Encana Reaches $5 Million Settlement With Michigan - WLNS TV 6 Lansing - Jackson | Your Local News Leader

Encana Reaches $5 Million Settlement With Michigan

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LANSING, Mich. (AP) - An energy company has agreed to pay $5 million to Michigan to resolve charges of bid-rigging in public auctions for oil and gas leases.

Encana Corp. subsidiary Encana Oil and Gas USA settled with Attorney General Bill Schuette on Monday over allegations the Calgary, Alberta-based company conspired with Oklahoma City, Oklahoma-based Chesapeake Energy Corp. to avoid bidding wars in 2010.

Encana also entered a no contest plea for one count of criminal antitrust violations. Michigan agreed to delay the misdemeanor charge by 11 months and dismiss another.

Schuette calls the settlement "a good result for taxpayers."

Chesapeake spokesman Gordon Pennoyer says the state's charges have "no merit" and the company is "vigorously contesting" them. He says Encana's action "changes nothing for Chesapeake."

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