Breitling Oil and Gas Morning Podcast #115 July 20th, 2012

Chesapeake Energy was ordered to pay more than $100 million to three Texas lease holders who claimed the second-largest U.S. gas producer renege on agreements to purchase mineral rights.

The Texas energy companies sued Chesapeake in November 2008 for failing to complete the purchase of three gas leases the Oklahoma City-based producer began negotiating for in June of that year, before energy prices plunged by as much as 50 percent.

A U.S. judge in Houston originally sided with Chesapeake and ruled the company didn’t have to pay because the lease contracts weren’t final. The Texas leaseholders appealed to the U.S. Court of Appeals for the Fifth Circuit in New Orleans, which agreed with the landowners in February and sent the case back to Houston for trial, where it was assigned to a new judge.

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