Texas Mineral Rights Owners Settle with Chesapeake in Royalty Payment Lawsuit

"Prominent Texas oil and gas investor Edward Bass and more than a dozen other Barnett Shale mineral rights owners have settled a lawsuit against natural gas production giant Chesapeake Operating Inc. (CHK) for allegedly underpaying oil and gas royalties and breaching its contracts with the landowners. Originally filed in 2013, the lawsuit alleged that Oklahoma City-based Chesapeake violated lease agreements by selling natural gas production from one corporate subsidiary to another, which depressed the resulting price and the amount owed to each landowner. The lawsuit also claimed that Chesapeake took improper deductions from those royalty payments in order to cover expenses for drilling, production and post-production activities. Some of the leases permitted Chesapeake to pass on production costs in certain circumstances, but court documents showed that those contractual terms were never met."

......seems like a trend is developing.

http://finance.yahoo.com/news/texas-mineral-rights-owners-settle-15...

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