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.
Show commenting policy
TribLive commenting policy
- Audit: Work of adviser in Pa. Department of Education hard to pin down
- Pennsylvania’s new online voter registration draws tens of thousands
- Penn State THON organizers to review ‘canning’ safety
- Today is last day to register for Nov. 3 election in Pennsylvania
- Civil rights leader, subject of Kane’s alleged leak, Whyatt Mondesire dies at 65
- Lottery wants volunteer witnesses from Western Pennsylvania
- Senator Casey supports substance abuse bills
- Wolf’s 320-mile trip amid travel ban ripped
- Erie Zoo’s lynx triplets on display, first cubs since 1971