Chesapeake Energy Denies Drilling Patent Violations

Article excerpt

Chesapeake Energy Corp. this week denied alleged violations of a patent relating to horizontal drilling technology by Union Pacific Resources Co.

Union Pacific filed a lawsuit with the U.S. District Court in Fort Worth against Chesapeake for infringement of its geosteering patent. Union Pacific seeks an injunction, actual and enhanced damages, attorney's fees and interest.

Geosteering technology steers a drill bit while a well is drilling to keep the wellbore in a desired geologic zone. Union Pacific's patented method has particular application to the drilling of horizontal wells and is implemented through the use of proprietary software. The lawsuit alleges Chesapeake engaged the services of T&T Geotechnical Inc. for the purpose of aiding the infringement and further alleges tortious interference by Chesapeake with Union Pacific's business relations. Union Pacific and T&T recently settled a lawsuit in which Union Pacific alleged patent infringement and misappropriation of trade secrets relative to its geosteering technology. In its final judgment regarding the lawsuit, the U. …