Chesapeake to pay $119 million to Oklahoma royalty owners
Friday, January 23, 2015
Since the late 1990s, Chesapeake Energy Corp. has paid out $1.2 billion in settlements related to royalty claims. The latest settlement totalling $119 million will be presented to a Beaver County, Oklahoma, court in April, according to The Oklahoman.
Claims for this case date to 2004, when Chesapeake deducted expenses for marketing and midstream services at more than 11,800 natural gas wells in Oklahoma. The settlement that will go before a Beaver County judge in April will cover royalty owners from 2004 to 2014.
Oklahoma’s royalty laws are unclear, especially in regards to a 1998 court case that decided that lessees are responsible for costs that make natural gas “marketable.” “Marketable” was left undefined, though.
Via: The Oklahoman > Chesapeake to pay $119 million in settlement to royalty owners over natural gas marketing costs in Oklahoma
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Marcellus & Utica Shale Well Map
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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.
We are tired of waiting for our payment. Our entire family had trusted Chesapeake oil for generations When will our payments begin? My siblings and I really need this money at this time…….