LANSING — A company accused of colluding with a Calgary-based oil and gas company will pay $25 million as a part of a settlement with the state of Michigan, Attorney General Bill Schuette announced Friday. Chesapeake Energy Corporation was accused of working with Encana Oil & Gas to avoid bidding against each other in public auctions for oil and gas leases in Michigan. That alleged collusion caused lease prices to drop precipitously in October 2010.
Schuette has also previously reached a $5 million settlement with Encana. The settlement means every victim in the state’s racketeering complaint will be paid back fully for their losses and attorney fees.
“This is a victory for Michigan taxpayers and a victory for all the Michigan land-owners who took deep hits to their pocketbooks following the October 2010 private land auction,” Schuette said in a statement. “This settlement will achieve recovery for every one of the more than 700 affected victims who come forward and make a valid claim.” MORE
