Chesapeake Energy (CHK) Stock Slightly Moves Down 1.55% As It Agrees To A Settlement Regarding Unpaid Royalties

Heading into today, Chesapeake Energy makes a small decline by -1.55% and reaches a point of $61.69. Recently, a federal judge has approved a settlement between Chesapeake Energy (CHK) and a complaint alleging underpayment of oil and gas royalties. Two class action settlements were granted by a federal court, requiring the corporation to pay more than $9 million to Pennsylvania landowners for incorrect oil and gas royalty calculations. A $6.3 million compensation for landowners and $3 million in attorney costs was approved by a Texas court.101488241 188107789 The state filed a complaint against Chesapeake in December 2015, alleging that the company had engaged in deceptive business practices. Royalties were paid by incorrectly subtracting post-production expenditures from royalty checks to pay marketing costs. Compression, dehydration, and transmission are examples of these processes. The case came as a result of a thorough investigation by the Pennsylvania attorney general’s Antitrust Section and Bureau of Consumer Protection, which prosecutes overcharging and underpayment. Hundreds of landowners who had previously signed lease agreements with Chesapeake were involved in the lawsuit.

Miriam Bozini

Finance and Business Reporter

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