Last month, Bradford County, Pa., commissioners hired a public relations firm to create a video to force the issue of passing Pennsylvania House Bill 1391. That legislation would ensure that Pennsylvania landowners would receive a 12.5% royalty check regardless of post-production costs. As of a week ago, the “PA Royalty Rip-off” video had more than 3,000 views. Watch it below.

The video alleges that Chesapeake Energy dealt in bad faith with landowners in Bradford County. In one case, the local animal care shelter signed a lease with Chesapeake. Instead of getting royalty checks, the shelter has received bills from Chesapeake stating it owes Chesapeake $30,000.

BILLED, NOT PAID: A YouTube video documents how landowners who leased Marcellus gas rights to Chesapeake Energy owe as much as $30,000.

The purpose of the video is to push passage of HB1391. However, the drilling industry continues to push legislators to defeat the bill. Their argument is that the entire industry of already-signed contracts should not be abandoned over the actions of one bad actor.

The American Petroleum Institute recently sent a letter to state legislators outlining its reasons for lobbying against the measure. Its chief argument is that the bill would unconstitutionally impair lease contracts.

The video singles out Chesapeake Energy, which has faced lawsuits over its royalty practices in at least six states, including Pennsylvania. The company also recently disclosed it’s facing a federal probe into its accounting practices.

Chesapeake Energy’s response? “Chesapeake recognizes that royalty owners may have questions regarding lease interpretation and royalty calculation,” according to an email from company spokesman Gordon Pennoyer. “We are committed to working with our royalty owners to answer any questions they may have and are happy to schedule a time to review their lease provisions.”

To watch the video, go to youtube.com/watch?v=sG8925fizcY.

Article courtesy of Marcellus Drilling News

For more on this controversy affecting Pennsylvania, Ohio and West Virginia landowners see:
Fight intensifies over shorted Marcellus shale gas royalties