A Michigan landowner is suing both Chesapeake Energy Corp and Encana Corp for antitrust violations alleging collusion between the two energy firms to rig the results of a bidding process for oil and gas rights held back in 2010.
The complainant, Northstar Energy is the owner of about 10,000 acres of the Utica-Collingwood oil and gas shale formation located in Michigan. The suit stems from investigations conducted by Reuters that set in motion a series of further inquiries in the practices of the second largest producer of natural gas in the United States, Chesapeake Energy. According to a Reuter report back in June, both Chesapeake and Encana, the Canadian gas producer, worked together to dilute land prices in Michigan in 2010.
The lawsuit further alleges that both Chesapeake and Encana avoided to bid against one another for the oil and gas rights in Northstar's property. Northstar is seeking treble damages or triple the amount lost by Northstar because of the collusion.
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