Chesapeake Energy describes adjustment in royalty payments
Chesapeake Energy has sent a letter to its royalty owners advising them of some adjustments in their royalty payments this year following a court decision.
"As a result of these adjustments, you will see a reduction in the amount you receive for your royalty share," Chesapeake wrote.
A copy of the correspondence was obtained by The Daily Review.
In the Jan. 24 letter, Chesapeake explained that the reason for the adjustments had to do with the fact that in 2008-09, several lawsuits were filed in Pennsylvania that sought to clarify whether royalty owners should share in the expense of post-production functions needed to get the gas to market....