Coterra Energy Inc. has agreed to pay more than $16 million to build a new public water supply system in Dimock, PA, to resolve charges that its predecessor, Cabot Oil and Gas Corp., contaminated residents’ well water over a decade ago during unconventional natural gas development in the area.

Cotera

Coterra, formed in 2021 after Cabot and Cimarex Energy Co. merged, said Wednesday that it’s been working with Pennsylvania Attorney General (AG) Josh Shapiro’s office on “a path forward for all parties.”

The AG charged Cabot in 2020 with seven counts of Prohibition Against Discharge of Industrial Wastes, seven counts of Prohibition Against Other Pollutions and one count of Unlawful Conduct under the Clean Streams Law. Fourteen of the charges were dropped, and Coterra pleaded no...