By Jamil Oakford/ editor-in-chief
Bogdan Sierra Miranda/The Collegian
After nearly two years of litigation, TCC reached a settlement with Chesapeake Energy Aug. 4. The energy company is expected to shell out $1.1 million to the college.
In November 2014, TCC sued the natural gas company for a breach of contract, claiming the company failed to meet the terms agreed upon.
“We were pleased to reach a settlement that fairly reimburses the District based on the terms of our contracts,” said Angela Robinson, TCC vice chancellor for administration and general counsel.
Basing it on the wells and amount of land Chesapeake operated on that was district-owned, settling for just over $1 million was a win, according to Robinson.
The main grievance listed in the lawsuit was a failure to sufficiently pay royalties for the natural gas drilled from land owned by TCC.
According to the settlement, the college argued that the energy company owed them for “post-production” costs.
TCC also argued that Chesapeake didn’t properly value the royalties from the beginning and did not comply with the agreement made for drilling on NE Campus.
The settlement says TCC argued Chesapeake “improperly pooled a portion of the acreage covered by the Northeast Campus Lease.” This meant the energy company violated the “pooling provisions” set in the initial agreement. The result can be seen near the visitor parking lot on NE Campus along Harwood Road.
Robinson said this settlement is important to the college. The college worked hard to hold Chesapeake Energy responsible for keeping to the contract as well as receiving proper compensation, she said.
“This is a very favorable result for our students and the taxpayers of Tarrant County,” she said.
Robinson also hopes that people look at the college’s dedication to this effort and the outcome as a positive.
Bogdan Sierra Miranda/The Collegian
“I hope the greater TCC community views this pursuit of the District’s rights and the resulting settlement as important and indicative of how we approach any dispute,” Robinson said.
As for how the district plans to use the $1.1 million: it’s being decided.
“The details of how the funds will be allocated are being finalized,” she said.
Attempts to reach a representative from Chesapeake Energy were unsuccessful.
