Chesapeake Energy, the natural gas drilling company with holdings in the Fayetteville Shale announced today they will not drill inside the upstate New York watershed, responding to public pressure and environemtnal concerns. 

Over all, Mr. McClendon said, the company’s holdings in the watershed are “a drop in the bucket” compared with the Marcellus field’s potential. He suggested that Chesapeake had more to lose by drilling there than by forgoing it, even though he contended such drilling would do no harm.

“How could any one well be so profitable that it would be worth damaging the New York City water system?” he said.