-----Original Message-----
From: <[email protected]>
To: [email protected];
[email protected]
Sent: Mon, Jan 11, 2010 1:44 pm
Subject: Further Developments on Marcellus Shale
Greetings,
I am passing along four news items for your review. We continue
toshine a very bright light on DEC's regulatory shortcomings, but have
yetto persuade the Governor to withdraw the draft SGEIS.
Nevertheless, at least one giant gas firm is reportedly "shiftingits
focus to Pennsylvania because uncertainties in New York threatened
toundermine its investments there."
Anyone who believed it would be easy to kill the draft SGEIS now
knowswhat a long haul we are in for. Keep slugging. We are
makingprogress each and every day.
First, is an Ithaca Journal article about a 1/7/10 fire at a drilling
rigin Freeville, NY that resulted when a natural gas pocket was"hit."
See also my letter to Commissioner Grannisregarding concerns that DEC
systematically fails to investigate and cleanup natural gas hazards.
http://toxicstargeting.com/MarcellusShale/documents/freeville_rig_fire
Second, is a 1/8/10 article from Cooperstown's The Freeman's Journal
thatreports Governor Paterson says DSGEIS Process Will Go Forward.
http://www.thefreemansjournal.com/2010/01/paterson-pleas-on-drilling.html
Third, is a similar article from the Times Herald-Record:"State ban on
gas drilling unlikely; NY's officials oppose changein regulations."
http://www.recordonline.com/apps/pbcs.dll/article?AID=/20100111/NEWS/1110325
Finally, see a 1/5/10 Reuters wire story regarding Fortuna gas
company"shifting its focus to Pennsylvania because uncertainties in
NewYork threatened to undermine its investments there." Inaddition,
"Chesapeake accused critics of creating 'fear and panic'with misleading
or incorrect information and concerns 'that have no basisin science or
reality.'"
http://www.reuters.com/article/idUSN0541938620100105?type=marketsNews
We need to keep cranking up the pressure on Governor Paterson andDEC.
Pull out all the stops.
Best,
Walter
UPDATE 3-Chesapeake says NY could drive away gasdrillers6:14pm EST
* Accuses environmentalists of promoting "fear andpanic"
* State looking to close to $3.2 billion budget deficit
* Fortuna says to concentrate on Pennsylvania instead (Adds
Fortunacomment)
By Edith Honan
NEW YORK, Jan 5 (Reuters) - Chesapeake Energy <CHK.N> has
calledproposed New York state regulations for the shale gas drilling
industryunnecessarily onerous and likely to scare energy companies out
of state,depriving New York of badly needed revenue.
The sentiment was supported by competitor Fortuna Energy, a subsidiary
ofCanada's Talisman Energy <TLM.TO>,which said it was shifting
its focus to Pennsylvania becauseuncertainties in New York threatened
to undermine its investmentsthere.
"The measures proposed ... will be more burdensome than any of
thoseplaced on our industry throughout the United States,"
Chesapeakesaid in public comments made available to Reuters on Tuesday.
As a result, "some operators may elect to focus their risk capitalin
other states," the company said, which would mean New York wouldlose
potential tax revenue from gas production at a time when the stateis
looking to close a $3.2 billion budget deficit.
The Oklahoma-based energy company, which on Monday announced a deal
tosell a $2.25 billion stake in its Texas shale gas assets to French
oilmajor Total <TOTF.PA>, accused thestate Department of
Environmental Conservation (DEC) regulators of goingoverboard with
environmental protections.
Fortuna said companies faced uncertainty over whether the state
wouldissue drilling permits and it was looking toward `1 sylvania,
whereexploration of the Marcellus Shale is booming -- but it is also
wheresome of the greatest environmental concerns have arisen.
"New York is facing the loss of at least hundreds of millions ofdollars
of direct economic impact stimulus and is forfeiting theopportunity to
create thousands of new jobs at a time in our state'shistory when they
have never been needed more," Fortuna lawyer MarkScheuerman told the
DEC.
Development of the massive Marcellus Shale in several northeastern
statesholds the promise of providing the United States with a valuable
domesticenergy source. But environmental concerns that shale gas
drillingcontaminates drinking water have created uncertainty for the
industrybecause of the risk of greater regulation.
The U.S. Environmental Protection Agency is scrutinizing shale
gasdrilling, and the U.S. Congress is considering a bill that would
forcecompanies to disclose the chemicals that are mixed with water and
sand inthe process known as hydraulic fracturing.
New York Governor David Paterson proposed opening the Marcellus Shale
tothe technique. It has been taking place in New York but on a small
scaleand using relatively minor volumes of water compared to the
currentindustry norm.
The DEC proposed a series of conditions and requirements for
drillingcompanies in September, and the public had until Dec. 31
torespond.
Until now, shale gas drillers in the state have been limited to
lessmodern techniques that yield less energy.
HEALTH CONCERNS
Environmentalists have raised serious health concerns about the
chemicalsused in hydro-fracturing, including that they might
causecancer.
Neighbors of shale drilling operations in other states have
complainedtheir drinking water has become discolored or foul-smelling,
their petsand farm animals have died from drinking it, and their
children havesuffered from diarrhea and vomiting.
Chesapeake accused critics of creating "fear and panic" withmisleading
or incorrect information and concerns "that have no basisin science or
reality."
Chesapeake's views on the industry took on greater weight in light of
itsdeal bringing Total into Chesapeake's Barnett Shale gas fields in
northTexas.
That continued a trend in the industry of international oil majors
buyingshale gas assets. In December, the largest U.S. oil and gas
company,Exxon Mobil <XOM.N>, agreed to buy shale gas producer XTO
EnergyInc <XTO.N> for about $30 billion.
(Reporting by Edith Honan; Writing by Daniel Trotta; Editing by
CynthiaOsterman)
From The Freeman's Journal
DSGEIS Process Will Go Forward
By JIM KEVLIN
Despite pleas from dozens of environmental groups statewide, at
leastfour in Otsego County, Gov. David Paterson is standing firm.
In a statement issued to The Freeman’s Journal, Paterson said he will
notderail the dSGEIS process to create regulations for
horizontalhydrofracking for natural gas in the Marcellus Shale
Formation thatundergirds the county and much of southeastern New York.
"More than 10,000 comments were filed with the DEC from stakeholderson
both sides of this issue," Paterson stated, "and the DECshould have the
opportunity to review those comments and issue a finalGEIS."
Some definitions: dSGEIS is draft Supplemental Generic
EnvironmentalImpact Statement. DEC is the state Department of
EnvironmentalConservation. The horizontal hydro-fracking method would
pump millions ofgallons of often-toxic chemicals into the ground to
break up the shaleand allow the gas to surface.
Locally, Otsego 2000, the Otsego County Conservation Association,
theButternut Valley Alliance and Trout Unlimited are among the
groupsconcerned hydrofracking could taint aquifers and wells.
They and other groups and individuaals statewide have been asking
thegovernor to throw out the dSGEIS process and start again; some
havecalled for an outright hydrofracking ban.
Concern reached a crescendo in the days leading up to Dec. 31,
thedeadline for comment on the dSGEIS.
Just before Christmas, New York City’s Department of
EnvironmentalProtection issued a report recommending no hydrofracking
be allowed inthe Catskill counties where the city’s reservoirs are
located.
Upstate groups Otsego 2000 notaable among them is questioning
whyprecautions applied to the city s water supply shouldn’t apply
toeveryone else.
Two days before the deadline, PEF Encon, which represents DEC
workers,took the unusual step of breaking with the department on a
policy issueand asked that the dSGEIS be thrown out.
In his statement, Paterson pointed out that, in response to
publicconcern, he had already extended the comment period 90 days.
He said he is "fully committed to protecting New York’s environmentand
its drinking water, and the state continues to have some of
thestrictest environmental regulations in the nation."
Labels:01-08-10,Front Page
posted by The Freeman's Journal @12:00 AM 0 comments
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