"The water well contamination fine is the largest single penalty DEP has ever assessed against an oil and gas operator, and the Avella tank fire penalty is the highest we could assess under the Oil and Gas Act," DEP Secretary Mike Krancer said in a statement. "Our message to drillers and to the public is clear."
The fines are nearly triple the $400,000 penalty that the DEP assessed last year against EOG Resources Inc. and a contractor, C.C. Forbes L.L.C., related to a blowout of a Clearfield County well.
According to consent agreement signed on Monday, the DEP investigated at least seven instances of methane migration that contaminated 16 residential water wells in Bradford County last year.
The DEP blamed improper cement casings of Chesapeake gas wells for allowed the natural gas to seep into drinking water supplies. The incidents occurred in Tuscarora, Terry, Monroe, Towanda and Wilmot Townships.
"It is important to me and to this administration that natural gas drillers are stewards of the environment, take very seriously their responsibilities to comply with our regulations, and that their actions do not risk public health and safety or the environment," Krancer said in the statement.
Chesapeake will pay $200,000 of the $900,000 fine into DEP's well-plugging fund. In addition, Chesapeake will establish an escrow account to cover the cost of water treatment equipment on select water wells in the vicinity of the drilling activity.
Chesapeake said it had worked with the DEP to resolve the issues, but said the blame for the gas migration issues was unresolved.
