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N.Y. seeks financial documents from natural gas firms
New York state Attorney General Eric Schneiderman has sent subpoenas to three energy companies as part of an inquiry into whether they gave investors an accurate picture of the profitability of their natural gas wells, a person briefed on the investigation said Thursday.
The person confirmed that Schneiderman wants documents related to claims the companies made about drilling costs and long-term productivity of their shale gas wells.
Subpoenas were sent to Range Resources, Goodrich Petroleum and Cabot Oil and Gas. Schneiderman also asked Chesapeake Energy to respond to similar questions. New York's pension fund has more than $45 million invested in the four companies, which are active in the gas-rich Marcellus Shale region underlying New York, Pennsylvania, Ohio and West Virginia.
A spokeswoman for Schneiderman declined to comment. The companies didn't immediately return calls seeking comment. The investigation was first reported by The New York Times.
The person briefed on the investigation said the subpoenas were sent in response to documents made public in a series of Times articles in which industry insiders questioned whether companies were misleading investors about how much gas their wells will produce and how much it will cost to extract it.
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