- As the natural gas industry struggles with depressed prices, Chesapeake Energy (CHK) is shifting a much larger share of transportation and marketing costs to the owners of land it leases in Pennsylvania, according to a Reuters analysis.
- The largest natural gas operator in Pennsylvania's Marcellus shale formation, CHK this year is taking much heavier deductions from royalty checks it sends landowners, in many cases cutting compensation by more than half.
- Such deductions are made in other states, but an ambiguous Pennsylvania law has allowed CHK and others to push the practice further there, analysts and locals say.
Reuters: Chesapeake pumping up royalty deductions to cut costs
Aug 28 2013, 12:56 ET