Gas Drilling Firms Defeat Pennsylvania’s Antitrust Suit

Pennsylvania’s highest court delivered a victory for natural gas exploration firms, ruling that the state attorney general’s office doesn’t have authority under state law to sue them on antitrust grounds over their mineral rights-leasing practices.

The bid by the attorney general’s office to pursue an anti-trust action under state law had attracted the close attention of major business groups in Pennsylvania, the nation’s No. 2 gas-producing state.

But the state Supreme Court, in a 6-1 decision late Wednesday, March 24, overturned lower court decisions and agreed with Texas-based Anadarko Petroleum Corp. that state consumer protection law does not allow sellers to take action against buyers. 

As a result, the court declined to rule on whether the attorney general’s office has the legal authority to pursue an anti-trust action under the law. 

The attorney general’s office sued in 2015, accusing Anadarko and Chesapeake Energy Corp. of Oklahoma City of eliminating competition and shortchanging landowners of signing bonuses and royalties by divvying up counties in northern Pennsylvania in which to lease mineral rights.

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