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Thursday, June 23, 2011

Chesapeake's "Agreement": Deal with the Devil - Complete

  



Folks, I have been provided with a complete copy of the AGREEMENT that Chesapeake Energy has people sign when their water wells have become contaminated from nearby natural gas drilling.

I have transcribed this document to the best of my ability, and I went this route since the original document contained the Owners' names and other identifying information which I promised would not be posted.

For all to see:
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AGREEMENT

This Agreement ("Agreement") is made and entered into this ____ day of July, 2010, by _______, _____, Pennsylvania _____, ("Owner") and Chesapeake Appalachia, L.L.C., P.O. Box 18496, Oklahoma City, Oklahoma 73154-0496 ("Chesapeake").
    
WHEREAS, Chesapeake has operations in the general area of the Lands.

WHEREAS, Owner contacted Chesapeake after experiencing problems with a water well on the Lands and requested Chesapeake's assistance in determining the cause and/or extent of any issues.

WHEREAS, certain testing by Chesapeake and the Pennsylvania Department of Environmental Protection (the "DEP") has indicated that the water from the water well on the Lands is of suitable quality despite the presence of methane.

WHEREAS, the DEP has requested that Chesapeake install, or cause to be installed, a suitable vent stack on the water well on the Lands as a precautionary measure.

WHEREAS, Chesapeake has found no relationship, or connection, between the water well on the Lands and Chesapeake's operations, but has agreed to install, or cause to be installed, a suitable vent stack on the water well on the Lands as a precautionary measure, at the request of the DEP and in an effort to accommodate the Owner.
 
NOW, THEREFORE, in consideration of the premises, mutual covenants, and agreements contained herein, Owner and Chesapeake hereby agree as follows:

1. Chesapeake agrees to install, or cause to be installed, a suitable vent stack on the water well on the Lands.
 
2. Owner does hereby grant to Chesapeake, and its affiliates, employees, contractors, and agents, all rights necessary and convenient to enter the Lands to install a suitable vent stack on the water well on the Lands.
 
3. Owner does hereby release and discharge Chesapeake, and its affiliates, employees, contractors, and agents, from any and all claims, damages, and/or liabilities arising from, or related to, the installation of a suitable vent stack on the water well on the Lands or the continued use and operation of the vent stack or the water well on the Lands. Further, Owner agrees to release Chesapeake from
 

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any and all claims, damages, and/or liabilities related to the water or water well on the Lands arising on or before the date this Agreement is executed.

4. Owner acknowledges and agrees that once the vent stack on the water well on the Lands is installed, neither Chesapeake nor its affiliates, employees, contractors, or agents have any obligation to inspect, maintain, or repair the vent stack or the water well on the Lands, and any such obligations will be solely the responsibility of the Owner.

5. Owner agrees to maintain this Agreement, and its terms, as strictly confidential and shall not disclose same to any other party, except as may be required by law.

6. It is understood and agreed that this Agreement is entered into as a precautionary measure and in an effort to accommodate Owner and that neither this Agreement nor the performance of any activities described herein shall be construed as an admission of liability or responsibility in any manner.

7. This Agreement shall not be binding upon the parties hereto until fully executed by both Owner and Chesapeake.

8. Owner does hereby acknowledge that (s)he has read and fully understands the terms of this Agreement.

The parties have executed this Agreement as of the date set forth above.

AGREED:

___________________________                                                 

___________________________

AGREED:
CHESAPEAKE APPALACHIA, L.L.C.

_____________________________
By:__________________________
Its:__________________________



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