Chesapeake Energy Agrees To Pay $7.5 Million To Settle Royalty Lawsuit

  • Chesapeake Energy of Appalachia LLC will have to pay over $7 million to settle a lawsuit over improper royalty payments. Photo: Reuters/Steve Sisney/Landov

September 3, 2013
By Marie Cusick

The biggest natural gas driller in Pennsylvania has agreed to pay $7.5 million to settle a class action lawsuit alleging the company underpaid gas royalties to leaseholders.

Some gas leases allow companies to deduct the expenses they incur moving gas from the well to the market – things like compressor stations and pipelines. These deductions are known as “post-production costs.”

Continue reading . . .