Chesapeake Energy has agreed to pay $700,000 to the city of Arlington, Texas to settle a lawsuit that accused the energy company of underpaying royalties for gas pumped from under airports, parks and other public property.<\/p>\n
The Arlington City Council approved the settlement August 19 by a vote of 8-0, with Mayor Robert Cluck absent while recovering from surgery. The deal was reached between the city, Chesapeake and Total E&P USA, a French company that owns a 25 percent share of Chesapeake’s holdings in the Barnett Shale.<\/p>\n
The lawsuit had accused Chesapeake of improperly deducting post-production costs from royalties paid to the city and of basing payments on gas prices below the actual sales price.\u00a0<\/p>\n
Chesapeake holds leases on approximately 1,900 acres of public property.<\/p>\n
The settlement agreement provides that in the future, the royalty rate paid to the city will be based either on the highest sales price received by Chesapeake or on a (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Chesapeake Energy has agreed to pay $700,000 to the city of Arlington, Texas to settle a lawsuit that accused the energy company of underpaying royalties for gas pumped from under airports, parks and other public property. The Arlington City Council…<\/span><\/p>\n