Fracking King Aubrey McClendon Continues Building a Pipeline “from your wallet into his”
A recent Rolling Stone expose entitled, “The Scam Behind the Gas Boom,” stated that Chesapeake Energy owner Aubrey McClendon’s “primary goal is not to solve America’s energy problems, but to build a pipeline directly from your wallet into his.” They weren’t kidding. According to a new article on FuelFix:
Chesapeake Energy Corp. (CHK) said shareholders are protected if Chief Executive Officer Aubrey McClendon defaults on personal loans because the company holds first liens on oil and natural-gas wells he used for collateral.
McClendon, the co-founder and chairman of the second- largest U.S. gas producer, has been using his 2.5 percent stakes in some Chesapeake wells as collateral for personal loans, the Oklahoma City-based company said today. Chesapeake and its investors aren’t at risk should the CEO default because the company has an overriding claim to the oil and gas that flows from those wells, General Counsel Henry J. Hood said today.
Pretty sweet business model those frackers have going, huh?