Chesapeake Deducts from Current Royalty Check for Old Loss in PA

Truly maddening. A Pennsylvania farming family has had to put up with Chesapeake Energy’s lame justifications for not paying them a dime in royalties over the past two years, even though Chesapeake continues to extract gas from their property. Chesapeake claims that since 2015, their costs to extract/sell gas from Russ Forba’s land exceeded any revenue generated–by $112,000. Chesapeake promised Forba that the company would not try to recoup those “costs” from future royalties. The company just broke its promise. On Monday, Forba received a statement from Chesapeake revising the price of the gas sold (down), and revising the post-production costs claimed (up) for the month of April 2015. Chesapeake then deducted the extra $5,700 “loss” from current royalty payments to cover the difference–something they PROMISED would never happen. This is why PA landowners are incensed and calling for legislation. We don’t blame them…

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