|
FORM 10-K FOR FISCAL YEAR ENDED DECEMBER 31, 1998Item 3. Legal Proceedings
From time to time, litigation arises in the ordinary course of Swift’s oil and gas drilling and production activities. In early 1997, Swift and the Lower Colorado River Authority, the "LCRA," filed claims against each other in the 155th Judicial District Court of Fayette County, Texas, over the interpretation of an oil and gas farmout agreement from LCRA to Swift covering land in Fayette County, Texas. Swift originally sued to force LCRA to assign to Swift leases which LCRA had refused to assign, covering wells successfully drilled by Swift on the farmout acreage, and seeking declaration as to the parties’ interests in the properties involved. LCRA counterclaimed for damages and claimed fraud and conversion, plus conspiracy to convert oil and gas among Swift, certain of its officers and managed partnerships. LCRA has not quantified its damages, but in December 1998 alleged that they do not exceed $10 million, exclusive of punitive damages. Swift does not believe LCRA’s counterclaims are valid nor that the claimed damage amount is a credible number, and Swift intends to vigorously pursue its claims under the farmout. A July 6, 1999, trial date has been tentatively set for this case. Although certain proceeds from production of the field involved have been escrowed in the court pending resolution of this case, based on discovery to date, the Company does not believe that this case will have a materially adverse impact upon its financial condition or results of operations.
|
||||||||||||||||||||
|
|
|||||||||||||||||||||
|
This page was last updated on Saturday, February 08, 2003 , at 07:46:29 PM . Copyright © 1994-2008 by Swift Energy Company. |
|||||||||||||||||||||
|
|
