Wednesday, March 20, 2013

Landowners Sue Chesapeake for Underpayment in Barnett

A small group of landowners including notable investor (and "Bass Brother") Ed Bass have sued Chesapeake Energy for underpayment of royalties from the Barnett Shale in Tarrant Co., Texas.  The suit is a contract dispute that alleges that Chesapeake passed on costs not actually incurred and charged other expenses that the contract with the landowners excluded.

Chesapeake's royalty payment practices have drawn much criticism over the years, so this suit certainly won't be the last one of its kind.  As with many other aspects of its business, Chesapeake employs aggressive business practices, so its legal department stays quite busy.

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