There’s been some news of interest recently about Chesapeake Energy, one of the natural-gas companies behind the push for North Carolina to lift its ban on fracking, the controversial drilling method for natural gas.
The company is facing charges of conspiring to fix land prices, and of shorting landowners royalty payments in order to keep the company afloat.
As the Carolina Mercury pointed out last week, Chesapeake Energy was one of two energy companies indicted in Michigan this month on criminal charges of conspiring to keep property prices low in an area over a shale belt.
(The criminal charges and an ongoing federal anti-trust investigation stemmed from reporting by Reuters. Click here to read more.)
Here in North Carolina, Chesapeake Energy took legislators on fact-finding trips to Pennsylvania in 2011, as the lawmakers were considering a bill that eventually lifted the ban on fracking.
Fracking, or hydraulic fracturing involves setting of explosions deep into wells in the ground and then blasting with water and chemicals in order to extract natural gas caught in shale layers. There’s particular interest in bringing fracking to the Sandhills area of the state where a large underground shale belt straddles Lee and Chatham counties. (Scroll below or click here to see a map of shale deposits.)
The state’s Energy and Mining Commission is working to put rules in place before drilling can begin in 2015. Many of the chemicals used in fracking have had links to cancer and other health problems, and groundwater contamination has been reported in other areas of the nation.
Chesapeake Energy has also run into financial problems because of the drops in natural gas pricing, and apparently edged itself away from the brink of financial collapse in the last few years by cutting back on the royalties paid to landowners, according to a new report out today.