Reuters: Chesapeake subpoenaed by DOJ, states over royalty payments

BY ANNA DRIVER

Chesapeake Energy Corporation's 50 acre campus is seen in Oklahoma City, Oklahoma, April 17, 2012. REUTERS/Steve Sisney

Chesapeake Energy Corporation's 50 acre campus is seen in Oklahoma City, Oklahoma, April 17, 2012. 

CREDIT: REUTERS/STEVE SISNEY

(Reuters) - Chesapeake Energy Corp has received subpoenas from states and the U.S. Department of Justice seeking information on its royalty payment practices to mineral owners, according to a regulatory filing.

Chesapeake, which is also being probed by the DOJ and states over possible antitrust violations related to land purchases, said it is responding to the subpoenas, according to a filing with the U.S. Securities and Exchange Commission.

A spokesman for the Oklahoma City, Oklahoma company declined to comment on Thursday.

Chesapeake faces a slew of lawsuits from landowners and others who allege the company has underpaid royalties for produced and sold natural gas and natural gas liquids through the use of improper deductions or below-market pricing.

Chesapeake said in its quarterly SEC filing on Wednesday that it has resolved a number of those claims and has also prevailed in some lawsuits.

Shares of Chesapeake fell 3.4 percent to $21.98 in midday New York Stock Exchange trading. That compares with a 2 percent decline in the SIG Oil Exploration and Production Index.

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0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on November 6, 2014 at 12:33pm

Keith,

    I can't wait to see which states have filed a complaint against CHK.

Looks like a good time to add my "Chesapeake Royalty Statement Decoded" to a Blog for those who are scratching their heads over their Royalty Statements.

Permalink Reply by Barbara on November 7, 2014 at 6:50am

Hi Ron, I would like to see your " Chesapeake Royalty Statement Decoded" if you really have one.  Let me know where to look!  Thank you, Barbara

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on November 12, 2014 at 7:26am

Barbara,

    Click on "Forum" at the top of the page, then click on Blogs.

Chesapeake RS Decoded is the first item at the top.

Would I kid you? You know I wouldn't!

Permalink Reply by Frank Walker on November 7, 2014 at 1:31am

I am shocked, SHOCKED!, that Chesapeake's good name is being besmirched by all these unfair lawsuits!

(not)

When new lows for corporate integrity and respectability are being established, expect to find Chesapeake's brand foremost.  "Chesapeake Energy Corporation" is synonymous with "sleaze".

0ym9x5ag7ury2Permalink Reply by 0ym9x5ag7ury2 on November 7, 2014 at 5:51am

Frank,

     I thought I was the only one on GMS.com that had his dreams crushed by CHK enough to speak out.

How do they cheat thee? Let me count the ways! 

Chesapeake Royalty Statement Decoded, Soon to be on GMS.com book stands (OK a Blog) everywhere.

Permalink Reply by James Foster on November 15, 2014 at 5:23pm
The DOJ investigating Chesapeake? Well if that isn't the pot calling the kettle black. How could the DOJ who can't respond to a subpoena by cogresss, lied their a$$ off about well every thing, let four Americans get killed in the embassy attack and ignored it, ignored it, ran guns illegally into Mexico that got American and many Mecicans killed, ignores law breaking illegals crossing southern border daily, sticks nose in criminal cases that are not their business. I could go on and on but I think unfortunately they will think Chesapeake's shenanigans are petty theft not grand larceny. Slap on the wrist. Maybe individual states AG's will do better. Eric Holder couldn't find his own a$$ with both hands.

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