Random Update on CHK Royalty Payments

A reader send me a link to this article regarding Chesapeake royalty payments. The Star-Telegram is reporting:

Fort Worth investor Ed Bass and more than a dozen other landowners in far south Tarrant County have sued Oklahoma City-based Chesapeake Operating and Chesapeake Exploration in federal court in Dallas, accusing the energy company of cheating them out of potentially millions of dollars in royalties.

The plaintiffs own 3,952 acres which include Trinity Valley School, which sits on 74 acres, and the 660-acre Rall Ranch. The property, including Bass's Winscott Ranch, is located at the Tarrant and Johnson county line, south of Benbrook Lake. They leased their mineral rights to Chesapeake and gave the company rights to drill on their land for a share of the money made off those wells, according to the suit, which was filed today.

But Chesapeake allegedly underpaid those royalties, improperly passed along production costs and made up "sham transactions" with two affiliate companies for the sale of gas at the wellhead to set the price on which royalties were paid, breaching the terms of the lease, the lawsuit contends.

One can see this stand-alone post, same subject, posted back on August 11, 2011. 

Read more here: http://www.star-telegram.com/2013/03/14/4689707/ed-bass-other-plaintiffs-sue-chesapeake.html#storylink=cpy