Royalties

If policies inspired by “Keep it in the Ground” and other anti-fossil fuel movements lead to a ban on energy production from federal lands and waters, the United States would lose billions in royalties and hundreds of thousands of jobs, according to a report by the U.S. Chamber of Commerce’s Institute for 21st Century Energy.

The Fort Worth, TX, city council has voted 9-0 to authorize a $15 million settlement with Chesapeake Energy Corp. regarding underpaid natural gas royalties for Barnett Shale volumes. Fort Worth originally had sought $33.5 million in the lawsuit for royalties from more than 260 leases on 5,800 acres of property in Tarrant and Johnson counties. Chesapeake, which has leased land with the city since 2006, agreed to make the full payment by Tuesday (May 31). Going forward, royalty payments for the Barnett gas will be calculated using Houston Ship Channel prices, without any deductions for post-production costs and expenses. Revenue would be retroactive to April 1, 2016. The city council in March settled a similar lawsuit for $6 million with Chesapeake’s Barnett 25% partner Total E&P USA (see Shale Daily,March 23). Chesapeake and Total also agreed to pay $52.5 million to settle lawsuits with more than 13,000 people owning land in the Barnett, who had claimed they were underpaid royalties for their gas leases (see Shale Daily,May 23).

A water authority in Southwest Pennsylvania has filed a lawsuit against Consol Energy Inc. and Noble Energy Inc., alleging the operators are wrongfully deducting natural gas post-production costs from royalties and those of private landowners nearby.

A water authority in Southwest Pennsylvania has filed a lawsuit against Consol Energy Inc. and Noble Energy Inc., alleging the operators are wrongfully deducting natural gas post-production costs from royalties and those of private landowners nearby.

Total E&P USA agreed to pay $6 million to the city of Fort Worth, TX for underpaying natural gas royalties in the Barnett Shale on leases it co-owns with Chesapeake Energy Corp.

Chesapeake Energy Corp., which has faced multiple lawsuits across the country regarding alleged royalty underpayments, now is facing allegations that it cheated landowners in the Eagle Ford Shale of South Texas of more than $9.4 million.

Fearing that the downturn in oil and natural gas prices has battered the finances of Chesapeake Energy Corp. and could eventually threaten an $18 million settlement with thousands of Pennsylvania landowners, two plaintiffs have filed a motion for court ordered mediation to approve the settlement swiftly.

Private equity-backed Haymaker Resources LP has agreed to pay Chesapeake Energy Corp. $128 million for a bundle of mineral and royalty interests in 24 states and 324 counties.

The Pennsylvania Board of Game Commissioners has approved an agreement to lease 5,870 acres of land in the northeastern part of the state to Chief Oil & Gas LLC, netting the agency a bonus payment of more than $14.6 million plus royalties and other fees.