Expand Energy controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2021
Chesapeake reaches Pennsylvania royalties settlement
Settlement
The Pennsylvania Attorney General's Office reached a $5.3 million settlement with Chesapeake Energy to resolve claims that the company deceived landowners and underpaid natural-gas royalties. The settlement requires restitution to landowners, a payment toward legal expenses, changes to lease offerings, and an ombudsman to review complaints; it still required bankruptcy-court approval.
Source excerpt
The settlement also requires that Chesapeake stop offering leases with market enhancement clauses that provide for post-production royalty deductions. Chesapeake has to hire an ombudsman to review landowner complaints.
The Pennsylvania Attorney General’s (AG) Office has reached a $5.3 million settlement with Chesapeake Energy Corp. to resolve claims that the company deceived landowners and underpaid royalties on natural gas production.
Chesapeake spokesman Gordon Pennoyer said the settlement must still be approved by the U.S. Bankruptcy Court for the Southern District of Texas.
2016
Federal bid-rigging indictment involving former CEO
A federal grand jury indicted former CEO Aubrey McClendon over alleged coordination to avoid competitive bidding for Oklahoma oil and gas leases. The case was dismissed after McClendon's death.
2014
Michigan land-leasing allegations
Michigan authorities filed felony fraud and racketeering charges alleging deceptive conduct in the acquisition and cancellation of land leases. Chesapeake disputed the allegations and later settled related landowner litigation.
2013
Governance concerns surrounding McClendon's financial interests
McClendon left the company after disclosures that he held personal interests in company wells and used those interests as collateral for substantial borrowing from banks that also financed Chesapeake. The circumstances prompted a Securities and Exchange Commission investigation and broader conflict-of-interest concerns.
2011
Pennsylvania well-control and chemical-spill incident
A failed seal assembly caused the company to lose control of a gas well undergoing hydraulic-fracturing operations in Bradford County. Salt water and chemicals entered the surrounding countryside, prompting regulatory scrutiny and threatened legal action.