Case Description
Chesapeake and Encana were charged with bid-rigging of oil and gas leases on public and private lands. Encana settled the charges. The Attorney General alleged that the two companies had agreed to split up the Michigan counties and each company would be an exclusive bidder in one county. the price of oil and gas leases dropped from $1510 per acre to $40 per acre in six months. The two counts of the indictment relate to one contract or conspiracy in restraint of commerce allegedly occuring between May – June 2010 with regard to private landowners; and a second allegedly occurring between August – October 2010 with regard to the State of Michigan’s oil and gas lease auction. Attorney General reached a settlement with Chesapeake after several days of trial. Chesapeake agreed to pay $25 million and plead no contest to one count each of criminal attempted antitrust violations and false pretenses, both misdemeanors. There was a delayed sentencing agreement under which the charges would be dismissed if Chesapeake abides by the agreements for 11 months.
