Lowell told Baer that McClendon's prosecution would be a first of its kind in the oil and gas industry, said a person familiar with the exchange. Lowell argued that cooperation in the industry through joint bidding ventures is common and perfectly legal. An indictment, he told the Justice officials, would mark an unfair application of criminal antitrust laws to the sector.
Part of the discussion focused on emails between McClendon and former SandRidge Energy chief executive Tom Ward, in which the two longtime friends discussed coordinating bids on energy acreage. The emails relate to a handful of deals the two men discussed among many innocuous transactions, two people familiar with the matter said.
Ward, who co-founded Chesapeake with McClendon and left to run SandRidge in 2006, was not named in the U.S. indictment against his old friend. But people familiar with the case said he is the person referred to in the indictment as McClendon's unidentified alleged co-conspirator.
The indictment alleged that McClendon and the co-conspirator agreed not to bid against each other for certain parcels of land in northwest Oklahoma in order to keep prices down. In return, each party would receive a share of the property later.
Lawyers haggled over the intent of the messages between the two men, with McClendon's side arguing that what some people might consider a conspiratorial tone could instead be read as two professionals trying to work out a legitimate agreement to efficiently develop an area through joint ventures.
A person familiar with the investigation countered that assertion, saying the emails between McClendon and Ward "are direct as they can possibly be." Though the indictment doesn't cite specific evidence, it alleges that the two men consummated the proposed rigging of bids.
Ward hasn't been charged with any wrongdoing. Spokesmen for Ward's new company, Tapstone Energy, and for Chesapeake did not return calls for comment. SandRidge and a Justice Department official declined to comment. AEP's chief legal officer, Tom Blalock, did not respond to requests for comment.
During the Justice Department meeting, a person familiar with the discussion said, McClendon's lawyers also argued that his contributions to the city, state and national economy should be taken into account. They expressed concern about the harm an indictment might cause to AEP, SandRidge, their employees, the Oklahoma City community and the natural gas industry. Baer asked questions, two sources said, and requested more information.
The day after McClendon died, prosecutors filed a motion to dismiss the indictment. But officials said their investigation of potential antitrust violations in the oil and gas industry is continuing.
Questions In Oklahoma