Chesapeake pays $75,000 fine for problems that led to Oklahoma well blowout

Nobody was injured in the blowout.

The rig, operated by Chesapeake's Nomac Drilling LLC subsidiary, hit a previously unknown zone of pressurized natural gas at 925 feet. An internal review by Chesapeake found production casing in one of the company's nearby wells had failed in summer 2011 and was most likely the source of the shallow natural gas pocket.

Chesapeake had shut in the nearby well in June 2011 after finding pressure changes, as well as mud and shale in equipment and lines, the report said.

Inspectors in the commission's oil and gas conservation division found Chesapeake should have told the agency about production problems with the nearby well. They also faulted the company for not having a blowout preventer on the well that exploded.

“Chesapeake completed a thorough internal investigation to determine the cause of the incident and was proactive in sharing its findings with the (Oklahoma Corporation Commission),” the incident report stated. “Chesapeake has completed a new internal policy of checking data from wells offsetting any proposed new well in this area for indications of potential similar problems.”

Chesapeake declined to comment on the fine, saying the case was pending before the commission. The company didn't explain why it had already paid the fine if the matter was pending.

An administrative law judge has yet to send a proposed order to the three-person regulatory panel for its final approval in the case.