Chesapeake Beats Landowners' Oil Lease Class Action

Law360 (September 30, 2019, 10:21 PM EDT) -- Chesapeake Exploration LLC properly calculated and paid oil and gas royalties to landowners, an Ohio federal judge ruled Monday, granting summary judgment in favor of the oil company in a certified class action that's dragged on for nearly four years.

Dale H. Henceroth, Marilyn S. Wendt and eight other landowners filed suit in 2015, alleging the Chesapeake Energy Corp. unit had breached its contracts with them by underpaying them on royalties. Specifically, the landowners said Chesapeake should be paying them royalties based on a higher price associated with the later-enhanced and more expensive gas further down the line.

But U.S. District...

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