A PYMNTS Company

US: Michigan sues gas giants for price-fixing

By  |  March 6, 2014

Michigan has filed charges against two gas conglomerates over allegations the firms kept gas lease prices artificially low in the state, say reports.

Chesapeake Energy and Encana were charged Wednesday by Michigan Attorney General Bill Schuette after the state completed its investigation into the claims.

The companies were the state’s largest land leasers during the oil leasing boom in 2010, but are suspected of having colluded with each other to prevent land leasing costs from rising as they leased more land in the Collingwood Shale region.

The state first launched a probe into the companies in 2012 following reports by Reuters that found evidence of executives from both companies rigging the bidding process.

Antitrust violations are considered misdemeanors under Michigan law, say reports. The companies face fines of up to $1 million each.

Full Content: Reuters

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.