Chesapeake, leaseholders settle federal claim - Beckley, Bluefield & Lewisburg News, Weather, Sports

Chesapeake, leaseholders settle federal claim

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SCRANTON, Pa. (AP) — A newspaper is reporting that a federal lawsuit over gas drilling royalties was settled for least $7.5 million, hours after it was filed.

The Times Leader of Wilkes-Barre reported Saturday  that the case had been filed against Chesapeake Appalachia LLC by Demchak Partners Limited Partnership.

The plaintiffs argued Chesapeake withheld too much in production fees from their royalty checks.

Their properties are all in Bedford and Susquehanna counties, which border New York in northeastern Pennsylvania.

A lawyer for the leaseholders says they're thrilled with the resolution, and a Chesapeake spokesman calls it a "fair and reasonable" deal.

The settlement on Friday remains subject to court approval. The case was filed in federal district court in Scranton.

 

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