Spectra Energy Watch

Gas Industry Wants Forced Pooling In Pennsylvania;

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

“Safety Is Our Franchise.  It’s What We Do”

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

Following is an e-mail message from Calvin Tillman, Mayor of DISH, Texas.  DISH, Texas, is in the Barnett Shale region.  The story of what citizens and property owners endure from the incredibly sloppy and unsafe operations of the gas industry have been told in previous posts on this blog site.  

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.

6-Minute Video Highlights - Pitt Prof Warns:

“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/

Speaking from Experience:

5-Minute Video Highlights with Ron Gulla;

2^nd Marcellus Shale Well in Pennsylvania

Drilled on His Property in 2005

Property owners thinking about signing a gas drilling lease should talk to landowners who have done it.  Make sure that dream of a shale gas “Powerball” win doesn’t turn into a nightmare.

Attached to this post is a 5-minute highlight video of Property Owner Ron Gulla talking about his experience.

In a sense, Ron owns a piece of Marcellus shale gas history, as Range Resources drilled the second Marcellus shale gas well in Pennsylvania in 2005.

And the company drilled it on Ron Gulla’s 141-acre farm in Hickory, Pennsylvania (Washington County).

Ron speaks knowledgeably about his experience with shale gas drilling, Range Resources and the Pennsylvania Department of Environmental Protection.  His advice to property owners wondering whether they should sign gas leases is simple:

“Never lease.  Why would you want someone to come on your property and dump chemicals?”

Invest 5 minutes with Ron Gulla and learn from his experience.  Click on the “start” arrow on the screen or at the bottom of the video screen.  Following are some additional resources you can evaluate.

Links & Resources

Gulla’s experience has been widely reported including two previous posts on this blog:

Ron Gulla (February 9, 2010): http://www.spectraenergywatch.com/blog/?p=522

Ron Gulla 2 (April 5, 2010): http://www.spectraenergywatch.com/blog/?p=546

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

Best Oil & Gas Development Practices - Here is a 6-page resource for elected officials and individual property owners 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_final1 It is sponsored by Earthworks at this website: http://www.earthworksaction.org/publications.cfm?pubID=444

Gibson’s Law Clerk from George Mason University Law School

Blogs About “Victims of Eminent Domain”

Then Deletes Comment from Victim of Eminent Domain

Penn State Grad Now Works for Judge Gibson in Johnstown, PA

Uses Smiley Faces

Why Did Law Clerk Censor Blog Comment?

Adverse Effects of Spectra Energy’s Eminent Domain

How often does one get a chance to help a law clerk for a federal judge grow in wisdom and grace on the issue of eminent domain?  In a blog yet.

Josh Blackman is a law clerk for Judge Kim R. Gibson of the US District for the Western District of Pennsylvania (Johnstown, PA).  Blackman is a graduate of Penn State University and George Mason University School of Law (Magna Cum Laude), where he was also an editor on the Law Review.

Mr. Blackman is in a position to examine first hand how judges treat the victims of eminent domain cases; and to confirm that property owners do not stand on a level playing field legally, economically or politically.

Self-Absorbed Blog

Law Clerk Blackman is the author of a breathlessly self-absorbed blog.  In a recent post on eminent domain, he was “proud to report that my most recent article [on eminent domain] has been published in the Loyola Law Review.”  Link to Blackman’s Post: http://joshblackman.com/blog/?p=4340&cpage=1#comment-3512

His post voiced sympathy for “victims of eminent domain takings,” but he quickly removed a comment from a victim of eminent domain and has declined to respond to two of my queries sent via his blog site.

Judge Kim R. Gibson

His boss, Judge Kim R. Gibson, could provide primary source material to Mr. Blackman.  And the eminent domain action took place in Bedford County, PA, not far from Johnstown where Gibson and Blackman are located.

On Sept. 19, 2008, Judge Gibson granted $5 billion Spectra Energy the right to take “immediate possession of and entry onto the [five] properties owned by the Defendants.”  Houston-based Spectra Energy came to Pennsylvania in order to seize property and/or property rights to construct a 12 billion-cubic-feet underground natural gas storage reservoir.  This project is known as Steckman Ridge.

The irony, as property owners can attest, is that Spectra Energy was already doing construction work on these properties.  Apparently, it was not afraid of offending the court prior to a decision.

“Irreparable Harm”

Attorneys have told me it is essential to establish “irreparable harm” in an eminent domain case.  In Gibson’s section on “Irreparable Harm to Steckman”- his decision appears to hinge on financial harm to Spectra Energy because the company won’t meet its commercial deadlines for making money by selling gas storage to other gas companies.¹ (For a pdf file of Gibson’s 36-page memorandum, see “Links & Resources” below.  The “Irreparable Harm” section is found on pp. 30-33 of his order; pp. 32-34 of the pdf file.)

Since when is it the public’s responsibility to ensure a company’s commercial success?  Gibson’s thoughts on “harm to Steckman” run 3 pages while the “harm to defendants” - otherwise known as “victims of eminent domain takings” -  is brushed away in less than a page (p. 33 of original document; p. 35 of pdf file).

It is always easy for theorists to manage other people’s lives.  But this post will look at the adverse effects of eminent domain under the subhead, Adverse Effects for Landowners.

“Public Interest”

In his section titled, “Public Interest,” Judge Gibson emphasizes supplying gas for the “heating season,” as if there were no gas available (emphasis added):

“The Court finds that timely completion of the natural gas storage facility will assist to a reasonably significant degree in ensuring an adequate supply of natural gas for the public during the 2009-2010 heating season (November 2009-March 2010). Failure to complete this project could have an adverse effect on the supply of natural gas for the public or could adversely impact natural gas prices.” (p. 34-35 of Gibson’s order; pp. 36-37 of pdf file)

For those who like to manage by facts, this is a significant assertion, yet it offers no facts in support of it - other than to cite three platitudes from the Federal Energy Regulatory Commission, which again offer no facts to substantiate concern about an alleged heating season supply crisis or price stability.

Spectra Energy’s 12 billion-cubic-feet underground natural gas storage reservoir was said to be vital to the public interest.  Apparently, however, Gibson was unaware of the fact that Pennsylvania has more underground gas storage fields than any other state in the continental US, according to the Energy Information Administration of the Department of Energy.² (For a link to the EIA report, see “Links & Resources” below.)

Eminent domain is an important issue that is getting a lot of attention in communities and states across the country.  Pennsylvania and New York will see more eminent domain takings because of the shale gas “boom” (Marcellus Shale — a big topic at Blackman’s undergrad alma mater, Penn State).  More drilling means more pipelines, which mean more threats of eminent domain; and perhaps even more underground gas storage reservoirs.

Surprise!  Our Blog Kept a Copy of JOSH’s Blog

Since Mr. Blackman invites comments, I twice posted essentially the above on his blog (mine was comment #6); but it was removed the same day.  Mr. Blackman has yet to reply to my queries as to why the comment was removed.

I anticipated Mr. Blackman’s action, however, and made a pdf file copy of the blog post while it still had my comment.³ Social media technology cuts both ways, Mr. Blackman.  (See “Links & Resources” below for a copy of the post with my comment — #6.)

Perhaps Mr. Blackman was concerned that Judge Gibson would chastise him for permitting one of the “victims of eminent domain takings” to have the temerity to challenge the judge’s rationale — even in such a small way as a comment on his law clerk’s blog.

This on a website that, in addition to blog posts, offers JOSHPICS, JOSHCASTS, AND JOSHVLOGS, to name only a few selections.

JOSHPICS, for example, is an album with more than 35 photos (at last count) of JOSH with legal and political celebrities.  Plus there are 25 photos of JOSH’s autograph collection with many of the same notables.

He even posts a video of his 91-year-old grandfather commenting on Chief Justice Roberts.  Then, as if to ensure grandfather doesn’t steal the show, JOSH notes:  “And you wonder where I get my opinionatedness from,” punctuated by a smiley face.  Seriously.  Here’s a pdf file copy: joshvlogs-c2ab-grandfather-smiley-face

It’s beginning to look like it’s all about JOSH!

Learning comes in two forms, it is said:  parchment (formal education) and scar tissue (life’s experience).  In an effort, to provide some of life’s wisdom and guidance to a law clerk and magna-cum-laude law school grad, here is a grown-up conversation for JOSH - with no smiley faces.

Open Letter to JOSH Blackman

From your website to your less-than-compassionate response to one of the “victims of eminent domain takings,” one infers that you are more comfortable with abstractions than real life.  (All the photos with legal and political celebrities are part of an abstract fantasy, just like the Supreme Court fantasy league on your website.)

As you tell the ABAJournal Blawgs Directory: “I am pursuing a career in legal academia, and hope to use this blog as a sandbox for my developing thoughts and ideas.”⁴ (See “Links & Resources” below.)

Children play in sandboxes; and trial law is not a place for children.  It has been said that trial law is the last true blood sport.  So it makes sense that you’d rather be in “legal academia.”

Stand Up for Your Principles

Part of your personal challenge as you strive to grow in wisdom and grace will be to stand up for your principles.  Unless, of course, you are merely substituting platitudes for principles because it feels good and sounds good.

If you really believe in “the victims of eminent domain takings,” don’t run from one because he critiques your boss’ decision.  (And shame on your boss IF he would be displeased with you because such a comment appeared.)

Yes, it is not easy to stand up to the boss.  I’ve gone toe-to-toe with CEOs, and it isn’t fun.  But I respected them and believed in my own point-of-view.  You can fight for your principles without being nasty or cowardly.

When your boss cited the three platitudes from the Federal Energy Regulatory Commission to justify the “public interest” taking, one of the points said in part (emphasis added):  “Based on the benefits the Steckman Ridge Project will provide to the market and the lack of any identified adverse effects on … landowners or communities….”

Adverse Effects for Landowners

Perhaps you and Judge Gibson would come to Bedford County and see what property owners now live with.  Remember the law of unintended consequences as it applied to the Supreme Court’s Kelo decision.

With its threat and power of eminent domain, granted under the badge of government, Houston-based Spectra Energy constructed its Steckman Ridge facility.  It is a 12 billion-cubic-feet underground natural gas storage reservoir, with a nearly 5,000 horsepower compressor station sitting on top, with more piping than a small city.  (See photos at bottom of blog post.)

Homes are nearby and an elementary school is 3 miles away.

Among the adverse effects, there are reports of contaminated water supplies and dead livestock.  At least one family has filed a lawsuit against Spectra Energy.

Among the adverse effects, there have been ongoing operational problems at this facility from the beginning.  This includes emergency shutdowns which result in uncontrolled release of gas (toxic volatile organic compounds) and sometimes oily contaminate into the air (and on nearby properties).

Both Spectra Energy and the Pennsylvania Department of Environmental Protection (DEP) keep repeating that such shutdowns/blowdowns are “not uncommon.”  Both use identical language, but they refuse to furnish the stats.

After months of prodding, Spectra Energy finally admitted, “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.”

The company also declines to let me interview the project engineer for this facility.  Why?  Wouldn’t an engineer who led the team to build this facility be able to answer questions with fact-based responses?  Wouldn’t he be proud to verify that this facility was built to the highest engineering standards?

Unless it wasn’t.

Could Judge Gibson Help Us Get Info?

Hey, maybe the judge could issue an order requiring Spectra Energy to release its data and permit its project engineer to answer questions!  A little pro bono work to help victims of eminent domain.

One government official told me, “We are mystified at why this compressor station is having a lot of problems.  Compressor stations do not typically have lots of hiccups…. This is not new technology … it is standard technology, at least 50-60 years old.”

In the meantime, based on unofficial record keeping by nearby landowners, there have been 25 shutdowns and/or blowdowns of the Steckman Ridge compressor station between August 23, 2009 (the first, big emergency shutdown) and the end of April 2010.

Why must the victims of eminent domain assemble information on the ongoing performance problems at this facility?  Why doesn’t Spectra Energy disclose the information?  It keeps telling everyone in sight that it wants to be a good neighbor.

And gives out refrigerator magnets to prove it.

Track Record Looks Like a Rap Sheet

Our concern is significant because Spectra Energy has a track record that looks like a police rap sheet (a little legal lingo there):

• “Unlawful Conduct” - The Pennsylvania DEP has issued two Notices of Violation for the company’s “unlawful conduct.”⁵ (See “Links & Resources” below.)

• Fiery inferno - Spectra Energy’s underground gas storage reservoir outside of Houston (Moss Bluff) suffered catastrophic failure in 2004 with two explosions, 6 days of fire with flames as high as 1,000 feet and two evacuations.  The company does not want to talk about it.  The project manager at FERC told me they were not aware of this when they approved Spectra Energy’s proposal for the storage reservoir in Bedford County.⁶ (See “Links & Resources” below.)

• PCB Contamination - Spectra Energy acknowledges in its Form 10-K (filed with the Securities and Exchange Commission on Feb. 27, 2009) that, “some of our pipeline systems are contaminated with [toxic] PCBs.”  The EPA has concluded that PCBs cause cancer in animals and are a probable human carcinogen.⁷ (See “Links & Resources” below.)

• Top Civil Penalty Ranking - Spectra Energy’s Texas Eastern pipeline division is tied for #7 on the EPA’s list of the 21 “Top Civil Penalty Cases of All Time” - the National Enforcement Trends (NETs) document which is on the EPA website.  The $15 million penalty was for massive PCB contamination along the company’s 9,000-mile pipeline.⁸ (See “Links & Resources” below.)

It seems reasonable to conclude that Spectra Energy is in Pennsylvania to capitalize on the so-called Marcellus Shale “boom” - about which there is much controversy on whether the risks will outweigh the benefits.

Approved for Hydraulic Fracturing & Toxic Chemicals

You see, JOSH, while this is a so-called storage reservoir, Spectra Energy has drilled and is operating 13 injection/withdrawal wells; and has permission from the Federal Energy Regulatory Commission (FERC) to drill 10 additional wells for a total of 23.

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.”  Several of the chemical compounds listed in the MSDS papers are identified as cancer causing or probably carcinogenic.

FERC further acknowledged that, “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.”  Sand, water and chemicals - hydraulic fracturing, with all of its environmental problems.

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

So, JOSH, thanks for your less-than-compassionate response to the “victims of eminent domain takings.”  May you grow in wisdom and grace.  And may you and your family never, ever face the threat of eminent domain, and the adverse effects that follow.

Links & Resources

¹ Memorandum Opinion and Order of Court - Judge Gibson’s opinion ruling against property owners and for big gas, Houston-based Spectra Energy. Note:  Because of a distribution memo on the front, there is a two-page difference in the pagination cited between Gibson’s memorandum and opinion and the pdf file. Thus page 33 of Gibson’s order is page 35 of the pdf file:  memorandum-opinion-order-of-the-court

² The EIA report on underground gas storage fields in Pennsylvania and the US is available at this link: http://www.eia.doe.gov/pub/oil_gas/natural_gas/analysis_publications/ngpipeline/undrgrnd_storage.html

³ Josh Blackman’s original blog post with uncensored comments – see pp. 4 &5 of pdf file: kim-gibsons-law-clerk-blog-eminent-domain1

⁴ ABAJournal Blawgs Directory: josh-blackmans-blog-blawgs-aba-journal

⁵ 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” day, the DEP announced it had fined Spectra Energy a pathetic $22,000 for air and water quality violations at its Steckman Ridge compressor station.

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

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

⁶ Fiery Inferno - This post on this incident is detailed and offers external sources for verification.

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

^{7, 8} 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

Clearville’s Blog -  For more perspective on the adverse effects of Spectra Energy’s operations in Bedford County, check out this blog and its video posts.  In particular, see these two posts:

Clearville “Big Bird Report” Spectra Energy’s Steckman Ridge Compressor Station 2010: http://clearville.wordpress.com/2010/01/27/clearville-big-bird-report-steckman-ridge-compressor-station-2010/

Spectra Energy’s Steckman Ridge Compress Station & Chemical: 1,2 Dichloroethane: http://clearville.wordpress.com/2010/01/26/352/

Spectra Energy's Steckman Ridge compressor station in Bedford County, PA, with home and child's playset nearby. It has had ongoing operational problems since its startup. (Click on photo to enlarge.)

This is a portion of the Spectra Energy facility which looks like a small city and sits on top of a 12 billion cubic feet underground gas storage reservoir. (Click on photo to enlarge.)

Welcome to the land of "adverse effects" on property owners, thanks to eminent domain brought by Spectra Energy, the Federal Energy Regulatory Commission, and the court. (Click on photo to enlarge.)

Landowner:  Gas Companies will Continue to Behave Badly

Until Made to Stop

Ruggiero Family Story:  Can’t Happen Here?

Mayor Tillman:  Average Barnett Shale Well Loses Half

Production After 1^st Year

Texas Landowner Tim Ruggiero: "Gas companies will continue to behave this way until they are made to behave differently."

Mayor Calvin Tillman speaks to audience members after presentation in Clearville, PA.

“I am not opposed to drilling.  I am opposed to being poisoned.”

These words of Tim Ruggiero, a Texas landowner from Decatur, Texas, are worth repeating and remembering.

Both Ruggiero and Mayor Calvin Tillman of DISH, Texas, recently spoke to audiences in New York City, Philadelphia, Clearville, Midway and Pittsburgh, PA.

They traveled at their own expense to share their personal experience with the shale gas “boom” in Texas via the Barnett shale.  Their goal is to educate landowners and elected officials in Pennsylvania and New York on what to expect from the so-called Marcellus shale boom - beyond the glittering promises of the gas industry.

It is a tough love message.  They say they do not want what happened in DISH and in Decatur to happen elsewhere.

They want hopeful landowners and public officials to understand that while jobs and money for some may or may not result from drilling activity in the Marcellus shale, residents and communities should be prepared to deal with air and water contamination; deceptive practices (and promises) from the gas industry; and little or no help from government regulatory agencies.

This point-of-view is not from theorists who have no skin-in-the-game with gas drilling.  It is from a landowning family who now have a huge gas rig 200 feet from their back door and who are dealing with documented air and water contamination, including irresponsible practices at the drill pad that are creating health problems.

It is from a small town mayor who received little or no response from the gas companies and state regulatory agencies until the town council agreed to spend 15% of its annual $70,000 budget for an air study which “confirmed the presence of multiple Recognized and Suspected Human Carcinogens in fugitive air emissions.”

For background (including a copy of the air study plus other documents), read part 1 of Tillman’s and Ruggiero’s message to audiences: http://www.spectraenergywatch.com/blog/?p=577

Ruggiero Family Story

The Ruggiero family education on the behavior of gas companies had a nasty beginning.  Here is their story as Ruggiero tells it:  On the morning of September 16, 2009, Aruba Petroleum waited until the Ruggiero family left for work and school, then used cutting torches to open a 50-foot-wide section in their pipe and cable fence.

Aruba then brought in 5 or 6 bulldozers and backhoes through the fence to prepare a drilling pad near their house.  The company and some 30 employees bulldozed 3 of the family’s 10 acres and filled the area with gravel.  They now have a huge gas rig on a well pad 200 feet from their back door.

Welcome to the ‘Split Estate’

Aruba and other gas companies can do this because the law says they can.  Split estate refers to the fact that, in many western states, mineral rights are often severed from surface rights in such a way that property owners who own the surface rights have little control over their property.¹ (Refer to documentary film on this subject, titled “Split Estate.”  See “Links & Resources” below.)

While terms may be different, Pennsylvanians and property owners in other states are familiar with mineral rights being severed from surface rights in the chain of title.  In Texas, mineral rights dominate surface rights to an extant that the owners of the surface rights have little protection, according to Ruggiero.

Aruba Petroleum’s site supervisor delivered a terse message to the family.  The company would be drilling not one, but two wells on their property.

Good Neighbor Policy

Ruggiero describes what happened at their first meeting following Aruba’s forced entry onto their property:  “The site supervisor, held a one-page surface-use agreement, and said, ‘Texas law says that we only have to give you $1,500 per site.  But since we’re such good neighbors - and we want to be a good neighbor - we’re giving you $15,000 per site.  In other words, if you sign this, you’ve got $30,000.  Or if you don’t sign it, we’re only going to give you $3,000.  Either way, those 3 acres are now ours.’”

The new “good neighbor” added a frac tank to hold the produced water; four condensate tanks, an incinerator, and a waste water pit.

Hydraulic fracturing or “produced water” is a combination of water, sand and toxic chemicals, according to Dan Volz, Assistant Professor of Environmental and Occupational Health at the University of Pittsburgh.  For more information, see the April 12 post on Dr. Volz’s comments: http://www.spectraenergywatch.com/blog/?p=563

Ruggiero notes, “We have had numerous leaks and thousands of gallons of chemical spills on our property.”  One evening at 10:00 pm, for example, as he checked his property (they own two horses), he heard a “venting sound.”

“One of the hatches on top of a condensate tank was open and the [liquid] condensate and the gas was gushing out of the tank like a geyser,” Ruggiero said.  “It was coming out in surges.  You could see it running down the side of the tank and going off into the air.”

No one showed up until 9:00 am the next morning.  The contaminated geyser ran all night and Ruggiero made a video.  Several videos from the Ruggiero property can be seen on YouTube, among other places.² (See “Links & Resources” below.)

The operator’s hazardous materials response came in the form of a crew that power washed the condensate tanks.  As Ruggiero makes clear, the company’s response to its spill was to wash the contaminated liquid into the ground.

9,000 Gallon Spill

“There have been so many spills and leaks on our property that I started writing them down, because you can’t keep up with them otherwise,” Ruggiero says.  He speaks of leaks from the frac tank, condensate tanks, leaking hoses, valves, methane leaking out of the ground through saturated soil, “fugitive emissions” captured via infrared cameras - the list goes on.

Ruggiero shared details on one spill with this blog.  It involved at least 9,000 gallons from the condensate tank to the frac tank, he said.  “We tested the produced water and found BTEX in it,” he adds.

BTEX is an acronym for benzene, toluene, ethylbenzene and xylene - four volatile organic compounds (VOCs).  On the subject of benzene alone, for example, the Agency for Toxic Substances & Disease Registry reports:  “The International Agency for Research on Cancer (IARC) and the EPA have determined that benzene is carcinogenic to humans.”³ (See “Links & Resources” below.)

‘Gas Gang’ Behavior

Ruggiero’s assessment is sobering:  “If they’re behaving this badly on one site, 200 feet outside my back door, what are they doing on remote sites, or sites where access is only through locked gates?”

“We’re not getting any help from the two agencies that are supposed to be protecting us, our health, our kids and our property from all of this nasty stuff,” he said.  “They pretend to.  They talk a good game.  They generate lots of paper … but nothing ever really gets done. Nothing.”

Ruggiero calls these companies the “gas gang.”  If they show up on your property, watch out, he warns.

“These folks make promises they have no intention of keeping,” he says.  “We know there are people with contaminated water.  There are people who have health issues, people who are losing their livestock.”

“If it can happen to me, it can happen to you,” he says.  “Gas companies will continue to behave this way until they are made to behave differently.”

Beware of Moles

Mayor Calvin Tillman of DISH, Texas, is about one-half hour from Decatur where Tim Ruggiero lives.  His experience is as mayor of a small town with 11 pipelines and as many compressors, 18 gas wells and four gas metering stations.

One piece of advice he shares with audiences is to beware of “moles.”

“A lot of times, when the energy companies come in, they’ll find somebody who may be a community leader, somebody who is outspoken, somebody who knows everybody, somebody who’s been around for awhile,” he said.

“They’ll say to that person, ‘Hey, I’ve got a deal for you.  You get all these people here to sign up - and I’ll give you two percent of all the royalties.’”

“That could be a lot of money,” Tillman says.

“So if there is someone who is particularly interested in you signing over your minerals, there may be a reason why.”

Shale Gas ‘Powerball’

Tillman joked about folks who think they will move to Beverly Hills once they sign a lease.  But royalty payments may not be as high as landowners hope; and they may drop off rapidly with the declining productivity of shale gas.

In the Barnett shale, Tillman says he has found leases ranging from $75 per acre to $30,000 per acre.  He notes that, “The $75 per acre probably dates back to the 1980s because they started testing the fracturing technology and were leasing back then.”

“The $30,000 per acre was a couple of years ago when market prices for natural gas were so high,” he adds.

Royalty rates he has looked at range from 12% to 30%.  “Obviously, depending on the market and on what lease you sign, royalty payments can vary dramatically.”

But there is another factor in the reality of shale gas.  “In the Barnett shale, the average well loses half of its production after the first year,” Tillman says.

If the market price of natural gas drops, he adds, “They turn down production on the wells. They scale way back.”  Guess what that means to royalty payments?

Similar economics apply to communities, especially small communities, according to Tillman.  It is very easy for small towns to become dependent on the tax revenue from minerals.

Tillman likens it to heroin addiction.  The town of DISH once received 60% of its property tax revenue from minerals, according to Tillman.

“In Texas, minerals are taxed just like your house or real property,” he explains.  “So you can get an immediate revenue boost if you’ve got minerals in your community.”

“When shale gas wells lose 50% of their production after the first year, communities may discover they can’t pay for that new fire station,” Tillman says.  “You end up having shortfalls in your budget; and you’ve got to raise taxes to build new schools.”

Help Industry Do the Drilling Right

Texas Landowner Ruggiero told this blog:  “The oil and gas industry has had a 150-year head start, but we’re making progress.  I’m not trying to stop the drilling.  I’m trying to get them to do it right.  There is a right way to extract gas and a right way to treat individuals and communities.  Gas companies will continue to behave badly until they are made to behave differently.  We need to help industry do the right thing, because they won’t get there on their own.”

Links & Resources

¹ Split Estate - a high-quality, 76-minute documentary film about the challenges faced by property owners in several western states as they deal with energy companies that seem to have no boundaries.  The title refers to the fact that in these states, mineral rights are often severed from surface rights in such a way that property owners have little control over their property.  Health and environmental problems follow.  Link:  http://www.splitestate.com/

² See videos of Aruba Petroleum’s irresponsible practices on the Ruggiero’s property on Txsharon’s Channel on YouTube: http://www.youtube.com/user/TXsharon

³ Agency for Toxic Substances & Disease Registry (ATSDR) - Based in Atlanta, George, the ATSDR is a federal public health agency of the U.S. Department of Health and Human Services.  Here is a 2-page pdf file of the agency’s ToxFAQ^TM on Benzene:  atsdr-on-benzene

Best Oil & Gas Development Practices - Here is a 6-page resource for elected officials and individual property owners 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 It is sponsored by Earthworks at this website: http://www.earthworksaction.org/publications.cfm?pubID=444

Corinth, Texas - is an illustration of what communities and local governments face when dealing with the gas industry.  XTO says it wants to put two wells on 24 acres; but it also asked for variances on 11 local ordinances related to gas drilling.  Instead of a required 600 feet setback from homes, for example, it asked for a variance to drill as close as 100 feet.  Initially, the company would not disclose future plans; but after much prodding admitted it wanted to drill more than two wells on 24 acres.  One homeowner led the charge to activate citizens about what was about the happen in their community.  Check out the following links:

Corinth Cares: http://corinthcares.wordpress.com/about/

News Report - “Residents:  No to XTO - People push Corinth to deny request for 11 drilling variances”            Denton (Texas) Record Chronicle, April 17, 2010 http://www.dentonrc.com/sharedcontent/dws/drc/specialprojects/drilling/stories/DRC_Corinth_XTO_0417.2556e5722.html

Christine Ruggiero - After reading Tim Ruggiero’s story in this blog, you may also want to read the perspective of his wife, Christine.  It can be located at this link:  http://www.earthworksaction.org/cv_DecaturTX_ruggiero.cfm

Two Texans Share Shale Gas Experience:

Gas Industry Is Deceptive; Government Won’t Help You

‘Not Opposed to Drilling - Opposed to Being Poisoned’

Mayor Calvin Tillman of DISH, Texas, speaks at Clearville, PA, Community meeting, one of 5 stops in Pennsylvania and New York.

Tim Ruggiero, Texas Landowner from Decatur, Texas, tells audiences, "I am not opposed to drilling. I am opposed to being poisoned."

Two Texans who live with the “boom” of the gas-rich Barnett shale are traveling across the country to warn citizens living above the Marcellus shale that they can expect:

• Air & water contamination

• Lies, half-truths and deception from gas companies

• Little or no help from government regulatory agencies

Mayor Calvin Tillman of DISH, Texas, reminds audiences that, “Once you know, you can’t NOT know.”

In other words, as citizens understand the escalating problems of gas drilling in their neighborhood - from noise to odors to evidence of elevated toxins in their own blood samples - the situation cannot be ignored.

Opposed to Being Poisoned

Tim Ruggiero’s business card says “Texas Land Owner.”  He and his family live in Decatur, Texas, not far from DISH.  As he puts it, “I am not opposed to drilling.  I am opposed to being poisoned.”

Both Tillman and Ruggiero recently spoke to audiences in New York City, Philadelphia, Clearville, Midway and Pittsburgh, PA.  They make a point of telling listeners that they travel at their own expense.  In response to a question from this blogger, they explain their motivation this way:

Ruggiero: “My wife and I are not the first two people to get run over by the gas industry.  If we can get the industry to behave in an ethical and moral manner, it will have been worth our efforts.  Otherwise, the gas industry will keep behaving badly until they are made to stop.”

Tillman: “What happened in DISH, Texas, doesn’t have to happen here.  Maybe, together, we can make changes in the way the gas industry and government regulators operate.”

Because of verbal attacks by the gas industry, Tillman tells audiences, “I’m not a paid lobbyist.  I’m not on a crusade to end gas drilling.  I don’t get paid to be the mayor of DISH, Texas.  I’m not getting paid to be here.  I’m using my vacation from my real job, and I paid my own way here.”

Gas industry executives cannot make the same claim, whether they are from Spectra Energy, Range Resources, Chesapeake Energy, Cabot Oil & Gas, American Petroleum Institute, Marcellus Shale Coalition or America’s Natural Gas Alliance - to name only a few.

Where is DISH, Texas?

DISH, Texas, is a small town about 25 miles north of Fort Worth.  It is two square miles in size with a population of less than 200, according to Mayor Tillman.  It has an annual budget of about $70,000.

The town was originally incorporated with the name of Clark in 2000; but changed its name to DISH in 2005 in exchange for ten years of free DISH network - hence the unusual spelling.

More important to folks living above or near the Marcellus shale formation, which runs through Pennsylvania, New York, West Virginia and Ohio, is the town’s experience with the shale gas boom and everything that comes with it.

DISH is situated on a major pipeline route out of the Barnett Shale.  “We have 11 natural gas pipelines that converge on our little community,” Tillman says.  “Along with those 11 pipelines, we have 11 compressors.  We have 18 gas wells within our two square miles and four gas metering stations,” he adds.

More wells are outside the town’s corporate limits.  “In addition, the very first gas well that was ever fractured - using the current slick water fracturing technology now common in shale drilling - was developed about 15 miles from DISH,” according to Tillman.

DISH & Shale Gas Experience

The DISH experience with shale gas problems evolved over a 5-year period.  What began with noise from 11 compressors that collectively had about 20,000 horsepower escalated to health problems.

Five gas companies have compressors in DISH, or just outside its borders:

• Enbridge Energy

• Energy Transfer

• Atmos

• Chesapeake

• Crosstex

“From property line to property line where the compressors are located, all the trees are dead or dying,” Tillman says.  Odors became a huge problem as glycol dehydrators were added.

Except for efforts to reduce compressor noise, the gas companies replied to each complaint by denying there was a problem.  State regulatory agencies provided no relief, according to Tillman.  For example, an agent from the Texas Commission on Environmental Quality (TCEQ) said he could smell an odor but his official report said the source could not be located.

With no relief in sight from either the gas companies or the TCEQ, the DISH town council approved spending 15% of its $70,000 annual budget for its own air study, conducted by Wolfe Eagle Environmental.¹ (See “Links & Resources” below.)

Once You Know, You Can’t NOT Know

The town decided to act, according to Tillman, even if the gas companies and the state government would not.  As he says, “Once you know, you can’t NOT know.”

Wolfe Eagle Environmental took air samples at 7 locations and reported that 16 toxins were detected above what is referred to as the Effects Screening Level (ESL).² (See “Links & Resources” below.)

Under section 6 of the report (p. 6) it states (emphasis added):  “Laboratory results confirmed the presence of multiple Recognized and Suspected Human Carcinogens in fugitive air emissions present on several locations tested in the town of DISH.  The compounds identified are commonly known to emanate from industrial processes directly related to the natural gas industrial processes of exploration, drilling, flaring and compression.”³ (For a copy of the report, see “Links & Resources” below.)

The gas industry challenged the validity of the air study, according to Tillman.  “They even went as far as to say that the Texas Commission on Environmental Quality debunked our study, said it was no good.”

In fact, the mayor said, the TCEQ wrote a memo essentially validating the study then did their own testing and published the results in a 313-page report.

TCEQ on Benzene’s ‘Adverse Health Effects’

Indeed the agency’s carefully worded memo, dated October 27, 2009, acknowledges that there is a problem (emphasis added):  “The highest potential 1-hour maximum benzene concentration is below the health effects level observed in short-term animal and human studies; however, it is possible that adverse health effects could occur from exposure to this concentration.”

The memo adds that the agency (emphasis added) “is concerned that the monitored concentrations of benzene at several of the sampling locations could pose a long-term health risk to residents in the area if the concentrations are representative of normal and prolonged ambient conditions.”⁴ (For a complete copy of the 6-page TCEQ memo, see “Links & Resources” below.)

The TCEQ then followed up with its own study of air quality in the Barnett shale area of North Texas, and published the results in January 2010.

According to a TCEQ press release, 94 sites were tested.  At most of these sites, “chemicals were either not detected or were detected below levels of health concern.”  But one quarter of the test sites raised toxicity questions.

In the words of the TCEQ press release:  “However, two monitoring sites had relatively high levels of benzene. In addition, 19 monitoring sites registered benzene concentrations higher than the TCEQ would like to see.”

Gas Production - “Unsafe” Contaminants

Despite its cautious wording, the TCEQ press release acknowledged the potential health problems that come with gas drilling and related activities:  “Although the results are complex, it is clear that gas production facilities can, and in some cases do, emit contaminants in amounts that could be deemed unsafe for life-time (70 years) or long-term exposure. However, at only two monitoring sites were benzene levels found that would trigger immediate actions to reduce emissions.”⁵ (For a link to the TCEQ press release, see “Links & Resources” below.)

TCEQ alleges that what it called two benzene “hot spots” in DISH have been “identified and corrected” by the gas companies.

But the agency also announced that it would investigate citizen complaints about gas and oil production areas within 12 hours.

In addition, it would install a continuous air monitor in DISH “to get a better understanding of long-term ambient air conditions.”

In an e-mail sent April 22, Mayor Tillman said the air monitor is up and running.  “It is now available 24 hours a days seven days a week.  I am thrilled with this development, and this is a real victory for the citizens of this community.  You may see the data at the link below, and please spread the word.”

Link to TCEQ’s air monitoring web page:

http://www.tceq.state.tx.us/compliance/monitoring/air/monops/agc/agc_barnett.html

Tillman offers several recommendations to improve the shale gas extraction process and minimize negative health effects on the environment and individuals:

1.    Pennsylvania & New York should impose a severance tax on gas companies when they extract and produce gas.  Currently, PA & NY are the only two states that do not have a severance tax, out of more than 30 states with gas drilling activity.  Tillman urges his audiences to “Write your state legislators and tell them to do this; but tell them to put the severance tax to work on regulating natural gas drilling to make it cleaner and safer for the environment.  Otherwise, legislators will use the revenue from a severance tax to cover other budget shortfalls.”

2.    Require the latest emissions technology -

a.    Use a closed loop system to eliminate plastic-lined holding pits, trenches or ponds for liquid drilling waste;

b.    Install vapor recovery units on condensate tanks to reduce or eliminate emissions of volatile organic compounds (VOCs);

c.     Use zero emission glycol dehydration units;

d.    Use pneumatic ‘no-bleed’ valves to prevent fugitive emissions (which can’t be seen with the naked eye, but such vapors can be seen with an infrared camera);

e.    Recycle the flowback frac water to reduce the amount of fresh water used in hydraulic fracturing;

3.    Make some areas off limits to drilling or related activities - No drilling or pipeline activities should be permitted near homes, schools or houses of worship.

4.    Local governments should have the ability to impose drilling ordinances - these might include road-use agreements and set backs of 1,000-feet or more to prevent drilling, pipelines or related operations near homes, schools or houses of worship.

5.    Pretest before drilling - communities should perform air and water tests prior to drilling and follow up at appropriate intervals to see if air or water quality has changed.

Note:  Next week’s blog post will cover Texas Landowner Tim Ruggiero and his family’s experience with shale gas drilling.  As Mayor Tillman says, “It sucks to be the example” for bad behavior from the gas companies.   For example, Aruba Petroleum waited until the Ruggiero family left for work and school one morning, then used cutting torches on their fence in order to move bulldozers and backhoes onto their property to prepare a drilling pad next to their house.

Mayor Tillman talks about the economic impact of shale gas on small towns, and the declining productivity of shale gas wells - surprising in light of all the “benefit” studies about shale gas production.  In addition, Tillman advises audiences to beware of “moles” in their communities who may be enlisted by gas companies to sell the benefits of drilling in your community.

Links & Resources

¹ Wolfe Eagle Environmental Website: http://www.wolfeagleenvironmental.com/site/

² Effects Screening Levels (ESLs) are explained on the website of the Texas Commission on Environmental Quality (TCEQ).  According to the TCEQ, ESLs “are used to evaluate the potential for effects to occur as a result of exposure to concentrations of constituents in the air.”  For a full explanation, see the ESL page: http://www.tceq.state.tx.us/implementation/tox/esl/ESLMain.html

³ Town of DISH, Texas - Ambient Air Monitoring Analysis - Final Report, Prepared by Wolf Eagle Environmental, September 15, 2009.  This is the complete 9-page report:  dish-air-quality-report-9-09

⁴ Interoffice Memorandum of Texas Commission on Environmental Quality, October 27, 2009 - The TCEQ reviews the air monitoring study by Wolf Eagle Enviromental and concludes there is cause for concern.tceqhealtheffectsreview

⁵ TCEQ Completes Study on Air Emissions in Barnett Shale (press release):

http://www.tceq.state.tx.us/comm_exec/communication/media/1-10BarnettShale1-27

Beware ‘Boom Town’ Sales Pitch

For Marcellus Shale Drilling, Pitt Prof Warns

New Website & ‘Neighborhood Well Watch’ Training

Coming from Pitt’s Center for Healthy Environments & Communities

Pitt Professor Dan Volz warns folks to be skeptical of the 'boom town' pitch for gas drilling.

Chuck Christen of Pitt spoke about a new website and training program about to begin.

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

Volz spoke to an audience of more than 40 property owners who gathered at an informational meeting on gas drilling issues in Clearville, PA:

He and five other speakers spoke and answered questions at the meeting held at the Pleasant Union Church Building.  See the first post on this meeting, published last week: http://www.spectraenergywatch.com/blog/?p=546

The Pitt Prof noted that hydraulic fracturing fluid is more than water and sand, as some suggest.  It includes a mix of chemicals in a gel form and these chemicals include toxins like endocrine disruptors.

In addition, he said, “When you hydro frac rock - or inject this water-sand-chemical mix into the shale in order to push out the gas - you are also picking up heavy metals and other harmful elements from the shale formation itself.”

So the production water that is injected into the shale to push out the gas contains toxic chemicals.  And the flowback water which returns to the surface now contains heavy metals on top of that.

“No adequate disposal or treatment exists for water used in the hydraulic fracturing process to extract natural gas from shale formations like the Marcellus,” Volz said.  “And we are talking about millions of gallons of water.”

As one report indicates, a single, typical horizontal well in the Marcellus Shale requires from 1.5 million to 9 million gallons of water during the 4-6 weeks of hydraulic fracturing that takes place.¹

“Some of this water is disposed of in sewage treatment plants - which does nothing to purify the water,” Volz told the audience.

For those who might be considering leasing, Volz advised, “Get your water tested for the byproducts of gas operations before any drilling begins on or near your property.  And use a state-accredited testing lab.”

“Bond together with your neighbors,” he added.  “Hire good lawyers; and ask to see detailed plans, including how your property will be impacted and put back together.”

Potential lease signers might also want to read two previous posts on this website:  Marcellus Powerball at this link: http://www.spectraenergywatch.com/blog/?p=494

And Sweet Lease 1 at this link: http://www.spectraenergywatch.com/blog/?p=504

This was a return visit to Clearville for Volz and colleague Chuck Christen, Director of Operations for the Center for Healthy Environments and Communities (CHEC) at the University of Pittsburgh.

Last year, they spoke with area residents and listened to landowner reports about possible environmental and health effects related to gas drilling operations.

On this return trip, Christen provided an update on several areas of activity.

Baseline Research

A baseline research proposal to understand the health and environmental impact of gas drilling has been submitted for funding, he said.  Pitt’s Center for Healthy Environments and Communities (CHEC) will collaborate with others like John Stolz, Professor of Environmental Microbiology at Duquesne University, who also addressed the audience.

“For example,” Christen said, “where does the frac fluid go once it is in the ground, because not all of it comes back up to the surface.  The disposal of frac water is a big issue; and it will be part of our research at Pitt.”

“But good research takes time,” Christen cautioned.  “Even if we started in July, we’re probably not going to have information back for at least a year or more.”

In the meantime, there is much that can be done, he said.  “As a participatory, community-based environmental research center, CHEC is moving ahead in several areas.

New Website:  Gathering & Sharing Information

CHEC will soon launch a website to collect, organize, share and distribute information citizens can use to monitor and track the impact of gas drilling operations.  The website will also provide information tools to help educate the public.

The software on the website is so easy and effective to use, Christen said, that it is being introduced to an Amazon tribe to track logging that is infringing on their lands - some 600,000 acres of the rainforest.

“For example,” he said, “you could use the software on this website to create a map showing how many drilling sites are found in a 25-mile radius from where we sit.”

A sign-up sheet was provided for members of the audience who wanted to begin providing information for the project.

‘Neighborhood Watch’ Workshops

Pitt’s CHEC team will soon start to train citizens on what to observe about gas drilling operations and how to report it.  Christen said they would work through a range of organizations, including Trout Unlimited, local rod and gun clubs, fishing clubs, Sierra Club, League of Women Voters and more.

In the meantime, citizens can go to CHEC’s website where there is a section on Marcellus Shale that is updated regularly.  Link: http://www.chec.pitt.edu/MarcellusShale.html

Coming up, the Mayor of DISH, Texas, Calvin Tillman, is taking on the gas industry for environmental and health problem surfacing in Texas and in states across the country.

Mayor Tillman is returning to Pennsylvania and New York for a “Marcellus Shale Public Speaking Tour.”  One of his stops will be in Clearville, PA, on Saturday, April 17 at 7:00 pm.  This meeting will be held at the Pleasant Union Church in Clearville.

Links & Resources

¹ Worth reading: Hancock & The Marcellus Shale, 40-page booklet from Columbia University’s Urban Design Program, published in the Spring of 2009.  Easy-to-read, illustrated report on what to expect.  Available as a downloadable pdf file: <http://www.osiny.org/custom/HancockAndTheMarcellusShale.pdf> [For the water usage reference, see "Water Withdrawal," p. 10 on print document; p. 14 of pdf file.]

Speakers on Natural Gas Drilling, Clearville, PA

Ron Gulla - a property owner from Hickory in Washington County, PA (outside of Pittsburgh), who speaks knowledgeably and passionately about his personal experience with Range Resources and the Pennsylvania Department of Environmental Protection.  See previous post: http://www.spectraenergywatch.com/blog/?p=546

Conrad Dan Volz - 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

Chuck Christen - Director of Operations for the Center for Healthy Environments and Communities (CHEC) at the University of Pittsburgh.  Website link: http://www.chec.pitt.edu/

John Stolz - Professor of Environmental Microbiology and Director of the Center for Environmental Research and Education at Duquesne University.  For additional background, see link: http://www.duq.edu/science/faculty/stolz.cfm

Ken Gayman - Society for Pennsylvania Archaeology, Vice President of the Mon/Yough Chapter #3.  The Society is attached to California University of Pennsylvania (California, PA).  He has addressed forums on the protection of archaeological sites and ground water from gas drilling.  He is a former combat Marine who will not permit gas companies to drill on his property.

Diane Kisner - Laboratory Manager with Mountain Research, a state-accredited environmental engineering and laboratory services company serving customers in Pennsylvania, West Virginia, Maryland, Virginia and Ohio.  Toll-free phone:  800-837-4674.  Website: http://www.mountainresearch.com/