Chesapeake, Total win in Ohio royalties lawsuit
Monday, April 6, 2020
The U.S. District Court for the Northern District of Ohio sided with affiliates of Chesapeake Energy Corp. and Total SA in a lawsuit that alleged the companies underpaid royalties on oil and gas properties in eastern Ohio and sought to recover millions of dollars for landowners, according to Natural Gas Intelligence.
The court agreed with the defendants’ interpretation of how royalty payments should be calculated and paid to the plaintiffs under the terms of their leases.
Additionally, Judge Benita Y. Pearson also rejected the plaintiffs’ claim that they should be paid royalties based on the proceeds of sales at downstream locations, which have a higher value.
Learn more: Natural Gas Intelligence > Chesapeake, Total Prevail in Ohio Royalties Lawsuit
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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.