Chesapeake Energy says lawsuits are without legal merit
CHARLEVOIX CO. -- It’s an issue that has struck a nerve with several people -- their oil and gas leases voided by an oil and gas company.
We’ve heard from representatives of Chesapeake Energy who say the company has done nothing wrong.
There are hundreds of people who plan to file a lawsuit against Chesapeake Energy, saying that the company has illegally voided the contract.
Chesapeake Energy says these lawsuits are without merit.
The attorney who represents Chesapeake Energy says the oil and gas company did nothing wrong when it voided oil and gas leases on properties that had a mortgage or lien when a title verification was performed.
"If we find title defects, we have the legal right to reject it, and that's what happened here," said attorney Steve Barney.
Susan Topp and Bill Rolinski are on the other side of the coin, saying Chesapeake Energy did not specify in the contract that mortgages and liens could be the cause of the contract being voided. They also refer to a comment made by Chesapeake's general counsel for land acquisition. In a Forbes article Henry Hood said the company decided to get out of as many leases as it could.
"It’s not supported by the facts or the law," said attorney Susan Topp.
"When the shale didn't turn out, they terminated the leases per Mr. Hood's statement, that they were going to fail as many titles as they can in the State of Michigan," said attorney Bill Rolinski.
David Petty and Dennis Erickson just want answers.
“They've ruined some lives, they've hurt some people too, and they've come in here and turned it into a rodeo with their techniques," said Petty.
"This is wrong, this is downright wrong," said Erickson.
Barney insists Chesapeake has done nothing wrong.
“Either we'll get it resolved directly with the landowners or we will get them resolved in the court system," said Barney.
Topp and Rolinski plan to file the lawsuit for the hundreds of people affected.
Barney says it's the company's option to withdraw if there is a mortgage or lien on the property.
He says because of the amount of unemployment and the risk of foreclosure, it was the company's best option to pull out.
Read the Forbes Article mentioned by CLICKING HERE.
