Chesapeake Energy Corporation's 50 acre campus is seen in Oklahoma City, Oklahoma, on April 17, 2012. REUTERS/Steve Sisney

(Reuters) - Chesapeake Energy Corp (CHK.N) said it received a subpoena from the U.S. Department of Justice seeking information on the accounting methodology for the acquisition and classification of oil and gas properties.

Shares of the company fell as much as 9.3 percent in morning trading.

The No. 2 U.S. natural gas producer said in May that it had received subpoenas and demands for documents from the DoJ and some state government agencies in connection with investigations into possible violations of antitrust laws relating to the purchase and lease of oil and natural gas rights.

Chesapeake had also received subpoenas from the DoJ, the U.S. Postal Service and states, seeking information on how the company pays royalties to landowners. (bit.ly/2dnnspG)

The company said in a regulatory filing on Thursday it had engaged in discussions with the DoJ, the U.S. Postal Service and state agency representatives and continue to respond to such subpoenas and demands. (bit.ly/2dnnsWM)

Chesapeake had come under scrutiny when former Chief Executive Aubrey McClendon, who helped transform the U.S. energy industry with shale gas, was investigated and charged in March with conspiring to rig bids to buy oil and natural gas leases in Oklahoma.

McClendon died a day later, when his car slammed into an overpass.

Reuters reported in 2012 that McClendon had taken out more than $1 billion in loans using his personal stakes in thousands of company wells as collateral.

Chesapeake shares were down 4.2 percent at $6.46 on Thursday. Up to Wednesday’s close, they had risen 50 percent this year.</s>OKLAHOMA CITY (AP) — The U.S. Department of Justice has opened an investigation into possible antitrust violations by Chesapeake Energy Corp.

The Journal Record reports (http://bit.ly/2dwWCJ5 ) the agency has subpoenaed documents related to how the driller pays royalty owners and accounts for oil and gas reserves.

Chesapeake disclosed the subpoena Thursday in a regulatory filing with the U.S. Securities and Exchange Commission. University of Central Oklahoma economics professor Jeremy Oller, an expert witness on antitrust legal matters, says the Justice Department is likely examining other oil and gas companies as part of the investigation.

The filing says the Justice Department and other agencies have asked Chesapeake for documents, testimony and information related to the company’s oil and gas leases and purchases. The company also received subpoenas from the U.S. Postal Service and state agencies.</s>The government has slashed natural gas price by 18 per cent to $2.5 per million British thermal unit (mmBtu) for October-March period, a move that will impact revenue of upstream oil and gas companies but would help bulk consumers from fertiliser and power sectors.



 The price for April-September period was $3.06 per mmBtu. The revised price will be applicable from Saturday. As per the new gas pricing formula approved by the NDA government in October 2014, gas prices are to be revised every six months and the next change is due on April 1. The reduction in natural gas prices would mean lower raw material cost for compressed natural gas (CNG) and natural gas piped to households (PNG) and would translate into reduction in retail prices. It would also mean lower feedstock cost for power generation and manufacturing of fertilisers.



 Rates were last cut by 20 per cent from April 1. The price of gas between October 1, 2015 and March 31, 2016 was $3.81 per mmBtu and $4.66 in prior six month period. "The price of domestic natural gas for the period October 1, 2016 to March 31, 2017 is $ 2.50 per mmBtu on Gross Calorific Value (GCV) basis," said a notification issued by the Petroleum Planning & Analysis Cell, which comes under the petroleum ministry.



 The reduction will hit producers like state-owned ONGC as well as central government whose earnings from royalty and income tax will dip by about Rs 800 crore during the remainder of the fiscal, according to industry estimates. Every dollar dip in gas price results in Rs 4,000 crore hit in revenue of ONGC on an annual basis. The current price reduction would hit its revenue by about Rs 1,000 crore.



 Government also announced a sharp reduction in cap price based on alternate fuels for undeveloped gas finds in difficult areas like deepsea which are unviable to develop as per the existing pricing formula. The cap for October 1, 2016 top March 31, 2017 will be $5.3 per mmBtu, down from $6.61 in April 1 to September 30 period, PPAC notification said.



 The government on Friday also set ceiling price for natural gas from difficult blocks such as those in deep water, ultra deep water and high pressure and high temperature areas at $5.3 per million British thermal unit (mmBtu) for October-March period.
The Obama administration through the United States Department of Justice sends a subpoena to natural gas giant Chesapeake Energy regarding the accounting methods for its oil and gas properties.