Chinapeake Scams American Landowners


While busy trying to sell out to the Chinese and over-stating their gas reserves,  and funding fracking mockumentaries Chesapeake Energy has  somehow found time to rip-off American landowners. Imagine that.  And some New York towns run by fracking collaborators can’t wait to be fracked by Chesapeake and their scriveners at the DEC


Johnson County Landowners Accuse Chesapeake Energy of Skimming Shale Gas Royalties

By Brantley Hargrove Fri., Jul. 6 2012 at 2:00 PM

A family of Johnson County landowners is suing Chesapeake, the country’s second-largest natural gas company, for allegedly cheating them out of royalties. Their lawyer, Dallas-based attorney James Holmes, says they can thank endlessly indulgent Texas laws and a taxing authority more inclined to look the other way.The complaint filed Tuesday in federal court accuses Chesapeake of using its gas-gathering and purchasing subsidiaries to “suppress the wellhead gas prices on which it pays royalties” to “imbed” post-production costs — something the landowners say their lease agreement forbids. Under the contract, Holmes says, Chesapeake is required to pay royalties based on the market value of the gas. Instead, he alleges, the company deducted costs for things like gas compression.


  1. Shale Drillin says

    C’mon, Chip, it’s only $100 Million bucks. And one of CHK’s PR flacks have already acknowledged that they will have to shell out some money for this deal regardless.

  2. Rick Ober says

    Rec’d. 9/19/2012 new contract from Chesapeake Energy and I quote, Your Mineral Acres: 0.3000, Bonus per acre: $1000, Total Bonus to you: $300 Royalty 22% on marketable oil and gas for the well(s) lifetime Primary Term: five (5) years. This contract is an attempt to be renewed and the previous two contracts were between $ 4 and $5 thousand. What recourse does a property owner have, as I have read some very negative scenarios here lately. I am originally from Chicago and know that Party Politics rule there but now Texas and the Nation seem to be part of that equation.

    • says

      A lot depends on where you are located and who around you has signed. I would urge your neighbors to NOT SIGN. If they drill near you, your property value will decrease way beyond the few hundred dollars you might receive in royalties over the 30 years.