CHK and Total agree to pay Royalty owners 52.50 million dollars (US) they claimed they were cheated out of.

I don't know when it became fashionable for Operators to act like Clip Joints, but it happened.

Check it out:

Chesapeake Energy (CHK -0.4%) and Total (TOT -0.6%) agree to pay $52.5M to 13K people who claimed their royalties were underpaid for leases in the Barnett Shale.

As part of the agreement, CHK will provide $29.4M upon court approval of the settlement and another $10M in three years, while TOT will pay $13.1M in cash when the deal is finalized.

TOT agreed two months ago to pay $6M to settle a similar royalty lawsuit brought by the city of Fort Worth, which also sued CHK, and lawyers involved in the litigation say they expect CHK to settle its part of that litigation soon.

No trial so no one knows who actually did what (officially).

Per capita it's over $4,000.  I know it won't be paid out that way, but it's a large sum of money.

The Plaintiffs must have wanted to ring CHK's neck.

No one likes getting ripped off. 

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0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on May 24, 2016 at 9:39am

Bo,

    First  you would have to be a domestic o&g ceo or on the board of directors for a domestic Oil & Gas company so the laws don't apply.

Next sign a contract with a bank for a huge loan.

Decide that not paying back the loan is a "Good Business Practice" and put stories in the news that you owe it to your stock holders to make as much money as possible by not paying back the loan.  

Start a Master Limited Partnership for Big Money investors whose earnings only requires 10 to 20% of the profits to be reported as income.

Tell the bank to sue you if they won't accept the fractional payments you offer them while investing the money for a good return.

Next go to court and only pay what the judge orders in order to clear out the Legacy Issue.

Go across the country repeating your actions with other banks while being generous with a small portion of your profits in order to gain favor with the Local & State Officials.

Attempt to get a Shale Play State governor in the White House as insurance in case a Rogue Official tries to enforce the laws you are breaking.

Its a money maker to be sure.

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on May 24, 2016 at 11:05am

Cheating 13,000 Texans out of money owed isn't a deal I would want my name on.

Some folks are going to start having sleepless nights when they realize what they have done.

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