24 | COMMUNITY RELATIONS INVESTING IN OUR COMMUNITIES  » Equipping the next generation — West Virginia  students hold their new laptops from Chesapeake as part of the company’s Discovering Tomorrow’s Leaders program.  Chesapeake’s sense of civic commitment provides a bountiful harvest of  benefits to cities large and small. We partner with groups and organizations  across all of our operating areas to improve the communities our employ- ees, contractors, vendors, land and mineral owners call home. We believe  the success of our business depends on the strength, goodwill and vitality  of those communities. Most importantly, we believe it is the responsibility  of every successful business to share success with its neighbors. In 2010 we gave more than $25 million to charitable organizations  and projects across our operating areas, primarily focusing on community development, education, health and medical and social services. equates to one-third of  the goods that other-  wise would have been  destined for Oklahoma  City-area  landfills.  In  West Virginia, we helped  fund  construction  of  the Morgantown Market  Place, a permanent site for the city’s farmers’ market, creating more busi- ness opportunities for local farmers. While much of the U.S. is still struggling to recover from the economic re- cession, the positive impact of natural gas and oil operations has provided  a valuable economic recovery stimulus for states that are home to explora- tion and development activities. As the nation’s second-largest producer  of natural gas, a Top 15 producer of liquids and most active driller of new wells, Chesapeake’s arrival in a new play stimulates economic activity,  augments personal income through jobs and royalty payments, gen-  erates substantial tax revenue and sustains communities throughout its  operating areas. In addition to the general economic impact of our activities on local  economies, the company’s tax contributions are substantial. In 2010  Chesapeake paid approximately $675 million in taxes, including ad valorem,  severance, sales, employer, and corporate income and franchise taxes. These  taxes pay for ongoing government services and also build and maintain  schools, recreational facilities, and parks and roads — at a time when state  and local governments are still feeling the pinch of recession. We are proud  to support America’s economy with our growth while also helping to protect  the environment through the greater use of clean-burning natural gas and  reducing the country’s dependence on expensive foreign oil. Chesapeake also makes contributions that help improve lives and  economies in cities where we operate: $25 million in 2010 alone. For ex- ample, this past year we donated $200,000 to establish the Chesapeake  Environmental and Recycling Center at Goodwill Industries of Central  Oklahoma. The center will provide an additional 80 jobs to disabled Okla- homans, as well as help Goodwill recycle 10 million pounds a year, which  We are also proud to help prepare tomorrow’s leaders today. In 2010  Chesapeake supported universities, schools, academic chairs, scholarships  and other educational programs with contributions totaling $5.4 million.  Investing in programs that promote technology and innovation is a  key to our country’s success. That’s why we gave $1.0 million to establish  the Chesapeake Energy dormitory for students at the Oklahoma School for  Science and Mathematics (OSSM), a public, tuition-free, residential high  school located in Oklahoma City for juniors and seniors with exceptional  abilities. The extremely competitive school is helping train the next gen-  eration of scientists and mathematicians. We also established the Chesapeake Energy Presidential Scholars Pro- gram at the Oklahoma City University Meinders School of Business, making  a $5.0 million commitment to be distributed over the next five years. The  Chesapeake Scholars Program will provide up to $25,000 per year in tuition  We also hire locally whenever possible to help stimulate the local  economy, and we provide training when the local work force isn’t yet  qualified for the jobs we have open. For example, when Chesapeake  began operating in the Marcellus Shale of West Virginia and Pennsyl- vania, finding experienced rig workers was a challenge. To meet that  need, Chesapeake’s wholly owned subsidiary, Nomac Drilling, built  the 40,000-square-foot Eastern Training Center and Housing Facility in  Bradford County, near Sayre, Pennsylvania. The campus opened in 2010  and serves as a housing facility and training ground for 266 workers at  a time. Nomac and Chesapeake host regular job fairs in the region and  the lines of interested candidates often extend out the door.  Chesapeake also supports local chambers of commerce and city  councils in all of its operating areas. In the Haynesville Shale last year, we  awarded grants to the Shelby County, Sabine Parish and Coushatta-Red  River chambers of commerce to help fund tourism, business communi- cations and chamber events. In Texas, we assisted more than 250 civic,  professional and community service organizations throughout Johnson,  Tarrant and western Dallas counties, and sponsored memberships in 35 local Texas chambers of commerce. By helping local chambers and  businesses grow and thrive, we are creating stronger economies. Educational Impact Economic Impact Chesapeake’s $25 million  of charitable giving in 2010 Community Development Education Health and Medical Social Services 54% 24% 7% 15%