Chesapeake Energy has canceled plans to build its Eastern Division headquarters in Charleston because of a West Virginia Supreme Court ruling on May 22, the company announced today.

"The decision was stunning," Scott Rotruck, vice president of corporate development, said in a prepared statement. "As a result, Chesapeake Energy has the made the decision to cancel plans to build a new regional headquarters building Charleston."

In January 2007, a Roane County jury found that Columbia Natural Resources Corp., which Chesapeake bought in November 2005, and NiSource Inc. shortchanged more than 8,000 gas-rights owners.

Last week, the state Supreme Court voted 5-0 to deny a request for an appeal from NiSource and Chesapeake Energy, upholding the jury verdict that requires the natural gas companies to pay $405 million to plaintiffs in royalties and punitive damages.

"While we hold a less significant amount of the liability in the verdict, we do believe it sends a profoundly negative message about the business climate in the state," Rotruck said. "The reality of this decision is that nobody in West Virginia, similarly situated, has a guaranteed right of appeal in the judicial system."

Chesapeake and NiSource plan on appealing the case to the U.S. Supreme Court.

Chesapeake's new $30 million Eastern Division headquarters was to be built on 27 acres in NorthGate Business Park in Charleston. The futuristic half-mooned shaped building would have been 120,000 square feet, housing about 300 employees.

The company held a groundbreaking in August 2007, featuring company officials, Gov. Joe Manchin, Rep. Shelley Moore Capito, R-W.Va., and Charleston Mayor Danny Jones.

"We've had a few bumps in the road," Aubrey McClendon, chief executive officer and founder of Chesapeake, said at the August event. "[But] Charleston, West Virginia, is the exactly right place to lead the new exploration of the natural gas in the Appalachian Basin."

Today, the company said it would continue its work in the Appalachian Basin. The Eastern Division will continue be managed from Charleston, but from leased space.

Read more in Friday's Charleston Gazette.

Chesapeake Energy has canceled plans to build its Eastern Division headquarters in Charleston because of a West Virginia Supreme Court ruling on May 22, the company announced today.

"The decision was stunning," Scott Rotruck, vice president of corporate development, said in a prepared statement. "As a result, Chesapeake Energy has the made the decision to cancel plans to build a new regional headquarters building Charleston."

In January 2007, a Roane County jury found that Columbia Natural Resources Corp., which Chesapeake bought in November 2005, and NiSource Inc. shortchanged more than 8,000 gas-rights owners.

Last week, the state Supreme Court voted 5-0 to deny a request for an appeal from NiSource and Chesapeake Energy, upholding the jury verdict that requires the natural gas companies to pay $405 million to plaintiffs in royalties and punitive damages.

"While we hold a less significant amount of the liability in the verdict, we do believe it sends a profoundly negative message about the business climate in the state," Rotruck said. "The reality of this decision is that nobody in West Virginia, similarly situated, has a guaranteed right of appeal in the judicial system."

Chesapeake and NiSource plan on appealing the case to the U.S. Supreme Court.

Chesapeake's new $30 million Eastern Division headquarters was to be built on 27 acres in NorthGate Business Park in Charleston. The futuristic half-mooned shaped building would have been 120,000 square feet, housing about 300 employees.

The company held a groundbreaking in August 2007, featuring company officials, Gov. Joe Manchin, Rep. Shelley Moore Capito, R-W.Va., and Charleston Mayor Danny Jones.

"We've had a few bumps in the road," Aubrey McClendon, chief executive officer and founder of Chesapeake, said at the August event. "[But] Charleston, West Virginia, is the exactly right place to lead the new exploration of the natural gas in the Appalachian Basin."

Today, the company said it would continue its work in the Appalachian Basin. The Eastern Division will continue be managed from Charleston, but from leased space.

Read more in Friday's Charleston Gazette.