Chesapeake Energy Corp. has been fined more than $2.1 million by the U.S. Department of Interior for repeatedly underreporting natural gas production volumes in Oklahoma.
Interior's Office of Natural Resources Revenue (ONRR) said Monday that Chesapeake had failed to comply with an October 2011 order that found "repeated, systemic errors" in monthly reporting of gas produced and sold from more than 100 leases on land owned by tribes and individual Native Americans. ONRR had ordered Chesapeake to restructure its monthly reporting system as part of a review to correct any unreported/misreported volumes.
"While the company assured ONRR it had corrected the reports, follow-up checks still found additional errors," said Interior's Paul A. Mussenden, deputy assistant secretary for natural resources revenue management. "Correct royalty reports, especially on American Indian leases, are essential for ONRR to ensure all royalties are paid, to provide reliable data used by ONRR's audit and compliance teams, and to provide accurate data to the American public."Read more by clicking here.
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