Four years ago DFW airport officials disagreed with how Chesapeake Energy was paying royalties. The lawsuit from that disagreement has just been settled and duck taped.
“The case has been removed from the trial docket to allow the parties to complete final settlement documents and obtain all necessary approvals,” spokeswoman Julie Wilson said in an e-mail. “The settlement terms are mutually acceptable to the parties and will be maintained confidential.”
The Star-Telegram blog reports the settlement amount is $5 million.
But there are new lawsuits that claim Chesapeake is underpaying royalties.
Chesapeake Energy subsidiaries improperly deduct post-production costs from natural gas royalty checks, leaseholders say in a class action.
They have changed the way royalties are paid in mid stream and royalty owners are not happy about it.
Dory Hippauf, who has followed the development of the shale gas industry in the northeast since its early days recently reported that, “Bradford County Commissioners Doug McLinko and Daryl Miller said at the end of their regular meeting on Aug. 2 that they have been fielding concerns from county residents, who have leases with natural gas companies, that mounting post-production costs are eroding their royalties. This, paired with the low market price of natural gas right now, has dropped some monthly payments by landowners by as much as 90 percent.”
I worked in this industry. Shorting royalty owners is nothing new.