Barnett Shale joint venture partners, Chesapeake Energy Corporation and Total E&P USA, have agreed to settle a class-action lawsuit in Fort Worth, Texas for $52.5 million, according to a report published in The Oklahoman.
The 2014 and 2015 lawsuits were filed in north Texas by nearly 13,000 property owners in Johnson, Tarrant and Dallas counties alleging the two oil and natural gas partners underpaid natural gas royalties for the Barnett Shale leases.
“We are pleased to have reached a mutually acceptable resolution of this legacy issue and look forward to further strengthening our relationships with our royalty owners,” said Chesapeake spokesman Gordon Pennoyer in a written statement.
The offer must be approved by 90 percent of the class plaintiffs by July 11 or the settlement may be rescinded. Under terms of the deal, Oklahoma City-based Chesapeake will contribute $29.4 million while Total pays $13.1 million in cash, with the remaining $10 million to be satisfied by a Chesapeake promissory note payable in three years. The payment amounts will vary depending on ownership.
“We are pleased that we have achieved a mutually acceptable global settlement and greatly appreciate the constructive approach taken by Chesapeake’s current leadership to resolve this matter,” said George Parker Young, a partner at the Fort Worth law firm of Circelli, Walter & Young, which represents several of the plaintiffs.