N.Y., Chesapeake Energy reach settlement on disputed gas leases | Press & Sun-Bulletin | pressconnects.com

N.Y., Chesapeake Energy reach settlement on disputed gas leases | Press & Sun-Bulletin | pressconnects.com.

Summary of Judgment:

June 14, 2012 CHESAPEAKE/ NYS ATTORNEY GENERAL SETTLEMENT
AGREEMENT: OVERVIEW OF # OF LEASES IMPACTED:
1. BACKGROUND:
a. Document is called “ASSURANCE OF DISCONTINUANCE”
b. Combines AG’s investigation into:
i. Force majeure claims by Chesapeake; and
ii. Lease extension clauses
iii. No admission of wrong doing by Chesapeake.
2. # OF LEASES IMPACTED:
a. 50 LEASES–Chesapeake agrees to release–these had a blank
for the amount necessary to trigger the Automatic Extension;
b. 4,365 LEASES–land owners can negotiate with other gas
companies:
i. If they receive bona fide offers that are better;
ii. Then Chesapeake can decide if they will match the better
terms or release the lease, after the better one
executed;
c. 1,865 LEASES–AG agrees that Chesapeake has extended
properly under the Automatic Extension clause
3. OTHER PROVISIONS:
a. Chesapeake will not use the state environmental review
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process as a reason to extend any leases expiring after Dec. 31,
2013;
b. Chesapeake will pay state $250,000.00 to cover its costs for
this investigation;
c. There is no agreement as to whether Chesapeake’s force
majeure claims, based on state regulatory situation, are valid
or invalid.

One Response to N.Y., Chesapeake Energy reach settlement on disputed gas leases | Press & Sun-Bulletin | pressconnects.com

  1. tami says:

    I would’ve liked to read this, but I can’t unless I pay to subscribe to the Press. bummer 😦

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