee's original and first amended petitions have already been settled through this audit process.

The trial is set to take place on 17 November 2025 in the District Court of Tarrant County.

Also, this month, the Railroad Commission of Texas expressed concerns over rising underground pressure in the Permian Basin due to wastewater disposal from shale oil wells, highlighting environmental risks and potential impacts on crude oil production.

The Permian Basin is the largest oil-producing basin in the US and generates vast quantities of chemical-laced water as a byproduct of shale oil extraction.