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Barnett Shale Mineral Owners Sue Chesapeake

by Elizabeth Alford on July 11, 2016

Chesapeake Energy continues to battle legal issues as they face a new lawsuit brought by property owners in the Barnett Shale.

Related:Chesapeake to Pay Record Royalty Settlement

More than 30 North Texas businesses and individuals have filed lawsuit in the District Court of Dallas County claiming Chesapeake owes them millions of dollars in royalty payments. The lawsuit covers more mineral interests on 5,400 acres and more than 750 producing gas wells in Tarrant, Johnson and Ellis counties in Texas, according to Platts.

The suit alleges that Chesapeake charged mineral owners unreasonable fees after a $588 million midstream deal in 2009 with Global Infrastructure Partners.

This is the latest in a string of lawsuits against Chesapeake for cheating mineral owners. Other noteworthy decisions involving the company include;

  • January 2016: The Fort Worth School District reached an out-of-court settlement with Chesapeake for $1 million for a 2014 case where the school district case alleged the company improperly deducted expenses from royalties owed to the district and its taxpayers. The suit involved at least 30 leases on land covering at least 1,000 acres.
  • January 2016: The Texas Supreme Court upheld a lower court’s ruling to award at least $1 million in royalties, interest and attorney fees to a Texas family for improperly subtracting postproduction costs from their royalty checks.
  • May 2016: Chesapeake agreed to pay Fort Worth $15 million to settle the lawsuit, making it the largest settlement the company has ever been required to pay.
  • May 2016: Chesapeake Energy and Total E&P have agreed to pay $52.5 million to landowners who were cheated out of natural gas royalties.
  • The Tarrant County College District and Tarrant County commissioners have additional lawsuits pending against Chesapeake.

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