SCRANTON, Pennsylvania — A subsidiary of energy giant Chesapeake Energy is increasing the amount it will pay to settle a federal lawsuit over natural gas drilling royalties for Pennsylvania landowners.
Chesapeake is increasing the amount from $7.5 million to $11 million to settle the class-action lawsuit claiming it wrongly withheld too much in post-production fees from royalty checks.
The Times-Tribune of Scranton reports (http://bit.ly/1CS8zBR ) that the proposal was filed Dec. 18 in federal court. The money would go to thousands of northeastern Pennsylvania leaseholders.
The earlier settlement of $7.5 million had been in limbo after other leaseholders objected.
Under the revised agreement, leaseholders would be paid 55 percent of post-production costs taken until June 1, 2014. The earlier agreement cut off reimbursements Sept. 1, 2013.
The settlement is subject to a judge's approval.
Information from: The Times-Tribune, http://thetimes-tribune.com/
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