Fitzgerald farms v Chesapeake, CD10-38
Deductions and fees wrongly chgd to royalty owners over 10 yr period. Another law firm in Tx is trying to gain representation on owners encouraging them to opt out of class. What's the word ? I'm clueless in this. I know these suits in past paid $5 if I was lucky.
Hi Stephanie -
I am not familiar with Fitzgerald Farms v. Chesapeake. What Court is it in?
There have been a few Law firms here in the Dallas - Fort Worth area advertising recently that they are filing suits against Chesapeake, but I'd have to Google the subject to tell you more.
I do know that Chesapeake has been taken to court in several areas of the country and, unfortunately, has won in several cases.
In one instance, a Judge in North Louisiana ruled that although a Lease very clearly contained a supposedly air tight Free Royalty Provision, other Provisions in the Lease allowed Chesapeake to deduct their Post Production expenses...
I've been wondering if anybody has been auditing the Judge's re-election campaign contributors.
Also, I believe a few years ago Chesapeake was able to get an Act through the Texas Legislature declaring that because so many Oil and Gas Leases contain different terms, the Lessors couldn't file a Class Action Suit against them. Each has to file their own suit.
It's a subject that will be debated well beyond the end of my lifetime.
Hope this helps -
Charles Emery Tooke III
Certified Professional Landman
Fort Worth, Texas
District Court, Beaver Co., OK. Charles, info is very helpful. I suppose the reason filed in Beaver is because of first plaintiff’s residence. ??? Notice states for info: ChesapeakeOKCClassAction.com
Your link / address didn't work, but I'll look it up.
It would more than likely be that the suit was filed there because the subject lands are in Beaver Co, OK.
Oklahoma appeals court sides with Chesapeake in royalties suit
The Oklahoma Court of Civil Appeals has reversed a decision that turned a Beaver County mineral owner’s case alleging underpayment of oil and natural gas royalties by Chesapeake Energy Corp. into a class action lawsuit.
The Oklahoma Court of Civil Appeals on Friday overturned a decision turning a mineral owner’s royalty dispute with Chesapeake Energy Corp. into a class action case.
Kansas resident John Fitzgerald sued Chesapeake in November 2010, claiming the company underpaid on oil and natural gas royalties owed to him on some of its Oklahoma wells.
Fitzgerald asserted his claims, including fraud, unjust enrichment and breach of lease, on behalf of all Oklahoma royalty owners in Chesapeake wells that had produced natural gas since the start of 2004.
His lawsuit alleged his claim was typical because Chesapeake used a common method to pay royalties based on revenue it received under its marketing contracts. The leases did not contain any provisions authorizing deductions for the cost of converting the gas to marketable condition, according to court documents.
Chesapeake opposed the request to turn Fitzgerald’s case into a class action lawsuit, noting the proposed class included 75,000 leases with varying terms. The company drilled wells in 1,100 fields where the quality of natural gas varied, requiring varying amounts of gathering, compression, dehydration, treatment and processing before it could be taken to market.
A Beaver County judge ruled Fitzgerald could proceed with his case as a class action in February 2013, spurring Chesapeake’s appeal.
The appeals court reviewed the entire case, ruling Friday that a class action lawsuit was not the best way to adjudicate Fitzgerald’s claims because it would require thousands of “mini trials” to determine liability and damages.
Chesapeake declined to comment on Friday’s ruling, while Fitzgerald’s attorneys had not had a chance to review it.
That's pretty much the same thing they got away with here in Texas a few years ago. Everybody has to file their own suit, making it economically impractical in most cases.
I'm sick of the name Henry Hoodwink almost as much as I am of the name Aubrey McClendon. I can't wait until the company crumbles into dust and the two of them become nothing more than dim, embarrassing memories to the industry.
Thanks Mineral Joe. Checking well list now.
306 pages of wells. Got through 40 and had enough. The Hughes County wells within the 40 pages referenced BP. I’m assuming BP drilled/operated prior to Chesapeake taking over.
Lands and wells are state wide. Many in Roger Mills in my ltd viewing.
See the Fort Worth Star Telegram 5 March 2015 page 10A.
Chesapeake is now trying to combine the small law suits into one. There are several hundred small suits filed and more coming.
If I remember correctly, here in the Barnett Shale, Chesapeake used more than one contract. Some not counting any cost and others part of the cost.
Several major owners have already received settlements into the millions and others are still waiting. They include the DFW Airport, Arlington School Dist. several individual large private owners, etc.
There also has been some discussion about Chesapeake selling the gas to a subsidiary at a lower price then the subsidiary selling it for more with no larger royalty payment to the original owners.
I think the Beaver Co OK suit was for the mineral owners and the appeal court only gave Chesapeake a stay until an appeal could be heard. The Star Telegram reported that there is already a settlement in Beaver Co. The judge has a concern about the amount of the attorney fees (40%).
I have a small lease with Chesapeake and our relations have been OK but I so far do not have any production.
This forum and Google have several thousand references to the Chesapeake Mineral Owners Suits.
I know many owners here in this area who have signed the suit.
From everything we have been reading, the problem of dealing with Chesapeake isn't during the leasing phase, it is after they drill. Just from everything we have read on all the different blogs, from the East Coast, Oklahoma, Texas and anywhere else they just happen to be operating is that they do pretty much what they want to since they are the "Big Dog" in town. IMHO, Chesapeake has proven time and time again that the Washington bureaucrats and the Mafia in general don't hold a candle to what they will do or who they will pay off or who they will buy next and the individual mineral owner will never know how bad they are until production starts. Most of the damage has already been done since so many people have already leased to them; but, in the future, when most if not all mineral owners refuse to lease to them and put a non transfer or "no sale" to Chesapeake clause in their new leases, they may get the message.
Clois Richardson said:
See the Fort Worth Star Telegram 5 March 2015 page 10A.
Chesapeake is now trying to combine the small law suits into one. There are several hundred small suits filed and more coming.
If I remember correctly, here in the Barnett Shale, Chesapeake used more than one contract. Some not counting any cost and others part of the cost.
Several major owners have already received settlements into the millions and others are still waiting. They include the DFW Airport, Arlington School Dist. several individual large private owners, etc.
There also has been some discussion about Chesapeake selling the gas to a subsidiary at a lower price then the subsidiary selling it for more with no larger royalty payment to the original owners.
I think the Beaver Co OK suit was for the mineral owners and the appeal court only gave Chesapeake a stay until an appeal could be heard. The Star Telegram reported that there is already a settlement in Beaver Co. The judge has a concern about the amount of the attorney fees (40%).
I have a small lease with Chesapeake and our relations have been OK but I so far do not have any production.
This forum and Google have several thousand references to the Chesapeake Mineral Owners Suits.
I know many owners here in this area who have signed the suit.
Charles, I received a notice of Class Action Suit against CHK. One of the parties that's excluded from the suit is Fitzgerald Farms. I found a little info when I Googled their name.
http://www.oklahoman.com/article/5387087?access=851c2821152688e53a2a11d31249f726
Fitzgerald Farms case includes (my understanding) Oklahoma royalties made by Chesapeake from January 1, 2004 until December 31, 2014.
You can call 888-823-7933 for updates, or visit www.CesapeakeOKClassAction.com
Claudia
Tried the website and got no where. Does anyone know the status?
Thanks!
Dear Jane,
I have been following the website on the Case. The suit was approved on 8-28-2015 and allocations for the wells were listed and we are waiting for the disbursement date.
Thanks
Elmer Teetzen
Got a mailed request for verification of SSN/EIN today, so the wheels appear to be turning on disbursement.
The proper website given by another person in this thread is -- http://www.chesapeakeokclassaction.com/ -- in her link, Chesapeake was misspelled.
Chesapeake is bad news; I can only hope they go bankrupt and a reputable company takes over.
BTW, today, I got a check in the mail for a settlement in this very class action. I don't ever remember ever receiving anything. I think it said if I do nothing, that means I accept the ruling. And get some money. It wasn't much, but more than I had yesterday. If I cash it, it says I accept the decision. Hmmm... I probably couldn't afford to go after them myself.
This is why you need a no arbitration clause in any lease or forced pooling.
I received 3 settlement checks yesterday, the only reference they give is a list ID number which doesn't correlate to anything I know of and all of the documents I've seen they put out have no break down of wells, payments, etc.. I guess they believe we are all greedy idiots and don't require such details.