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Fort Worth School District to Receive Royalties

by Elizabeth Alford on January 18, 2016

The Fort Worth School District in Texas will finally receive compensation from Chesapeake.

Related: Chesapeake Ordered to Pay Up

Last week, the Fort Worth School District reached an out-of-court settlement with oil and gas giant, Chesapeake Energy for an undisclosed amount. This was the latest setback for the troubled company who has been fighting an onslaught of lawsuits concerning payment of back royalties for a couple of years.

The Fort Worth school district case was filed in May 2014 and alleged that Chesapeake improperly deducted expenses from royalties owed to the district and its taxpayers. Court documents confirm that the suit involved least 30 leases on land covering at least 1,000 acres.
Other high-profile cases that are being settled include lawsuits filed by the city of Fort Worth, the Fort Worth Housing Finance Corp. and Union Pacific Railroad, according to the Fort Worth Star Telegram.

Chesapeake’s stock has plummeted this year from $21.49 per share to $3.56. The company has also stopped paying dividends, cut its drilling budgets and laid off employees.

In December, the Michigan Attorney General ordered Chesapeake to pay up to hundreds of Northern Michigan residents have been waiting since 2010 for royalty payments.

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