Pennsylvania agrees to settle royalties lawsuit with Chesapeake
Wednesday, March 10, 2021
Pennsylvania has reached a settlement with natural gas driller Chesapeake Energy Corp. over royalty payments to property owners, state Attorney General Josh Shapiro announced Monday, according to Independent Tribune.
The agreement calls for $5.3 million in restitution and improved royalty payments, according to Shapiro.
The lawsuit was filed against Chesapeake more than five years ago. Because Chesapeake filed for bankruptcy protection in Texas in June, the settlement will require a bankruptcy judge’s approval.
Learn more: Independent Tribune > Pennsylvania agrees to settle gas drilling royalties lawsuit
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.