Interest

Chesapeake Energy Corp. CEO Aubrey McClendon has agreed to reimburse his company $12.1 million plus interest under a settlement agreement with shareholders that was filed in state court in Oklahoma City. McClendon in 2008 sold the company an antique map collection (see NGI, June 8, 2009). That year, in which he also received a $75 million bonus, McClendon had been forced by margin calls to sell 31.5 million shares in the company, or 94% of his holdings (see NGI, Oct. 13, 2008). Under a preliminary settlement agreement he is allowed to keep the bonus but has to reimburse the company for the maps. The company also agreed to several corporate governance and compensation changes, which include hiring an independent compensation consultant and forbidding executives from using Chesapeake stock to hedge or trade in puts or calls.

Plains Exploration & Production Co. (PXP) said Friday it will sell a one-fifth interest in its offshore unit, which holds all of its promising Gulf of Mexico (GOM) prospects, to EIG Global Energy Partners for $450 million in cash.

With nuclear power generation being phased out and coal considered too inflexible, natural gas as a source of electricity generation is drawing increased interest in Germany to balance its national grid, which is rapidly moving toward total reliance on renewable sources for power generation.

Philadelphia Mayor Michael Nutter has declined to have the city join a lawsuit against the Delaware River Basin Commission (DRBC) over Marcellus Shale development, despite a resolution from the City Council supporting such a move.

With nuclear power generation being phased out and coal considered too inflexible, natural gas as a source of electricity generation is drawing increased interest in Germany to balance its national grid, which is rapidly moving toward total reliance on renewable sources for power generation.

Canada’s natural resources minister said his government is committed to seeing the Keystone XL Pipeline become a reality, and rebuked a possible effort by European officials to target the country’s oilsands by labeling it as a dirtier form of energy.

Two Calgary-based companies announced Tuesday that they will construct a 77-mile pipeline lateral in North Dakota to transport liquids-rich gas from the Bakken Shale to the Midwest for processing.

NextEra Energy Resources LLC (NER), a subsidiary of NextEra Energy Inc., said one of its subsidiaries has agreed to sell its interest in four natural gas power plants to an LS Power affiliate for $1.05 billion. The facilities are the 507 MW Blythe Energy Center in Blythe, CA; the 668 MW Calhoun Energy Center in Eastaboga, AL; the 98 MW Cherokee Energy Center in Gaffney, SC; and the 879 MW Doswell Energy Center in Ashland, VA. An NER affiliate will initially continue to operate the facilities through service contracts. Closing is expected during 4Q2011, pending approval from regulators and third parties.

Williams late Tuesday reaffirmed its interest in acquiring Southern Union Co. by offering to buy the company for $44/share in cash — the same amount it offered in July.