Chesapeake Raising Capital by Mortgaging Mineral Rights
It seems like some residents of Bradford County got a shock when they learned that Chesapeake Energy had mortgaged the mineral rights beneath their property. The Towanda Daily Review published this article on Tuesday. Standing Stone Township’s former treasurer Diane Ward told Bradford County Commissioners that local banks had refused to re-finance some residents’ homes because of Chesapeake’s actions. Apparently, the banks did not seperate the land rights from the mineral rights. Chesapeake mortgaged the mineral rights of more than 1000 properties in Bradford County to borrow $5 billion dollars. Chesapeake issued a statement that the mortgage on the mineral rights should not affect the property owner’s ability to re-finance their homes.