Chesapeake Accused of Not Paying for Gas It Produced from Invalid Leases

Chesapeake has avoided other class action suits because not all leases were exactly the same in the planned class action. This class action suit should not have that hurdle to overcome.

This one is very interesting to me. This will likely apply to thousands of properties, especially in the Dallas-Fort Worth metroplex. One of the main questions I had on a foreclosed property I purchased is whether or not the lease was valid after foreclosure. There was no subordination agreement from the lender. After I notified CHK of my ownership, CHK sent me division orders and has paid royalties.

Now an old bill that was vetoed a few years ago is coming back to life. The proposal is to prevent leases without subordination agreements from extinguishing when foreclosed. Supposedly now it will be limited to urban areas. The same argument exists "it will prevent drillers from moving forward on projects". I disagree with that argument. Most of the properties here in DFW are already drilled. I don't think this law is needed to move forward. The operators need to come clean and fix the problem, not have the legislature give them a free pass for their mistakes.