False

The Interior Department’s Office of Natural Resources Revenue (ONRR) said Tuesday that it penalized Chesapeake Energy Corp. $765,000 for “knowing or willful submission of inaccurate information” on its oil and natural gas royalty reports.

A former Helmerich & Payne Inc. (H&P) drilling manager has been charged with making false statements to the Department of Interior’s Office of Inspector General regarding a key safety device on a Gulf of Mexico drilling rig. Donald Hudson, 49, of Walnut Grove, MS, was employed by H&P as the drilling rig manager for Rig 206 from Oct. 14, 2009 until May 27, 2010. Rig 206’s blowout preventer (BOP), like other BOP systems, has to be pressure tested at regular intervals prior to continued drilling operations, and results of the tests, including any problems or irregularities, also are to be recorded. On March 30, 2011 Hudson allegedly lied to investigators about instructing the rig’s crew to falsify BOP testing results, according to U.S. Attorney Jim Letten, who oversees the Eastern District of Louisiana. Testimony by other crew members revealed that Hudson had told the crew to close valves on the BOP choke manifold to prevent leaks, said Letten. In May 2011 H&P indicated in a regulatory filing that it suspended operations on an offshore rig after an employee reported possible “testing irregularities” and said “certain employees” were fired. No environmental or other harm occurred and the BOP system ultimately was repaired, Letten noted. If Hudson is found guilty, he faces up to five years in prison, as well as a fine of up to $250,000 and up to three years of supervised release following a prison term.

Federal prosecutors in New Orleans have charged a former Helmerich & Payne Inc. (H&P) drilling manager for making false statements last year to the Department of Interior’s Office of Inspector General regarding a key safety device on a Gulf of Mexico drilling rig.

Pennsylvania Gov. Ed Rendell on Thursday said the promised natural gas severance tax for Marcellus Shale production “clearly is dead,” blaming the General Assembly’s GOP members for refusing to “negotiate in good faith.”

Although there was a false start Tuesday as Southern California Gas appeared to be ending a high-linepack OFO but waited until the afternoon to extend it another day, the utility will allow the OFO to expire Thursday.

Although there was a false start Tuesday as Southern California Gas appeared to be ending a high-linepack OFO but waited until the afternoon to extend it another day, the utility will allow the OFO to expire Thursday.

One of the first ex-energy traders to be indicted for taking part in a scheme to manipulate natural gas prices by reporting false information to industry publications was sentenced Thursday to two years in prison.

One of the bit players in the Enron Corp. melodrama was sentenced to two years probation last week for filing false income tax returns. Lawrence Lawyer, 38, who had once worked for Enron Broadband Services, faced up to three years in prison for failing to report $79,469 to the Internal Revenue Service. Lawyer reportedly received the money over four years beginning in 1997 from ex-Enron executive Michael Kopper in what the prosecutors had called a kickback scheme related to RADR, one of Enron’s dubious special purpose entities.

One of the bit players in the Enron Corp. melodrama was sentenced to two years probation on Monday for filing false income tax returns. Lawrence Lawyer, 38, who had once worked for Enron Broadband Services, faced up to three years in prison for failing to report $79,469 to the Internal Revenue Service.