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Chesapeake Energy Corporation 2006 Annual Report
Chesapeake drills in a wide variety of environments, from densely populated cities to farmlands to wilderness areas. At each site,
the company adapts its operations to protect and preserve the environmental integrity of the area.“Choose wisely and plan well”
is the corporate directive our drilling and production professionals follow diligently to guide them through the processes of wellsite
selection, drilling and production in every operating region.
Small Footprints
Having well-informed, committed people in the field is a key element to sustaining environmentally acceptable operations. The
company has environmental education programs in place for field employees and encourages all employees to participate. Their
efforts are assisted by programs such as our Geographic Information System. This innovative online database provides site-specific
information about the presence of bodies of water, endangered species habitats and proximity to wildlife preservation areas before
selection teams ever set foot on a prospective wellsite.
Leading-edge drilling techniques are being put to new uses as Chesapeake ramps up activities in the Fort Worth Barnett Shale of
north-central Texas, in what may become the largest urban drilling program ever undertaken. Continually improving horizontal
drilling and multiple well pad drilling technologies enable the company to drill more productive wells while reducing our
environmental footprint.
Neighborhood-friendly operations in highly populated areas such as in the Fort Worth metropolitan area require the use of effective
noise control methods as we drill, complete and produce wells. Chesapeake is a noise abatement pioneer in the Barnett, conducting
our own noise sampling and implementing the strongest measures possible to reduce noise, which may involve retrofitting existing
rigs at the same time we design quieter new-generation rigs.
Finally, Chesapeake’s “Good Neighbor Initiative” promotes helpful dialogue between landowners, lessees, permit holders and
residents of producing areas. This successful program, developed in our New Mexico operations, is now being introduced into the
Fort Worth area. It pledges the responsible development of energy resources, along with environmental stewardship and respect for
property rights.
Public Lands
While the majority of the company’s activities are conducted on privately owned land, Chesapeake does occasionally explore for
and produce natural gas on public lands. There, we consistently meet or exceed some of the most complex environmental regulations
in the world. In each of these public areas, we implement a multitude of best practices, such as closed-loop drilling mud systems
to reduce the impact of our operations. We believe Chesapeake’s track record on public lands is another visible demonstration of
our concern for the environment and motivates us to be a better operator everywhere we drill.
For example, as we begin development in the Davy Crockett National Forest of east Texas, the company is working closely with the
U.S. Forest Service, which has applauded our efforts. Each potential wellsite goes through a rigorous assessment process that includes
evaluations of wildlife habitats, possible impact on wetlands and trees, and archeological studies.
Water
In every state where we operate, Chesapeake recognizes the need to conserve water and protect groundwater resources. We typically
use safety measures, including surface casing and conductor pipe, to ensure the integrity of freshwater formations. We isolate and
safely dispose of any saltwater produced during the drilling process.
The company is keenly aware of our role as stewards of the environment when we grow through acquisitions. Chesapeake has
established a highly regarded reputation for planning and executing immediate improvements on acquired wellsites, bringing
them up to company-wide standards as well as government compliance levels.