Chief Oil & Gas
{{Short description|US hydrocarbon exploration company}}
{{Use mdy dates|date=October 2011}}
{{Infobox company
| name = Chief Oil and Gas
| logo = Chiefog logo.jpg
| logo_size = 200px
| industry = Petroleum industry
| foundation = {{start date and age|1994}}
| founder = Trevor Rees-Jones
| defunct = {{end date and age|2022|03|09}}
| location = Dallas, Texas, US
}}
Chief Oil & Gas was a company involved in hydrocarbon exploration. In March 2022, it was acquired by Expand Energy. It was the second-largest producer in the Barnett Shale.{{Cite news | url=https://www.hartenergy.com/exclusives/barnett-wonderland-6160 | title=BARNETT WONDERLAND | work=Hart Energy | date=April 29, 2005}}
History
The company was founded in Dallas in 1994 by Trevor Rees-Jones.
In June 2006, the company sold a leasehold interest in 169,000 net acres with proved reserves of 617 billion cubic feet of natural gas equivalent to Devon Energy for $2.2 billion in cash. It also sold midstream assets to Crosstex Energy for $480 million in cash.{{Cite news | url=https://www.ogj.com/general-interest/companies/article/17295408/chief-sells-to-devon-crosstex-transactions-total-over-25-billion | title=Chief sells to Devon, Crosstex; transactions total over $2.5 billion | work=Oil & Gas Journal | date=June 1, 2006 | url-access=subscription}}{{Cite news | url=https://www.mrt.com/news/article/Devon-announces-acquisition-of-Chief-Holdings-7686258.php | title=Devon announces acquisition of Chief Holdings | work=Midland Reporter-Telegram | date=May 1, 2006}}
Chief began drilling in the Marcellus Formation in 2007.{{cite news | url=https://www.hartenergy.com/news/enerplus-closes-marcellus-stake-chief-oil-411mm-62950 | title=Enerplus Closes Marcellus Stake With Chief Oil For $411MM | work=Hart Energy | date=September 1, 2009}}
In August 2008, the company sold assets to Quicksilver Resources.{{Cite news | url=https://www.hartenergy.com/news/quicksilver-resources-closes-acquisition-assets-chief-resources-32549 | title=Quicksilver Resources Closes Acquisition Of Assets From Chief Resources | work=Hart Energy | date=August 28, 2008}}
In September 2009, the company entered into a joint venture with Enerplus for development in the Marcellus. By that time, the company had drilled 31 wells in the formation.
In December 2010, Chief sold 15 producing wells and 50,000 net acres in Pennsylvania to Exco Resources for $459 million.{{Cite news | url=https://www.reuters.com/article/business/energy/exco-buys-some-marcellus-shale-assets-for-459-mln-idUSSGE6BK0BG/ | title=Exco buys some Marcellus Shale assets for $459 mln | first=Thyagaraju | last=Adinarayan | editor-first=Vyas |editor-last=Mohan | work=Reuters | date=December 22, 2010}}
In 2011, the company sold a leasehold interest in 228,000 net acres to Chevron Corporation.{{Cite news | url=https://www.ogj.com/home/article/17266778/chevron-to-buy-marcellus-acreage-from-chief | title=Chevron to buy Marcellus acreage from Chief | work=Oil & Gas Journal | date=May 5, 2011}}{{Cite press release | url=https://www.prnewswire.com/news-releases/chief-oil--gas-announces-agreement-to-sell-a-portion-of-its-marcellus-shale-assets-121243589.html | title=Chief Oil & Gas Announces Agreement to Sell a Portion of Its Marcellus Shale Assets | publisher=PR Newswire | date=May 4, 2011}}
In December 2013, the company bought property in the Marcellus from Expand Energy for $500 million.{{Cite news | url=https://www.beaconjournal.com/story/news/2013/12/19/chief-buys-marcellus-acres-in/10685133007/ | title=Chief buys Marcellus acres in Pennsylvania from Chesapeake | work=Akron Beacon Journal | date=December 19, 2013}}
In March 2022, Expand Energy acquired the company for $2.2 billion.{{Cite news | url=https://www.hartenergy.com/exclusives/chesapeake-energy-completes-acquisition-chief-tug-hill-affiliates-199157 | title=Chesapeake Energy Completes Acquisition of Chief, Tug Hill Affiliates | work=Hart Energy | date=March 9, 2022}}{{Cite press release | url=https://www.prnewswire.com/news-releases/chesapeake-energy-corporation-completes-acquisition-of-chief-ed-holdings-lp-and-affiliates-of-tug-hill-inc-301499271.html | title=CHESAPEAKE ENERGY CORPORATION COMPLETES ACQUISITION OF CHIEF E&D HOLDINGS, LP AND AFFILIATES OF TUG HILL, INC. | publisher=PR Newswire | date=March 9, 2022}}
Controversies
=Political contributions by the founder=
In October 2010, Trevor Rees-Jones contributed $50,000 to then-gubernatorial candidate and eventual winner Tom Corbett, which some believe was a payoff in exchange for no severance tax and the repeal of environmental policies created to protect the environment from natural gas drilling.{{Cite news | url=https://publicintegrity.org/politics/d-c-based-governors-associations-provide-back-door-for-corporate-donors/ | title=D.C.-based governors' associations provide back door for corporate donors | first1=John | last1=Dunbar | first2=Alexandra | last2=Duszak | work=Center for Public Integrity | date=October 18, 2012}}{{Cite news | url=https://www.eenews.net/articles/how-the-boom-billionaires-made-their-mark-on-state-politics/ | title=How the boom billionaires made their mark on state politics | first=Mike | last=Lee | work=Politico | date=August 13, 2018}}{{Cite news | url=https://www.inquirer.com/philly/news/local/20140608_Natural_gas_industry_money_pouring_into_Pa__governor_s_race__mostly_to_Corbett.html | title=Natural gas industry money pouring into Pa. governor's race, mostly for Corbett | first=Ben | last=Finley | work=The Philadelphia Inquirer | date=June 8, 2014 | url-access=subscription}}{{cite news | url=https://www.post-gazette.com/news/state/2011/02/24/Corbett-repeals-policy-on-gas-drilling-in-parks/stories/201102240458 | title=Corbett repeals policy on gas drilling in parks | work=Pittsburgh Post-Gazette | first=Don | last=Hopey | date=February 24, 2011 | archive-date=January 11, 2012 | archive-url=https://web.archive.org/web/20120111044942/http://www.post-gazette.com/pg/11055/1127614-455.stm | url-status=live}}
=Environmental issues=
In January 2011, a subsidiary of the company was fined $34,000 by the Pennsylvania Department of Environmental Protection for releasing approximately 25,200 gallons of hydrostatic testing water into the Big Run watershed in August 2010 at a pipeline project in Penn Township, Lycoming County, Pennsylvania.{{cite news |url=https://naturalgasintel.com/news/chief-pays-pennsylvania-180k-for-violations/ | title=Chief Pays Pennsylvania $180K for Violations | work=Natural Gas Intelligence | date=June 29, 2011}}{{Cite news | url=https://regionalassociations.org/chief-oil-and-gas-subsidiary-pays-34000-fine-surrenders-permit-after-discharging-industrial-waste-illegally-in-lycoming-county/ | title=Chief Oil and Gas Subsidiary Pays $34,000 Fine, Surrenders Permit after Discharging Industrial Waste Illegally in Lycoming County | work=Regional Associations Information Network | date=January 7, 2011}}
In June 2011, the company was fined $180,000 by the Pennsylvania Department of Environmental Protection for a hydraulic oil spill and the failure to maintain a drill pit at a natural gas well in Somerset County.{{Cite news | url=https://www.reuters.com/article/gas-driller-fined-180000-for-marcellus-violations-idUSTRE75R4ZB/ | title=Gas driller fined $180,000 for Marcellus violations | first=Edward | last=McAllister | editor-first=Lisa | editor-last=Shumaker | work=Reuters | date=June 29, 2011}}{{Cite news | url=https://stateimpact.npr.org/pennsylvania/2011/06/28/dep-drops-180000-fine-on-chief-oil-and-gas/ | title=DEP Drops $180,000 Fine On Chief Oil And Gas | first=Scott | last=Detrow | work=NPR | date=June 28, 2011}}
In the first six months of 2010, Chief Oil & Gas was cited for 78 violations by the Pennsylvania DEP, more than any other Marcellus shale driller in the state and with the highest ratio of violations at 3.5 per well.{{Cite news | url=https://www.inquirer.com/philly/business/homepage/20100630_Citations_against_Marcellus_drillers_have_doubled_so_far_this_year.html | title=Citations against Marcellus drillers have doubled so far this year | first=Andrew | last=Maykuth | work=The Philadelphia Inquirer | date=June 8, 2014 | url-access=subscription | archive-url=https://web.archive.org/web/20100811001707/http://www.philly.com/inquirer/breaking/business_breaking/20100630_Citations_against_Marcellus_drillers_have_doubled_so_far_this_year.html | archive-date=August 11, 2010 | url-status=live}}
In June 2010, a well blowout and fire at a Chief-owned site injured seven contractors in Moundsville, West Virginia, and burned for days. No one from the emergency response crews had been given instruction on how to fight a well blowout and the burning site was found abandoned when the responders arrived.{{cite news| url=https://www.post-gazette.com/local/region/2010/06/08/Burning-questions-at-gas-well/stories/201006080239 | title=Burning questions at gas well | first1=Don | last1=Hopey | first2=David | last2=Templeton | work=Pittsburgh Post-Gazette | date=June 8, 2010 | url-access=subscription}}
In 2014, the company was fined $13,000 after drilling a well into another well and then attempting to hide the event from regulators.{{Cite news | url=https://www.post-gazette.com/business/powersource/2014/09/10/Chief-Well-Collision-Leads-To-13-000-Fine/stories/201409100146 | title=Chief well collision leads to $13,000 fine | first=Brendan | last=Gibbons | agency=Times-Shamrock Communications | work=Pittsburgh Post-Gazette | date=September 10, 2014}}
References
{{Reflist}}
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Category:1994 establishments in Texas
Category:2022 disestablishments in Texas
Category:2022 mergers and acquisitions
Category:Companies based in Dallas
Category:Energy companies established in 1994
Category:Natural gas companies of the United States
Category:Non-renewable resource companies established in 1994