Chesapeake, Encana charged in Michigan over collusion

Michigan has indicted Chesapeake Energy (CHK) and Encana (ECA) with conspiring to keep down oil and gas lease prices in the state.

If found guilty, the companies could face penalties of up to $1M, while individuals could receive prison sentences as well as fines.

The charges follow an investigation that was sparked by a Reuters article about how then Chesapeake CEO Aubrey McClendon and other senior executives at the company and at Encana discussed not "bidding each other up."

The talks came after Michigan prices soared to as high as $3,000 per acre in mid-2010; they then fell sharply later that year.

Encana and Chesapeake still face a separate, federal investigation.

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Comments (4)
  • Pgman701
    , contributor
    Comments (102) | Send Message
    Glad I sold this a few weeks ago.
    6 Mar 2014, 07:55 AM Reply Like
    , contributor
    Comments (1149) | Send Message
    Fines are a drop in bucket so nothing there, people going to jail, the ones who were in charge at time are already gone so nothing to this in either company.
    6 Mar 2014, 09:36 AM Reply Like
  • pmcaya
    , contributor
    Comments (6) | Send Message
    I don't see this as a show-stopper - my question is will the hyped happen to bring $40/share?
    6 Mar 2014, 09:30 PM Reply Like
  • Pgman701
    , contributor
    Comments (102) | Send Message
    Hey Aubrey had to pay for those maps somehow right? Chesapeake reaps what it has sewn.
    8 Mar 2014, 09:21 AM Reply Like
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