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Lessors accuse Chesapeake Appalachia of royalty fraud

PENNSYLVANIA RECORD

Saturday, December 28, 2024

Lessors accuse Chesapeake Appalachia of royalty fraud

Embezzlement

HARRISBURG – A group of Pennsylvania landowners has filed a class action lawsuit against Chesapeake Appalachia and its related businesses in a dispute over oil and gas leases.

Timothy Tyler, Terri Tyler, Tim & Terri Family LP, Tyler 5 Family LP, Rodney Mowry, and Diana Mowry filed a lawsuit March 15 in U.S. District Court for the Middle District of Pennsylvania against Chesapeake Appalachia LLC, Chesapeake Energy Corp. and Chesapeake Energy Marketing LLC, alleging breach of contract.

According to the complaint, Chesapeake struck a deal with the plaintiffs to pay them royalties for extracting and selling oil and gas from their property in the Marcellus region. The suit claims Chesapeake violates the lease agreement by deducting improper post-production charges from the royalty payments.

The plaintiffs seek recovery of full amount of royalties they are owed under the lease agreement, as well as an order barring further alleged fraud. They are represented by attorneys Ira Neil Richards, Kenneth I. Trujillo and Arleigh P. Helfer III of Schnader Harrison Segal & Lewis LLP in Philadelphia; Aaron D. Hovan and Richard L. Huffsmith of Tunkhannock; and Richard D. Greenfield of Greenfield & Goodman LLC in New York.

U.S. District Court for the Middle District Case of Pennsylvania number 3:16-cv-00456-MEM

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