Chesapeake Energy Settles with Pennsylvania AG over Gas Drilling Royalties Lawsuit


In 2019, the Commonwealth Court of Pennsylvania denied the company’s appeal.  Chesapeake once again suffered a defeat after the state’s Supreme Court rejected its appeal last year.

The settlement will end Chesapeake Energy’s abusive business practices

Under the settlement agreement, Chesapeake Energy is required to:

  • Provide an opportunity to Pennsylvania landowners with Chesapeake leases to obtain better payment of royalties going forward;
  • Stop offering leases that contain “market enhancement” clauses or “ready for sale or use” clauses to Pennsylvania landowners;
  • Hire an Ombudsman to investigate individual claims, selected by AG Shapiro and Chesapeake, to review and respond to landowner complaints;
  • Allow the Pennsylvania OAG access to Chesapeake’s books and records to ensure compliance with the settlement agreement;
  • Provide clear, transparent pricing information on their website, as well as an annual report to the Pennsylvania OAG detailing royalty payments; and
  • Pay landowners $5.3 million in restitution and $350,000 to the OAG towards its costs and fees.

In a statement, AG Shapiro said, “The bottom line here is that this settlement will end the abuse from Chesapeake and allow landowners to take a new lease with no deductions.”