Chesapeake Energy, the No. 2 natural-gas producer in North Texas' Barnett Shale, is facing lawsuits in Michigan from farmers who said they signed drilling leases, only to have the leasing firm, Northern Michigan Exploration LLC, void the deals.
As it turns out, Northern Michigan was a shell company set up by Chesapeake to conceal the fact that it was undertaking a land-leasing spree in the state.
Chesapeake defends its actions, including the use of the shell company.
Click here for the Reuters report.
--Jack Z. Smith
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