Energy. Environment. Economy.

Feds subpoena Chesapeake Energy over royalty complaints

Chesapeake Energy's offices in Athens, Bradford County.

Marie Cusick/ StateImpact Pennsylvania

Chesapeake Energy's offices in Athens, Bradford County.

Chesapeake Energy has been subpoenaed by the federal Department of Justice, seeking information on its royalty payment practices to mineral owners.

The company has been the subject of widespread complaints in Pennsylvania and other areas of the country where it operates. Landowners have accused Chesapeake of violating lease agreements and underpaying royalties.

In a regulatory filing today with the Securities and Exchange Commission, the company disclosed it has received subpoenas from the DOJ and other states. Chesapeake says it has “engaged in discussions with the DOJ and state representatives” and continues to respond to demands for information.

In an email to StateImpact Pennsylvania, Chesapeake spokesman Gordon Pennoyer declined to comment.

Earlier this year Governor Corbett wrote a letter to Chesapeake’s CEO, Doug Lawler, saying the company’s royalty practices, “strike many as unfair and perhaps illegal.” He asked state Attorney General Kathleen Kane to investigate.

Kane’s office has repeatedly declined to comment on the matter, citing the ongoing investigation.


  • Rick Nelson

    These polluters who extract gas and oil from dangerous, toxic, and irresponsible extraction practices like hydrofracking must be penalized for the environmental destruction they cause. That money should be dedicated to green energy technologies like solar, wind, geothermal, hydro, etc. so we can create REAL jobs, limit the dire impacts of climate change, and you know, maybe save the planet and species, ( and reparations to those they injure) . Or we can bend over and kiss our A**es goodbye while the fossil fuel industries reward the politicians they bought off, ( until the air is unfit to breath, the water is contaminated, etc., etc. ).

  • manatee

    I am an “owner” since the house we brought had been leased out to this lying company and have gotten nothing but the runaround. Their employees often contradict themselves and conveniently lose paperwork that they claim they have to have to give any information to we owners. I’d like to see the book thrown at both the company and the employees.

About StateImpact

StateImpact seeks to inform and engage local communities with broadcast and online news focused on how state government decisions affect your lives.
Learn More »