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COE v. CHESAPEAKE EXPLORATION, L.L.C.

No. 11-41003.

695 F.3d 311 (2012)

Richard C. COE; Barbara Anne Coe; Douglas Coe, Jr.; Peak Energy Corporation, Plaintiffs-Appellees, v. CHESAPEAKE EXPLORATION, L.L.C.; Chesapeake Energy Corporation, Defendants-Appellants.

United States Court of Appeals, Fifth Circuit.

September 12, 2012.

Attorney(s) appearing for the Case

John Clinton Schumacher , William Scott Hastings (argued), Elizabeth L. Tiblets , Locke Lord, L.L.P., Dallas, TX, Scott English Stevens , Stevens Love Law Firm, Longview, TX, for Plaintiffs-Appellees.

Jesse R. Pierce (argued), James Chadwick Newton , Pierce & O'Neill, L.L.P., Houston, TX, for Defendants-Appellants.

Before JOLLY, HIGGINBOTHAM and DENNIS, Circuit Judges.

PATRICK E. HIGGINBOTHAM, Circuit Judge:

In July 2008 Chesapeake Exploration, LLC entered into an agreement to purchase deep rights held by Peak Energy Corporation in certain oil and gas leases in the Haynesville Shale formation, for the hefty sum of $15,000 per acre. When the price of natural gas plummeted several months later, Chesapeake refused to honor its commitment. In response to the complaint filed by Peak it contended...

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