Pennsylvania landowners sue Chesapeake and related companies
Tuesday, February 24, 2015
A federal lawsuit filed against Chesapeake Exploration accuses the company of improperly taking out fees, using fake prices for royalty payment calculations and conspiring with a pipeline company to pad profits, according to Pittsburgh Tribune-Review.
The lawsuit was filed in Scranton, Pennsylvania, and involves more than 50 property owners with natural gas leases in the northeastern part of the state. The lawsuit also involves Anadarko Petroleum and Williams Partners, a pipeline company. Attorneys for these leaseholders say that Chesapeake’s actions violate the terms of the leases.
The leaseholders are asking for a full account of how much money was collected by the companies, as well as unspecified damages.
Via: Pittsburgh Tribune-Review > 50 northeastern Pa. landowners sue gas company over leases
Related: Chesapeake Energy accused of cheating landowners out of royalties Jan. 3. 2015
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Shale FAQ
How often do royalty payments come?
Depending on the company, royalty payments can arrive monthly or quarterly.
Are my royalty payments transferable?
Yes. If you plan on selling your property, notify the gas company that is leasing your land and your realtor. They will make arrangements to allow the royalty payments to transfer to a different land owner.
What are royalties?
Royalties are payments from the gas company to the landowner as part of a lease agreement. Royalties payments cannot begin until production begins. The payments are dependent upon the market price of the resource.