Chesapeake Energy to challenge $765,000 fine

04/02/2013 4:46 PM

04/02/2013 4:47 PM

A federal agency has fined Chesapeake Energy Corp. $765,000 over accusations that it knowingly misstated sales volumes on its oil and gas royalty reports.

Chesapeake spokesman Jim Gipson said Tuesday the company plans to request a hearing on the penalty and doesn’t believe it willfully submitted inaccurate reports.

Companies with federal oil and gas leases pay royalties on the minerals they recover. The Department of the Interior’s Office of Natural Resources Revenue says that during an audit that started in late 2009, Chesapeake was ordered to report additional volumes on royalty reports for a lease in Oklahoma.

Agency officials say that after the issue was eventually corrected, the inaccurate reporting resumed, despite repeated warnings.

Gipson says the assessment at issue concerns the reporting of payments totaling less than $500.

Search Jobs

Enter Keyword(s)

Enter a City

Enter a State

Join the Discussion

The Wichita Eagle is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

Terms of Service