Monday, July 16, 2012

Report says hydraulic fracturing laws need overhaul; Nationwide says it won't cover fracking damage

"Most states aren’t doing enough to ensure the water safety and health of communities near gas wells where hydraulic fracking takes place," according to a new report by a Washington, D.C.-based research and advocacy group, OMB Watch. Those states that do have chemical disclosure policies in place, the report says, "have loopholes that essentially allow companies to circumvent disclosure regulations." According to the report, only 13 of the 30 states with natural-gas drilling have passed some legislation regulating fracking, which pumps large volumes of water mixed with chemicals and sand into rock formations to release gas.

OMB Watch was founded to watch the federal Office of Management and Budget, often a roadblock for regulatory changes. Sean Moulton, director of federal information policy for the group, told Stateline, "No one state has established a chemical disclosure policy strong enough to protect the water supply of communities near gas wells. No state currently has laws in place requiring gas companies to test water supplies before drilling takes place, making it difficult to determine what’s causing contamination if water becomes polluted after fracking has begun." (Read more)

In related news, Nationwide Mutual Insurance Co. has become the first major company to say it won't cover damage related to fracking. Mary Esch of The Associated Press reports that company spokesman Nancy Smelzer announced last week that the Columbus-based company's personal and commercial policies "were not designed to cover" risk from the drilling process. Nationwide said the risks "are too great to ignore" and apply to policies of landowners who lease land for drilling.

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