pennsylvania sues fracking company on behalf of 4,000 landowners _ phillyvoice

12/15/2015 Pennsylvania sues fracking company on behalf of 4,000 landowners | PhillyVoice

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DECEMBER 13, 2015

Pennsylvania sues frackingcompany on behalf of 4,000landownersLawsuit claims Chesapeake Energy cheated Pennsylvanialandowners out of millions through deceptive businesspracticesBY MICHAEL TANENBAUM PhillyVoice Staff

ennsylvania Attorney General Kathleen Kane has filed a lawsuit against

Oklahoma-based gas drilling company Chesapeake Energy claiming it

had landowners sign "deceptive" leases that cheated them out of millions

MATT ROURKE/AP PHOTO

Pennsylvania Attorney General Kathleen Kane departs after her preliminary hearing Tuesday, Nov.10, 2015, at the Montgomery County courthouse in Norristown, Pa.

http://www.phillyvoice.com/staff-contributors/michael-tanenbaum/



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of dollars in royalty checks.

The lawsuit, filed last Wednesday in Bradford County, seeks tens of millions of

dollars in restitution on behalf of about 4,000 landowners, in addition to civil

penalties, according to ABC News.

RELATED STORIES: Study: Gas drilling, premature births linked in Pennsylvania

Specifically, the lawsuit alleges that Chesapeake, the nation's number two gas

producer, practiced a "bait and switch scheme" regarding land rights to drill in the

Marcellus Shale, the largest known reservoir of natural gas in the United States. The

company is accused of making unauthorized deductions for post-production

expenses from royalty checks to Pennsylvania landowners.

The issue, which landowners have fought for several years, is on track to be

resolved through a pending settlement agreement between Chesapeake and the

landowners. Kane, in filing the lawsuit, hopes to modify that civil settlement so that

her own lawsuit can proceed.

Chesapeake has denied the allegations as "baseless" and plans to contest them in

court. The suit alleges that the leases with landowners were negotiated in bad faith

during the early "rush" to grab large tracts of land for future drilling.

Landowners' groups, such as the Pennsylvania chapter of the National Association

of Royalty Owners, have expressed support for the lawsuit, which was filed

following a two-year investigation during which Kane's office interviewed and

reviewed the lease paperwork of hundreds of people in northeastern Pennsylvania.

MICHAEL [email protected]

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pennsylvania sues fracking company on behalf of 4,000 landowners _ phillyvoice

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