Chesapeake Energy Might Resume Production after DEP Inspection

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Chesapeake Energy Might Resume Production after DEP Inspection

Chesapeake Energy Corporation (NYSE:CHK) might be able to resume its gas drilling operations at the Ray Baker well in the southern part of Marshall County, after the inspection of regulators from the Department of Environmental Protection (DEP) in West Virginia, according to the report from The Intellingencer: Wheeling News-Register.

Thomas Alusie, spokesperson for the Department of Environmental Protection said the regulators could rule that Chesapeake Energy Corporation (NYSE:CHK) violations were resolved and would allow the company to resume its gas production in the area, after the inspection along the Valley Run Road.

According to Alluise, “Work is nearly complete on getting the site back into compliance.” According to him, Chesapeake Energy took care of the slip area, but the company is still doing some excavation work in the area. He said the company made a significant progress in stabilizing the site. Alluise explained that Chesapeake’s problems on the site were erosion and sediment control related.

Chesapeake Energy Corporation (NYSE:CHK)’s senior director of corporate development Stacey Bodak, confirmed last week that the slips have been stabilized. Bodak said, “Ground cover and erosion and sediment controls are in place. Those repairs have remained intact during this week’s storm with no adverse impacts. We continue to monitor all of our sites regularly, given this week’s weather conditions.”

Bodak previously stated that it would take several months before the company would be able to fix the pad, as it requires complex design and extensive earthmoving work.

In October 2011, regulators suspended the drilling operations of Chesapeake Energy Corporation (NYSE:CHK) due to imminent danger in the site. Prior to the suspension, the company was cited for “pollutions of the waters of the state” at the Baker site in February last year.

Regulators required Chesapeake to secure all well heads properly, install protective cages, and remove sediment and debris from the road and unnamed stream. The company was also mandated to reclaim all affected areas to ensure stability, and to install erosion and sediment control devices.

Meanwhile, Chesapeake Energy Corporation (NYSE:CHK) recently announced that it would delay its asset sales, including the Mississippi Lime, and the Oklahoma and Kansas shale formations, until 2013.

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