Chesapeake Energy settles water contamination lawsuit for $1.6 million

Three northeastern Pennsylvania families will receive $1.6 million from Chesapeake Energy to settle a lawsuit alleging that the gas drilling company contaminated water wells in Wyalusing, about 160 miles northwest of Philadelphia, The Associated Press reports. Chesapeake, which will receive the properties by the end of 2012 per the terms of the settlement, maintains that “there is no permanent damage to the properties and that other water wells in the area showed natural contamination before drilling began,” the article said.