Greetings, I am passing along four news items for your review. We continue to shine a very bright light on DEC's regulatory shortcomings, but have yet to persuade the Governor to withdraw the draft SGEIS. Nevertheless, at least one giant gas firm is reportedly "shifting its focus to Pennsylvania because uncertainties in New York threatened to undermine its investments there." Anyone who believed it would be easy to kill the draft SGEIS now knows what a long haul we are in for. Keep slugging. We are making progress each and every day. First, is an Ithaca Journal article about a 1/7/10 fire at a drilling rig in Freeville, NY that resulted when a natural gas pocket was "hit." See also my letter to Commissioner Grannis regarding concerns that DEC systematically fails to investigate and clean up 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 that reports 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 change in 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 New York threatened to undermine its investments there." In addition, "Chesapeake accused critics of creating 'fear and panic' with misleading or incorrect information and concerns 'that have no basis in science or reality.'" http://www.reuters.com/article/idUSN0541938620100105?type=marketsNews We need to keep cranking up the pressure on Governor Paterson and DEC. Pull out all the stops. Best, Walter UPDATE 3-Chesapeake says NY could drive away gas drillers 6:14pm EST * Accuses environmentalists of promoting "fear and panic" * State looking to close to $3.2 billion budget deficit * Fortuna says to concentrate on Pennsylvania instead (Adds Fortuna comment) By Edith Honan NEW YORK, Jan 5 (Reuters) - Chesapeake Energy <CHK.N> has called proposed New York state regulations for the shale gas drilling industry unnecessarily 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 of Canada's Talisman Energy <TLM.TO>, which said it was shifting its focus to Pennsylvania because uncertainties in New York threatened to undermine its investments there. "The measures proposed ... will be more burdensome than any of those placed on our industry throughout the United States," Chesapeake said in public comments made available to Reuters on Tuesday. As a result, "some operators may elect to focus their risk capital in other states," the company said, which would mean New York would lose potential tax revenue from gas production at a time when the state is looking to close a $3.2 billion budget deficit. The Oklahoma-based energy company, which on Monday announced a deal to sell a $2.25 billion stake in its Texas shale gas assets to French oil major Total <TOTF.PA>, accused the state Department of Environmental Conservation (DEC) regulators of going overboard with environmental protections. Fortuna said companies faced uncertainty over whether the state would issue drilling permits and it was looking toward `1 sylvania, where exploration of the Marcellus Shale is booming -- but it is also where some of the greatest environmental concerns have arisen. "New York is facing the loss of at least hundreds of millions of dollars of direct economic impact stimulus and is forfeiting the opportunity to create thousands of new jobs at a time in our state's history when they have never been needed more," Fortuna lawyer Mark Scheuerman told the DEC. Development of the massive Marcellus Shale in several northeastern states holds the promise of providing the United States with a valuable domestic energy source. But environmental concerns that shale gas drilling contaminates drinking water have created uncertainty for the industry because of the risk of greater regulation. The U.S. Environmental Protection Agency is scrutinizing shale gas drilling, and the U.S. Congress is considering a bill that would force companies to disclose the chemicals that are mixed with water and sand in the process known as hydraulic fracturing. New York Governor David Paterson proposed opening the Marcellus Shale to the technique. It has been taking place in New York but on a small scale and using relatively minor volumes of water compared to the current industry norm. The DEC proposed a series of conditions and requirements for drilling companies in September, and the public had until Dec. 31 to respond. Until now, shale gas drillers in the state have been limited to less modern techniques that yield less energy. HEALTH CONCERNS Environmentalists have raised serious health concerns about the chemicals used in hydro-fracturing, including that they might cause cancer. Neighbors of shale drilling operations in other states have complained their drinking water has become discolored or foul-smelling, their pets and farm animals have died from drinking it, and their children have suffered from diarrhea and vomiting. Chesapeake accused critics of creating "fear and panic" with misleading or incorrect information and concerns "that have no basis in science or reality." Chesapeake's views on the industry took on greater weight in light of its deal bringing Total into Chesapeake's Barnett Shale gas fields in north Texas. That continued a trend in the industry of international oil majors buying shale gas assets. In December, the largest U.S. oil and gas company, Exxon Mobil <XOM.N>, agreed to buy shale gas producer XTO Energy Inc <XTO.N> for about $30 billion. (Reporting by Edith Honan; Writing by Daniel Trotta; Editing by Cynthia Osterman) From The Freeman's Journal DSGEIS Process Will Go Forward By JIM KEVLIN Despite pleas from dozens of environmental groups statewide, at least four in Otsego County, Gov. David Paterson is standing firm. In a statement issued to The Freeman’s Journal, Paterson said he will not derail the dSGEIS process to create regulations for horizontal hydrofracking for natural gas in the Marcellus Shale Formation that undergirds the county and much of southeastern New York. "More than 10,000 comments were filed with the DEC from stakeholders on both sides of this issue," Paterson stated, "and the DEC should have the opportunity to review those comments and issue a final GEIS." Some definitions: dSGEIS is draft Supplemental Generic Environmental Impact Statement. DEC is the state Department of Environmental Conservation. The horizontal hydro-fracking method would pump millions of gallons of often-toxic chemicals into the ground to break up the shale and allow the gas to surface. Locally, Otsego 2000, the Otsego County Conservation Association, the Butternut Valley Alliance and Trout Unlimited are among the groups concerned hydrofracking could taint aquifers and wells. They and other groups and individuaals statewide have been asking the governor to throw out the dSGEIS process and start again; some have called for an outright hydrofracking ban. Concern reached a crescendo in the days leading up to Dec. 31, the deadline for comment on the dSGEIS. Just before Christmas, New York City’s Department of Environmental Protection issued a report recommending no hydrofracking be allowed in the Catskill counties where the city’s reservoirs are located. Upstate groups Otsego 2000 notaable among them is questioning why precautions applied to the city s water supply shouldn’t apply to everyone else. Two days before the deadline, PEF Encon, which represents DEC workers, took the unusual step of breaking with the department on a policy issue and asked that the dSGEIS be thrown out. In his statement, Paterson pointed out that, in response to public concern, he had already extended the comment period 90 days. He said he is "fully committed to protecting New York’s environment and its drinking water, and the state continues to have some of the strictest environmental regulations in the nation." _______________________________________________ For more information about sustainability in the Tompkins County area, please visit: http://www.sustainabletompkins.org/
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