Dallas/Fort Worth Airport will receive $5 million from Chesapeake Energy as part of a court settlement approved by the airport board Thursday in a lawsuit over gas royalties .
The settlement, which still needs to be approved by the city councils of Dallas and Fort Worth, also establishes a formula for royalty payments starting from July."We have reached an agreement so that the formula going forward is very definitive and something that we won't have arguments about," said John Terrell, vice president of commercial development for the airport. "I believe the airport is satisfied clearly by the vote today that we have reached a good resolution to a disagreement that has lasted several years."The dispute began four years ago when the airport alleged that it was being shortchanged on royalty money from wells Chesapeake had drilled on DFW property. The two sides couldn't agree on how the royalties were being calculated, and a trial had been scheduled to begin on TuesdayOn Friday, Chesapeake spokeswoman Julie Wilson said the parties were completing final settlement documents and called the terms "mutually acceptable."Through February, the airport had received $293.4 million from more than 100 producing wells on its property. Chesapeake paid a $10,000-per-acre-bonus totaling $185.6 million. Initially, the Oklahoma City-bases producer intended to drill 300 wells at the airport, which sits in the Barnett Shale. But when gas prices fell three years ago, Chesapeake pulled back on drilling new wells.The airport has used its gas money to help pay for capital projects including the $1.9 billion terminal renovation program.At Thursday's meeting, the board also approved a lease for an American Express club that will cater to business and international travelers in Terminal D.Airport staff also reported that passenger traffic at DFW dropped 2.1 percent in July from the same month last year as American cut capacity as part of its bankruptcy restructuring. American's traffic at the airport dropped 3.3 percent in July although its load factor remained about the same.Andrea Ahles, 817-390-7631Twitter: @Sky_TalkHave more to add? News tip? Tell us
