Chesapeake Energy to pay $119M in Oklahoma royalty case

Chesapeake Energy to pay $119M in Oklahoma royalty case

Jan 26 2015, 17:13 ET | About: Chesapeake Energy Corporation (CHK) | By: Carl Surran, SA News Editor 
  • Chesapeake Energy (NYSE:CHK) agrees to pay $119M under a preliminary settlement with Oklahoma mineral rights owners who accused the company of improper royalty payments dating back to 2004.
  • Landowners accused CHK of improperly withholding royalty money and charging them for the costs of processing and transporting gas; the class action lawsuit affects more than 11,800 wells in Oklahoma.
  • CHK has faced similar lawsuits in Pennsylvania and other places where it operates.

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Permalink Reply by Frank Walker on January 26, 2015 at 11:49am

Compared with Chesapeake Energy, the New England Patriots do not cheat at all!

Permalink Reply by Tony Yurina on January 26, 2015 at 12:13pm

That works out to an average of a little over $10,000 per well for a ten year period.  

Permalink Reply by Tony Yurina on January 27, 2015 at 1:39pm

It would be interesting to have a party, who has an average producing well, party to this suit add up all the royalty deductions for the ten year period and compare that number to the average of $10K per well settlement.

Permalink Reply by Tree Farmer on January 27, 2015 at 2:23pm

The forensic accountants required to figure this all out got paid 100's per hr. Don't get me wrong, I think it is great that CHK got burned on this. But welcome to the reality of dealing with OG companies that have armies of lawyers on retainer. Just wait 20-30 years and then the party gets started after the big boys sell the wells to some local creeps that will cut corners and laugh at you while they pollute your land and endanger your property. And don't expect much help from the Div of oil & gas, they are truly just a mouthpiece for the Div Chief who is nothing more than an appointed position by the governor dujur (read pawn of the aforementioned OG companies). 20+ years of dealing with the likes of Alliance Petro and Green gas of Wooster has left me rather jaded.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on January 29, 2015 at 4:46am

The Ohio Director ODNR, James Zehringer was the only member of Ohio government to write a letter to me in response to my complaint about CHK.

He gave me advice on how to proceed against CHK in Ohio. I have the letter as evidence and I'm following his advice.

Based on his response, I have to stand in his defense. I don't believe he is accepting CHK money or he would have ignored me like the others did.

 

Permalink Reply by Frank Walker on January 27, 2015 at 2:51pm

The corruption is behind every tree and around each corner.  Here in Bradford County, PA, where I live, our County Commissioners became so frustrated with Chesapeake's shenanigans that they referred all instances of wrongdoing and cheating here to our Commonwealth of PA Attorney General, Kathleen Kane.

What happens next?  Kathleen Kane herself is presently under threat of indictment and jail because of her own personal questionable behavior.  Meanwhile our landowners continue forward with frowns and thin wallets having received no help at all from any governmental source!!  

Permalink Reply by Denise Rouse on January 30, 2015 at 2:41pm

Did you get a letter from McDonald Law Firm with a contract to sign having them act as your representative in the law suit?

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on January 31, 2015 at 4:42am

Denise,

     I've noticed that people who sign with a lawyer are asked to remain silent on the O&G theft topic, so I won't sign until I'm finished taking action with pen & paper.

Then I'll sign only if no government entity can stop the theft by applying existing or new laws.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on January 29, 2015 at 4:35am

Everyone who sues Chesapeake Energy in the Eastern US will win because the VP for CHK has his quote in the newspapers which admitted CHKs guilt. How could a judge rule against the landowners when they present this quote:

"It's a Good Business Practice to not pay landowners Royalties, then go to court and only pay what the Judge orders".

An admission of guilt?  You know it is.

Don't forget to include it in your evidence package. From memory, I read it in Farm and Dairy in the story Unfair Share. The quote will never go away since its in the archives.

I recommend that we all file suits against the ceo of CHK since he is the person responsible for the theft. It's time the real culprits are held accountable for their greed.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on January 29, 2015 at 4:54am

This slow down in well production due to the OPEC oil price drop, will allow landowners a chance to go after the producers who are conducting theft on their royalty statements before the well products are long gone.

I doubt that many landowners actually see what I write, but those who do need to begin writing letters to anyone who can help our effort (be creative, you never know who might be the one to stop this theft) before the production ramps back up.

As it's been said,  CHK will steal Billions then pay millions to settle out of court.

Let's have then fined for Billions before they can make crime pay.

Permalink Reply by Philip Brutz on January 29, 2015 at 5:43am

Ron, could you please post a link to the original source of the quote?  

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on January 31, 2015 at 4:39am

Phil,

    I'll take a look for it. I had it in hard copy and commented out of it on this website so I should be able to find it from my comments.

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