Chesapeake Energy fined $765,000 for inaccurate royalty reports
BY BEN LEFEBVRE
OKLAHOMA CITY -- The United States Department of Interior (DOI) fined Chesapeake $765,000 for misreporting oil and natural gas sales volumes, the federal agency said.
Chesapeake repeatedly submitted inaccurate information from May 2011 through July 2012 on royalty reporting forms related to oil and gas leases it held on American Indian land in Oklahoma, the agency' s Office of Natural Resources Revenues (ONRR) said.
The agency said it ordered Chesapeake to add volumes to its royalty reports during an October 2009 audit, but that Chesapeake failed to comply until April 2011. The company resumed submitting inaccurate royalty reports from May 2011, the agency said.
"It is simply unacceptable for Chesapeake Energy to misreport sales volume information" ONRR Director Greg Gould said in the agency' s announcement.
“The payments at issue were less than $500 and the company intends to request a hearing on the civil penalty”, Chesapeake spokesman Michael Kehs said. "Chesapeake does not believe that it knowingly or willfully submitted inaccurate royalty reports" he added.
Dow Jones Newswires