Settlement reached in Chesapeake oil, gas royalties fight

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DALLAS (AP) — Chesapeake Operating Inc. and some Barnett Shale mineral rights owners have reached an out-of-court settlement over alleged underpaid oil and gas royalties.

The settlement announced Wednesday involves more than a dozen mineral rights owners, including billionaire investor Edward Bass of Fort Worth.

Terms weren’t released.

Oklahoma City-based Chesapeake has handled production activities on some of the North Texas properties since 2007.

The 2013 lawsuit alleged Chesapeake violated lease agreements by selling natural gas production from one corporate subsidiary to another, driving down the resulting price.

A federal judge in Dallas last month ruled in favor of mineral rights owners. Attorneys for both sides on Tuesday were prepared to pick a jury to determine final damages. Court documents indicate the landowners could have been owed about $8.6 million.