Chesapeake Settles Lawsuit Over Royalty Deductions in Texas

From the Fort Worth Star Telegram:
Chesapeake Energy will pay the city of Arlington $700,000 to settle a lawsuit accusing the company of using a complicated scheme devised to reduce royalty checks for gas pumped from under parks, airports and other pieces of public property. 
The Arlington City Council voted 8-0 Tuesday to approve a deal reached with the Oklahoma City-based company and Total E&P USA, a French energy company that owns 25 percent of Chesapeake’s Barnett Shale holdings. 
Mayor Robert Cluck, who recently had surgery, was not present. 
The city sued in August, saying that Chesapeake, which holds leases on about 1,900 acres of public property, based its royalty payments on gas prices that were well below the actual sales price and improperly deducted certain post-production costs.
Read more by clicking here.

This is the same type of practice that has drawn negative attention (and lawsuits) to Chesapeake in the Marcellus and Utica shale plays.   Time will tell how those cases will be resolved.



Read more here: http://www.star-telegram.com/2014/08/19/6054582/arlington-approves-gas-royalty.html?rh=1#storylink=cpy

Connect with us on Facebook and Twitter!

Popular posts from this blog

Fracktivist in Dimock Releases Carefully Edited Video, Refuses to Release the Rest

The Second Largest Oil and Gas Merger - Cabot and Cimarex

Is a Strong Oil Demand Expected This Year?