Chesapeake Energy Reaches $25 million Settlement with Michigan over leasing

Reported by Reuters this afternoon, 2015-04-24

Chesapeake Energy Corp. (NYSE: CHK) the second largest U.S. natural gas producer, will create a $25 million compensation fund as part of a settlement on Friday of antitrust and racketeering charges brought by the state of Michigan, according to terms of the settlement.

A criminal antitrust trial under way in Michigan state court in Cheboygan has been suspended as part of the settlement. In addition to the compensation fund, Chesapeake agreed to plead no contest to one count each of attempted antitrust violation and false pretenses, both misdemeanors. Under terms of the agreement, the court will dismiss those charges after 11 months if Chesapeake adheres to the settlement terms

The antitrust charge brought by Michigan's Attorney General Bill Schuette against Oklahoma City-based Chesapeake alleged the company colluded with a competitor, Encana Corp. (NYSE: ECA), to suppress oil and gas land lease prices at an October 2010 state land lease auction. Encana (NYSE: ECA) agreed to pay $5 million in a civil settlement with the state in May 2014. EnCana's case was "dismissed" with a Prosecution Agreement on 2015-04-16 according to the Michigan Court's web site.

Separately, Chesapeake faced Michigan charges of racketeering and false pretenses that alleged the company defrauded private landowners in the state during 2010. Those charges, for which Chesapeake was slated to face another criminal trial, will be dropped by the state as part of the settlement agreement.

Views: 645

▶ Reply to This

Replies to This Discussion

Permalink Reply by Dexter Green on April 24, 2015 at 11:05am

So it costs $25,000,000 to keep company executives out of jail?  Sounds like a bargain.

Permalink Reply by searcherone on April 24, 2015 at 12:45pm

So does the 25 million go to the defrauded landowners?   Wonder if the settlement is so much per acre to the landowners.   How about leases being null and void?   If I were a Michigan landowner that is what I would want.

Permalink Reply by Mtneer on April 24, 2015 at 1:59pm
If only the PA Attorney General would of investigated Chessie and Range leasing properties along the WV northern panhandle border with Pennsylvania four years ago. One can dream...
Permalink Reply by Jason on April 24, 2015 at 2:11pm
Please enlighten me as to what they did. Im in southern beaver county.
Permalink Reply by Tim Tarr on April 24, 2015 at 5:02pm

Separately, Chesapeake faced Michigan charges of racketeering and false pretenses that alleged the company defrauded private landowners in the state during 2010. Those charges, for which Chesapeake was slated to face another criminal trial, will be dropped by the state as part of the settlement agreement.

Seems real Cheep to drop a potential multi-billion liability.

Permalink Reply by sircedric on April 25, 2015 at 2:29am

Steal 50 million from property owners and settle for 25 million. Now thats a great way to make money for your company. Just sucks if your a LANDOWNER!!!

Permalink Reply by Robert Allingham on April 25, 2015 at 5:40am

I smell fish. How does Chessy keep getting out of these lawsuits so cheaply? No wonder they keep doing what they do. If they don't get caught they make money and if they do get caught they still make money. Our Justice system is failing right before my eyes. WOW!

Permalink Reply by Paul Butler on April 25, 2015 at 6:15am

Bob Dylan called this too:

Steal a little, they will put you in jail;

Steal a lot and they will make you King!

Pump don't work, cuz the vandal, stole the handle!

RSS

© 2024   Created by Keith Mauck (Site Publisher).   Powered by

Badges  |  Report an Issue  |  Terms of Service