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Thursday, September 12, 2013

Chesapeake Settles Within Hours Of Suit Being Filed

Note: this is a "cut and paste" from an earlier post. But it's a huge story and needs a stand-alone post. North Dakota mineral rights owners may be interested in this story.

This article, sent to me by Don, is very, very interesting. I remember posting this story two or three years ago when elsewhere they were all concerned about how much natural gas was being wasted in North Dakota. I would love to find that original post, but it might prove difficult, but I believe I was the first "blog" to post the news that Chesapeake was going to charge mineral rights owners for gathering, processing, transporting natural gas. I thought that was ludicrous. No one commented, and the folks over at the Bakken Shale Discussion Group were fixated on Mr Helms and completely missed that story or so it seemed to me. It turned out to be a good story.

Reuters is reporting that the courts have ruled that Chesapeake overcharged mineral owners for gathering, processing, and transporting natural gas, and they needed to be reimbursed.
Chesapeake Energy Corp  has agreed to pay $7.5 million to settle a class-action lawsuit with Pennsylvania landowners who said the natural gas producer was deducting large fees from their royalty checks. 
Chesapeake, the largest natural gas operator in the state, settled the lawsuit within hours of its filing with the U.S. District Court for the Middle District of Pennsylvania on August 30. On Wednesday, Chesapeake's lawyer submitted the proposed wording of a court order that would approve the settlement, which is expected by the end of the year.
Reuters reported on August 28 that Chesapeake started this year to take much heavier deductions from royalty checks it sends Pennsylvania landowners to help pay to gather, compress, market and transport natural gas, in most cases cutting compensation by more than half.
How strong was the case? Chesapeake settled the case "within hours.

Wow, here the related posts are:
I see I even have a tag for this story: Barnett_CHK_TransportationCosts.

What a great blog. LOL. As Mr T told me a long time ago: this blog is complete nonsense.

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