Chesapeake has some explaining to do

With all the news that has been happening this week, you might have missed this piece of information. Columbiana County landowners have filed two separate lawsuits against Chesapeake Exploration ( which is a part of Chesapeake Energy), alleging Chesapeake is attempting to evade paying the full royalties owed to them.

There are two lawsuits so far.


The First:

Zehentbauer Family Land, Hanover Farms and Evelyn Frances Young, who lives in Summit County but owns land in Carroll County, filed a lawsuit against Chesapeake Exploration in Columbiana County Common Pleas Court in late October. The lawsuit also names Total E&P USA Inc., Pelican Energy and Jamestown Resources, which have working interest in the wells involved.

The Zehentbauer Family Land and Hanover Farms lease calls for 17.5 percent gross royalties and the Young lease calls for 20 percent gross royalties to be paid.


The Second:

A second lawsuit, Hope Christian Fellowship, of Wellsville, et. al against Chesapeake Exploration was filed Nov. 4 in U.S. District Court for the Northern District of Ohio, Eastern Division, in Youngstown.

The lawsuit claims there are 2,000 people and organizations that could be part of the lawsuit, and plaintiffs are also asking the case to be certified as class action.

According to the court documents, most of the leases called for royalties equal to one-eighth of the proceeds from the sale of gas and oil from the well pads.


According to court documents, the lawsuit alleges that, beginning in 2011, Chesapeake breached leases by selling gas and oil at prices below the market value and charging incorrect deductions on royalty checks.


Apparently this is also not this first time Chesapeake has faced allegations like these. This has been happening in Pennsylvania for the past couple of years.


Have you had an experience with Chesapeake Energy? Are you one of the people filing the lawsuit? Has this affected you in any way? We want to get your side of the story. Comment below to share your thoughts!


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