W.Va. jury rules against NiSource |
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Mon, 29 Jan 2007 14:28
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MERRILLVILLE, Ind. (AFX) - Utility operator NiSource Inc. said a West Virginia jury ruled against the company and other defendants in a natural-gas royalties case and awarded the plaintiffs more than $400 million in damages.NiSource, its former subsidiary Columbia Natural Resources, and Chesapeake Appalachia LLC were defendants in the suit, which was filed in 2003 and alleged Columbia underpaid royalties by not paying market value for natural gas.The jury awarded $134.3 million in compensatory damages and $270 million in punitive damages.Late Sunday, NiSource called the verdict surprising and the damages excessive.'The result, if left standing, would set a precedent that is contrary to existing law and could undermine the legal underpinnings of nearly every natural gas royalty contract in the state,' the company said in a statement.Saturday's verdict is subject to review by the trial court. NiSource said the defendants would appeal if the court lets it stand.NiSource sold Columbia in 2003, but the company said it are mains primarily responsible for any damages ultimately determined to be due following appeal.'Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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High Court rules on railroad negligence 