Chesapeake Energy disclosed on Thursday that it received a subpoena from the U.S. Department of Justice (DOJ) for information related to its asset purchase accounting practices.

The Oklahoma-based company said in a Securities and Exchange Committee filing that it has received a DOJ subpoena seeking information “on our accounting methodology for the acquisition and classification of oil and gas properties and related matters.”

The company had previously disclosed that it received subpoenas and demands for documents, information and testimony in connection with investigations into “possible violations of federal and state antitrust laws relating to our purchase and lease of oil and natural gas rights in various states.”

In the filing, the company said those subpoenas and demands for documents were made by the DOJ and “certain state governmental agencies and authorities.”

Chesapeake added in the filing that it has also have received DOJ, U.S. Postal Service and state subpoenas seeking information on its royalty payment practices.

“We have engaged in discussions with the DOJ, U.S. Postal Service and state agency representatives and continue to respond to such subpoenas and demands,” the company said in the filing.

Neither Chesapeake nor the DOJ have commented on the matter.

Chesapeake had previously been the subject of a DOJ probe into its land leasing practices.

Former Chesapeake Energy CEO Aubrey McClendon was indicted in March by a federal grand jury on charges of conspiring to rig bids for the purchase of oil and natural gas leases.

The charges alleged that McClendon “orchestrated” a conspiracy between “two large” oil and gas companies from December 2007 to March 2012 to collaborate on bids for oil and gas leases in northwest Oklahoma.

McClendon, 56, denied any wrongdoing.

McClendon died in a car accident just one day after those charges were filed.

The DOJ dismissed its case against McClendon after his death.

The charges against McClendon were filed about two years after Chesapeake disclosed that it was served with subpoenas and document demands from the DOJ and state agencies tied to a probe into possible anti-trust violations and under payment for mineral rights.


Leave a Reply