Settlement in PA Chesapeake Energy Underpaid Royalties Lawsuit Now Over $17 Million

By -
From NGI:
A long-delayed class action settlement between Pennsylvania landowners and Chesapeake Energy Corp. to resolve claims that the company improperly deducted post-production fees from royalties has received preliminary approval from a federal judge, ballooning to more than $17 million and now involving thousands of property owners. 
Originally reached in August 2013, the $7.5 million settlement between Chesapeake and a little more than a dozen landowners now includes in excess of 15,000 people, who are expected to receive portions of an estimated $17 million. Attorney Michelle O'Brien of the O'Brien Law Group, who represents the lead plaintiff, Demchak Partners LLP, and who has been negotiating the settlement for years now, said the estimate could grow. It's unclear, she said, how many landowners could ultimately be included in the class. 
"The settlement is based on the actual deduction taken out of each individual class member's royalty check," she said. "Every single day that amount increases and now it will increase further until Feb. 2 if the settlement is approved. We don't know the final number yet, so that was a rough estimate from several months ago." 
A federal judge in October gave preliminary approval for the settlement, which had long been delayed as other parties filed similar complaints against Chesapeake and vied to represent a broader class (seeShale Daily, Sept. 11, 2014). Notices of the proposed settlement, which apply to any Pennsylvania Chesapeake lessor with a lease containing a market enhancement clause, were sent out Nov. 2. An approval hearing has been set for Feb. 2, 2016 in the U.S. District Court for the Middle District of Pennsylvania.
Continue reading by clicking here.

Connect with us on Facebook and Twitter!

Popular posts from this blog

Fracktivist in Dimock Releases Carefully Edited Video, Refuses to Release the Rest

By -
Image
From Energy in Depth: There is something very strange going on along Carter Road, in Dimock, Pennsylvania, and I’m not speaking of natural gas, methane migration, contamination, litigation or even the extensive water testing there by the EPA and others.  No, I’m talking about a new “Watergate” conspiracy, complete with 18 minutes of missing tape (well, video, actually). It seems the ever-present Green Party member and  naturist   Vera Scroggins  (a/k/a  Vera Duerga ) has posted a video of Craig Sautner meeting with the EPA.  Mysteriously, the video is but 14 seconds in length, cutting off conversation in what is obviously mid-stream.  It raises a question Craig Sautner, like  Ronald Reagan in Kings Row , might have asked, “Where’s the rest of me?’  Carter Road, isn’t Kings Row, of course, (at least not until you arrive at  the mansion Scott Ely, one of the Dimock litigants, is building with his royalty money ), but there appears to be a whole lot of film editing going on there to fi
Read more

The Second Largest Oil and Gas Merger - Cabot and Cimarex

By -
Image
       Due to investor pressure, the U.S shale drillers are being pushed to improve financial and operational performance after a few years of poor returns. Even though the industry has improved its numbers, when compared to last year, investors still want more to be done for them to earn more money.      That's why two mid-tier shale drillers, Cabot and Climarex, have decided to merge in order to eliminate $100 million in annual costs, which means more money for the investors. This all-stock transaction is valued at about $7.4 billion, which is relatively high for the oil and gas sector.      The new entity will be renamed and the headquarters located in Houston, Texas. Cabot shareholders will own 49.5 percent of the new entity, and Climarex the rest.       The Cimarex-Cabot merger will address the investor's demand for a higher amount of returning cash. The initial plan is to pay a 50-cent-per-share special dividend on closing the deal while offering a quarterly variable div
Read more

Is a Strong Oil Demand Expected This Year?

By -
Image
  According to the world's largest oil traders, global oil demand is set for a rebound. Between now and the end of 2022, global consumption is expected to increase by up to 8 million barrels each day. Vitol Group, the world's largest oil trader, supports this statement.  In an interview with Bloomberg, Vitol's chief executive Russell Hardy said, "We'll need all eight cylinders to get through 2022". This, of course, is due to the lower than average demand for oil at the moment. Reopening economies and Asian markets will create a strong demand rebound by the end of this year and in 2022.  Although the demand for jet fuel will slowly increase, it will still be below average at the end of the year. Nevertheless, a surge in petrochemicals will offset the expected delay in jet fuel demand. Last year, the oil surplus reached a record of 1 billion barrels. This excess is already more than halfway drained, and experts believe it will be depleted by the third quarter th
Read more