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Chesapeake Energy Owes Fort Worth School District $1 Million

by Elizabeth Alford on April 13, 2016

Chesapeake Energy agreed to pay the Fort Worth School District $1 million in royalties, according to documents released this week.

Related: Fort Worth School District to Receive Royalties

Texas Attorney General decided the public had a right to know what was going on behind closed doors and on March 8th ordered the Fort Worth School District to release details of its out-of-court settlement with Chesapeake Energy.

Kelley Shannon, executive director of the Freedon of Information Foundation of Texas, told the Star Telegram that, “This is a positive and important ruling by the Texas attorney general’s office. Taxpayers have a right to know how their money is managed by elected officials, including legal settlements made on behalf of citizens.”

In January, the two parties reached an out-of-court settlement from a 2014 case where the school district case alleged that Chesapeake 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. Until this week, the amount were unknown.

Chesapeake had been fighting the public disclosure of the settlement, arguing that the details might be used against the company in their other royalty cases.

On top of the agreed upon settlement, Chesapeake will also pay attorneys fees of  approximately $50,000

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