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Tuesday, March 18, 2014

Ohio Landowners Look to Be Next to Sue Chesapeake for Manipulating Royalty Payments

We ran an article from ProPublica yesterday that takes an in-depth look at how Chesapeake has plotted to play fast and loose with deductions from royalty payments, leading to a stream of lawsuits against the company.  While this has been going on in other states, particularly Pennsylvania, for a little while now, it appears that Ohio landowners will soon be entering the fray and taking Chesapeake to court for cheating them out of royalty money.

From Columbus Business First:
The dispute is garnering attention from those with stakes in Ohio’s oil and gas industry.
Okey, whose father, Mark, tried to usher in protections for landowners during his recent stint as an Ohio legislator, told me he has reviewed dozens of royalty statements from Chesapeake to Ohioans and said they don’t show details about deductions by the company for operating costs.
“In fact, they show the number zero in the deduction column,” he said. “We have good information that it is false and deductions are being taken. At least in Pennsylvania they can see what is being taken. In Ohio they’re being led to believe that zero dollars are taken. That’s a giant difference.”
Read the whole article here. 

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