Chesapeake Energy Pays $1.6 Million to Settle Environmental Claims With 3 Families

SCRANTON, Pa. — Chesapeake Energy has agreed to pay $1.6 Million to settle environmental claims by three Pennsylvania families who contended that hydraulic gas drilling introduced methane into their water wells and made their homes nearly uninhabitable.

Chesapeake will assume ownership of the homes as part of the agreement, according to attorney Todd O’Malley, counsel for the Wyalusing, Pa., families.

The agreement was reached after three days of arbitration, which was entered into pursuant to lease agreements between Chesapeake and the three couples: Michael and Jonna Phillips, Scott and Cassie Spencer and Jared and Heath McMicken.

Counsel did not provide …