Lawsuit accuses Chesapeake of selling gas to itself in Marcellus Dallas Biz Jour

cholas Sakelaris
    Staff Writer- Dallas Business Journal
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Mineral owners in the Marcellus Shale in Bradford County, Pa., are suing Chesapeake Energy Corp., accusing the Oklahoma City-based driller of shorting them on royalty payments, NPR reports.

The suits accuse Chesapeake (NYSE: CHK) of deducting "post-production" costs from their royalty payments, which violates the terms of the lease. Attorneys for the landowners say the gas driller sells gas to a subsidiary.

"We certainly think it's a questionable arrangement," Scranton-area attorney Doug Clark told NPR. "We're not seeing that with other companies we're dealing with."

Chesapeake has faced similar lawsuits in the Barnett Shale in North Texas with Dallas/Fort Worth International Airport, the Bass family in Fort Worth and, most recently, the city of Arlington. For the complete article use this link ---> http://www.bizjournals.com/dallas/blog/morning_call/2013/08/chesape...

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"Hope to see this get straightened out CHK doesn't seem to play fair."

seem being the operative word. chk is the company that everyone loves to hate, but from what I've seen, Anadarko always has a lower sales price and deducts as much or more than chk, resulting in lower net royalties than chk. Anadarko also sells to their marketing affiliate.

why isn't anyone talking about Anadarko?

Anadarko is also the company that came in before chk arrived and signed the real lowball leases on the bigger acreages with crappier leases than chk.

and don't get me wrong, chk has some explaining to do, it's just that they aren't the worst of the bunch.

wj

Here's some more info on thieving the landowner out of royalties...  enjoy and try to sleep well..

http://www.propublica.org/article/unfair-share-how-oil-and-gas-dril...

Howdy Rick... ya, at that rate, I hope I DONT get drilled! Unless this gets worked out to make it more equitable for the landowner.. Werent most landowners told by landmen "the real money starts with the royalties... not in the signing bonus"? anyone left without a lease should try to get a ton in the bonus, or dont sign at all... cause it looks like the royalties equal a royal screwin...

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