Kane eyes gas royalty check complaints
HARRISBURG — Prompted by a state senator from Northern Pennsylvania, state Attorney General Kathleen Kane is reviewing whether her office has jurisdiction to investigate complaints into the costs that natural gas exploration giant Chesapeake Energy Corp. deducts before it pays royalties to the owners of land.
A Kane spokesman said on Saturday that her office is undertaking the review at the request of Lycoming County Sen. Gene Yaw.
Chesapeake Energy spokesman Gordon Pennoyer declined to comment on Saturday on the complaints and to explain which costs Chesapeake deducts.
Yaw said the deductions sometimes exceed the amount of the royalty check and that one landowner complained it is costing residents money to have gas extracted from their property.
“The words commonly used by landowners to describe what is happening are ‘cheating,' ‘stealing' and ‘fraud,' ” Yaw wrote.
In a separate letter on Thursday, Gov. Tom Corbett wrote to Chesapeake Energy's president and CEO, Doug Lawler, suggesting that he has complained to Lawler several times about the deduction of post-production costs.
“Deduction of post-production costs, in a manner which seemingly few if any other operators in Pennsylvania utilize, has caused a significant erosion of the trust and goodwill the natural gas industry has established with Pennsylvania leaseholders and local communities,” Corbett wrote.
Subscribe today! Click here for our subscription offers.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Republican legislator estimates selling state liquor system could net $1B
- 1 dead in New Castle house fire deemed suspicious
- Liquor Control Board, Pennsylvania universities target problem drinking
- State lottery scratch-off tickets bring instant cheer as holiday gifts
- Search continues for missing student near Philadelphia
- Licensing boards increase fees to cover costs that include investigations
- Most Penn State trustees boycott special meeting on legal action against football program
- Poconos-area man who helped subdue gunman among Carnegie Heroes