For you here on this site, you know this to be a familiar claim.
Attorneys for a Columbiana County couple have filed an arbitration complaint against Chesapeake Energy and others that they say is the most comprehensive statement of royalty underpayments to date.
The 60-page arbitration complaint, filed Jan. 27 with the American Arbitration Association on behalf of Ronald and Joetta Hale, of Lisbon, Ohio, alleges Chesapeake Exploration, Total E&P USA Inc., Chesapeake Energy Corporation and Chesapeake Operative LLC have underpaid the royalties due the Hales for wells in both Columbiana and Carroll counties.
The Hales have two oil and gas leases with Chesapeake Exploration. The Carroll County well started to produce oil and gas in February 2014 and the Columbiana County well went into production in October 2015.
Owed $9.8 million
Using sale price figures reported in Chesapeake’s quarterly and annual reports filed with the U.S. Securities and Exchange Commission, and composite prices from the U.S. Energy Information Administration, the complaint alleges that by June 30, 2017, Chesapeake will have underpaid more than $9.8 million in royalties to all leaseholders on both wells’ oil, gas and natural gas liquids production, including derivative revenue. The Hales are owed, the complaint alleges, a portion of that total.