A lawsuit has been filed by Texas landowners against Chesapeake Energy over reduced royalties, and unlike similar lawsuits already pending, this one is seeking class action status.<\/p>\n
Charles and Robert Warren, along with a Johnson County couple, filed the lawsuit against Chesapeake Energy after they claim they saw significant reductions in their royalty payments.<\/p>\n
Chesapeake had informed royalty owners in August 2011 that it would begin subtracting \u201cpost-production costs\u201d from the sales prices for natural gas that it used to determine royalty payments. The company said then that if a royalty owner’s lease prohibited such charges \u2013 for expenses such as compressing and treating gas to ready it for sale \u2013 then the costs would not be deducted. However, the Warrens allege they saw such deductions even though their lease does contain a provision prohibiting charges for post-production costs.<\/p>\n
Post-production costs can amount sometimes to between 80 cents and $1 per 1,000 cubic feet (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" A lawsuit has been filed by Texas landowners against Chesapeake Energy over reduced royalties, and unlike similar lawsuits already pending, this one is seeking class action status. Charles and Robert Warren, along with a Johnson County couple, filed the lawsuit…<\/span><\/p>\n