"New York State's attorney general has sent subpoenas to three large energy companies as part of a broad investigation into whether they have accurately described to investors the prospects for their natural gas wells, according to several sources familiar with the inquiry."
"The subpoenas focus on how the companies took advantage of federal rules, adopted in late 2008, that govern the way they report their oil and gas reserves to investors.
Investigators have requested documents relating to the formulas that companies use to predict how much gas their wells are likely to produce in the coming decades. The subpoenas, which were sent on Aug. 8, also request documents related to the assumptions that companies have made about drilling costs in their estimates of the wells' long-term profitability."
Ian Urbina reports for the New York Times August 18, 2011.
SEE ALSO:
"Natural-Gas Fracking Rules Considered by U.S. for Federal Lands" (Bloomberg)
"Federal Fracking Response Could Be Years Away" (iWatch/CPI)
"Obama Frack Panel to Weigh Link Between Natural Gas Drilling and Health" (Greenwire)
"Chu Vows To 'Chart a Path' for Safe Gas Drilling" (E2 Wire)
