The Marcellus Shale operations of Greylock Production, a natural gas exploration and production company, are subject to rigorous federal and state-level laws and regulations that regulate environmental protection, including the requirement to obtain a permit for drilling water withdrawal or waste disposal operations. This regulation limits construction or drilling activities in sensitive areas such as wetlands, wilderness areas, and areas containing endangered or threatened species or their habitats. Failure to comply with these laws and regulations may result in significant environmental costs and liabilities.