A long-simmering dispute over gas royalties is deadlocked and may wind up in court — a battle that could affect how much money the airport collects from the gas that’s pumped from its property.
And some critics have alleged that Chesapeake hasn’t properly complied with airport rules on hiring subcontractors owned by women and minorities.
Producers haven’t been paying royalty owners correctly for a very long time.
But airport officials apparently believe that Chesapeake owes them more money for royalties. The dispute surfaced last year, when airport officials told Chesapeake they disagreed with how the royalties were being calculated. In a July letter to the company, airport lawyers wrote that Chesapeake was “attempting to change the rules of the game at this late juncture.”
Under the lease, Chesapeake is required to pay a 25 percent royalty based on the highest market price paid for gas from a field comparable to D/FW, or based on the actual proceeds received from the gas sale, whichever is greater.
Someone please check royalties paid by Devon, XTO, et al.