Landowner files class action lawsuit alleging Chesapeake Energy Corp. subsidiaries shorted her and others on royalty payments

Last week, a class action was filed against three Chesapeake Energy Corp. subsidiaries in the United States District Court for the Northern District of Ohio. On behalf of herself and a class of similarly situated individuals, Carol L. Griebenow of Columbiana County is suing for breach of contract and breach of implied covenant, alleging that Chesapeake failed to pay her and the class members their full royalties due to them under the leases that the company had acquired from the Anschutz Exploration Corp. According to the complaint, Chesapeake improperly deducted production charges not identified and/or permitted in the lease; calculated royalty payments below-market value at the time of production; and sold oil and gas to affiliates at below-market prices.

Ohio, Oil & Gas Litigation