Jury rules against Chesapeake Energy |
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Published
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Mon, 29 Jan 2007 14:41
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OKLAHOMA CITY (AFX) - Oil and gas producer Chesapeake Energy Corp. said a West Virginia jury has decided that a Chesapeake subsidiary and another defendant in a lawsuit owe about $404 million in unpaid royalties on gas production.The estate of Garrison G. Tawney sued Columbia Natural Resources LLC in 2003, and Chesapeake inherited the case when it acquired the company in 2005.The Circuit Court of Roane County, W. Va., ruled that Columbia and co-defendant NiSource did not pay royalties on gas production in the state as required by law. The $404 million verdict includes $134 million in compensatory damages and $270 million in punitive damages.A judgment has not been entered in the case.Chesapeake said it has previously set aside an unspecified legal reserve that it believes will be adequate to cover its share of any judgment, should one be entered and survive the appeals process. The company said the 'vast majority' of the liability for the case was reserved by NiSource before Chesapeake bought Columbia.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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W.Va. jury rules against NiSource 