Related Party (Note)

12 Months Ended

Dec. 31, 2013

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

Related Party Transactions

Former Chief Executive Officer

On April 1, 2013, Aubrey K. McClendon, the co-founder of the Company, ceased serving as President and CEO and as a director of the Company pursuant to his agreement with the Board of Directors announced on January 29, 2013. Since Chesapeake was founded in 1989, Mr. McClendon and his affiliates have acquired working interests in virtually all of our natural gas and oil properties by participating in our drilling activities under the terms of Mr. McClendon’s employment agreements and, since 2005, the Founder Well Participation Program (FWPP). The Company is reimbursed for costs associated with leasehold acquired under the FWPP, and well costs are charged to FWPP interests based on percentage ownership. On April 30, 2012, the Company's Board of Directors and Mr. McClendon agreed to terminate the FWPP 18 months before the end of the 10-year term approved by our shareholders in June 2005. Mr. McClendon has elected to participate in the FWPP through the expiration of the FWPP on June 30, 2014 at the maximum 2.5% working interest permitted, the same participation percentage that Mr. McClendon has elected every year since 2004. The Compensation Committee of the Board of Directors, which administers and interprets the FWPP, is reviewing with the assistance of independent counsel the prior administration of the plan. As of December 31, 2013 and 2012, we had accrued accounts receivable from Mr. McClendon of $62 million and $23 million, respectively, representing FWPP joint interest billings. In conjunction with certain sales of natural gas and oil properties by the Company, affiliates of Mr. McClendon have sold interests in the same properties and on the same terms as those that applied to the interests sold by the Company, and the proceeds were paid to the sellers based on their respective ownership percentages. These interests were acquired through the FWPP.

On December 31, 2008, we entered into a new five-year employment agreement with Mr. McClendon that contained a one-time well cost incentive award to him. The total cost of the award to Chesapeake was $75 million plus employment taxes in the amount of approximately $1 million. The net incentive award, after deduction of applicable withholding and employment taxes, of approximately $44 million was fully applied against costs attributable to interests in Company wells acquired by Mr. McClendon or his affiliates under the FWPP. The incentive award was subject to a clawback provision equal to any unvested portion of the award if during the initial five-year term of the employment agreement, Mr. McClendon resigned from the Company or was terminated for cause by the Company. We recognized the incentive award as general and administrative expense over the five-year vesting period for the clawback, resulting in an expense of approximately $15 million per year beginning in 2009. The incentive award clawback did not apply to Mr. McClendon’s termination in 2013. See Note 17 for additional information on the terms of his separation from the Company.

On July 26, 2013, the Company and Mr. McClendon rescinded the December 2008 sale of an antique map collection pursuant to the terms of a settlement agreement terminating pending shareholder litigation that was approved by the District Court of Oklahoma County, Oklahoma on January 30, 2012 and affirmed on appeal. The Company returned the subject maps to Mr. McClendon, and Mr. McClendon paid the Company $12 million plus interest.

Equity Method Investees

Other than Mr. McClendon, only our equity method investees were considered related parties. During 2013, 2012 and 2011, we had the following related party transactions with our equity method investees.

	Years Ended December 31,
	2013		2012		2011
	($ in millions)
Purchases(a)	$	—	$	73	$	—
Sales(b)	$	666	$	392	$	171
Services(c)	$	397	$	480	$	369

___________________________________________

(a) Purchase of equipment from FTS.

(b) In 2013, 2012 and 2011, Chesapeake sold produced gas to our 30%-owned investee, Twin Eagle Resource Management LLC.

(c) Hydraulic fracturing and other services provided to us by FTS in the ordinary course of business. As well operators, we are reimbursed by other working interest owners through the joint interest billing process for their proportionate share of these costs.

The table below shows the total related party amounts due from and due to our equity method investees.

	December 31,
	2013		2012		2011
	($ in millions)
Amounts due from equity method investment related parties	$	47	$	67	$	29
Amounts due to equity method investment related parties	$	1	$	42	$	115