8-K

Securities and Exchange Commission

Washington, D.C. 20549

_______________________________

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): December 20, 2007

Chesapeake Utilities Corporation

(Exact name of registrant as specified in its charter)

Delaware	001-11590	51-0064146
(State or other jurisdiction of	(Commission	(I.R.S. Employer
incorporation or organization)	File Number)	Identification No.)

909 Silver Lake Boulevard, Dover, Delaware 19904

(Address of principal executive offices, including Zip Code)

(302) 734-6799

(Registrant's Telephone Number, including Area Code)

_______________________________________________________________

(Former name, former address and former fiscal year, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01. Other Events.

On December 20, 2007, Chesapeake Utilities Corporation (“the Company”) issued a press release announcing that the Company’s wholly owned subsidiary, Eastern Shore Natural Gas Company (“ESNG”) will be withdrawing its proposed EasternShore Energylink Expansion (“E3”) Project from the Federal Energy Regulatory Commission’s pre-filing process.  The decision to withdraw from the pre-filing process was reached by ESNG’s Board of Directors and management as a result of projected capital cost increases and insufficient customer commitments for capacity to make the Project economical in light of the capital cost increases.  A copy of the press release is attached as Exhibit 99.1 hereto and is incorporated by reference herein.

Item 9.01.Financial Statements and Exhibits.

(d)  Exhibits 99.1 – Press Release of Chesapeake Utilities Corporation dated December 20, 2007.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

Chesapeake Utilities Corporation

/s/ Michael P. McMasters

—————————————

Michael P. McMasters

Senior Vice President and Chief Financial Officer

Date: December 21, 2007

EX-99.1 CHARTER

Exhibit 99.1

[Chesapeake Utilities

Corporation Logo]

FOR IMMEDIATE RELEASE

December 20, 2007

NYSE: CPK

EASTERN SHORE NATURAL GAS COMPANY TO WITHDRAW

ITS E3 PROJECT FROM THE FERC PRE-FILING PROCESS

DOVER, DE – Eastern Shore Natural Gas Company (ESNG), a wholly owned subsidiary of Chesapeake Utilities Corporation, announced today that it will be withdrawing its proposed EasternShore Energylink Expansion (E3) Project from the Federal Energy Regulatory Commission’s (FERC) pre-filing process. ESNG’s Board of Directors decided, on Thursday, December 20, 2007, to withdraw from the pre-filing process, as a result of projected capital cost increases and insufficient customer commitments for capacity to make the Project economical in light of those increases.  The FERC’s pre-filing process is the first step in obtaining the necessary permits to construct and operate the facilities.

“The proposed E3 Project was designed to provide access to an alternative source of clean-burning, environmentally friendly natural gas, as well as to provide additional supply and enhanced delivery capability to customers on the Delmarva Peninsula.  Projected completion costs have more than doubled and could increase further, and without a corresponding increase in customer commitments, the Project is not economically viable.  As we draw close to the end of 2007 and position ourselves for 2008, the Board felt the prudent thing to do was to withdraw the E3 Project from the pre-filing process,” commented John R. Schimkaitis, Chairman of ESNG and President and CEO of Chesapeake Utilities Corporation.

“We have always believed and continue to believe that the E3 Project is the right thing to do.  However, the Board and management have decided that ESNG should withdraw the E-3 Project from the pre-filing process, given the changed economics of the Project,“ stated Stephen C. Thompson, President of ESNG and Senior Vice President of Chesapeake Utilities Corporation.  “We have met and worked with many outstanding individuals, agencies and organizations through the E3 pre-filing process, and we thank all of them for their support, hard work and dedication,” added Elaine B. Bittner, Vice President of ESNG.

In accordance with Precedent Agreements previously executed with two customers (one third party customer and Chesapeake’s own Delmarva natural gas distribution divisions) for capacity on the E3 Project, each of these customers is obligated to reimburse ESNG for pre-certification costs incurred in connection with the E3 Project.   Chesapeake’s obligation to reimburse ESNG for its share of the pre-service costs is expected to have a negligible impact on its financial results.

Chesapeake Utilities is a diversified utility company engaged in natural gas distribution, transmission and marketing of environmentally friendly natural gas in Delaware, Maryland and Florida; distribution and wholesale marketing of propane in Delaware, Maryland, Virginia, Pennsylvania and Florida; advanced information services; and other related businesses.  Eastern Shore Natural Gas Company is the only natural gas transmission pipeline on the Delmarva Peninsula and has supplied the region’s growing demand for a reliable energy source for more than 47 years.  Chesapeake is traded on the New York Stock Exchange under the symbol CPK.  Information about Chesapeake’s businesses is available at www.chpk.com.

Matters discussed in this release may include forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements. Please refer to the Cautionary Statement in Chesapeake Utilities Corporation’s report on Form 10-K for the year ended December 31, 2006 for further information on the risks and uncertainties related to Chesapeake’s forward-looking statements.

FOR MORE INFORMATION:

Company Contact:                                             Elaine Bittner, Vice President

  Eastern Shore Natural Gas Company

  Ph: 302-734-6710

  ebittner@chpk.com

Media Contact:                                                 Amy Christopher, President

      Warschawski

 Ph: 410-367-2700 ext. 21

 amy.christopher@warschawski.com