ALBANY - A subsidiary of Chesapeake Energy Corp., the country's second-largest natural gas producer, has agreed to let more than 4,400 New York landowners renegotiate old gas leases for more favorable financial and environmental terms, said state Attorney General Eric Schneiderman late last week.

Chesapeake Appalachia will also pay $250,000 to cover the state’s investigation costs.

Chesapeake had tried to extend the leases in 2009, claiming the state's de facto moratorium on shale gas development since it started an environmental review in 2008 constituted an uncontrollable event that allows for a lease extension if an "act of God" or unforeseen circumstance prevents drilling.

The leases were signed long before the shale gas boom that began in Pennsylvania in 2007 boosted land prices from as low as $2-$3 an acre to more than $1,500 an acre. Schneiderman investigated after receiving complaints from landowners. Chesapeake began leasing in Chenango County back in 2006, but according to the Planning Department, there have been no complaints here.