HARRISBURG – State Senator Gene Yaw (R-23) today announced that the Office of Attorney General has responded to his letter requesting an official inquiry into the post-production cost deduction practices of Chesapeake Energy.
In a response letter received, the Attorney Generals Office stated:
“We have also received numerous complaints from citizens located in the Marcellus Shale region, including your district, regarding royalty payments. Your letter and the complaints have been forwarded to the Antitrust Section of the Office for a response.”
“At the request of the Attorney General’s Office, I am encouraging impacted leaseholders throughout my Senate District to send complete copies of their leases and addendums, along with any records of payment, to my office,” Yaw said. “This information is valuable to the Attorney General as she thoroughly reviews the complaints.”
In his letter dated February 13th, Yaw noted that thousands of contracts have been executed between gas companies and landowners in his Senate district. With no background in the oil and gas industry, local Pennsylvanians became consumers relying on the representations of landmen working for the gas companies. Yaw further noted that over the past year, a serious issue has arisen between the contract language regarding post production costs, the representations made by the landmen and the Guaranteed Minimum Royalty Act.
Senator Yaw is encouraging affected leaseholders to email him at firstname.lastname@example.org or mail the information to his Harrisburg Office at: Senate Box 203023, State Capitol Building, Harrisburg, PA 17120.
“I appreciate Attorney General Kane taking these additional steps in reviewing complaints from my constituents,” Yaw added.