Chesapeake Energy and Canadian natural gas giant Encana discussed ways to suppress land prices in promising Michigan oil and gas plays, according to Reuters, which examined emails that antitrust lawyers said could show the companies violated federal and state laws.
Chesapeake and Encana say they discussed forming a joint venture in Michigan but opted against it. Partnerships can defray the steep costs of shale development, which include amassing thousands of acres of land and drilling dozens of wells. Chesapeake spokesman Jim Gipson also said there had been discussions with Encana about “forming an ‘area of mutual interest’ joint venture” in Michigan. But he said “no such agreement was reached between the parties…. Nor did Encana and Chesapeake make any joint bids.”
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