Chesapeake Energy Settles Contaminated Water Well Lawsuit for $1.6M

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Chesapeake EnergyThree northeastern Pennsylvania families have reached a $1.6 million settlement with a gas drilling company over contaminated water wells. But Jared McMicken of Wyalusing said the agreement reached Thursday provides little comfort since his drinking water was ruined by nearby drilling, and his family must move.

"We've lost our house, and we're not going to get out of it what we got into it," he said. "We have a bunch of people who have to leave their homes."

The dispute with Oklahoma-based Chesapeake Energy began in 2010. Wyalusing is about 160 miles northwest of Philadelphia.

McMicken said he and the other families in the case insisted that any settlement be made public. The arbitration trial began this week and was settled on the fourth day.

Attorney Todd O'Malley said he believes this is the first case involving pollution in the Marcellus Shale region where settlement terms were publicly disclosed. Past disputes have been sealed.

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