Posts Tagged ‘oil and gas industry’

The PEC Basic-SafeGulf/SafeLand Orientation safety awareness course was designed to take the place of multiple Operator orientations and to give each student a general idea of life and safety issues in the oil and gas industry, upstream, downstream, onshore or offshore. This one-day program meets API RP 75 and API RP T-1 requirements and provides a basic understanding at an awareness level of certain general safety information that an employee should know before entering a company facility and while performing their assigned work duties. Over 25 of the leading oil and gas operators accept this orientation as it meets their requirements. Upon successful completion of course, each student is issued a picture ID with unique barcode. The student information is then stored in an online database. PLEASE BRING PHOTO I.D.

Fair Pooling protects the environment, reduces environmental footprints, and generates more revenue for environmental programs – so why do environmentalists oppose it?

CANONSBURG – When is an environmentalist not an environmentalist? How about when he sends a letter to lawmakers in Harrisburg demanding they reject a proposal that would result in greater efficiency in developing clean-burning natural gas from the Marcellus, far less disturbance to land while doing it, and millions in revenue for state programs to protect and preserve the environment?

Unfortunately, that’s precisely the letter that members of the General Assembly received this week – sent by a coalition of more than 30 groups that claim to support all the things that a Fair Pooling statute in Pennsylvania would make possible (smaller footprints and more revenue, especially), but nonetheless stand in opposition to the adoption of the actual plan.

Of course, virtually every energy-producing state in America has fair pooling protection on the books – and for good reason. Fair pooling allows for “equitable and efficient development of [natural gas] while preventing the drilling of unnecessary wells,” according to Michigan’s Department of Environmental Quality – “at the same time, it protects an owner from having his or her oil and gas drained without compensation.”

The Harvard Law Review agrees: “Pooling is important in the prevention of drilling of unnecessary and uneconomic wells, which will usually result in physical and economic waste.” That line comes from an article on efforts to conserve oil and natural gas published in the Review back in 1952.

So if these environmental groups can’t defend their opposition to Fair Pooling onenvironmental grounds, what arguments do they use instead? See below a quick side-by-side of the charges leveled by these groups’ compared with the actual facts of what Fair Pooling is, and what it is not.

BY STEVE McCONNELL (STAFF WRITER)
Published: June 28, 2010

With the boom in Marcellus Shale natural gas development throughout the region, area educational institutions are growing to keep up with work force demands.

New training, certification and degree programs are being created at local schools to ensure local job skills are tailored to white- and blue-collared job needs related to the natural gas drilling industry.

Already, Lackawanna College and Johnson College in Scranton, Keystone College in LaPlume and the Pennsylvania College of Technology in Williamsport represent the growing trend of educational institutions offering course work and the hands-on training needed to become employable in one of Pennsylvania’s growing industries.

And, college administrators agree the reason for the trend is simple: There’s a demand for it by both the industry and potential workers who want the training and the jobs that come with it.

An industry-financed study conducted by Penn State’s department of energy and mineral engineering, which offers an undergraduate degree in natural gas engineering, expected Marcellus Shale natural gas extraction efforts to create more than 200,000 jobs in the state and have an overall $18 billion economic impact by this year.

“Marcellus Shale is going to be big business,” said Christopher Kucharski, Lackawanna College spokesman. “Problem is there is just nobody trained to handle the positions they want filled.”

It appears a change is under way.

Larry Milliken, director of Lackawanna College’s energy program and a natural gas instructor, just finished guiding the first class of 18 students through its first year of study to earn an associate degree in natural gas technology.

Based at the college’s New Milford campus in the center of the action near gas fields in Susquehanna County, the program is preparing students for well tender jobs – a position that requires monitoring and maintaining natural gas wells during their lengthy production phase.

There is generally one well tender employed for every 20 to 40 natural gas wells, Mr. Milliken said, and the entry-level annual salary is $36,000. Sixteen students have paid internships with natural gas drilling companies this summer in western Pennsylvania, he added.

“The industry has been very supportive of wanting to get (our students) on board,” he said. The college also is hiring three additional instructors this year to accommodate the increase in students who have enrolled in the natural gas technology degree program for the 2010-11 school year.

At Lackawanna College’s new campus in Hawley, college administrators recently announced a new certificate course for fall centered on training accounting assistants, accounting clerks and administrative assistants specifically for the oil and gas industry.

Tracy Brundage, managing director of work force development at Pennsylvania College of Technology, said administrators decided to take the leap into offering natural gas drilling-related courses this year. The decision followed an in-house study that determined growing employment opportunities because of the prevalence of natural gas development under way in the region.

“The jobs are going to be around for a long time,” Ms. Brundage said. “We’re just getting started … to get our arms around what is happening … and how we need to respond.”

Pennsylvania College of Technology has just begun offering training and certification classes in welding specialized for the industry’s infrastructure and commercial driver’s license classes, and has tweaked some of its academic majors – including diesel and electrical technology – to include natural gas drilling-related coursework.

So far, about 350 students have enrolled in the non-degree programs.

The college plans to expand its offerings, perhaps to include training for natural gas well operators and emergency response technicians, Ms. Brundage said.

Keystone College, known for its focus on the liberal arts, is also jumping on board.

Robert Cook, Ph.D., the college’s environmental resource management program coordinator, said the college will be offering a handful of new courses early next year that include mapping underground natural resources tied specifically to natural gas.

The environmental resource management degree, a four-year Bachelor of Science, has had its “highest level of interest this year” in part because of the Marcellus Shale boom and an expectation that jobs will be available for graduates, Dr. Cook said. The degree, which includes environmental law courses, can also prepare a would-be environmental regulator, he added.

“It’s clear energy is going to be an important subject for decades,” said Dr. Cook, a professional geologist. “It’s thrilling to see our discipline become an important skill set.”

Keystone is also hiring a new instructor to teach undergraduate courses within a new natural gas and petroleum resource curriculum that is now under development.

Marie Allison, director of continuing education at Johnson College, said the college will be offering its first class in pipe welding next week tailored to techniques needed by the natural gas industry. The college also will offer a class for advanced welders to prepare for certification in a specific style of welding demanded by the industry.

The college’s welding program had been defunct since 2001, because of declining enrollment, but the multitude of pipes and fittings that will be laid by the industry in the coming years yields greater demand for skilled welders, she said.

“They need welders,” Ms. Allison said. “We want to give someone the fundamentals and give them the opportunity to find a job.”

Contact the writer: smcconnell@timesshamrock.com

View this article here.

Copyright:  The Scranton Times

An organization funded by the natural gas industry disputes the HBO film’s conclusions.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

After Josh Fox was offered nearly $100,000 to lease his 20 acres in Wayne County to a gas company, he heard two different accounts – one, a story of easy money, the other a tale of horror.

The 37-year-old independent filmmaker set out to find the truth about natural gas drilling, and his conclusions can be seen in his documentary film “Gasland,” to air on HBO at 9 p.m. on Monday.

And while representatives of the gas industry call the film a piece of propaganda filled with exaggerations and inaccuracies, Fox stands by his work and says it’s the industry’s response that is propaganda.

In a phone interview Thursday afternoon, as he was getting ready for a special screening of the documentary at the HBO Theater in New York City that night, Fox said a land man with a gas company told him in 2008 that the company probably wouldn’t even drill on the land. But he heard from others that environmentally, gas drilling was “very polluting.”

“There was such a disparity between what was being said and what was being offered, I needed to see with my own eyes,” Fox said.

So, Fox set out for the village of Dimock in Susquehanna County to talk with folks whose well water was polluted by natural gas migration from leaking gas wells.

“It was completely a disaster area. There were Halliburton trucks swarming everywhere. Water was bubbling and fizzing; some you could light on fire. There was a feeling of regret and betrayal in the air,” Fox said.

Residents were unaware of the contamination until Norma Fiorentino’s water well exploded on Jan. 1, 2009, Fox said.

The state Department of Environmental Protection fined the drilling company and ordered the wells capped.

Fox visited 23 other states where natural gas drilling was taking place. He interviewed people whose health and quality of life were negatively impacted; scientists, one of whom warns of the dangers of drinking water infused with chemicals used in hydraulic fracturing (commonly called fracking), which releases the gas from the underground shale formations; and government officials on both sides of the issue.

One of the officials Fox interviewed was DEP Secretary John Hanger, who minimized the negative effects of fracking but refused to drink a glass of water from an affected well, according to a synopsis of the film on the HBO website.

On the same day as a special screening of the film in Montrose earlier this month, Energy in Depth – a gas-industry-funded organization, released an alert on its website entitled “Debunking Gasland,” pulling out numerous quotes from the movie and disputing them.

Energy In Depth claimed that Fox was “misstating the law” when he said that a 2005 energy bill exempted the oil and gas industry from the Clean Water Act, the Clean Air Act, the Safe Drinking Water Act, the Superfund law and other regulations. The industry is regulated under every single one of those laws, said Energy In Depth spokesman Chris Tucker.

The organization states that Fox was “flat-out making stuff up” when he said the Pinedale Anticline and Jonah gas fields of Wyoming are directly in the path of a 1,000-year-old migration corridor of pronghorn antelope, mule deer and sage grouse, each species of which is endangered.

Energy in Depth countered that three species of the pronghorn are endangered and none are found near the Pinedale Anticline, citing the Great Plains Nature Center; that only mule deer from New Mexico, noting that mule deer are so plentiful in Wyoming, there is a mule deer hunting season; and citing a U.S. Fish and Wildlife report stating that the sage grouse is not on the endangered list and there are “robust populations” of the bird in Wyoming.

Fox also blamed an algae bloom that killed fish and other aquatic life in Dunkard Creek in Washington County on natural gas development, Tucker said. But DEP reports show the bloom was caused by coal mine drainage.

The organization also cites a reference in the documentary to Colorado resident Lisa Bracken, who reported to environmental regulators occurrences of natural gas in the West Divide Creek, which she believed was related to natural gas drilling. “Fox blames methane occurrence in West Divide Creek, Colo., on natural gas development,” the release states.

Energy In Depth published links to reports on the Colorado Oil and Gas Conservation Commission website that showed the methane was naturally occurring. Tucker said those reports were available long before “Gasland” was released.

Theo Stein, communications director for the Colorado Department of Natural Resources, said a commission investigation revealed that the methane Bracken reported bubbling in her beaver ponds near the creek was naturally occurring swamp gas from rotting vegetation.

Stein confirmed, however, that about a quarter-mile upstream, some methane gas was still present from a gas migration into the creek from a leak in a well drilled in 2004 by EnCana Oil & Gas, the company that will begin drilling in Luzerne County next month. EnCana received the largest fine in Colorado’s history for allowing that leak to occur.

Tucker, who is a native of Kingston Township and has been closely following the development of the Marcellus Shale in Northeastern Pennsylvania, said the press release was addressing only Bracken’s claims in the documentary. He was unfamiliar with the incident involving EnCana and said the issue alert was not meant to be misleading.

Copyright: Times Leader

State county commissioners association is working to broaden taxing authority.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

Counties, municipalities and school districts aren’t seeing any significant tax revenue related to Marcellus Shale development under current tax law.

But the County Commissioners Association of Pennsylvania is working to change that, lobbying for legislation that would give those governmental bodies property taxing authority on natural gas similar to taxes levied on coal extraction.

“We have to have the assessment law changed. The reason (is that) other minerals are assessed. It’s not fair to the other mineral (extraction companies) and it’s not fair to the rest of the taxpayers who have to pick up the burden of their exemption,” association Executive Director Douglas Hill said of natural gas and oil companies.

Hill said the state Supreme Court in 2002 ruled that counties had no statutory authority to tax oil and gas because state assessment law specifically includes coal but makes no mention of oil or gas.

Since that time, oil and gas interests have been escaping local property taxes, which had been paid in oil and gas-producing counties since at least the early 1900s, according to a position paper released by the association.

“Producers of other minerals such as coal and limestone already pay their fair share of the property tax. Counties support reversing the Supreme Court’s 2002 decision to assure that oil and gas companies contribute their share to the local tax base as well,” the paper states.

Hill said House Bill 10 of 2009, sponsored by state Rep. Bill DeWeese, D-Greene County, would restore property tax assessment authority on oil and gas.

The levy proposed in the bill would apply only to proven wells. “If there’s nothing to be extracted or (the gas) can’t be extracted, then there is no value,” Hill said.

Hill said there is, of course, opposition to the bill from the oil and gas industry. But he pointed out that other oil and gas producing states assess oil and gas extraction. Hill also said that large, multinational companies involved in Marcellus Shale exploration already had payment of such a tax built into their business plans and were surprised to learn that Pennsylvania counties can’t assess natural gas extraction.

Another association position paper points out several ways local communities are impacted by Marcellus Shale exploration that justify taxation.

“Some of the most visible impacts have been to township roads, county bridges and other infrastructure as developers bring drilling rigs, construction equipment and truckloads of water to and from drilling sites. &hellip Hotels might be filled with workers associated with Marcellus, impacting both the tourism industry and the county hotel tax,” according to the paper.

“Workers from out of state and their families have utilized social services such as drug and alcohol treatment and children and youth services. County jails, county probation and law enforcement have been affected. Even county recorder of deeds offices are affected, flooded by title searchers confirming ownership of subsurface rights,” the paper states.

House Bill 10 is still in the House Finance Committee for consideration.

“We’ve been working on getting agreement to move on it. We want to have things in place for a vote in the House and prepare for going to the Senate. We’ve also been working on an introduction of a bill in the senate,” Hill said.

Generally, legislators understand the issue, Hill said, but it “gets confusing at times because they are looking at a state severance tax,” and the county and local taxation issue “gets tied up in all the other issues related to the Marcellus,” he said.

Currently, there are at least five Senate bills and at least 17 House bills pertaining to Marcellus Shale exploration as well as one House bill, two senate bills and a budget proposal from Gov. Ed Rendell that address the imposition of a severance tax, according to information provided by state Sen. Lisa Baker, R-Lehman Township.

In the meantime, county assessors are waiting for some legislative determinations.

Luzerne County Assessor’s Office Director Tony Alu feels pretty confident that legislation eventually will be adopted and that the county will see some tax revenue from natural gas extraction.

Alu said assessors from various counties had been discussing among themselves various taxation formulas that would be most appropriate to tax natural gas extracted.

“We’re waiting on the state to make a determination so that we can all be uniform. &hellip We just want to make sure we’re doing the right thing,” Alu said.

Steve Mocarsky, a Times Leader staff writer, may be reached at 970-7311.

Copyright: Times Leader

State DEP chief talks about protecting water supplies in the Marcellus Shale areas.

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

HARRISBURG – State Department of Environmental Protection Secretary John Hanger laid down the law to representatives of oil and gas companies drilling in the Marcellus Shale at a meeting he called on Thursday.

More precisely, he laid out two sets of proposed regulations for natural gas drilling procedures and responding to reports of contamination of water supplies – proposed regulations that members of the oil and gas industry helped create.

“There were technical discussions on how to prevent gas migration from (natural gas) well sites to water wells and what to do if migration does occur and how to respond,” Hanger said in an interview from his cell phone as he was riding to Dimock after the meeting in Harrisburg.

Hanger was on his way to an interview with ABC News at the site of a natural gas well that Cabot Oil & Gas capped under DEP order after the regulatory agency determined it was one of three that leaked methane, contaminating the well water supplies of at least 14 households in the rural Susquehanna County village.

“I challenged the industry. … I made it clear that regulations would be enforced,” Hanger said, noting that DEP opened two new field offices in Northeastern Pennsylvania in response to Marcellus Shale development and is doubling its enforcement staff. “I also made it clear we were strengthening the rules,” he said.

DEP spokesman Tom Rathbun said in a separate interview that the new drilling regulations would require specific testing according to standards of the American National Standards Institute on steel casing used in all high-pressure oil and gas wells as well as the use of “oil-field grade” cement in well construction.

Rathbun said the oil and gas industry supports the implementation of those standards, and most companies already employ those practices under best-management practices. The goal is to have all companies comply, and Hanger asked the industry to voluntarily comply immediately, rather than wait until regulations receive all necessary approvals, which are expected in November.

Rathbun said the new regulations are “designed to prevent situations like the one in Dimock.” He said the issue there was incomplete casing – Cabot Oil & Gas didn’t use enough cement in the well construction.

DEP in April banned Cabot from drilling in Pennsylvania until it plugs the three wells determined to be leaking gas. Cabot has already paid a $240,000 fine and must pay $30,000 per month until the company meets its obligations.

Rathbun said one well is capped, and Cabot is currently working to cap a second.

He said most of the discussion at the meeting focused on responding to reports of gas migration into water sources.

Currently, the industry is required to report any suspected or confirmed occurrence of gas migration to DEP. The new regulations would require immediately reporting suspected or confirmed migration to DEP and to emergency responders for the affected municipality.

As chairman of the state Environmental Quality Board, Hanger on Monday will present those proposed regulations to the board for adoption. If approved, they will be sent to the House and the Senate Environmental Resources & Energy Committee.

Each legislative committee will have 30 days to review the proposed regulations before either recommending a vote or sending them to the Independent Regulatory Review Commission, which is composed of administrative law judges. A final approval is required from the state attorney general to ensure they are constitutional.

The whole process can take about six months.

Kathryn Klaber, president and executive director of the Marcellus Shale Coalition, which represents the natural gas production industry, said in a written statement that the coalition is “fully committed” to continue working with government regulators to ensure that the potential of the Marcellus Shale in the state is realized in a safe and responsible way.

“Today’s meeting with DEP represents yet another honest and straightforward discussion about the best practices needed to fully achieve this vision. Positive progress on practices relating to the management of historic and naturally occurring shallow gas, as well as other initiatives related to transparency and well integrity, will help our industry continue to strengthen its safety and environmental record while continuing to create tens of thousands of jobs each year for residents of this state,” Klaber said.

Steve Mocarsky, a Times Leader staff writer, may be reached at 970-7311.

Copyright: Times Leader

Official lays out efforts to protect environment

By Steve Mocarskysmocarsky@timesleader.com
Staff Writer

DALLAS TWP. – The man in charge of ensuring the oil and gas industry complies with environmental regulations in Pennsylvania spoke at a well-attended Back Mountain presentation on Tuesday, informing the public about protections in place and what is being done to improve public safety.

Scott R. Perry, director of the state Department of Environmental Protection’s Bureau of Oil and Gas Management, provided an overview of how drilling into the Marcellus Shale formation differs from other forms of natural gas drilling and discussed the bureau’s current work and future plans to protect the environment.

Misericordia University President Michael MacDowell welcomed Perry to the school’s Lemmond Theater, and assistant professor Julie Kuhlken, who teaches environmental philosophy, moderated a question-and-answer session afterward.

Oil and gas drilling began in Pennsylvania in 1859, Perry said. But new technology that enables horizontal drilling into the 5,000- to 7,000-foot-deep Marcellus formation has brought to the state energy companies that have until recently focused their efforts in western states.

“One of the things we noticed is that people from Texas and Oklahoma aren’t really familiar with hills. Pennsylvania has them, and we also have rain, more so than Texas, and so there have been some struggles in developing these well sites,” Perry said.

Pennsylvania, he noted, is the only state that requires an approved erosion and sediment control plan before a drilling permit is issued.

In his computerized slide show, Perry showed a photo of an erosion-and-sediment control violation at a state drilling site. Controls on the main level were fine, but farther down a hill, a DEP inspector found “a bunch of hay bales” and “silt fence that’s not doing any good.”

“I asked the inspector who took this picture what he thought they were thinking. He said, ‘I think they were thinking I wasn’t going to walk down that hill,’ ” Perry said, eliciting laughter.

DEP forced the operator to put proper controls in place.

Perry noted the DEP hired 37 inspectors in 2009 and is hiring 68 more this year to nearly double the size of the inspection staff to 193. Three-fourths of those employees will oversee the oil and gas industry; higher permit fees pay for it all.

Perry said he believes there are adequate regulations in place to protect public health and safety and the environment, but he supports several provisions in proposed legislation, such as one that would increase bonding requirements for drilling companies.

Perry said DEP officials are “always evaluating” regulations, and when they’re inadequate “we’re strengthening them. … For example, we’re evaluating the permit requirements for air quality. … We’re not done with the evaluation and regulation process for this industry. They’re just getting started and so are we.”

Steve Mocarsky, a Times Leader staff writer, may be reached at 970-7311.

Copyright: Times Leader

Mauri Rapp Abington Journal Correspondent

Sir Francis Bacon once said “Knowledge is power.” To that famous quote, Calvin Tillman adds “Once you know, you can’t not know.”

Tillman, the mayor of DISH, Texas, was one of four panelists in attendance at “Impacts of Gas Drilling and Your Community,” a Marcellus Shale drilling information seminar held April 29 at the Clark Summit fire hall. DISH, a town of fewer than 200 residents located approximately 25 miles from the Dallas/Fort Worth metroplex, garnered national attention after changing its name from Clark in exchange for free cable television service for ten years from DISH Network.

DISH has also attracted another kind of attention: the eye of natural gas companies drilling in the Barnett Shale region, a natural gas field which stretches approximately 5,000 square miles across the state of Texas. Tillman called DISH the “Grand Central Station” of the Barnett Shale play, with 11 compressor stations, three metering stations and more than 20 natural gas pipelines located within less than two square miles.

Tillman described to the 150-plus people in attendance April 29 the impact natural gas drilling has had on his town. To date, the Barnett Shale play has added approximately $8 to $10 billion and 100,000 jobs to the Texas economy, Tillman said. The industry has also added toxic chemicals to DISH’s air, he said. A study performed in August 2009 by Wolf Eagle Environmental showed that the air contained high concentrations of carcinogens and neurotoxins. Tillman continues to advocate for the town’s population, and on April 22 the Texas Commission on Environmental Quality installed a continuous air monitor in DISH. “I believe more testing should be done,” he said.

The mayor has relayed his story to audiences in the Marcellus Shale region during the past several months. Tillman said he is not against the industry and believes in working with it to get things done, but feels that citizens and communities should go into leases with their eyes open. He said that certain measures, such as green technologies, declaration of areas such as schools and parks off limits to drilling, and a separation between the DEP regulating and permitting bodies could help make the industry safer. Tillman also spoke in favor of a severance tax for Pennsylvania. “I hate to break it to you, but the oil and gas industry came into Pennsylvania and picked your pockets,” Tillman said. “You need to have a severance tax to pay for roads, to pay for environmental issues, to pay for more DEP workers.”

Putting a personal face on the Marcellus Shale play was Victoria Switzer, a natural gas lessor from Dimock Township who said she wished she knew when she signed her lease what she knows now. “We’ve all heard the glories of the natural gas industry,” Switzer said. “I’m not going to dispute some of those things, but I’m going to show you what comes with the package deal.”

Switzer said that for the past couple of years, she has been living in a gas field with 63 wells located within nine square miles, the closest one 710 feet from her own home. Twenty-four of those wells have had violations, said Switzer. She now conducts what she calls “Victoria’s Toxic Tours” for citizens, journalists and public officials interested in seeing the impact natural gas drilling has had in her township. “You need to know what is coming your way,” she told the audience.

Panelist Paul Lumia, executive director of North Branch Land Trust, provided tips for those who decide to lease to natural gas drillers, including getting to know one’s gas man and remaining vigilant in reporting suspected violations to DEP. Lumia also encourages the crowd to pressure policymakers into decisions that preserve the environment. “Don’t just assume that your neighbors will do it,” Lumia said. “Protecting our land is up to us.”

Also on hand was George E. Turner, a professional geologist with more than 20 years of experience with groundwater and water testing. Turner advised those considering natural gas leasing to get their water tested beforehand. “This gives you legal proof in case your water is contaminated,” he said.

Scott Perry, deputy director of the DEP Bureau of Oil and Gas Management, was on hand to answer questions from the audience.

Copyright: Times Leader

WATER SUPPLIES IN BERNALILLO COUNTY ARE THREATENED WITH OIL DRILLING

•    Oil and gas drilling may contaminate pristine drinking water aquifers in Bernalillo County.

Oil and gas companies frequently use a technique, hydraulic fracturing or “fracking,” to increase a well’s production of oil and gas. Fracturing fluids, which often contain toxic chemicals, are injected underground into wells at high pressures to crack open an underground formation and allow oil and/or gas to flow more freely. More than 90 percent of oil and gas wells in the United States undergo fracturing.  While a portion of the injected fluids are transferred to aboveground disposal pits, some of the chemicals may remain underground.

•    Drilling has polluted drinking water in New Mexico, Alabama, Colorado, Virginia, West Virginia and Wyoming.

Residents have reported changes in water quality or quantity following fracturing operations of gas wells.  Here is one homeowner’s account:
Laura Amos, her husband Larry and daughter Lauren live south of Silt in western Colorado.  “We were among the first in our area to have natural gas drilling on our property.  In May 2001 while fracturing four wells on our neighbors’ property (less than 1000 feet from our house) the gas well operator “blew up” our water well.  Fracturing opened a connection between our water well and the gas well, sending the cap of our water well flying and blowing our water into the air like a geyser at Yellowstone. Immediately our water turned gray, had a horrible smell, and bubbled like 7-Up…”

•    Oil and gas drilling wastes water

Oil and gas drilling in the arid west wastes billions of gallons of water and may have potentially devastating economic and environmental impacts for affected communities in the long-term.  Discharging ground water can deplete freshwater aquifers, lower the water table, and dry up the drinking water wells of homeowners and agriculture users.  The water discharged from oil and gas wells is highly saline. This water can permanently change chemical composition of soils, reducing soil, air and water permeability and thereby decreasing native plant and irrigated crop productivity.

•    The oil and gas industry has exemptions from two major laws established to protect the nation’s water—the Clean Water Act and the Safe Drinking Water Act.

The Clean Water Act is our bedrock law that protects American rivers, streams, lakes, wetlands, and other waterways from pollution. These surface waters are often sources of drinking water for people and livestock.  The Safe Drinking Water Act (SDWA) was enacted to protect public drinking water supplies as well as their sources. This Act authorizes health-based standards for drinking water to protect against both naturally occurring and man-made contaminants.

The Safe Drinking Water Act’s Underground Injection Control program protects current and future underground sources of drinking water by regulating the injection of industrial, municipal, and other fluids into groundwater, including the siting, construction, operation, maintenance, monitoring, testing, and closing of underground injection sites.  Unfortunately, the oil and gas industry is exempt from crucial provisions of the Safe Drinking Water Act intended to protect our drinking water.

•    The New Mexico Oil Conservation Division has detected and documented more than 700 incidents of groundwater contamination from oil and gas facilities across the state.

Prior to 1990, only 39 orders were issued against oil and gas companies for contaminating groundwater; since 1990, 705 documented groundwater incidents related to the oil and gas industry have been recorded in New Mexico.

For a PDF version of this fact sheet, click here

For More Information:
www.OGAP.org

Copyright:

New Energy Economy

Natural gas captured from organic shale formations is not new to the oil and gas industry; shale gas has been produced since the early 1800s (DOE, 2009).  Most shale gas formations have historically been deemed economically impractical to drill due to the available technology and relative abundance of domestic conventional natural gas sources.  However, recent technological advances in horizontal drilling and hydraulic fracturing along with increasing demand for natural gas and recent price trends for natural gas, have allowed previously inaccessible reserves to become technologically feasible and economically efficient to recover (DOE, 2009).

The Annual Energy Outlook for 2009, recently released by the United States’ Energy Information Administration, projects an increase of 0.5% total primary energy consumption annually through 2030 (EIA, 2009).  The majority of this demand increase will come from the residential sector’s demand for additional electricity (EIA, 2009).  Currently, coal-fired electricity generation dominates the electricity generation sector at approximately 49% of total U.S. domestic generation capacity (EIA, 2009).  However, due to emerging concerns and public policy developments regarding greenhouse gases and renewable portfolio standards for a sustainable energy supply, lower carbon energy sources needed for electricity generation are expected to gain marketplace demand (EIA, 2009).  Unfortunately, conversion from a fossil fuel-dependent energy economy to a low-carbon energy economy will take time and significant capital investment for infrastructure development (DOE, 2009).  A recent Wall Street Journal article cites Carl Pope, executive director of the Sierra Club as viewing natural gas as a “bridge fuel” from carbon-intensive fossil fuels, such as coal and petroleum, to cleaner future fuel sources (Casselman, 2009).

In order to meet the expected increased demand for natural gas without increasing dependence on foreign imports, development of domestic unconventional natural gas sources will need to grow rapidly.  Production from unconventional natural gas sources, namely organic shales, tight sand formations, and coal-bed methane, currently account for approximately 50% of the total domestic natural gas production (DOE, 2009), this total production from unconventional resources was estimated at 8.9 trillion cubic feet (Tcf) per year in 2007 (ALL, 2008c).  Of the 8.9 Tcf of unconventional natural gas produced in the United States in 2007, 1.2 Tcf was from shale formations; however, shale gas production is expected to grow to 4.2 Tcf by 2030, accounting for an estimated 18% of the total U.S. gas production in 2030.  Unconventional sources combined are predicted to grow to nearly 56% of total U.S. domestic natural gas production (EIA, 2009).  To date, four evolving shale gas plays (Haynesville, Marcellus, Fayetteville and Woodford) are estimated to have over 550 Tcf of total recoverable gas resources, these formatiosn are expected to be capable of providing sustainable production of 2-4 Tcf of natural gas annually for decades (DOE, 2009).  Of these four, the Haynesville Shale and Marcellus Shale may have the most significant additions to domestic reserves of natural gas in recent decades.

Copyright: GoMarcellusshale.com