Michigan lawmakers call for action in Chesapeake-Encana probe

Source: Reuters

Michigan lawmakers call for action in Chesapeake-Encana probe

By Brian Grow and Joshua Schneyer
Tue Jul 24, 2012 7:03am EDT

(Reuters) - Two Michigan state representatives have called on officials there to step up their investigations into possible collusion between Chesapeake Energy Corp and Encana Corp, following a Reuters report that the energy rivals plotted to avoid bidding against each other in Michigan land deals.

Encana, which opened an internal investigation led by its board of directors in late June, is scheduled to release second- quarter earnings Wednesday. Canada's largest natural gas company, Encana has said it will not comment further on the collusion report until its inquiry is completed. Chesapeake has declined to comment beyond saying that it never bid jointly with Encana.

The calls for more aggressive action in Michigan came last week in resolutions filed by two lawmakers, both Democrats.

In separate but identically worded resolutions, Rep. Dian Slavens and Rep. Charles Smiley urged state Attorney General Bill Schuette and the state's Department of Natural Resources to "work with the appropriate federal authorities and employ all available resources to investigate alleged price fixing and collusion among natural gas developers, and vigorously pursue damages to which the State of Michigan and impacted citizens are entitled."

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Read more: http://www.reuters.com/article/2012/07/24/us-chesapeake-michigan-idUSBRE86N0JO20120724