New York Subpoenas Energy Companies Including Cabot Oil & Gas Corporation Over Gas Well Plans-DJ

Dow Jones reported that three energy companies have been subpoenaed as part of a New York State attorney general's investigation into how they described to investors prospects for their natural gas wells, according to The New York Times. Three companies Range Resources Corp., Cabot Oil & Gas Corporation., and Goodrich Petroleum Corp. are being investigated over how they applied federal rules adopted in late-2008 that govern reporting of their oil and gas reserves to investors. Attorney General Eric Schneiderman selected the three companies due to their heavy involvement in natural gas drilling, people with direct knowledge of the investigation said. An ongoing investigation into Chesapeake Energy Corp. was widened to include it in the inquiry with requests for information about its shale gas wells, they said. New York State has more than $45 million of its pension money invested in the four companies. Any improper disclosure to investors could affect the state's financial portfolio, the report said. The subpoenas, sent August 8, seek documents describing formulas the companies used to predict how much gas their wells are likely to produce in coming decades and assumptions the companies made in estimates of long-term profitability. The probe is expected to be closely watched by the industry as Schneiderman is using a New York law called the Martin Act that grants him wide powers over businesses, and allows him to obtain and publicly disclose a broad range of information..