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Chesapeake Energy fighting a two front legal battle in Michigan


CHEBOYGAN (WKZO) -- Lawyers for Chesapeake Energy are back in a Cheboygan courtroom defending the company, which is accused of fraud and racketeering.

The Oklahoma City-based company was charged by the Attorney General with fraudulently obtaining mineral lease options on land in northern Michigan to thwart competitors.

Chesapeake allegedly then canceled the options illegally after the competition had ended. A Chesapeake spokesman said the company is contesting the allegations which may take through next Wednesday.

Meanwhile Tuesday Chesapeake is scheduled to be arraigned on a big rigging charge for allegedly conspiring with Ecana Oil to keep bids in another part of the state artificially low.