Chesapeake Close to Settling DFW Airport Board Lawsuit for $8.2 Million

chesapeakenew

The Dallas/Fort Worth Airport board moved closer to settling its lawsuit against Oklahoma City-based Chesapeake Energy Corporation on Thursday, according to a report in the Fort Worth Star-Telegram.

The airport board was expected to vote on accepting $8.2 million as final settlement to resolve the legal dispute.

OK Energy Today reported on August 31, 2016 that Chesapeake initially offered a proposed settlement of $9 million. The amount was reduced after both parties agreed to review a royalty issue related to reinjected gas.

“We are getting a good, solid, fair deal,” said John Terrell, vice president of commercial development for the airport board.

Chesapeake drilled 112 wells at the DFW airport before it stopped in 2009 when gas prices collapsed. The airport received a $185 million bonus when it signed its lease with Chesapeake in 2007. By February 2012, the airport had received $293.4 million from the deal. The airport used its proceeds to pay for capital projects including terminal renovation.

The airport board alleged Chesapeake shortpaid on royalty payments. In 2012, the airport won $5 million from Chesapeake including assurances that it would drill additional wells. The new lawsuit was filed in June of 2016 when the airport sued Chesapeake due to its failure to abide by the terms of the 2012 settlement.

If the airport board approves the new settlement, it will then need the final approval of both the Dallas and Fort Worth city councils.

In September, Total E&P USA revealed it was purchasing Chesapeake’s assets in the Barnett Shale by taking control of the 215,000 net developed and undeveloped acres, wells, leases, minerals, buildings and properties.

 

%d bloggers like this: