From the Associated Press:
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.
Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.
Rig Count Interactive Map by Baker Hughes, an energy services company.
Shale Sheet Fracking, a Youngstown Vindicator blog.
The Ohio Environmental Council, a statewide eco-group based in Columbus.
Earthjustice, a national eco-group.
People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.
Concerned Citizens of Medina County, a grass-roots group.
No Frack Ohio, a Columbus-based grass-roots group.
Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.
Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.
Allegheny Front, environmental public radio for Western Pennsylvania.