Class action lawsuit filed against Chesapeake subsidiary in Columbiana County
Friday, October 30, 2015
On Oct. 26, a class-action lawsuit was filed against Chesapeake Operating in Columbiana County, according to The Times-Reporter. The company, a subsidiary of Chesapeake Energy, is accused of withholding royalty payments from mineral rights owners.
The proposed lawsuit says that Chesapeake Operating sold oil and gas at prices lower than the market price and then taking production and post-production costs from royalty payments improperly.
The lawsuit was filed for two Columbiana County farms and one Carroll County mineral rights owner. The terms of these leases were also used in leases in Columbiana, Carroll, Stark, Tuscarawas, Jefferson, Belmont, Guernsey and Harrison counties, so the scope of the lawsuit could grow.
Via: The Times-Reporter > Chesapeake accused of withholding millions in royalty payments
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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.