Showing posts with label natural gas. Show all posts
Showing posts with label natural gas. Show all posts

Friday, October 12, 2012

Starting Monday, oil and gas frackers will have to tell EPA where they are doing it

Oil and gas companies will have to notify the Environmental Protection Agency by email before using hydraulic fracturing on wells, a development that has caught many in the industry by surprise.  "The notification requirement is a little-known aspect of air rules for hydraulic fracturing finalized earlier this year by the agency," Mike Soraghan of Environment & Energy News reports. "The hard-fought and better-known aspects of the rule don't kick in until January 2015. But the email notice requirement starts Monday."

The agency and the industry it oversees are already suspicious of one another and this new development has only fed the ill will. "I've heard people say it's the federal government trying to get their hooks into hydraulic fracturing any way they can," said Gifford Briggs, vice president of the Louisiana Oil & Gas Association. Briggs said that his group "went through rulemaking, and it was something everybody missed." Briggs said. Soraghan reports that when he inquired at EPA about the requirement, an agency spokeswoman "sent a fact sheet about the air rules that includes details about the notification requirement. But the fact sheet does not include the date the notification requirement goes into effect. It does, though, include the 2015 implementation date for other provisions of the rules. It states that drillers should include geographic coordinates of the well being fracked."

The industry wants to be allowed to go through only state agencies, the procedure to which it is accustomed. (Read more)

Tuesday, October 9, 2012

Good pay, independent culture, dislike of Obama make Appalachian coal miners 'proud to be scabs'

"As recently as the 1980s, plenty of coalfield residents thought Big Coal was the problem. But these days, in . . . Central Appalachia — southern West Virginia, southwestern Virginia, eastern Kentucky and eastern Tennessee — coal mining is overwhelmingly popular, despite well-documented risks to workers’ health and community safety," reports Gabriel Schwartzman of In These Times, a liberal, labor-oriented managzine. (Photo by Schwartzman: Supervisory miner gets coffee before work)

Schwartzman spent this summer in the region trying to determine why the previous Democratic and union stronghold has turned so sharply to the right, and doesn't mince words in presenting his conclusion: "At $108,000 a year, nothing in Appalachia compares to miners' wages," he writes. Those wage increases are linked to increased mechanization and smaller workforces, and have changed the political and financial nature of that workforce, he reports. One miner in Pike County, Kentucky, told him he would lose everything if "coal was shut down" because no job in the region could pay him as much.

The union battles for higher wages, better safety and benefits of 30 years ago were largely lost, ultimately ending with the United Mine Workers of America abandoning strikes, Schwartzman writes. Companies raised wages without unions, but cut many jobs with increased mechanization. A major unionized company in the region, Patriot Coal, is now bankrupt and unable to pay miners' pensions.

Miners with jobs told Schwartzman the non-union life is good. "We are scabs. We're proud to be scabs," one surface miner at Camp Branch mine in West Virginia told him. They are loyal to their companies, and that loyalty extends to families, friends and businesses supported by coal miners, Schwartzman reports. But an Energy Information Administration forecast of a 58 percent decline in Central Appalachian coal production by 2035 is reason for many to worry. Though the current decline is being caused mainly by competition from cheap natural gas and the decreased viability of Appalachian coal, miners tend to believe increased environmental regulation is the cause.

Schwartzman reports intimidation and threats received by those who advocate for safer mining practices or oppose mountaintop-removal mining. "Social media is used as a mobilizing tool against 'tree huggers,'" Schwartzman reports. "Aside from calling rallies and protests, post like this August 6 one appear regularly on Citizens for Coal's Facebook page: 'Just saw a post saying tree hugger in Gilbert eating at Wallys restaurant.'"

Many miners expressed to Schwartzman the need to vote out President Obama, even though his administration increased mine safety inspections, probably reducing miner injuries; increased health care for black-lung victims, and increased investments in clean-coal technology. Schwartzman writes that coal companies stir up anti-Obama rhetoric, but the Christian right and the National Rifle Association also play a role. "Those forces play upon values of autonomy and independence that run deep here," Schwartzman writes. "For 150 years, these values have helped Appalachians survive outsiders exploiting their mountain resources. Now those values have become aligned with out-of-state coal companies against environmentalists and liberals." (Read more)

Neither party has supported policies that will help the coal miner, Betty Dotson-Lewis writes for the Daily Yonder.

Thursday, October 4, 2012

Chesapeake Energy's aggressive leasing for oil and gas worries even some of its contractors

Among large natural gas companies that own millions of acres of land leases in several states, Chesapeake Energy Corp. "has become the principal player in the largest land boom in America since the 1850s California Gold Rush," Reuters reports. The company has mastered the "land grab," or "an aggressive leasing strategy intended to lock up prospective drilling sites and lock out competitors." As a result, it now controls the rights to drill for oil and gas on about 15 million acres, or roughly the size of West Virginia.

Chesapeake has made land leasing the core of its business model. A Morningstar Inc. analysis shows that it spent $31.2 billion to get drilling rights over the last 15 years. In comparison, Exxon, which had 2011 revenue 35 times larger than Chesapeake's, spent $27 billion. "We believed that the winner of these land grabs would enjoy competitive advantages for decades to come as other companies would be locked out of the best new unconventional resource plays in the U.S.," the company wrote in its 2012 Securities and Exchange Commission filing.

A Reuters analysis of hundreds of internal Chesapeake emails and thousands of pages of documents showed the company is secretive about its leasing tactics, which some of its own contractors find dubious. "What emerged were approaches to leasing property that land brokers, land owners and lawyers say push ethical and legal limits. Chesapeake has unilaterally altered or backed out of leases. And in Texas and at least three other states, it has exploited little-known laws to force owners to hand over drilling rights and sometimes forfeit profits," Reuters reports. That apparently refers to forced-pooling laws, which allow oil and gas companies compensated access to the resources underlying land of owners who don't want to lease but are largely surrounded by those who have. (Read more)

Monday, October 1, 2012

Colorado officials, pressured by local officials, plan to strengthen oil and gas regulation

Driven by local pressure and public opposition, Colorado officials are poised to revise state oil and gas laws, much to the chagrin of industry groups, Bruce Finley of The Denver Post reports. The state has proposed buffer-zone restrictions on new wells and mandatory groundwater testing prior to drilling, but local officials worry those won't do enough to ease communities' concerns.

Colorado Oil and Gas Conservation Commission director Matt Lepore, left, said he will ask commissioners to launch a new rule-making session to revise the rules last set in 2008. "We want to get it right, as best as we can, for as many people as we can," Lepore said. Colorado Oil and Gas Association attorney Andrew Casper said the group has identified "numerous concerns" with the proposed revisions and a new rule-making session. Homebuilders have also voiced concerns about bigger buffer zones, which could complicate urban planning.

Local and state lawmakers said their communities are complaining regularly about fracking. Democratic Rep. Su Ryden of Aurora said most of her constituents "want drilling as far away as possible." Colorado Conservation Voters director Pete Maysmith said during an invite-only community discussion with Gov. John Hickenlooper that "neighborhoods and fracking don't mix." Maysmith's group gave the governor a petition with 14,500 signatures from residents in Adams and Pueblo counties asking for their communities to be shielded from drilling. (Read more)

Friday, September 28, 2012

Two-thirds of fracking-chemical disclosures omit at least one chemical on grounds of trade secrecy

Almost two-thirds of the disclosure statements filed by oil and gas companies about their hydraulic fracturing operations kept at least one chemical secret, according to a review of PIVOT Upstream Group's D-Frac database by Energywire. In 65 percent of fracking disclosures, companies said they needed to keep one or more chemicals secret to protect confidential business information, typically known as trade secrets.

Critics of drilling say widespread use of trade-secret exemptions undermines assurances by the industry that drillers are being open and honest with the communities where wells are fracked, Mike Soraghan of Energy and Environment News reports. Companies say they spend millions developing new fracking materials and don't want to give away their secret. Industry groups say the debate over trade secrets overshadows just how much companies have already disclosed.

Utah has the highest rate of trade-secret claims on disclosure statements at 94 percent, the highest of any state with more than 100 disclosures. Disclosure isn't mandatory in Utah, but in New Mexico, where it is, 84 percent of statements sent to FracFocus -- where PIVOT gets its information -- had a trade-secret claim.

All of BP America Production Co.'s 230 disclosures contained a trade-secret claim. BP and a small Texas company, Howell Oil & Gas, were the only companies with more than 100 wells that filed trade-secret claims on all of them. The rest of the top five companies are Exco Resources Inc., at 98 percent; Devon Energy Corp. and Noble Energy Inc., both at 97 percent. (Read more)

Wednesday, September 26, 2012

New fracking film starring Matt Damon set for release in December

A new film about hydraulic fracturing will hit theaters this December, but this time it's a feature film, not a documentary. "Promised Land" stars Matt Damon as Steve Butler, a gas company representative who comes to a rural, economically depressed town offering financial salvation in exchange for natural gas drilling leases. The film is being directed by Oscar-nominated director Gus Van Sant, who directed Damon in "Good Will Hunting."


The story behind "Promised Land" is very similar to that of real-life rural town, Dimock, Pa., where a group of residents complained that injection-well drilling caused gas to leak into their water, Mike Soraghan of Energy and Environment News reports. State officials said shoddy drilling contaminated 18 properties, and shut down the company, Cabot Oil & Gas Corp for more than two years. A $4.1 million settlement was eventually reached, giving the homeowners twice the value of their homes and restoring their mineral rights.

The film also stars Frances McDormand and Hal Holbrook, and was written by Dave Eggers, who wrote the book, A Heartbreaking Work of Staggering Genius. The movie is likely to please environmentalists and critics of drilling while angering drilling companies, Soraghan reports. Energy and Environment News is behind a paywall, but free trials can be accessed here.

Friday, September 21, 2012

Lax rules for disposal of drilling waste lead to injection of other toxic materials into the earth

One of the trucks, after it was enveloped by
flames fed by fumes from injection-well waste.
(Chemical Safety Board photo)
In January 2003, two tanker trucks exploded, killing three workers after fumes from what was supposed to be waste saltwater from injection wells ignited and burned in Rosharon, Tex. What the workers were really unloading, to be buried deep inside the earth, were thousands of gallons of volatile materials, including benzene and other flammable hydrocarbons. "What happened that day at Rosharon," explains ProPublica reporter Abrahm Lustgarten, "was the result of a significant breakdown in the nation’s efforts to regulate the handling of toxic waste."

"The site at Rosharon is what is known as a 'Class 2' well," Lustgarten writes. "Such wells are subject to looser rules and less scrutiny than others designed for hazardous materials. Had the chemicals the workers were disposing of that day come from a factory or a refinery, it would have been illegal to pour them into that well. But regulatory concessions won by the energy industry over the last three decades made it legal to dump similar substances into the Rosharon site -- as long as they came from drilling. Injection wells have proliferated over the last 60 years, in large part because they are the cheapest, most expedient way to manage hundreds of billions of gallons of industrial waste generated in the U.S. each year.''

ProPublica has analyzed records summarizing more than 220,000 well inspections conducted between late 2007 and late 2010, including more than 194,000 for Class 2 wells. This most recent installment of by the independent, nonprofit news agency on U.S. injection wells had reporters examining federal audits of state oversight programs, interviewing dozens of experts and exploring court documents, case files, and the evolution of underground disposal law over the past 30 years. The report is exhaustive and includes several links showing that fundamental safeguards are sometimes being ignored or circumvented by use of the Class 2 rules. (Read more) For a state-by-state count of unauthorized, overpressurized and leaking injection wells, go here.

Thursday, September 13, 2012

Few state oil and gas agencies seek help from experts who review programs, suggest changes

There exists a team of oil and gas regulators, industry officials and environmental advocates who offer comprehensive reviews of state oil and gas oversight programs and make recommendations for improvement. It's called State Review of Oil and Natural Gas Environmental Regulations, but states aren't volunteering their oversight programs for evaluation. It's a predicament for STRONGER, Ellen Gilmer of Energy and Environment News reports.

State oil and gas regulatory officials are feeling pressure from the public and environmentalists to increase regulations on the booming industry, but Gilmer reports agency leaders are leery of STRONGER and the services it provides. They either don't have resources for it, or they fear increased public backlash. STRONGER's latest review was in 2007 in Tennessee. It did evaluate North Carolina's Department of Environmental and Natural Resources this year, but the state doesn't yet have any actual oil or gas wells.

The group has been evaluating hydraulic fracturing in Colorado, Arkansas, Oklahoma, Louisiana, Ohio and Pennsylvania since 2010, but "It's unclear which states will come next or whether checked-off states' evolving regulations merit further review," Gilmer writes. Mississippi officials have never asked for a review. Kansas officials seemed interested, but haven't asked. Gilmer reports that Texas could be a candidate, but officials there are writing new rules that will likely have to be finished before a review is requested. (Read more) Many state oil and gas agencies are dominates by people from the industries they regulate.

Wednesday, September 12, 2012

Water pollution from oil and gas drilling can be expected in karst regions, federal expert says

More and more drilling applications have been filed during the natural-gas boom for karst regions, with "a type of geology made of rocks that dissolve in mildly acidic water over time," and and oil and gas wells do fail over time in karst regions, which provide easy geologic pathways for pollution, says James Goodbar, head of the Bureau of Land Management's caves and karst resources program, reports Gayathri Valdyanathan of Energy and Environment News.

Scientists worry that contamination will increase if drilling increases in these regions. If drilling is properly done, with the correct amount of steel and cement casings, not much casing is needed in most geologic structures. But when well bores intersect with caves, drilling can pose greater risks. The cement and metal can corrode and leak over time because it's not surrounded by rock. "Threats to the springs and the wildlife that depend on them may be significant," Valdyanathan reports.

The BLM updated requirements for karst drilling in 2006, requiring at least three layers of high-grade steel and cementing, and plugging from the lowest karst zone when abandoning a well. But those standards aren't applicable on non-federal karst lands, or on older wells. (Read more)

Thursday, September 6, 2012

Gas drillers and farmers in West fight over water

Increased natural-gas drilling, which uses water-intensive hydraulic fracturing to obtain gas, has started a race for water in the West between companies and farmers. A single well can require five million gallons of water, and companies are snatching up what they need at water auctions, farm ponds, irrigation ditches and municipal fire hydrants, often leaving farmers high and dry in the arid landscape, reports Jack Healy of The New York Times. (NYT photo by Matthew Staver: Water tanker is filled to supply drilling site)

Environmentalists and farmers are concerned the deep pockets of energy companies will give them the edge in getting water rights, and this summer's drought amplified those concerns, Healy reports. "I don't think in reality that the farmer can compete with oil and gas companies for that water," Colorado corn and alfalfa farmer Peter Anderson told Healy. "Their return is a hell of a lot better than ours."

In average years, farmers pay about $30 for an acre-foot of water from local or state governments. Right now, oil and gas companies are paying as much as $1,000 to $2,000 for equal amounts, and farmers say they can't afford to match those bids, causing them to lose access to water they may need. Industry officials say the effects on water supplies are exaggerated because companies don't and can't "snap up the rights to streams and wells at the expense of farmers or homeowners," Healy reports. Officials say they lease surplus water from cities or buy treated wastewater, and in some cases buy water rights directly from farmers or others. (Read more)

Tuesday, September 4, 2012

Seminar on covering oil and gas drilling, with a field trip, set Sept. 27 in Youngstown, Ohio

Many rural areas are seeing a boom in drilling for oil and natural gas, which are more complex and perhaps more risky enterprises than ever before. To make sure journalists know enough to cover the subject, a half-day seminar will be held Sept. 27 at Youngstown State University in Ohio to "explain everything there is to know about the subject," say the sponsors: the Ohio Newspaper Association and the local newspaper, The Vindicator.

The program will include how horizontal hydraulic fracturing works, the economic impact of drilling, the environmental debate over drilling, and much more. After the program there will be an optional tour of drilling facilities. We recommend you do the whole day, including the field trip. You won't learn everything there is to know, but you don't have to. The cost to attend is a very reasonable $30, which includes lunch. For more information and registration, click here.

Friday, August 24, 2012

Romney would give states control over drilling on federal land, provide less support for renewable energy

Romney talks energy in Hobbs, N.M.
(NYT photo by Jim Wilson)

Mitt Romney proposed an end to a century of federal control over oil and gas drilling and coal mining on government land Thursday, in an energy plan that also calls for less support for renewable energy.

"The federal government owns about 28 percent of the 2.27 billion acres of land in the United States. But as of March 2012, only about 37 million acres were under lease for oil and gas operations, of which about 16.3 million acres have active oil and gas production or exploration, according to the Interior Department," Eric Lipton and Clifford Krauss of The New York Times write. "Under President Obama, officials in Washington have played a bigger role in drilling and mining decisions on federal lands in the states, and such involvement rankles many residents and energy executives, who prefer the usually lighter touch of local officials."

"The Romney campaign acknowledged that such a significant policy change would require the approval of Congress, the Times reports. "Getting such legislation passed, even if Republicans controlled the House and the Senate, would be very difficult, given certain opposition by Democrats and perhaps even some Republicans."  (Read more)

The National Journal reported month that some farmers are uneasy with the GOP ticket’s "opposition to renewable-energy policies that have helped them economically." Romney opposes a wind-energy tax credit "that has helped farmers bring in thousands of dollars in extra income by leasing their land to wind producers." His running mate, Rep. Paul Ryan, R-Wis., opposes the mandate for a certain amount of ethanol production, which has driven up demand — and probably prices — for corn. "Romney stands by his support of the ethanol mandate," but "Ryan’s record of full-throated opposition to it rubs corn and crop farmers the wrong way," Coral Davenport writes. "In addition, Ryan’s budget roadmap proposes deep cuts in renewable-energy and nutrition programs that help farmers." (Read more)

Tuesday, August 21, 2012

Natural-gas boom begets frac-sand boom in Wis.

The boom in natural gas drilling has caused a boom in one type of sand mining. Round silica sand is used in the process of hydraulic fracturing to hold open rock fractures so gas can be released. The sand boom is perhaps at its height in west-central Wisconsin, the largest producer of "frac sand" in the U.S.

There are no official employment figures for the frac-sand industry, but Kate Prengaman of the Wisconsin Center for Investigative Journalism used job-site estimates to calculate that when current and proposed mines are fully operational, the industry will employ about 2,780 people. The number of permitted and proposed frac-sand mines has doubled to 106 since last year, but sand isn't "instant money," Prengaman reports. It's expensive to transport, and local officials are charging sand companies for wear and tear on roads. The state Department of Transportation estimates the industry could produce about 50 million tons of sand a year, Prengaman reports.

Some residents are concerned sand mining will hurt air and water quality, local infrastructure and tourism. They have mounted protests and lawsuits to combat alleged wrongdoing by the industry. Local officials and industry representatives say sand mining will help local economies and increase jobs, echoing local battles in other parts of the country surrounding gas drilling. (Read more)

Friday, August 17, 2012

Tribe divided over tapping their lands' resources

There is great beauty on the Blackfeet Indian Reservation in Montana, writes Jack Healy of The New York Times. "But there is also oil, locked away in the tight shale thousands of feet underground," and tribal leaders of the Blackfeet Nation "have decided to tap their land’s buried wealth. The move has divided the tribe while igniting a debate over the promise and perils of hydraulic fracturing, or fracking, in a place where grizzlies roam into backyards and many residents see the land as something living and sacred. All through the billiard-green mesas leading up to the Rocky Mountains are signs of the boom."(NYT photo by Rich Addicks)

"Oil exploration here began in the 1920s, largely on the plains along the eastern edge of the reservation, but it died off in the early 1980s. Over the last four years, though, new fracking technologies and rising oil prices have lured the drillers back, and farther and farther west, to the mountains that border Glacier National Park," Healy reports. "It is an increasingly common sight for tribes across the West and Plains: Tourist spending has gone slack since the recession hit. American Indian casino revenues are stagnating just as tribal gambling faces new competition from online gambling and waves of new casinos. Oil and fracking are new lifelines. One drilling rig on the Blackfeet reservation generated 49 jobs for tribal members — a substantial feat in a place where unemployment is as high as 70 percent. But as others watched the rigs rise, they wondered whether the tribe was making an irrevocable mistake."

 “These are our mountains,” Cheryl Little Dog, a new member of the Blackfeet Tribal Business Council, the reservation’s governing body, told Healy. Pauline Matt told him, “Ity threatens everything we are as Blackfeet.” But tribal leaders think "Oil wealth could be more lucrative and reliable than any casino," Healy reports. But to find the opposing view, Healy drove just five miles toward the mountains. The divisions are more than disputes over the economy and environment — they represent two visions of the land where Blackfeet members have lived for centuries. It is a division without compromise. (Read more)

Wednesday, August 15, 2012

Small towns watch as lower Mississippi's heavy traffic is slowed by near-historic low water levels

A year after near-historic flooding affected some of America's legendary small towns, water levels on the lower Mississippi River are at near-historic lows. In July, water levels in Vicksburg, Miss., Memphis, Tenn., and Cairo, Ill. (at the confluence with the Ohio), dipped below those of the historic drought of 1988. That’s affecting everything from recreation to commerce on the maritime superhighway to rthe drinking water in Louisiana. The biggest impact, reports NBC News, may be on shipping. “It’s getting near critical,” said Austin Golding, a third-generation co-owner of Vicksburg-based Golding Barge Lines. “Without more rain, we’re heading into uncharted territory.” (Associated Press photo, near Vicksburg Aug. 6)

Barges on the lower river carry about $180 billion worth of goods and 500 million tons of the basic ingredients for much of the U.S. economy, according to the American Waterways Operators, a trade group. The river carries 60 percent of the nation’s grain, 22 percent of the oil and gas and 20 percent of the coal, according to the trade organization. The low water levels force barge companies to lighten their load by about 25 percent so barges ride higher in the water. In some places, the Mississippi is a one-way river, as barges heading north have to wait for traffic headed south, adding to the costly delays. The result: Millions of dollars in higher shipping costs, ultimately paid by consumers. (Read more)

Friday, August 10, 2012

In thirsty times, natural-gas industry's use of water for hydraulic fracturing is getting new scrutiny

The impact of the water-hungry technique of horizontal hydraulic fracturing is increasingly coming into question, particularly in drilling hotbeds stricken by the crop-shriveling drought now covering close to two-thirds of the 48 contiguous states. In much of the West, reports Jim Malewitz of the Stateline, the news agency of The Pew Center for the States, water supplies have long been dwindling due to population expansion and climate change. This year’s drought, coupled with an uptick in drilling, is what Jason Bane, of the nonprofit Western Resource Advocates, calls a perfect storm. The drought “is changing the way people are looking at things,” says Bane, whose group is advocating for more study of fracking’s effect on available water. (Associated Press photo)

How much fracking impacts the availability of water depends on geography — "and on how you define impact," Malewitz writes. "So far, there has been little comprehensive research" on the topic.  "Depending on the depth of the drilling, it can take anywhere from 2 to 12 million gallons of water to frack one well. Those numbers may appear staggering to laymen," but drilling companies prefer to compare them to those of the heaviest users. Chesapeake Energy, the nation’s second largest producer of natural gas, has circulated a fact sheet that states that the company’s water use amounts to just a fraction of agriculture's 82 percent of water use or 8 percent for public water supplies.

"Environmental groups frame the issue differently," Malewitz notes. Western Resource Advocates estimated this year that drilling companies "were consuming enough water to meet the needs of between 66,400 and 118,400 households. The industry is researching ways to reduce water use and improve treatment and recycling, but with current technology, returning water to its natural cycle remains a daunting, costly task." See a related story from CNN/Money here.

Study: Injection of fracking's waste near faultlines, not drilling, is responsible for quakes

A new study has found that deep injection of oil and gas wastewater appears to be causing more earthquakes than previously thought. Cliff Frohlich, a senior research scientist at the University of Texas' Institute for Geophysics, said that his findings should be taken seriously by drillers especially as the practice spreads to more densely populated areas. His work, reports Mike Soraghan of EnergyWire, was done around the Barnett Shale around Dallas to measure small earthquakes taking place near injection wells. His peer-reviewed study was published in the Proceedings of the National Academy of Sciences.

Soraghan explains that "Frohlich did not find any suggestion that the earthquakes were caused by hydraulic fracturing, or fracking. But fracturing creates millions of gallons of briny, toxic wastewater that drillers must eventually dispose of, usually by injecting it into the type of injection wells Frohlich was studying. That suggests, he said, that earthquakes occur only if there is a fault nearby that is susceptible to being triggered by high volumes of fluid." This suggested to Frolich that drillers could stop the earthquakes by choosing an alternate site to dispose of their wastewater. (Read more)

Tuesday, August 7, 2012

About 250 localities have tried to limit drilling's reach, worrying industry and some state officials

Many local officials in rural communities are not opposed to natural-gas drilling, but they are opposed to drilling close to homes, schools or hospitals. Citizens are increasingly turning to their city and town governments to help fight encroachment of drilling rigs when they feel state regulations aren't strict enough to control the drilling close to their towns. Jim Malewitz of Stateline reports the trend is "worrying" industry representatives and state officials who want to expand the "industry's reach."

At least 246 cities or towns in 15 states have passed laws restricting drilling on local land, according to Food and Water Watch, an environmental group. Malewitz reports some of the ordinances are "merely symbolic" because those towns don't sit atop gas reserves. More than 90 cities or towns in New York have passed resolutions addressing gas drilling, 14 in Pennsylvania have passed regulations, and some in Colorado are doing the same. A Pennsylvania appellate-court panel recently struck down a new state law that barred local officials from using zoning to prohibit drilling in certain areas.

State regulators and industry advocates say local pushback is "misguided and a dangerous obstacle to economic growth," Malewitz reports. Advocates say drillers should be exempt from local zoning laws because extraction depends on where the resources are, and sometimes residential areas and towns are included. Zoning laws differ from town to town, and Malewitz explains some zoning laws in several states. (Read more)

Friday, August 3, 2012

'Father of fracking' says it needs federal regulations to control small, independent drillers

You have probably never heard of George Phydias Mitchell, left, is one of the biggest names in natural-gas drilling and THE name in hydraulic fracturing, in which fluid is pumped into drill holes at high pressures to crack rock layers and release gas and oil. The technique has been used since the 1950s, but in the 1990s Mitchell, as head of Mitchell Energy & Development, pioneered use of the technique to get gas from deep, very tight shales that had previously been unproductive.

Mitchell who said last month that he favors more regulation of fracking. "The administration is trying to tighten up controls," he told Forbes' Christopher Helman. "I think it's a good idea. They should have very strict controls."

When Mitchell figured out that fracking could be very effective at breaking up shale and releasing gas, "This ultimately set in motion the boom in shale drilling that has spread across the country," Helman notes. More recently, innovations have led companies to horizontal hydraulic fracturing, in which a well turns horizontal to the surface to crack large sections of shale beds at once. Mitchell told Helman if companies don't frack the right way, "there could be trouble." He said there's no reason why they shouldn't do it right: "There are good techniques to make it safe that should be followed properly."

It's the smaller, independent drillers that worry Mitchell. They are "wild," he told Helman. Mitchell said most drillers follow the rules and are responsible and that costs to drillers to comply with federal regulations would be minimal. "After all," Helman wrote, "any extra costs associated with best practices ... would be passed on in the price of natural gas." (Read more)

Thursday, August 2, 2012

Pennsylvania doctor files suit over gag rule in fracking-chemical disclosure law

A Pennsylvania physician has filed a federal lawsuit claiming that the state's new oil and gas drilling law will force him to violate ethical rules in treating his patients. Kidney specialist Alfonso Rodriguez  argues that if one of his patients was exposed to, and potentially sickened by, fluids used in hydraulic fracturing, the law's confidentiality requirements would compromise his ability to discuss the chemicals with the patient.

His attorney told Sandy Bauers of The Philadelphia Inquirer that Rodriguez frequently treats such patients, including well workers exposed to fluids in a blowout. "He is the doctor fracking-fluid exposees go to," Paul Rossi said. "It's not hypothetical that he's going to need to make use of this law. He may have to go to the gas companies to get information on an ongoing basis." Because of the vagueness of the law, he said, Rodriguez has hired an attorney to draft a letter to his patients notifying them that "his ethical obligation to communicate with them may be curtailed." (Read more)

The suit was filed last week in Scranton. It asks that the medical provisions of the law be suspended until the state drafts regulations to clarify it. The suit names as defendants state Attorney General Linda Kelly, Environmental Protection Secretary Michael Krancer, and Public Utilities Commission Chairman Robert Powelson.