Statement on Chesapeake Energy Deduction Practices

February 14, 2014

Senate President Pro Tempore Joe Scarnati (R-25) issued the following statement regarding the deduction of post-production costs by Chesapeake Energy.

The Marcellus Shale Industry has been an asset to Pennsylvania – providing good family sustaining jobs while helping to advance energy independence for our Commonwealth.  While most shale companies have engaged in responsible business practices, it has become apparent that one company, Chesapeake Energy, has undertaken some disturbing actions relating to post-production costs.

My colleague Senator Gene Yaw, who also represents a senatorial district that encompasses a portion of the Marcellus Shale region, has taken a lead role in making sure that Attorney General Kane is aware of this situation and requested that an official inquiry be started to review Chesapeake’s practices.  The action of Governor Corbett to also support Senator Yaw’s request, through a letter he has sent to Chesapeake Energy’s President, takes a vital step to call upon the company to restore fair treatment to Pennsylvania landowners.

As we continue to work together to examine ways to further protect landowners across our Commonwealth, we must also ensure that all companies doing business in Pennsylvania understand that they need to engage in sound business practices with our residents. 


Drew Crompton
(717) 787-7084