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OKLAHOMA CITY--(BUSINESS WIRE)--June 12, 2008--Chesapeake Energy
Corporation (NYSE:CHK) today announced that it has received a petition
filed in Texas State District Court in Dallas County brought by ICC
Energy Corp. alleging that Chesapeake breached an agreement regarding
the marketing of natural gas from the Barnett Shale underlying the
Dallas/Fort Worth International Airport (DFW). The company is
surprised by the allegations and that ICC has chosen to file suit over
the parties' disagreement surrounding ICC's involvement as a Minority
and Women Business Enterprise (M/WBE) subcontractor on the DFW lease
project. Chesapeake believes ICC's petition is completely without
merit and its allegations are inaccurate and misleading.
Management Comments
Henry J. Hood, Chesapeake's Senior Vice President - Land and Legal
and General Counsel, stated, "Chesapeake has had excellent relations
with all minority and women owned subcontractors who have provided
services on the DFW lease project and has met or exceeded its M/WBE
commitments to DFW every month since the start of the project. To
date, Chesapeake has paid over $100 million to M/WBE subcontractors.
"From the inception of this project, Chesapeake has been ready,
willing and able to enter into a contract with ICC to provide the
services set forth in ICC's bid documents, but ICC has refused to
present a formal proposal with necessary contract terms consistent
with its bid. The only proposal that Chesapeake has received was
provided just a few days ago and it materially differed from what was
represented in ICC's bid. ICC claims it is the largest minority-owned
marketer of natural gas in the U.S., but it has refused to provide any
references or any evidence of its competency and ability to perform.
Absent an agreement on essential terms and adequate demonstration of
ICC's ability to perform the services required, the parties will not
be able to move forward. Chesapeake regrets this impasse, particularly
since ICC is also a 1% M/WBE participant in the DFW lease project, and
the parties' relationship in that transaction has been very favorable
to date."
This press release includes "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and Section
21E of the Securities Exchange Act of 1934. Forward-looking statements
give our current expectations or forecasts of future events. They
include projections of future natural gas and oil prices, planned
capital expenditures for drilling, leasehold acquisitions, as well as
statements concerning business strategy and other plans and objectives
for future operations. We caution you not to place undue reliance on
our forward-looking statements, which speak only as of the date of
this press release, and we undertake no obligation to update this
information.
Chesapeake Energy Corporation is the third-largest producer of
natural gas in the U.S. Headquartered in Oklahoma City, the company's
operations are focused on exploratory and developmental drilling and
corporate and property acquisitions in the Fort Worth Barnett Shale,
Fayetteville Shale, Haynesville Shale, Mid-Continent, Appalachian
Basin, Permian Basin, Delaware Basin, South Texas, Texas Gulf Coast
and Ark-La-Tex regions of the United States. Chesapeake's Internet
address is www.chk.com.
CONTACT: Henry J. Hood, 405-879-9400
Senior Vice President -
Land and Legal and General Counsel
henry.hood@chk.com
or
Julie Wilson, 817-870-5656
Vice President
Corporate Development
julie.wilson@chk.com
SOURCE: Chesapeake Energy Corporation