TV News LIES

Saturday, May 23rd

Last update08:03:39 PM GMT

You are here News Environment How the Kings of Fracking Double-Crossed Their Way to Riches

How the Kings of Fracking Double-Crossed Their Way to Riches

E-mail Print PDF

Chesapeake energyThanks to a series of shady deals with former subsidiaries—and massive cuts in royalties to unsuspecting landowners—the controversial shale gas firm is now awash in cash.

At the end of 2011, Chesapeake Energy, one of the nation’s biggest oil and gas companies, was teetering on the brink of failure.  Its legendary chief executive officer, Aubrey McClendon, was being pilloried for questionable deals, its stock price was getting hammered and the company needed to raise billions of dollars quickly.

The money could be borrowed, but only on onerous terms. Chesapeake, which had burned money on a lavish steel-and-glass office complex in Oklahoma City even while the selling price for its gas plummeted, already had too much debt.

In the months that followed, Chesapeake executed an adroit escape, raising nearly $5 billion with a previously undisclosed twist: By gouging many rural landowners out of royalty payments they were supposed to receive in exchange for allowing the company to drill for natural gas on their property.

In lawsuits in state after state, private landowners have won cases accusing the companies like Chesapeake of stiffing them on royalties they were due. Federal investigators have repeatedly identified underpayments of royalties for drilling on federal lands, including a case in which Chesapeake was fined $765,000 for “knowing or willful submission of inaccurate information” last year.

More...


Most Recent Related Stories...


U.S. oil platform catches fire in Gulf of Mexico

oil rig fireA small offshore oil platform caught fire in shallow water near the coast of Louisiana on...

Past 12 Months Tied for Warmest on Record

Hottest year on recordApril capped a 12-month period that tied the warmest such stretch on record, according to data...

All Las Vegas freeway ramps reopen after 5.3-magnitude earthquake

Las Vegas earthquakeAll Las Vegas freeway ramps have reopened after a 5.3 magnitude earthquake hit about 125 miles...

Statoil: North Sea pipeline breach 'significant'

North sea pipeline spillA February leak from the Gudrun platform in the North Sea had the potential to be...
 
America's # 1 Enemy
Tee Shirt
& Help Support TvNewsLIES.org!
TVNL Tee Shirt
 
TVNL TOTE BAG
Conserve our Planet
& Help Support TvNewsLIES.org!
 
Get your 9/11 & Media
Deception Dollars
& Help Support TvNewsLIES.org!
 
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!