Chesapeake is committed to protecting our natural resources and reducing any negative impact to the environment across our operations, including air, water and waste. That's why we use innovative Best Management Practices (BMPs) and actively engage in research and development opportunities to improve the industry as a whole. In addition, our vertically integrated operations allow us to improve the quality and safety of our activities as we work to reduce America's dependence on expensive foreign oil.

In 2011 we developed our Commitment to Environmental Excellence initiative that guides our decision making, and we expect the same commitment from our contractors and vendors. It is based on the following values:

• Business Philosophy — We commit to protect our country's natural resources, care for the environment and comply with all applicable local, state and federal laws and regulations as part of our daily operations.
• Operational Excellence — We strive for excellence, move quickly to rectify any environmental problems associated with our operations and address any issues that arise.
• Commitment of Resources — We provide the human, physical and financial resources to achieve our environmental protection objectives, and we expect our employees, contractors, suppliers and vendors to do the same to ensure our operations are clean and safe.
• Continuous Improvement — We continue to evaluate evolving environmental protection measures with the goal of improving our operating practices and further reducing our environmental footprint by using the latest technologies and operational procedures.
• Support of Industry Regulation — We support science-based regulation at the appropriate level of government that ensures natural gas and oil wells are drilled, completed and produced safely and responsibly.
• Community Focus — We strive to be charitable, engaged and responsible partners in the communities where we live and work.

These values are backed up by action. Our most important programs include:

• Transparency in the Use of Chemicals — We have and will continue to disclose the ingredients contained in hydraulic fracturing fluids to state agencies charged with regulating natural gas and liquid hydrocarbons operations and the hydraulic fracturing chemical disclosure registry at fracfocus.org.
• Water Sourcing and Use — We plan, manage and, where possible, reduce the use of freshwater associated with our operations.
• Managing Produced Water — We recycle produced water as much as possible. We store produced water in enclosed surface water tanks with secondary containment until disposed of in a government-approved underground injection well.
• Preserving Air Quality — We strive to reduce air emissions associated with the production of natural gas and liquid hydrocarbons. We design, build and monitor the integrity of our facilities and pipelines to further reduce the environmental impact and likelihood of potential incidents.
• Well Design and Construction —We strive to meet or exceed state law requirements in the design, drilling, completion and testing of wellbores.
• Limiting Surface Impacts — We reduce impacts to landowners, communities and the environment by limiting the size and number of well sites, roads, pipelines and other surface disturbances to the minimum area reasonably needed to fully develop natural gas and liquid hydrocarbon resources. We exercise great care to avoid or minimize impact to environmentally sensitive and culturally significant areas. Existing infrastructure is used when practical. Road use maintenance agreements are developed to protect and maintain the roads we use.
• Pre-construction Environmental Assessment — Before construction, we conduct reviews to identify environmentally sensitive habitats, wetlands and other water resources, and culturally significant locations. We avoid operating in these sensitive areas to the extent practical.
• Waste Management — We make it a priority to handle, transport and dispose of waste generated from our operations according to applicable regulations. We use the most current technology practical to reduce the likelihood of spills and waste volumes, and recycle those volumes where appropriate. We create and maintain waste management plans that provide for disposal at a pre-approved site.
• Best Management Practices (BMPs) — We apply and continuously improve our BMPs to achieve and maintain an industry-leading position in safe and clean operations.
• Public Outreach and Collaboration — We continue to engage and educate shareholders, stakeholders and affected parties of our operations, and to identify opportunities for further improvement, as well as support and promote high-quality research and provide public education.