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SOURCE: Michael A. Burns & Associates
Wick Phillips, a Texas-based business law firm, took on Chesapeake Energy, the nation’s second largest producer of natural gas, winning a judgment in excess of $1 million.
Fort Worth, Texas (PRWEB) November 30, 2012
Wick Phillips, a full-service business law firm with offices in Dallas, Fort Worth and Austin, Texas, took on Chesapeake Energy, the nation’s second largest producer of natural gas, winning a judgment in excess of $1 million on behalf of a group of leaseholders.
During the trial David Drez, a partner at Wick Phillips and the lead attorney on the case, successfully proved that Chesapeake breached their agreement with the leaseholders in connection with improper deductions from royalty and overriding royalty payments, and owed amounts dating back to Sept. 1, 2004. The ruling also has the potential to significantly affect future royalties due under the lease.
According to the judgment, Chesapeake failed to pay a substantial amount of royalties owed to the leaseholders and their related trusts for post-production costs such as gas used as gathering system fuel and to fuel gas lift compressors. Significantly, the Court upheld the language in the lease that did not permit Chesapeake to deduct costs from overriding royalties due on off-lease horizontal wells drilled from the Plaintiffs’ property.
Case number 017-244547-10 was heard in the 17th District Court in Tarrant County and the final judgment handed down on Aug. 7, 2012, ordered Chesapeake to pay economic damages totaling more than $1 million including interest and attorney’s fees of more than $250,000. The judgment is now on appeal.
About Wick Phillips:
Serving the legal needs of businesses in a broad range of industries, Wick Phillips practices law with purpose. Specialty areas include commercial litigation, bankruptcy, creditor’s rights, civil appeals, corporate, corporate advisory, real estate, labor and employment, technology and securities. For more information visit http://www.wickphillips.com.
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