Situation Worsening for Chesapeake in Pennsylvania Over Royalty Deductions

A company that has interests in Marcellus Shale natural gas leases wants an arbitration panel to order a full refund for what it alleges have been improper deductions from royalty payments by Chesapeake Appalachia. 
Scout Petroleum of Nicholson has asked the American Arbitration Association to declare its demand a class action to include all those who have entered into what are known as paid-up oil and gas leases. 
Chesapeake, a wholly-owned subsidiary of Chesapeake Energy, Monday filed in U.S. Middle District Court a request for an injunction to prevent class-action status it claims could involve thousands of landowners. 
It contends leases do not provide for class-action arbitration and further argues only a judge can approve such a status.
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