Ed Bass, other plaintiffs, sue Chesapeake over royalty payments

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Chesapeake has paid the landowners "less than the lessor's full royalty share," which was 25 percent on the minerals, the suit says.

With regard to the wellheads, Chesapeake was selling gas to Chesapeake affiliates Chesapeake Energy Marketing Inc., which sells the gas to third parties, and Chesapeake Midstream Partners, which provides gas-gathering services, as a way to "suppress" prices on which it pays royalties and still passed along production costs to the lease holders, the suit says.

"Chesapeake's payment of royalties and overrides on the basis of this artificial market value measurement breaches the relevant leases and assignments," the suit says.

In September, Chesapeake agreed to pay Dallas/Fort Worth Airport $5 million to settle a lawsuit over how gas royalties were calculated. The airport board sued Chesapeake saying it had been shortchanged on royalty payments from wells drilled on DFW property for about four years.

Read more here: http://www.star-telegram.com/2013/03/14/4689707/ed-bass-other-plaintiffs-sue-chesapeake.html#storylink=cpy

[DollarBillHines]

1. Chesapeake screwed up.

Don't ever fuck with the Bass family.

[mbperrin]

2. TransCanada can just take property from regular people in Texas,

but short a billionaire some change on a lease - WATCH OUT!

I like it when two rich people fight - they both get scratched, and they have to spend money on lawyers. I have a nephew who's a lawyer.