"The payments at issue were less than $500 and the company intends to request a hearing on the civil penalty, Chesapeake spokesman Michael Kehs said.
"Chesapeake does not believe that it knowingly or willfully submitted inaccurate royalty reports," Mr. Kehs said."
so...for underpaying on $500 payments they get fined $765,000????
i think i want to hear the rest of the story before i jump on chk about this.
chk is the company everyone loves to hate. deservedly so in some cases, they are the bad apples in the barrel according to most news reports.
my experience with them is, that they have consistently paid better royalties than anadarko, mitsui and southwestern. they sell gas at higher prices than either consistently AND on several occasions they have corrected royalty accounts, increasing the amount of past payments from as much as 2 years prior. sometimes the increased payment was for a month or 2 ago.
i wont pretend to be an expert, but i dont think that gas marketing and accounting is as much of an exact science as we would like it to be. there are meter discrepancies and all sorts of headaches in marketing and moving this commodity that i would never want to deal with.
few folks will admit this, but if not for aubrey and chk being the lease addicts that they were, we here in nepa would never have done so well for ourselves. i think future prospects for 1st and 2nd generation leasing are going to be severely constrained due to the change of command at chk.
chk, they sure arent saints, but i'd rather they were here than not.