Health, Safety and the Environment

Environmental Stewardship

Chesapeake’s commitment to environmental stewardship is evident not only in the drilling and operating of our oil and natural gas assets but also in the composition of these assets, approximately 93% of which are the most environmentally friendly hydrocarbon energy source – natural gas.  Natural gas burns more cleanly than any other hydrocarbon and its impact on the environment when extracted and consumed is minimal when compared to the impact of coal and imported oil.

Climate Change

While scientists are still debating and researching the causes of climate change, we believe that the reduction of greenhouse emissions is necessary and beneficial whether or not these emissions are determined to be the cause of increased temperatures worldwide.  The vast majority of greenhouse gas emissions are caused by the use of gasoline, diesel and coal to produce energy.  While viable fuel alternatives, such as wind, solar, biofuels and nuclear, exist, these fuels are not currently abundantly available at prices reasonable enough to provide for the world’s current energy needs.  As the burning of natural gas reduces greenhouse gas emissions by approximately 50% when used instead of gasoline, diesel or coal, we believe that natural gas is the most practical solution to the problem – it’s abundant, affordable, reliable, clean burning and domestically produced.

Operations Philosophy

Chesapeake's operations are built around a commitment to safeguard the environment and to operate in a manner consistent with recognized American industry standards in environment, health and safety.  We strive to make efficient use of resources to minimize our environmental footprint and to conserve habitat diversity and the plant and animal populations that may be affected by our operations. 

Well Site Selection and Drilling

The company’s goal for every well it drills is simple – minimize the environmental impact at the drilling site, now and in the future.  “Choose wisely and plan well” is the corporate directive our drilling and production professionals follow diligently to guide them through the process of wellsite selection, drilling and production in every operating region. 

Selecting wellsites which minimize the environmental footprint of drilling is a priority for Chesapeake.  We utilize an innovative Geographic Information System (GIS), which is used by very few companies, to determine the location of streams, ponds, lakes and endangered species and wildlife preservation areas prior to selecting well-sites.  Our engineers then often use horizontal or directional drilling technologies that enable deviation of the wellbore from a surface location, thereby minimizing the environmental impact of our operations.

Chesapeake works closely with surface owners to ensure the safety and security of the wellsite during drilling and well completion operations.  After our wells are completed, we work to restore the location and strive to always leave the wellsite in better condition than before the drilling operation began.

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 Forth 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. 

Additionally, 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 Forth Worth area.  It pledges the responsible development of energy resources, along with environmental stewardship and respect for property rights. 

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. 

Environmental Initiatives

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 standards. 

Chesapeake is also committed to supporting organizations whose efforts produce a positive environmental impact, including:  

American Clean Skies Foundation  In 2007, Chesapeake helped established the American Clean Skies Foundation, an organization focused on the debate over how to reduce greenhouse gas emissions and avoid abrupt climate change.  While the organization will encourage the conservation of all types of energy, its primary purpose will be to advocate for the increased use of natural gas. 

The Nature Conservancy and OERB Chesapeake partners with private and nonprofit organizations that educate the public on environmental issues and preserve America’s wilderness areas.  We are a key contributor to the Nature Conservancy and the Oklahoma Energy Resources Board, which has remediated at no cost to taxpayers more than 7,800 abandoned wellsites across Oklahoma, most of which were drilled during times of lower environmental awareness.   In addition, we support educational outreach programs from the Oklahoma Association of Conservation Districts and the Oklahoma Water Resources Board. 

NeighborWoods  With the help of Chesapeake's sponsorship, Oklahoma City initiated its first NeighborWoods program.  NeighborWoods provides complimentary front yard trees to individual property owners in low-income neighborhoods.  In 2007, 300 trees are being donated to residents in a local neighborhood, where they will be planted by volunteers.  

Low Impact Natural Gas and Oil Project  Chesapeake is a founding member of the Low Impact Natural Gas and Oil Project in Arkansas, a collaborative effort to develop a web-based decision support tool that will enable energy companies and regulatory agencies to share education and integration systems while promoting better communications. 

Commitment to Health and Safety

Through the use of technology and the involvement of corporate management, Chesapeake demonstrates its dedication to the health and safety of all employees and the residents of communities impacted by our operations. 

Employee Health

Chesapeake’s dedication to promoting employee health is evidenced by our 42,000 square-foot, state-of-the-art health facility which provides employees and families with convenient access to the latest health equipment and group exercise classes.  Chesapeake also subsidizes family fitness center memberships for employees in the field.  In 2006, Chesapeake initiated the Living Well program, which provides a financial incentive for employees who maintain healthy and productive lifestyles through education, motivation and intervention.  In 2007, nearly 2,000 employees participated in the Living Well Program with 57% receiving a financial award for their participation.    

Chesapeake has recently been admitted to an elite group of organizations that make up the Health Enhancement Research Organization (HERO).  HERO is a nationwide, research-based coalition of organizations with common interests in health promotion, disease management and health-related productivity research.  Chesapeake is proud to join the HERO coalition which is striving to shift the paradigm from a health system focused on diagnosis and treatment to one that focuses on prevention and productivity. 

Incident Reporting System

Chesapeake maintains an internal incident reporting and tracking system, used for all locations throughout the country. Field employees use this system to report incidents of any type, including vehicle accidents, spills and releases, fires and other emergencies, and personnel injuries.  Chesapeake is then able to accurately track the occurrence of incidents and their impact on the environment, our employees and members of the public.  The incident reporting system also allows Chesapeake to respond quickly and follow up to ensure that all incidents have been dealt with according to rules, regulations and laws as well as to ensure that any environmental incidents are properly addressed and restored.

Employee Safety Training

Providing safe work environments for our employees is a priority for Chesapeake.  In 2006, the number of employees participating in safety and environmental training programs increased by almost 30%.  In addition to regular operations training, employees in the field facilities also attended an average of 24 hours of specialized safety and environmental training. 

Online Environmental, Health and Safety Training

Chesapeake utilizes an online environmental health and safety training system that provides instruction in company policies and procedures for topics pertinent to the management of our field assets.  The range of topics covered includes OSHA required training areas, such as Confined Spaces and Respiratory Protection; environmental issues, such as Spill Prevention Control and Countermeasure; and Employee Right to Know and emergency management issues.  Each course is designed specifically for Chesapeake and its employees and allows the company to provide consistent training and policies throughout all operations.  This training also provides a framework by which our employees can function as good neighbors in the communities in which we work.  Training is recorded and reviewed to ensure that not only have all employees that require training received training, but that the training is easy to understand and applicable to the functions of those employees.

Emergency Response Plans

Chesapeake maintains detailed emergency response procedures modeled after the National Incident Command System.  As a precautionary measure, corporate management assigns procedures, roles and responsibilities for emergency situations to field personnel and conducts regular safety training meetings to educate personnel regarding these systems and appropriate responses to emergencies.  In addition, we conduct Table Top Exercises to ensure that all personnel understand their roles in responding to emergencies.  Chesapeake also meets with and trains local fire departments and emergency planning councils so that these organizations and Chesapeake agree on and understand their roles in responding to serious situations.  All critical phone numbers and contact information are available to all employees through the internet and in hard copy so that if an emergency arises, initial appropriate contact can be made immediately and completed within a 15-minute period.  Chesapeake takes its commitment to communities and the environment very seriously and has planned carefully to effectively and efficiently respond to emergency situations.

EHS Management System

Chesapeake’s internal inspection and audit process regularly records the conditions of the equipment and the surrounding environment at all of our producing locations.  This data is used to track and determine the need for various air permits, to help us understand where and how to manage our pressurized vessels, and to determine and verify the condition of our storage facilities with regard to our Spill Prevention Control and Countermeasure requirements.  This process ensures that Chesapeake has accurate, up-to-date information on all of its facilities and can easily determine and manage appropriate environmental programs which may apply to our facilities.

Contractor Management

Contractors are an integral and essential part of our business. Safety and environmental performance is a critical element during contractor selection.