Forced Pooling = Eminent Domain

2 Pennsylvania Legislators Want to Give Gas

Industry More “Taking” Power Over Property Rights

Gas Industry Already Takes Property Rights

for Pipelines & Underground Gas Storage Reservoirs

Two Pennsylvania legislators, a Democrat and a Republican, want to give gas companies the right to take gas from property owners who do not want to lease.

They call their proposed legislation - now seeking co-sponsors - “conservation pooling” and the gas industry is pushing for this legislation.  It doesn’t think private property owners have a right to say no to what it wants - your mineral rights.

Pennsylvania State Representatives Marc Gergely (35^th legislative district, Allegheny County, Democrat) and Garth Everett (84^th legislative district, Lycoming County, Republican) have drafted forced pooling legislation under the title “Conservation Pooling Act.”

As of this writing, the bill has not yet been introduced - however, both representatives sent a “Request for Co-Sponsorship” to all House Members on June 15, 2010.  And they are speaking publicly about the bill.  (Read the complete co-sponsorship letter at footnote #1 under Links & Resources below.)¹

Now is the time to let Messrs. Gergely and Everett know that you oppose more power for the gas companies to seize mineral rights.

“These People … Won’t Even Know”

Representative Everett is quoted in the (Williamsport, PA) Sun-Gazette (July 14, 2010) as saying, “Eminent domain is taking surface land.  These people won’t even know it’s taking place,” he said.²

“These people” - really?

If Everett is accurately quoted, his understanding of eminent domain as “surface land” is offensive to property owners who are victims of eminent domain - AND it is legally uninformed.

Property is property whether it is above or below the surface.  In Bedford County, PA, Spectra Energy went after surface and subsurface rights.  What does the term “mineral rights” suggest to most people?

‘Eminent Domain in Sheep’s Clothing’

Other property owners - and voters - notice.  John Trallo of Sullivan County, PA, wrote to Representative Everett (emphasis added):

“…regardless of the language and terminology used, ‘fair pooling’ is forced pooling/eminent domain in sheep’s clothing.  It is an infringement upon our rights as property owners.  Even those who support this industry and have leased their land agree this is wrong.”

Representative Everett offers citizens and voters a 4-page summary of his position paper on this subject.  (For a copy of the position paper, see footnote #3 under Links & Resources below.)³

In his next-to-the-last paragraph, he writes:

“I do intend to ensure … that every property owner who wants to participate in Marcellus development gets an opportunity to do so.”

This begs a big question:  What about every property owner who does not want to participate?  Will he ensure their rights too?

Gas Company Tactics Moving Into PA

We are seeing the tactics gas companies use in western states moving into Pennsylvania as part of the shale gas “boom.”

For example, based on information from the Public Utility Commission, at least 6 pipeline companies are registered in Pennsylvania as utilities, giving them the right to take property easements via eminent domain, according to an article in The Philadelphia Inquirer.⁴

We speak from experience:  Eminent domain - and/or its step children like forced pooling - is a sobering event.  It amounts to legal theft under the badge of government.  Private property owners quickly learn that they are not standing on a level playing field legally, politically, or economically.

Our battle began three years ago with Houston-based Spectra Energy that seized property rights for a 12-billion-cubic feet underground gas storage reservoir with a nearly 5,000 horsepower compressor station and 13 injection/withdrawal wells.

In addition, Spectra Energy can frack those “storage” wells anytime it wants, according to the Federal Energy Regulatory Commission and the Pennsylvania Department of Environmental Protection.

That experience led to the development of this website.  Today we continue to reach out to property owners and communities in many states who are dealing with the adverse impacts on property rights from energy companies.

If you want to learn from our experience with this type of eminent domain, read this post: http://www.spectraenergywatch.com/blog/?p=616

Protect Your Property Rights Now

In the meantime, act now to protect your property rights by contacting Representatives Marc Gergely and Garth Everett, telling them you do not support this form of eminent domain in sheep’s clothing.

While no bill has been introduced yet, they are seeking co-sponsors and they are speaking publicly on this legislation.  Ask them to reconsider and withdraw such legislation no matter what phase it is in.

In addition, contact your own legislators and ask them not to co-sponsor such forced pooling legislation (known as the “Conservation Pooling Act”).  If it is introduced, ask them to vote against it.

Contact Information

State Representative Marc J. Gergely

35^th legislative district, Allegheny County (Democrat)

Website: http://www.pahouse.com/gergely/

Harrisburg Office

325 Main Capitol Bldg.

PO Box 202035

Harrisburg, PA 17120-2035

Phone: (717) 783-1018

State Representative Garth Everett

84^th legislative district, Lycoming County (Republican)

Harrisburg Office

Hon. Garth Everett

413 Irvis Office Building

PO Box 202084

Harrisburg PA 17120-2084

(717) 787-5270

Fax: (717) 772-9958

E-mail: geverett@pahousegop.com

Links & Resources

¹ “Conservation Pooling” - Letter from Representatives Gergely and Everett requesting co-sponsorship of their forced pooling legislation.  Pdf file: forced-pooling-sponsorship

² Representative Garth Everett on “These people won’t even know …” News article:  “Bill an end-run on holdouts - Skeptical landowners’ mineral rights treated as obstacle to more drilling.” (Williamsport-Sun Gazette by Mike Reuther, July 14, 2010)  Link: http://www.sungazette.com/page/content.detail/id/546022/Bill-an-end-run-on-holdouts.html

Or pdf file here:  forced-pooling-bill-sungazette

³ Representative Everett’s position paper on forced pooling. Pdf file:  gas-pooling-position

⁴ Texas Pipeline Companies Getting Eminent Domain Power in PA - Reporter Andrew Maykuth connected the dots in this Philadelphia Inquirer article of April 16, 2010, titled:  “Eminent domain an issue in siting Pa. Gas lines.”

Link: http://www.philly.com/inquirer/business/20100416_Eminent_domain_an_issue_in_siting_Pa__gas_lines.html

Or pdf file here:  eminent-domain-an-issue-in-siting-pa-gas-lines

NJ Buzz Saw Gets Spectra Energy’s Attention

Company Offers ‘Butter Job’ to Soothe Public Opposition

To Proposed Pipeline through NJ to NYC

Better Idea:  Expose Spectra Energy’s Track Record on Safety

This satirical treatment of Spectra Energy's proposed pipeline through Jersey City has shown up on many websites.

“The safety and reliability of our pipelines is ‘mission critical’ for Spectra Energy.  Safety is our franchise.  It’s what we ‘do.’”

So says Bill Yardley, Group Vice President of Spectra Energy, in an attempt to smooth over public opposition to the company’s proposed pipeline through New Jersey to New York City.  (Full text of Yardley’s statement can be read in first footnote under Links & Resources below)¹

Fact:  Spectra Energy’s track record does not support that claim.  Public documents show a performance record that Spectra Energy declines to discuss.

The reason for Yardley’s statement is his employer hit a buzz saw at public meetings in Jersey City and Bayonne, NJ.  The folks there don’t want Spectra Energy’s proposed gas pipeline.  And safety is uppermost in their minds.²

Mission Critical Platitude

Yardley’s goal is to “clear the air and share some facts.”  He then launches his mission-critical platitude (emphasis added):

“The safety and reliability of our pipelines is ‘mission critical’ for Spectra Energy.  Safety is our franchise. It’s what we ‘do.‘  All pipeline expansion projects are subject to the highest levels of scrutiny and multiple governmental agency approvals, and cannot - and do not - move forward until safety, environmental and public concerns are fully considered.”

Note the Spectra Energy Group VP does not say, “until safety, environmental and public concerns are fully resolved” - only “fully considered.”

We call this “Spectra Speak” or a Spectra “butter job” because it substitutes words for deeds - and words for transparency.  We are property owners who have experience with Spectra Energy promises.

We can tell the folks in New Jersey and New York that Spectra Energy’s transparency will not improve.  Safety is not what they “do.”

Lessons from Spectra Energy’s Steckman Ridge Project

In 2008-2009, Spectra Energy constructed its Steckman Ridge facility in Bedford County, PA.  It is a 12 billion-cubic-feet underground natural gas storage reservoir, with a nearly 5,000 horsepower compressor station sitting on top, plus 13 injection/withdrawal gas wells.

This storage field will feed gas to the proposed pipelines in NJ and NY.

There have been serious safety issues at this facility since the beginning - which Spectra Energy declines to discuss.  This includes emergency shutdowns/blowoffs which result in uncontrolled release of gas (toxic volatile organic compounds) and sometimes oily contaminate into the air (and on nearby properties).

Spectra Energy asserts that such shutdowns/blowoffs are “not uncommon.”  But they refuse to furnish the stats on comparative compressor station performance in Spectra Energy’s system.

The company refuses to make available the project engineer who was in charge of the construction of this facility.

If “safety is our franchise,” wouldn’t Spectra Energy want to put its best foot forward and be as transparent as possible about its track record?

If “safety is our franchise,” why is Spectra Energy’s pipeline division — Texas Eastern — number 7 on the EPA’s list of the “Top Civil Enforcement Cases Based on Penalty Assessed?”  The company was hit with a $15 million penalty for discharging highly toxic PCBs at 89 sites along its 9,000 mile pipeline from Texas to New Jersey. (For details, see third footnote under Links & Resources below.)³

If “safety is our franchise,” why does Spectra Energy decline to discuss the catastrophe at a different underground storage facility in 2004.  Its Moss Bluff facility (outside of Houston), had two explosions, 6 1/2 days of fire with flames as high as 1,000 feet and two evacuations.  (For details, see fourth footnote under Links & Resources below.)⁴

All of this is on the public record, but you have to dig for it; and Spectra Energy would prefer not to disclose this part of its performance record.

Transparency Not Mission Critical

Transparency is not mission critical at Spectra Energy.  It’s not what they “do.”

There is much more.  Even speakers at the Jersey City public meeting reminded Spectra Energy of its own track record.  (See previous post on “Jersey City” at this link:  http://www.spectraenergywatch.com/blog/?p=706 )

If Group VP Bill Yardley wants to “clear the air and share some facts,” demand Spectra Energy’s track record on fines, explosions and other disasters.  Butter jobs are not a substitute for this company’s real-life performance record.

Here are three questions Yardley and Spectra Energy can share the facts on:

1)    How many “violations” (or Notice of Violations) has Spectra Energy and Texas Eastern (its pipeline division) received from state or federal regulators in the last five years?

2)     Name the top three catastrophic failures Spectra Energy has experienced with its pipelines and underground gas storage fields in the U.S.

3)    What is the current state of PCB contamination in Spectra Energy/Texas Eastern’s 9,000-mile pipeline system?

Spectra Energy will bob and weave in non-response to these questions; but citizens and public officials should demand answers in writing with specifics, not generalities.

Tell Spectra Energy its detailed response to these three questions is mission critical.  After all, safety is its franchise.  It’s what they “do.”  Really?

Links & Resources

¹ Spectra Energy Responds to Natural Gas Pipeline Concerns - Group VP Bill Yardley’s statement in The Jersey City Independent at this link: http://www.jerseycityindependent.com/2010/08/27/the-mailbag-spectra-responds-to-natural-gas-pipeline-concerns/

Or here is the pdf file: spectra-responds-to-natural-gas-pipeline-concerns-the-jersey-city-independent

² NJ Buzz Saw:  Check out a sampling of recent news coverage:

Residents & Officials Come Out in Force Against Proposed Gas Pipeline in Jersey City (The Jersey City Independent, by Douglas Carlucci, August 5, 2010)

http://www.jerseycityindependent.com/2010/08/05/residents-officials-come-out-in-force-against-proposed-gas-pipeline-in-jersey-city/

Or pdf file:  residents-officials-come-out-in-force-against-proposed-gas-pipeline-in-jersey-city-the-jersey-city-independent

Proposed Gas Pipeline Sparks Opposition - Route Through New Jersey, Staten Island and Into Manhattan Has Critics Worried About Safety (The Wall Street Journal, by Joseph DeAvila, August 26, 2010).  Note:  This is a subscription site.  Link:  http://online.wsj.com/article/SB10001424052748704540904575451764243911130.html?KEYWORDS=Proposed+Gas+Pipeline+Sparks+Opposition

Jersey City City Council will give OK to lobbyist to block pipeline (The Jersey Journal, by Melissa Hayes, August 24, 2010)  Link: http://www.nj.com/news/jjournal/jerseycity/index.ssf?/base/news-10/12826311714830.xml&coll=3

Or pdf file:  jersey-city-block-pipeline

Jersey City Activists Opposing Spectra Energy’s Natural Gas Pipeline Launch New Website (The Jersey City Independent, by Jon Whiten, August 20, 2010)  Link: http://www.jerseycityindependent.com/2010/08/20/jersey-city-activists-opposing-spectra-energys-natural-gas-pipeline-launch-new-website/

Or pdf file:  jersey-city-activists-opposing-spectra-energye28099s-natural-gas-pipeline-launch-new-website-the-jersey-city-independent

³ PCB Contamination - Details and source documents (including Spectra Energy’s 10-K Form and the EPA Top 21 List) are covered in two posts.

Spectra PCBs 2: http://www.spectraenergywatch.com/blog/?p=498

Spectra PCBs?: http://www.spectraenergywatch.com/blog/?p=480

⁴ Fiery Inferno at Spectra Energy’s underground natural gas storage reservoir at Moss Bluff, Texas (outside of Houston) - For details see this link: http://www.spectraenergywatch.com/blog/?p=390

Range Resources Claims It ‘Overpaid’ Royalty Checks,

Will Take Money Back from Leaseholders;

Plus Range Welshes on Agreement to Pay Nearly $500K

To A Leaseholder Due to ‘Drastic Drop

In Oil & Gas Prices’

Take Note if You’re Thinking About Leasing!

It is endlessly entertaining to watch the gas guys fall in love with themselves.

In Range Resources’ Annual Report, the company swells with pride that, “At Range, we like to call ourselves ‘the white hat guys,’ not because we are perfect, but because we are committed to doing things right.”

Really?  Experience with gas companies suggests there are two possibilities here:  Twelve-year-olds wrote this; or these folks have forgotten how to blush out of embarrassment.

But let’s say we’re property owners thinking about leasing our mineral rights with Range or a similar company.  We want to believe that they are the “white hat guys … committed to doing things right.”  So how are the “white hat guys” doing?

Not well.

Broken Promises to Property Owners

If you are thinking of signing a lease with a gas company - always understand the risks and rewards of the “bet” you are placing with a gas lease on your property.  As we have said repeatedly on this blog, talk with, or at least research what has happened to, other property owners with shale gas leases.

What would you do if any of the following happened to you or to your property?  Here are three real-life examples:

• Range Resources is welshing on an agreement to make a bonus payment of nearly $500,000 to two of its leaseholders in Western Pennsylvania.  The leaseholders sued.  And the judge denied Range’s motion to dismiss the suit, which means this case is headed to trial - unless it gets settled.  (For details, see first footnote below under “Links & Resources.”) ¹

• In addition, Range is sending letters to leaseholders in Western Pennsylvania telling them that the company overpaid them in recent royalty checks over “several production periods.”  As a consequence, “the white hat guys” will begin deducting the alleged overpayment from future royalty checks.  This raises lots of questions including the competence and financial reporting accuracy of a company known as “King of the Marcellus.”  (To see a copy of Range Resources’ letter to leaseholders, see the second footnote below under “Links & Resources.) ²

• And take a look at the high-tech repairs and maintenance of the plastic liner on Range’s 4-acre frack water impoundment located next to Steph and Chris Hallowich’s property in Washington County, PA.  (See photo.)

‘White Hat Guys’ on Frack Water Impoundment?

Let’s begin with the Hallowich’s.  Some of this family’s experience with the gas industry was shared in the previous post titled NIMBY Gas Execs at this link: http://www.spectraenergywatch.com/blog/?p=720

They live on 10 acres in Washington County, PA, not far from Pittsburgh; and they are nearly surrounded by the shale gas industry.  The aerial photo in the previous post must be seen to be believed.  (Click on it to enlarge.)

Today, next door to their property, there are four gas wells, a 12-million-gallon water impoundment (covering about 4 acres), a cryogenic gas processing plant, compressor station, meter station and numerous pipelines and access roads.

Three different gas companies are involved:  the “white hat guys” at Range Resources (4 wells & 12-million gallon water impoundment), Williams (gas processing plant & meter station), and MarkWest Energy (compressor station).

In theory, the 4-acre frack water impoundment, operated by Range Resources,  is supposed to be fresh water.  “It was used for the initial frack of all four wells nearby,” Steph Hallowich told this blog.  “Then it was used to refrack one of these wells.”

Somewhere in the process - perhaps the re-fracking - the impoundment apparently became contaminated.  Test samples of the water taken by the Pennsylvania Department of Environmental Protection came back with acetone and ethylene glycol included in the results, according to Hallowich.

‘White Hat Guys’ Drained 12 Million Gallons onto Ground

Early one foggy evening, Steph discovered Range pumping water from the contaminated impoundment onto the ground and spraying it into the air.  “This is the same water found to contain acetone and ethylene glycol,” she said.

The “white hat guys” emptied the 12-million gallon water impoundment.  Is it possible that, with all the water gone - spread over the ground - no more water samples can be tested?  Only rain water collects in the plastic-lined, 4-acre hole now.

Videos showing the release of water from the impoundment can be found on YouTube at these links:

YouTube gas OU812s Channel -

Marcellus Shale Intentional Release of Impoundment Water

http://www.youtube.com/user/gasOU812#p/u/11/HxONQ4yXf8M

Marcellus Shale Impoundment Release

http://www.youtube.com/user/gasOU812#p/u/7/1DjO3xOdhFk

Torn Plastic Liner - Secure?

Click on photo to enlarge.

Next, check out the above photo of the “white hat guys” repair of the torn plastic liner for this frack water impoundment.  What are the odds that the liner is, or was, secure?

In addition, the Hallowich family well water is contaminated with acrylonitrile, toluene, ethylbenzene, tetrachlorethylene and styrene, according to Hallowich.

They now have the burden of paying to have water delivered to a 1,500-gallon tank in their garage.

Range Can’t Count - Incompetence or Worse?

Now about those inaccurate production volumes and royalty payments:

So “the white hat guys” of the gas industry can’t track their own production volumes and can’t correctly manage leaseholder - not to mention company - finances.

Sounds like a firing offense for more than one executive.  This is a big deal in a publicly held corporation with shareholders.  No doubt CEO John Pinkerton will announce an investigation.

This blog twice contacted Matt Pitzarella, Director of Public Affairs at Range Resources, to ask how many leaseholders are affected, and what is the dollar amount of the allegedly overpaid royalties?  We will report his response if and when we receive it.

Perhaps an inquiry may be warranted by the Securities and Exchange Commission (SEC), IF it is suspected that material information was presented in a misleading way to investors.  After all, this is real money and the company allegedly miscalculated both production volumes and royalty payments.

Legally, leaseholders might have a beef with such “broken promises” from Range Resources.

If you have received one of these letters, check your lease.  Many leases say that leaseholders have the right to audit the production reports at any time, if the request is in writing.

Shouldn’t be a problem.  After all, the folks at Range are “the white hat guys … committed to doing things right.”

Really?

Links & Resources

¹ Valentino versus Range Resources - Lawyer Cliff Tuttle writes in Pittsburgh Legal Back Talk:  “Joseph and Donna Valentino signed an oil and gas lease with Range Resources-Appalachia LLC, together with a side agreement calling for a $456,800.00 bonus payment.”  Read his article at this link: http://www.pittsburghlegalbacktalk.com/2010/08/16/case-of-the-week-valentino-v-range-resources/

Or the pdf file:  case-of-the-week_-valentino-v-range-resources-_-pittsburgh-legal-back-talk

Then read Chief Judge Gary Lancaster, US District Court of the Western District of Pennsylvania, decision and order to deny Range Resources’ motion to dismiss the Valentino’s case: http://scholar.google.com/scholar_case?case=11223618135741252600&q=Valentino+v+Range+Resources&hl=en&as_sdt=800000000002&as_ylo=2010

Or the pdf file:  valentino-v-range-resources-appalachia-llc-dist-court-wd-pennsylvania-2010-google-scholar

² Overpaid Royalties? - Range Resources’ letter to leaseholder stating that the “King of the Marcellus” can’t do arithmetic, and alleging that royalties were overpaid for “several production periods.”  Range wants the money back.  Will the company also report that it’s made drilling & operating errors that contaminated water on leaseholders property?  After all, if it can make an alleged accounting error that is fundamental to its business, how many other operational errors has it made?  Time for an investigation.  Pdf file:  range_ltr_081910

Thinking about leasing? Get as much information as you can - Marcellus Powerball: http://www.spectraenergywatch.com/blog/?p=494

New NIMBY - Gas Industry to Property Owners:

Not In My Back Yard But in Your Back Yard

Gas Execs Don’t Want Drill Pads

& Frack Water Ponds Near Their Homes

Experience a Shale Gas Drilling Operation Near Your Home!

  Photo courtesy of Marcellus-Shale.us

Note Hallowich house & nearby gas operations. Photo shows 3 hydraulic fracturing wells -- today there are 4. Compressor station is now 3 times the size shown here. Click on photo to enlarge.

A new version of NIMBY (Not In My Back Yard) has emerged in the shale gas “boom.”

Executives from the gas industry want wells, frac water impoundments, compressor stations, cryogenic gas processing plants and pipelines on your property, not their property.

This blog has been reaching out to the gas industry to identify senior managers who believe in what they sell to other property owners.  To date, no gas executive has stepped up; but we’re still looking.

Nominate a favorite gas company exec by contacting this blog (click on “Contact Us” at the top of the page).

Leadership-by-Example

After all, computer, auto, and soft drink executives proudly take their products home for their families to enjoy and/or consume.  It is time for gas industry execs to step up to the leadership-by-example challenge.

This is a great opportunity for senior managers of the industry to:

1. Demonstrate their personal belief in what they say is the inherent safety of shale gas extraction; and
2. Demonstrate solidarity with property owners by living the dream of shale gas extraction on their own home property.

Gas executives who might privately worry about this strategy can take comfort in the promise of Range Resources, sometimes referred to as “the leader in the Marcellus.”

On the subject of hydraulic fracturing, Range Resources declares on its website:  “This technology has been safely used in more than 1 million applications in the United States with an explemplary [sic] safety record. In fact, there are ZERO confirmed cases of water contamination or pollution from hydraulic fracturing.”¹

Property owners in many shale gas states would love to see gas executives share their experience.

4 Gas Wells Near House

For example, Stephanie and Chris Hallowich and their two children live in Washington County, PA, not far from Pittsburgh.  They are nearly surrounded by the shale gas industry (see photo).

Steph shared with this blog her family’s experience that began after they closed on their 10-acre property in November 2006 and started building their house.

“We had no clue as to what was coming our way,” Steph explained.

Today, next door to their property, there are four gas wells, a 12-million-gallon water impoundment (covering about 4 acres), a cryogenic gas processing plant, compressor station, meter station and numerous pipelines.

Three different gas companies are involved:  Range Resources (4 wells & 12-million gallon water impoundment), Williams (gas processing plant), and MarkWest Energy (compressor station).

Toxic Neighborhood

The distances from the family’s home and the facilities are as follows, according to Steph:

• Nearest gas well - 930 feet from the house
• Water Impoundment - less than 150 yards from the house
• Cryogenic gas plant - less than 300 yards from the house
• Compressor station - less than 600 yards from the home

The cryogenic gas processing plant and compressor station are less than 150 yards apart.

But because the gas processing plant and the compressor station are operated by two different companies (Williams and MarkWest), the Pennsylvania Department of Environmental Protection (DEP) does not consider the combined air emissions from these two facilities when granting air permits.

This effectively raises the allowable limit for pollutants from two operations that are a mere 150 yards apart.  This is similar to what happens in Texas in terms of alleged environmental protection.

All of these operations have toxic emissions, and as Steph Hallowich notes:  “The Pennsylvania DEP only asks for the ‘Potential to Emit’ on nitrogen oxides, Volatile Organic Compounds and carbon monoxide.  THAT”S IT!  No methane.  No formaldehyde.  Sadly NO ONE is monitoring what is coming out on a daily basis.”

Because air quality is an issue, the Hallowich’s limit their children’s time outside.  Even wind direction is a factor.

Property owners who are weighing the risks/benefits of leasing drilling rights to a gas company should always talk to, or research, property owners who have such operations on or near their property.  Find out what their experience is like.

Meanwhile, ask gas company representatives if they have such operations on their property, near their home.

NOTE:  Next week’s blog post will continue to share the experience of the Hallowich family.  What happens if the so-called “fresh water” impoundment is contaminated?

How does a company like Range Resources maintain a 4-acre frack water impoundment?  The company brags in its annual report:  “At Range, we like to call ourselves ‘the white hat guys,’ … because we are committed to doing things right.”  See how the white hat guys do things right.²

Stay tuned!

Links & Resources

¹ Range Resources on the safety of hydraulic fracturing - See Frequently Asked Questions (FAQs) on its website - note the answer to the first question (and see 5^th paragraph in the response): http://www.rangeresources.com/faqs.html

Or here is the pdf file: range-resources-faq

² “White hat guys” - see p. 15 (top of page) of the company’s “Annual Report 2009″ for Range Resources’ statement about what it does to “protect the environment, promote safety and support local communities.”  Pdf file: rr-annual-report-2009

For more information on the experience of property owners, see The Scranton Times-Tribune article titled, “Western PA communities changed by natural gas drilling offer local lessons” at this link: http://thetimes-tribune.com/news/western-pa-communities-changed-by-natural-gas-drilling-offer-local-lessons-1.860440

Or here is the pdf file: steph-hallowich-gas-ops-times-tribune

This satirical treatment of Spectra Energy's proposed pipeline through Jersey City has shown up on many websites.

Mayor, Council & Citizens Tell Spectra Energy & FERC

‘NO’ to Gas Pipeline Through Jersey City

To THUNDEROUS Cheers & Applause from Audience

New Jersey ain’t Texas!

This is the message delivered to Houston-based Spectra Energy by citizens and officials at a public meeting in Jersey City.

Spectra Energy wants to run 16-miles of new gas pipeline and 5 miles of replacement pipeline on what it calls its New Jersey-New York expansion.  If approved by the Federal Energy Regulatory Commission (FERC), the 30-inch diameter high-pressure gas pipeline would run from Staten Island, NY, through Bayonne and Jersey City, NJ, and into Manhattan, according to Spectra Energy.¹

Both Spectra Energy and FERC, which called the meeting, got an earful from some 300 citizens who attended.

City That Fights

“You came to a city that fights,” said Frances O. Thompson, Board of Education Commissioner and activist, according to news coverage in The Jersey City Independent.  “[The pipeline] is not a done deal. Jersey City will make sure it won’t happen.”

Thompson was among “at least 90 speakers who spoke for a total of four and a half hours,” according to Douglas Carlucci, reporting for The Jersey City Independent.²

The first speaker, Jersey City Mayor Jerramiah T. Healy, was equally blunt; and his presentation is recorded on video.

Mayor - “This Is About Safety”

“This is not about money.  This is about safety,” the Mayor said.

He pointed out that the pipeline would run the length of one of the most densely populated cities in the country.  Spectra Energy’s current plans have the pipeline running close to Homeland Security designated Critical Tier 1 and Tier 2 infrastructure in Jersey City.

“Bottom line is - we really don’t want this in Jersey City,” the mayor concluded.  To thunderous cheers and applause from the audience.  (Watch the video.)³

Other elected officials speaking against the proposed pipeline include City Council members Steven Fulop, Michael Sottolano and David Donnelly.  State Senator Sandra Cunningham also opposes the plan, according to The Jersey City Independent.

Spectra Energy’s Explosive Track Record

Jersey City Medical Center President Joseph E. Scott reminded Spectra Energy of its track record, according to the article in The Jersey City Independent:

“Simply put, if a breach to the pipeline were to occur as it did in Edison, New Jersey, on March 24, 1994, and was in close proximity to the Jersey City Medical Center the resulting impact to regional acute health care services and public safety would be catastrophic.”

The New York Times covered the Edison, NJ, explosion that involved Texas Eastern, the pipeline division of Spectra Energy.  The news report also cited past fatal failures of Texas Eastern in an article with this headline and lead paragraph:

EXPLOSION IN EDISON;

Pipeline Owner Was at Fault in Fatal Accidents in the 80’s

The Texas Eastern Transmission Corporation, the owner of the 33-year-old underground pipeline that ruptured and set off a fiery explosion in central New Jersey, was responsible for three fatal accidents in the 1980s in the South and Midwest.  And it is a partner in a venture responsible for a 1990 propane explosion that enveloped an upstate New York village in a fog-like vapor and killed two people

The New York Times - March 26, 1994

Moss Bluff Explosions

Spectra Energy’s more recent history also includes catastrophic failure.  The company’s underground gas storage reservoir outside of Houston (Moss Bluff) suffered two explosions in 2004, 6 1/2 days of fire with flames as high as 1,000 feet and two evacuations.  An estimated 6 billion cubic feet of natural gas was consumed during the fire that lasted nearly one-week.⁴

Spectra Energy has declined to talk with this blog about “lessons learned” from its Moss Bluff experience.

Public concern about pipeline safety is not hysteria.  The Wall Street Journal reported that, “Nationwide there were 47 pipeline incidents last year that caused a death or serious injury, according to federal statistics, up from 40 in 2008 and 45 in 2007.”⁵

City Councilman Steven Fulop and his team have developed an outreach effort to the community on Spectra Energy’s pipeline plan.  As part of that, they have established Google and Facebook sites where interested parties can sign up for updates:

Jersey City NO Gas Pipelines (Google Group-Info) http://groups.google.com/group/jerseycitygas/

Jersey City NO Gas Pipelines (FACEBOOK) http://www.facebook.com/pages/Jersey-City-NO-Gas-Pipeline/126442564066553

Links & Resources

¹ Spectra Energy’s New Jersey/New York Expansion – http://www.spectraenergy.com/what_we_do/projects/nj-ny/

² Residents & Officials Come Out in Force Against Proposed Gas Pipeline in Jersey City  (The Jersey City Independent, by Douglas Carlucci, August 5, 2010) http://www.jerseycityindependent.com/2010/08/05/residents-officials-come-out-in-force-against-proposed-gas-pipeline-in-jersey-city/

Or pdf file: residents-officials-come-out-in-force-against-proposed-gas-pipeline-in-jersey-city-the-jersey-city-independent

³ Mayor Healy Speaking about the Proposed Spectra Gas Pipeline in Jersey City YouTube Link: http://www.youtube.com/watch?v=nO0tBkN4DPU&feature=player_embedded#!

Or Jersey City Website: http://www.cityofjerseycity.com/

⁴ Fiery Inferno at Spectra Energy’s underground natural gas storage reservoir at Moss Bluff, Texas (outside of Houston) - For details see this link: http://www.spectraenergywatch.com/blog/?p=390

⁵ The Wall Street Journal on 47 pipeline incidents in 2009 - See The Wall Street Journal report titled, “Gas Blast Rocks Texan Town,” June 8, 2010.    For those with a subscription to The Wall Street Journal, you can access the online version of this story at the following link (you may have to cut and paste this link into your browser window): http://online.wsj.com/article/SB10001424052748703303904575293042591061542.html?KEYWORDS=Gas+Blast+rocks+Texan+Town

The gas industry wants to import many of its sloppy operational practices developed in western states to the northeast, including states like Pennsylvania and New York.  If you are considering leasing your property for gas drilling — meaning hydraulic fracturing in the Marcellus shale, for example — talk to folks who’ve been there, done that.  Talk to folks who have skin in the game of gas drilling and find out what their experience has been.

I have yet to locate a gas company executive who has a drill pad on his/her property, near their home.  I have yet to talk to a gas company executive who has a plastic-lined frac water pond on their property, near their home. 

There is a reason why the gas industry wants these wells and frac ponds on your property but not on their property.

For some of those stories, check these blog posts: 

Mayor Calvin Tillman:  http://www.spectraenergywatch.com/blog/?p=577

Mayor Calvin Tillman 2:  http://www.spectraenergywatch.com/blog/?p=605

Ron Gulla:  http://www.spectraenergywatch.com/blog/?p=522

Here is Mayor Tillman’s message:  

I made an announcement shortly after Memorial Day weekend, that I would be putting my home in DISH on the market.  This decision was made by my family after several instances of both of my children having nosebleeds during the night.  These nosebleeds correlated with strong odors and spikes in the chemicals being emitted by the natural gas compression station a quarter mile from our home.  We are still planning on putting our home on the market by the end of August.  This is a tough decision, but to ensure the safety of my family, it is something that I will do.   

A year ago, you essentially could not be outside for more than a couple of hours without being forced into your home by the noxious odors.  In the few months prior to Memorial Day the odor events were limited to the late evening/early morning timeframe and happened a few nights a week for a couple of hours.  After the Memorial Day incident, the TCEQ brought a canister for me to keep at my home for instances of the strong odor, I still have this canister.  There have been periodic odor events over the past couple of months; however, they now only last for a brief time.  By the time I get the canister ready to take the sample, the odor is gone.  Unfortunately, my air conditioning system sucks the odor in the house, and the odor sometimes lingers longer inside than outside.  So over the past year, the situation has improved tremendously.  Is it enough? I am not sure.    

This announcement got a great deal more attention than I had anticipated.  I had to make sure that those who know me and support me, knew why I was making this decision.  I did not want everyone to find out when the for sale sign went up.  There have been a flurry of media stories that have been taken by some to suggest that I will be resigning as mayor and moving from DISH immediately.  Another report actually had me being forced out, which was wishful thinking for some.  I have a great group of citizens here in DISH that have been extremely supportive of me and know that I will support and defend them to the end, and it will be difficult should I end up leaving.  I will be better about keeping everyone in the loop so there are no misunderstandings of my intentions.  

When me and my wife made the decision to put our home on the market, we had seen both of our children having several massive nosebleed during the night.  These nosebleeds coincided with the strong odor that filled our community.  At this point we contemplated moving immediately and figuring things out after that.  Since that time neither of my children have nosebleeds at that level and only a few minor nosebleeds and none at night.  So we are not the motivated sellers we once were.  However, do to the continuing problems and little faith in our regulatory agencies, we will be putting the house on the market.  Like most anyone reading this, we can not put it on the market tomorrow.  For the past 3 years I have worked around 80 hours a week and therefore the home has been neglected.  So there are several projects that were half completed, and need to be finished before we can market it.  I am not anticipating a big market for the home, but if by some miracle it should sell, I would then have to resign as mayor, but not a minute before.  I will likely not leave it on the market indefinitely either, it will sell, or it will not.   

Every time that I have given either the operators or the regulatory agencies a pat on the back, something bad immediately happens.  So it may be foolish, but I have some level of optimism currently about this facility.  Several things have been accomplished to make this a better facility, and I am certain that no other facility has as many controls in place as this one does.  But with the massive size of the facility, I am not sure if it can be…good, just better than the others.  I am sure there is more than one photo of me on a break room dartboard, and I am also sure these companies have unwillingly spent a great deal of money, but the conditions have improved greatly for the citizens of this community.   

Some were also led to believe that I would simply disappear from DISH, and from this matter all together, which again is wishful thinking.  Whether I live in DISH breathing chemicals, or somewhere out of this area, I will always be involved in this subject in some capacity.  In the next couple of month, I will be making an announcement about part of what will be in my future.  For the past five years this has taken up a great deal of my time, and we have somewhat been the poster child of what can happen to a community.  Therefore, it is impossible for me to simply walk away.  As always I thank those who have supported me through this decision.  

As always, please pass this on or post on your blogs or websites.   

Calvin Tillman
Mayor, DISH, TX
(940) 453-3640

“Those who say it can not be done, should get out of the way of those that are doing it”

Spectra Energy Can Chemo-Frac Anytime It Wants in Bedford, PA;

Has Approval for ‘Every Hydraulic Fracturing Fluid It Could Possibly Use’

Includes Chemicals Identified as Cancer Causing or Probably Carcinogenic

Why is Straight Talk so Difficult for Gas Industry?

Can we trust gas industry drilling, pipeline and storage companies?

Every property owner I have talked with who has actually dealt with the gas industry - from Pennsylvania to Texas - has said that you cannot trust the energy industry.

This belief is based on their personal experience.  The more experience someone has with the gas industry, the more they conclude, in the words of one property owner, that “Virtually everything the gas industry tells you is a lie, or half truth, or deceptive in some way.”

Look at the video on the welcome page for this website.  Listen to property owners in the video use phrases like:  “constant lies,”  “it’s story after story, you just can’t believe them.”

These are regular folks - hunters, NRA members, farmers, self-made businessmen.  They are not people “with an agenda,” as the gas industry likes to label its critics.  (As if the gas industry and its well-paid execs did not have an agenda.)

To say an industry lies is harsh; but deception is a slippery slope.

Deception is Slippery Slope

For example, Director of Media Relations for Houston-based Spectra Energy, Wendy Olson, published a statement in The Altoona Mirror with two objectives:

1) Tout the company’s alleged commitment “to operating our pipeline and storage facilities safely, reliably and in compliance with environmental regulations.”

2) Distance Spectra Energy from public concern over hydraulic fracturing with its health and environmental “challenges,” as even Pennsylvania Governor Rendell has admitted.¹ (Remember, Rendell declared himself a “protector” of the gas industry.)

In her public statement, Ms. Olson wrote:  “There is a distinction between the Steckman Ridge Storage operations [located in Clearville, Pennsylvania] and the production process known as ‘hydraulic fracturing’ used to break up shale deposits to extract natural gas.  There was no hydraulic fracturing involved when the Steckman Ridge facility was constructed in 2008-09.“²

Note the careful use of past tense (”was constructed”).  What Spectra Energy’s Director of Media Relations does not tell readers (or editors at The Altoona Mirror) is that Spectra Energy can frac those wells any time it wants, according to the Federal Energy Regulatory Commission (FERC) and the Pennsylvania Department of Environmental Protection (DEP).

But hydraulic fracturing requires drilling, you say?  Yes, and nowhere in her essay for The Altoona Mirror does Olson use the word “drilling.”

In fact, Olson neglects to acknowledge that - while this is a so-called “storage operation” - Spectra Energy has drilled and is operating (so far) 13 injection/withdrawal wells as part of its 12 billion-cubic-feet underground gas facility.

Moreover, it has permission from the Federal Energy Regulatory Commission (FERC) to drill 10 additional wells for a total of 23.

Spectra Energy Can ‘Frac’ in Clearville, PA

And Spectra Energy can use hydraulic fracturing on those wells if it chooses. As FERC explained to this blog:   “If their tests show that they are not getting optimal flows, they would perform hydraulic fracturing to improve the flow of gas.  A propping agent such as sand would then be used to keep the fractures open.”

The Pennsylvania DEP Oil & Gas Inspector for Bedford County also confirmed for this blog that Spectra Energy requires no special permit for hydraulic fracturing:

“There are no special permits needed specifically for hydraulic fracturing.  The fracturing process is covered under a normal drilling permit should Spectra Energy choose to frac in the future.”

Further, according to FERC, Spectra Energy filed for the record nearly 300 pages of Material Safety Data Sheets (MSDS) “for every drilling mud and hydraulic fracturing component it could possibly use.”

Chemo-Fracking

Anyone who downloads this file from the FERC website (under project docket CP08-15) will see that most of the data sheets are from Halliburton; and several of the listed chemical compounds are identified as cancer causing or probably carcinogenic.

This is what some folks call chemo-fracking - sand, water, and a toxic chemical cocktail.

Olson asserts that Spectra Energy remains “committed to the high performance levels that communities have come to expect from our operations.”  In fact, far from “high performance,” Spectra Energy has had ongoing problems at its “storage operation” in Bedford County since the beginning.

This includes emergency shutdowns and/or blowdowns which can result in uncontrolled release of gas (toxic volatile organic compounds) and sometimes oily contaminate into the air (and on nearby properties).

Despite Spectra Energy’s claim to being “committed to the high performance levels that communities have come to expect,” it repeatedly dodged the logical question of how many of these continuing shutdowns/blowdowns of the compressor station occur in Clearville compared to Spectra Energy’s other compressor stations?

In other words, let’s manage by facts - not by platitudes and promises.  Let’s look at your compressor station performance record to see if we can understand why this is happening in Clearville.

Spectra Energy Won’t Tell

Finally, after months of prodding, Spectra Energy finally admitted (emphasis added), “Yes, we do track all of our compressor units’ performance as part of our system reliability monitoring efforts, but this is not data that we report externally.”

Meanwhile, the shutdowns/blowdowns at Spectra Energy’s 5,000 horsepower compressor station in Clearville, PA, continue, often in the early morning hours.  And when it occurs, it sounds like a jet engine crashing - not to mention the release of toxic volatile organic compounds.

This huge compressor station is near homes and three miles from an elementary school.  After months of this, it is clear that Spectra Energy hasn’t got a clue as to what its engineering problem is; and the PA Department of Environmental Protection is missing-in-action.

Track Records Matter

Speaking of track records by which one should be able to judge a person or a company, Spectra Energy’s performance record looks like a police rap sheet - with fires, explosions, toxic contamination of its 9,000-mile pipeline - all on the public record, if you look; but federal and state regulators apparently never look.³

Meanwhile, Spectra Energy never, ever acknowledges this side of its record.  Instead it talks in platitudes about its commitment to safety and reliability - a “butter job” as one property owner described it.  Words trump deeds, and are cheaper than doing it right.

Finally, this is a company that used the dictionary definition of lying to defend its actions in a public document submitted to FERC.⁴

Since Spectra Energy likes to use dictionary definitions to defend itself, here’s one that fits its behavior:

“Dis-in-gen-u-ous” means “not straightforward or candid; insincere or  calculating.”

Why behave that way - if a company is really committed to safety, reliability and high performance levels?  Unless it isn’t.

(Note:  See “Links & Resources” below for verifiable public sources to all of the above statements with footnotes.)

Links & Resources

¹ Governor Rendell made his comments at a policy roundtable called “Natural Gas Nation” on March 25, 2010. They deserve wide circulation because the governor was more candid than, I believe, he realized.  The conference was conducted by the George W. Bush Institute in Dallas, Texas.  Here is a link to the audio file of that roundtable discussion: http://georgewbushinstitute.files.wordpress.com/2010/03/ngn_05_roundtable.mp3

In his comments, Rendell declared himself a “protector” of the gas industry and said (emphasis added), “I’ve been a good spokesman minimizing the potential for groundwater pollution.”

BUT he acknowledged “five challenges” involved in shale gas drilling - every one of them environmental. They include: how to divert millions of gallons of water necessary for shale gas drilling; how to prevent gas migration; and what do we do with the frac water?  If the “protector” of the gas industry in Pennsylvania acknowledges multiple risks to the environment, why can’t the gas industry?

For easy reference, I made a transcript of the governor’s comments that can be accessed here.  In a few places where a word or phrase was unclear I’ve indicated that.  See p. 3 for the Five Challenges:  gov-rendell-ng-nation

Finally, here is a link to the website for the “Natural Gas Nation” conference: http://georgewbushinstitute.com/natural-gas-nation/

² “Spectra Energy defends gas storage project” - Spectra Energy’s Wendy Olson’s disingenuous essay ran in The Altoona Mirror.  Here is the pdf file:  spectra-energy-defends-gas-storage-project

³ Spectra Energy’s Track Record is publicly available for those who look.  Check out the following links and sources and decide for yourself:

“Unlawful Conduct” - Details are treated in two posts on my website which include testimonials from landowners and documents such as the DEP “Notice of Violation” and Spectra Energy’s formal response.  Unfortunately, on the day before “April Fool’s,” the DEP announced it had fined Spectra Energy a pathetic $22,000 for air and water quality violations at its Steckman Ridge compressor station in Clearville, PA.

Emergency Shutdown: http://www.spectraenergywatch.com/blog/?p=372

Spectra Promises: http://www.spectraenergywatch.com/blog/?p=466

Fiery Inferno - This post on explosions and fire at Spectra Energy’s underground gas storage reservoir outside of Houston is detailed and offers external sources for verification.

Moss Bluff Incident:  http://www.spectraenergywatch.com/blog/?p=390

PCB Contamination - Details and source documents (including Spectra Energy’s 10-K Form and the EPA Top 21 List) are covered in two posts.

Spectra PCBs 2: http://www.spectraenergywatch.com/blog/?p=498

Spectra PCBs?: http://www.spectraenergywatch.com/blog/?p=480

⁴ Definition of lying as a defense — Spectra Energy filed a 32-page report with FERC exonorating itself regarding complaints about abusive and unethical behavior toward landowners as part of its 12 billion-cubic-feet underground gas storage reservoir in Clearville, PA.

The original report is accessible on my website and it is titled, “Inquiry Report — Response to Benard Allegations.”  In its official report, Spectra Energy uses the dictionary definition of lying as a proof point to claim:  “There is no evidence of willful ‘lying’ by any Project Representative to landowners.” This technique illustrates the slippery slope gas companies like Spectra Energy navigate between their words and their deeds.  Spectra Energy’s report and the first of four commentaries I wrote are available at this link, “Pious Mouse Wash 1″: http://www.spectraenergywatch.com/blog/?p=213

Shale Gas Summit Draws 100-plus Activists

To Launch Collective Grass Roots Effort in New York State;

Goal:  Protect New York State & Neighbors

from Risks of “Chemo-fracking”

A summit aimed at launching a collective grass roots effort to challenge the shale gas industry and indifferent government regulators drew more than 120 activists to Binghamton, New York, for a day-long work session on Saturday, June 19.

Sponsored by the Coalition to Protect New York, the event offered participants a powerhouse agenda that covered a wide range of issues including legal, economic, information gathering, lobbying, the latest science and more.

A tightly packed agenda offered an impressive list of speakers and panelists who included:

• Weston Wilson - a well-known environmental engineer from the EPA (retired) who spoke about the risks of contamination from hydraulic fracturing.
• Walter Hang - president of Toxics Targeting in Ithaca, NY, which is an environmental database firm that has generated clean-up initiatives for polluted sites often ignored by government and corporate officials.
• Tony Ingraffea - Cornell University professor of engineering and director of Cornell Fracture Group who asked the participants whether they wanted to play “offense or defensive” on the issue.
• Several attorneys addressed environmental-legal issues including Rachel Triechler, who spoke about what local governments can do with regard to zoning restrictions and deep disposal injection wells; and Joseph Heath, general counsel for the Onondaga Nation, who spoke about the combined political and legal work involved in demanding accountability from government.

Attendees representing more than 40 groups and blogs came from New York State, Pennsylvania and Ohio.

Withdraw dSGEIS

Among the immediate goals is to petition New York Governor David Paterson to withdraw the Department of Environmental Conservation (DEC) Marcellus Shale draft Supplemental Generic Environmental Impact Statement (dSGEIS) for Oil and Gas Mining.

The petition now contains nearly 10,000 signatures.  To read or sign it, log onto Toxics Targeting website at this link: http://www.toxicstargeting.com/MarcellusShale/coalition_letter

The draft impact statement (dSGEIS) was made public by the DEC in September 2009.  It is a supplement to the 19-year old State Environmental Quality Review Act.  Critics, including the U.S. Environmental Protection Agency (EPA), believe the draft impact statement needs to be expanded in order to take into account the reality of the adverse effects of hydraulic fracturing on human health and the environment.

In a letter to the DEC in December, John Filippelli, Chief of the Strategic Planning and Multi-Media Program Branch of EPA’s Region 2, said:

“… we have concerns regarding potential impacts to human health and the environment that we believe warrant further scientific and regulatory analysis. … EPA recommends that these concerns be addressed and essential environmental protection measures established prior to the completion of the … process.”¹ (For pdf file of EPA letter to DEC, see “Links & Resources” below.)

Walter Hang, president of Ithaca, New York-based Toxics Targeting, told this blog that the DEC draft is “fatally flawed” yet “DEC is pushing as hard and as fast as they can to adopt the draft SGEIS.  They have said it might happen by the end of the year.”

DEC Does Not Count All Spills?

Hang has challenged the DEC that it is either not counting - or it is undercounting - scores of sites and examples of contaminated drinking water from natural gas wells in the state.

In an April 2 letter to DEC Commissioner Alexander “Pete” Grannis, he wrote [emphasis added]:

“I subsequently learned the [DEC] spills database does not include natural gas problems reported to health authorities in the three counties with the highest number of oil and gas wells in New York State.  I also learned DEC’s Division of Mineral Resources does not report all oil and gas releases to the Division of Spills.” Link: http://www.toxicstargeting.com/MarcellusShale/documents/dec-letter

Based on New York State’s poor track record for regulating gas drilling, Hang says three steps are necessary:

1) DEC should immediately withdraw its draft SGEIS;

2) Reopen discussions regarding the scope of the regulatory proceeding; and

3) Revise the SGEIS draft to respond to the reality of documented natural gas hazards.

Following are photos from the conference.  See also the list of additional “Links & Resources” below.

More than 100 participants from three states attended the event in Binghamton, NY, to hears speakers such as Wes Gillingham of Catskill Mountainkeeper.

Several attorneys addressed legal-environmental issues at the summit; and Volunteer Jack Ossont (yellow T-shirt) captured key ideas (which have been digitally erased).

Walter Hang, president of Toxics Targeting, uses an environmental database to drive clean-up initiatives of polluted sites often ignored by government.

Mike Bernhard, Laurie Spaeth respond to questions about tracking & gathering information while Walter Hang listens.

Weston Wilson, well-known environmental engineer from EPA (retired), spoke about the risks of contamination from hydraulic fracturing.

Links & Resources

¹ U.S. EPA (Region 2) Letter to New York State Department of Environmental Conservation regarding agency’s comments on DEC draft Supplemental Generic Environmental Impact Statement.  3ppepa-dec09-letter-hl2

Coalition to Protect New York (CPNY) - Describing itself as a group of “regular people who give a damn,” CPNY says, “Our mission is to build a strong, unified, and unbeatable force to stop the dangerous practice of fracking for methane gas unless and until it is proven risk-free and harmless to our environment, health, and property.”  Website:  www.coalition2protectny.org

Toxics Targeting - Based in Ithaca, New York, Toxics Targeting tracks environmental data from government and other sources and maps the impact of pollution.  The company’s work has been featured in The New York Times, MSNBC, and other news outlets.  Walter Hang, president of the company, has challenged regulators like New York’s Department of Environmental Conservation that it is not counting or it is undercounting examples of drinking water contamination from natural gas wells.  Website: www.toxicstargeting.com

Chenango Delaware Otsego Group (CDOG) - This group offers two excellent resources:  www.GasMain.org is an “index” website that helps a wide variety of groups “improve their outreach to the general public by reducing advertising costs and increasing message options.”  Another CDOG site is http://www.un-naturalgas.org/ which takes the position that “there is nothing natural about what the methane extraction process … does to water, air, & living things.”  The website provides information and resources on a range of issues from hydraulic fracing to eminent domain, well spacing, and health issues.

EARTHWORKS - describes itself as a “non-profit organization dedicated to protecting communities and the environment from the destructive impacts of mineral development, in the U.S. and worldwide.”  It works with “communities and grassroots groups to reform government policies, improve corporate practices, influence investment decisions and encourage responsible materials sourcing and consumption.”  One resource worth evaluating is a 6-page booklet for citizens and elected officials looking for examples of how to improve the oil & gas industry’s current approach to drilling.  It includes recommendations for environmentally friendly drilling technology to transparency on industry practices.  As the report states:  “We support drilling right in Texas: responsible energy development that protects private property owners, water, the environment, and public lands while enabling energy production.”  Here is a pdf file of the document:  drill_right_texas_final Website: http://www.earthworksaction.org/publications.cfm?pubID=444

Property Owner Fights Solo Battle for 2 Years

Against Eminent Domain by Chesapeake Energy;

Company Defends Use of Eminent Domain, But

Is a ‘Happy Ending’ in the Works?

Fighting eminent domain - especially against energy companies - is an act of heroism.

Property owners like Steve Doeung are heroic and inspirational.

Doeung and his fellow residents on Carter Avenue in Fort Worth, Texas, have been staring down the barrel of a 16-inch-diameter gas pipeline that Chesapeake Energy planned on ramming under their front yards with the power of eminent domain.

The company defends its eminent domain action and says it “fully investigated 12 different routes in its effort to connect” two urban gas wells with a pipeline.  “At the time, the Carter Avenue route was the least impactful,” the company told this blog.

Never mind the fact that there is an established easement near I-30 that could be used with less “taking” of private property that comes with eminent domain.  That alternative route is now being actively pursued, according to the company.

Residents learned about the pipeline project in the spring of 2008.  By August of 2008, the company moved to condemn Steve Doeung’s property.  He has been fighting almost single handedly ever since.

Family Fled ‘Killing Fields’

Doeung’s story is classic American.  His family fled Cambodia to escape the genocidal terror campaign launched by the Khmer Rouge.  The Khmer Rouge was the totalitarian ruling party in that country from 1975 to 1979.

According to various reports, they were responsible for the deaths of between 850,000 to 2.5 million Cambodians in just four years.  “The Killing Fields” is a phrase that refers to this reign of terror; and a British film of that name was released in 1984.

Against this horrific background, Steve’s family came to this country when Steve was 10-years old, and settled in Fort Worth, Texas.

Fort Worth:  Where Property Rustling is In

In the spring of 2009, I was contacted by Steve via this website.  His greeting was what I came to understand as classic Steve:  “Howdy from Fort Worth, Texas (formerly ‘where the West begins’ but now ‘where property rustling is in’) ….”

His advice back then stands today:  Take action; do not depend on the kindness of strangers from the gas companies or the government.  Or La-Gas-anostra, he quips.

As Steve says, “Unfortunately, most people are just like me when this project started - not taking the time to be knowledgeable and take action, until it comes right up to your front door.  Instead of being proactive early, I ended up on defense.  The alternative is to surrender, like many of my neighbors.”

Ironically, part of Steve’s motivation is seven words from the Declaration of Independence:  “… Life, Liberty and the pursuit of Happiness.”

It may sound hokey, but Steve is eloquent about his motivation:  “As a grateful, first-generation immigrant and naturalized American citizen, I value and take seriously these words and the principles they represent.”

He acknowledges that, “I am not inclined to be an activist per se, but not doing my best to protect my family and neighbors - near and far - is not an option.”

Solo Fight

With all the corporate and political forces arrayed against him, Steve’s fight was the subject of a fascinating profile in Fort Worth Weekly, by Jeff Prince.  Here is a pdf file of the article: he-wont-pipe-down-fort-worth-weekly

In his detailed article, Prince explains how the practice of eminent domain has been corrupted by power:

“Energy companies years ago determined that their pipeline subsidiaries could claim the right of eminent domain, as utilities or ‘common carriers.’ They can force owners to sell easements on private property, even if other easements owned by other companies are available nearby.  The practice has drawn vehement criticism from property owners, rural and urban, across the state, and critics say the companies abuse their eminent domain powers to take more land than is often necessary.”

Single handedly, Steve Doeung has accomplished the incredible.  He has held off Chesapeake Energy for two years, generated news coverage that made the public aware of what was happening on Carter Avenue at the hands of Chesapeake Energy, and even gathered some political support — in a gas company town, yet!

Texas State Senator Wendy Davis

Texas State Senator Wendy Davis told this blog:  ”… even though the state Department of Transportation and the pipeline company (Mid-Stream) and drilling company (Chesapeake) have reached agreement on an alternative route for the pipeline, Chesapeake continues to press forward in its eminent domain proceedings against Mr. Doeung.  I think this is unconscionable and I have indicated my feelings about this to Chesapeake.  It is beyond comprehension to me why, at the very least, Chesapeake would not at least be willing to ‘stand down’ and delay hearings on eminent domain while the agreement with TXDoT [Texas Department of Transportation] is fine tuned and moves forward.”

Chesapeake Now Pursues Alternative Route

That may, in fact, be what is happening now.  According to Brian Murnahan, Communications Manager for Chesapeake Energy Corporation, the Texas Department of Transportation approved the company’s recent proposal to install a portion of the pipeline along the alternative I-30 route.

As Murnahan told this blog, “It looks very positive that the whole street [Carter Avenue] will be avoided.”

But Chesapeake’s Communications Manager notes [emphasis added], “While we are delighted that the I-30 route is now possible, it still does not eliminate all private property crossings.  The advantage of this route is that it can use public right-of-way for much of the route and fewer private properties.”

The company “is optimistic that pipeline construction along the new alignment could begin as early as this fall and the proposed route along Carter Avenue would be rendered moot,” Murnahan stated.

As baseball legend Yogi Berra said, “It ain’t over ‘til it’s over.”  But reducing the impact of eminent domain on private property is a step in the right direction; and certainly qualifies as being in the public good.

Steve Doeung at court house in Forth Worth.

“Boom Town” Model for Shale Gas Ignores Air & Water Impacts;

No Adequate Disposal for Frac Water

Even PA Gov. Rendell Admits to Oil & Gas Execs:

5 “Challenges” to Shale Gas Drilling - All Environmental

University of Pittsburgh Prof Dan Volz challenges the “boom town” sales pitch for natural gas drilling in the Marcellus Shale - a model that claims the benefits far outweigh the risks.

“Much is said about the benefits of drilling in the Marcellus Shale,” Volz said.  “But none of the cost-benefit analyses touted by the gas industry and government take into account what is known as ‘public goods’ - like impacts on air and water.”

Shale Gas Rocks?

Volz’s point was illustrated in a recent “Energy Report” published by The Wall Street Journal (May 10, 2010).  The cover essay is titled, “How Shale Gas Is Going to Rock the World,” by Amy Myers Jaffe of the James A. Baker III Institute for Public Policy at Rice University.¹ (See “Links & Resources” below.)

Ms. Jaffe’s analysis of shale gas runs more than 2,000 words, yet “environmental risk” is dismissed in 129 words.  Amazing scholarship.

Perhaps Ms. Jaffe might want to listen to the audio file of Pennsylvania Governor Edward Rendell speaking to oil and gas execs at the “Natural Gas Nation” Policy Roundtable.  It was held in Dallas on March 25, sponsored by the George W. Bush Institute.² (See “Links & Resources” below.)

Gas Industry “Protector” Admits 5 “Challenges” - All Environmental

Rendell declares himself a “protector” of the gas industry and says, “I’ve been a good spokesman minimizing the potential for groundwater pollution.”

Yet he acknowledges “five challenges” involved in shale gas drilling - every one of them environmental.  They include: how to divert millions of gallons of water necessary for shale gas drilling; how to prevent gas migration; and what do we do with the frac water?  Hardly minimal risk to the environment.

Perhaps Ms. Jaffe and her colleagues at Rice could talk to landowners in their own state like Tim Ruggiero of Decatur, Texas.  The Ruggiero family has two shale gas drilling rigs 200 feet from their back door.  You can read about it here: http://www.spectraenergywatch.com/blog/?p=605

They have had numerous leaks and thousands of gallons of chemical spills on their property.  The videos of these events are staggering.  As Ruggiero tells folks, “I am not opposed to drilling.  I am opposed to being poisoned.”

Perhaps Ms. Jaffe could talk to victims of that rockin’ shale gas world and advocate solutions to the environmental risks.

Dr. Dan Volz is Assistant Professor of Environmental and Occupational Health at the Graduate School of Public Health at the University of Pittsburgh.  Volz is also Director for the Center for Healthy Environments and Communities there.  For additional background, see link: http://www.pitt.edu/~cdv5/Biography.htm

Here is the website link for the Center for Healthy Environments and Communities: http://www.chec.pitt.edu/

Invest 6 minutes with Dr. Volz.  Click on the “start” arrow on the screen, or at the bottom of the video screen.

Links & Resources

¹ Energy Report - “Shale Gas Will Rock the World” - from The Wall Street Journal: For those with a subscription to The Wall Street Journal, you can access the online version of the Energy Report at this link (you may have to cut and paste this link into your browser window): http://online.wsj.com/article/SB10001424052702303491304575187880596301668.html?KEYWORDS=shale+gas

² Governor Rendell made his comments at a policy roundtable called “Natural Gas Nation” on March 25, 2010. The conference was conducted by the George W. Bush Institute in Dallas, Texas.  Here is a link to the audio file of that roundtable discussion: http://georgewbushinstitute.files.wordpress.com/2010/03/ngn_05_roundtable.mp3

For ease of use, I made a transcript of the governor’s comments which can be accessed here.  In a few places where a word or phrase was unclear I’ve indicated that.  See p. 3 for the Five Challenges:  gov-rendell-ng-nation.

Finally, here is a link to the website for the “Natural Gas Nation” conference: http://georgewbushinstitute.com/natural-gas-nation/