fracking

Mon, 2013-11-25 05:00Sharon Kelly
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Banks Reluctant to Lend in Shale Plays as Evidence Mounts on Harm to Property Values Near Fracking

Over the past several years, the fossil-fuel industry has been highly adept at publicizing the economic upshots of fracking: royalty checks, decreased prices for oil and gas, profits for investors. 

But the industry is far less eager to discuss the hidden costs of the current drilling boom – the longterm price of air and water pollution, the consequences of undermining a nascent renewable energy industry, the harms from accidents when moving and storing all the hazardous waste fracking produces. 

Add to that list of hidden costs one that is starting to grab more attention from bankers and the real estate industry: property values and mortgage problems. New research, for example, demonstrates that the vast majority of prospective buyers say they would decline to buy a home near oil and gas drilling.

As millions of Americans sign oil and gas leases granting the right to companies to extract fossil fuels from their land, they are realizing that these documents often conflict with their mortgages, which is leading to all manner of legal and financial headaches, and make it harder to sell homes on land whose oil and gas rights are leased.

Concern about these impacts is spreading in southern states like Texas, Alabama and Florida, according to a survey due for release in the next several weeks from the University of Dever. In northeastern states like Pennsylvania, fracking worries have prompted lenders to begin rejecting mortgage applications due to gas drilling – on neighboring property. In Colorado, real estate brokers describe keeping a long list of sellers in heavily fracked areas, but a paucity of buyers. 

Under the terms mortgage buyers like Fannie Mae and Freddie Mac require, “you cannot cause or permit any hazardous materials to be on your property and it specifically references oil and gas,” Greg May, vice president of residential mortgage lending at Tompkins Bank, told American Banker in an interview published Nov. 12. “That alone would make it a problem.”

The repercussions for the American real estate market could be enormous. More than 15.3 million Americans – roughly one out of every 20 people living in the U.S. – now live within a mile of an oil or gas well that was drilled since 2000, the Wall St. Journal recently reported

And that may be just the tip of the iceberg since shale gas and oil wells require ongoing drilling for them to stay productive. In 2010, for example, Pennsylvania regulators predicted a more than 10-fold increase in shale wells in their state over the next couple decades.

Fri, 2013-11-22 11:45Farron Cousins
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Report: Gas Industry’s Campaign Donations Reach Record Levels

As elected officials in Washington continue to mull the possibilities of setting stricter standards for fracking, the natural gas industry has decided to pull out all the stops to defeat these standards before they can even see the light of day.  A new report from Citizens for Responsibility and Ethics in Washington (CREW) shows that the industry’s campaign contributions are now at record levels as they battle politicians wishing to tighten the reins on fracking.

According to the report, natural gas campaign donations to politicians in states where fracking is taking off have risen by 231% in the last 8 years.  But the industry is also hedging its bets in non-fracking states, as donations to politicians in those areas saw an increase in donations of 131%. 

Melanie Sloan, executive director of CREW, isn’t surprised by the increase.  Of the report, Sloan said, “Like many industries under increasing scrutiny, the fracking industry has responded by ratcheting up campaign donations to help make new friends in Congress…As CREW’s report shows, the fracking boom isn’t just good for the industry, but also for congressional candidates in fracking districts.”

CREW goes on to explain where the bulk of the money is going:

Wed, 2013-11-20 03:25Steve Horn
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Fracking Lobby ANGA's Tax Forms: Big Bucks to Media Outlets, "Other ALECs"

America's Natural Gas Alliance (ANGA) - the public relations arm of the oil and gas fracking industry - has released its 2012 Internal Revenue Services (IRS) 990 form, and it's rich with eye-opening revelations, some of which we report here for the first time. 

Incorporated as American Natural Gas Alliance, Inc., ANGA received $76.7 million from its dues-paying members for fiscal year 2012. Not strictly a lobbying force alone at the state-level and federal-level, ANGA has pumped millions of dollars into public relations and advertising efforts around the country and hundreds of thousands more into other influence-peddling avenues. 

The Nation Magazine's Lee Fang revealed in a recent piece that ANGA gave $1 million in funding to “Truthland,” a pro-fracking film released to fend off Josh Fox's “Gasland: Part II.”

On its website, “Truthland” says it is a project of both industry front group Energy in Depth and the trade association, Independent Petroleum Association of America. The “Truthland” website was originally registered in Chesapeake Energy's office, Little Sis revealed.

Fang also revealed ANGA gave $25,000 to “ASGK Strategies, a political consulting firm founded by White House advisor David Axelrod,” as well as “$864,673 to Edventures Partners, an education curriculum company that has partnered with ANGA to produce classroom materials that promote the use of natural gas.”

Mon, 2013-11-18 05:00Sharon Kelly
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George W. Bush on Keystone XL: "Build the Damn Thing"

Make private companies happy. Don’t worry about the environment. Stop fretting about long-term sustainability. Forget renewables, property concerns, the safety of our water and air. Make private companies happy.

This was the 43rd president's message to the current administration at the DUG East conference held by the shale gas industry on Thursday.

With characteristic bluntness, George W. Bush spoke his mind on energy policy to several thousand oil and gas executives gathered in Pittsburgh at an exclusive luncheon on Wednesday.

“I think the goal of the country ought to be 'how do we grow the private sector?'” Mr. Bush said. “That ought to be the laser-focus of any administration. And therefore, once that’s the goal, an issue like Keystone pipeline becomes a no-brainer.”

“If private sector growth is the goal and Keystone pipeline creates 20,000 new private sector jobs, build the damn thing,” Mr. Bush said, prompting a burst of applause from the more than 4,000 oil and gas executives attending the conference.

In his candor, Mr. Bush also highlighted the essence of what burns bright but short in the fossil-fuel doctrine.

In emphasizing a get-it-now, don’t-worry-about-the-future approach to energy, he drove home why the Keystone XL pipeline has become such a lightning rod issue. The reason: it is symbolic of the overall short-sightedness of increasing our long-term addiction to oil rather than pushing with urgency toward renewable energy.

Thu, 2013-11-07 09:00Sharon Kelly
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Could California's Shale Oil Boom Be Just a Mirage?

Since the shale rush took off starting in 2005 in Texas, drillers have sprinted from one state to the next, chasing the promise of cheaper, easier, more productive wells. This land rush was fueled by a wild spike in natural gas prices that helped make shale gas drilling attractive even though the costs of fracking were high.

As the selling price of natural gas sank from its historic highs in 2008, much of the luster wore off entire regions that had initially captivated investors, like Louisiana’s Haynesville shale or Arkansas’s Fayetteville, now in decline.

But unlike natural gas prices, oil prices remain high to this day, and investors and policymakers alike remain dazzled by the heady promise of oil from shale rock. Oil and gas companies have wrung significant amounts of black gold from shale oil plays like Texas’s Eagle Ford and North Dakota’s Bakken.

Shale oil, they say, is the next big thing.

“After years of talking about it, we’re finally poised to control our own energy future,” President Obama said in his most recent State of the Union address. “We produce more oil at home than we have in 15 years.”

But once again, the reality may be nothing like the hype. Consider California.

Wed, 2013-11-06 17:44Mike Gaworecki
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Oil Industry Spending Big To Win Unfettered Fracking Rights In The Golden State

There’s a lot of money at stake for oil companies that want to frack California’s Monterey Shale, so it’s no wonder Big Oil is spending big to forestall any new environmental regulations from biting into profits.

Here’s a particularly striking case in point: Just a week before the California State Senate voted on a bill that would impose new regulations on fracking activities, the Western States Petroleum Association (which represents the likes of Exxon, Chevron, BP, Occidental, Valero, Phillips 66, etc.) treated a dozen lawmakers to a lavish $13,000, 5-course meal at The Kitchen, one of Sacramento’s fanciest restaurants.

Two weeks later, the bill was signed into law by Gov. Jerry Brown, but by then lobbyists had managed to weaken the bill to the point that many environmentalists had withdrawn their support.

Before they passed [the bill], lawmakers accepted new amendments from the oil and gas industry – amendments that undermine the original intent… changing it into a bill we simply can’t support,” said the California League of Conservation Voters.

That $13,000 dinner is a drop in the bucket, of course.

So far in 2013, the oil and gas industry has already spent over $11.5 million on lobbying efforts in California, and it’s not just fracking regulations that are in Big Oil’s crosshairs.

Wed, 2013-11-06 05:00Julie Dermansky
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Fracking Victim Steve Lipsky's Flaming Water is No Joke

Steve Lipsky

Weatherford, Texas, homeowner Steve Lipsky has nothing to hide. He is not trying to take down Range Resources, a large oil and gas company with a reputation for bullying its critics, nor is he trying to defame the company as it has accused him of in a defamation lawsuit demanding over $3 million.

Lipsky, a private, conservative man who made his nest egg in the banking industry, now finds himself playing the role of David against a modern day Goliath in a battle fraught with Kafkaesque moments. After what looked at first like an open and shut case of industrial negligence turned into a lengthy legal battle, he must either fight or accept financial ruin.

In 2011, the Environmental Protection Agency determined that Range Resource’s drilling activities at a nearby fracking project had contaminated Lipsky’s well.

Lipsky can light the water coming out of his well on fire.

Mon, 2013-11-04 10:19Steve Horn
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MSNBC "Leans Forward" Into Running "Native Ads" Promoting Fracking

Three years into its “Lean Forward” re-branding campaign, MSNBC has given new meaning to the catchphrase, leaning forward into running branded content promoting hydraulic fracturing (“fracking”)

Looking to beef up its web presence, MSNBC has brought “Lean Forward” online with a new and improved website, calling it a “Platform for the Lean Forward, progressive community.” A key part of funding that platform: running “native advertisements” for America's Natural Gas Alliance and General Electric.

“General Electric and America’s Natural Gas Alliance are the site’s launch partners,” explained an October 30 MediaPost article.

GE, the first native ad partner for msnbc.com, will collaborate with MSNBC to deliver a content series that highlights how the 'Industrial Internet' and 'Brilliant Machines Innovation' are reshaping our world. America’s Natural Gas Alliance will be featured in sponsored polls in the 'Speak Out' section of the site centered on natural gas facts.”

GE, former owner of NBC, of which MSNBC is one of its many tentacles, is fully invested in the fossil fuel industry, with assets in fracking, coal, offshore drilling, tar sands, and more. ANGA is the shale gas industry's lobbying tour de force, both at the federal and state level.

Native advertising - also referred to as “branded content” or “native content” - is quickly replacing banner ads and pop-up ads as the go-to channel of reaching consumers for advertising executives. 

“Native content is a digital advertising method in which the advertiser attempts to gain attention by providing content in the context of the user’s experience, matching both the form and function of the environment in which it is placed,” explained a recent MarketingWeek article.

If banner ads and pop-up ads are “overt ads,” then native ads are best described as “covert ads,” akin to the controversial “video news releases” for TV news.

Fri, 2013-11-01 12:37Steve Horn
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Revealed: Never Before Seen Photos of Tesoro Fracked Oil Spill in North Dakota, Pipeline Restarted Today

A month after over 865,200 gallons of oil spilled from Tesoro Logistics' 6-inch pipeline near Tioga, North Dakota, the cause of the leak is still largely unknown to anyone but Tesoro. The pipeline resumed operations today.

Carrying oil obtained via hydraulic fracturing (“fracking”), the controversial horizontal drilling method used to capture oil and gas found embedded in shale rock basins worldwide, the Bakken Shale pipeline spill on September 29 was the largest fracked oil spill in U.S. history. Oil spill experts say the spill may be even bigger than originally estimated. 

Yet few details of what caused the spill - and how to prevent it from happening again - have arisen in the month since it occurred. 

The U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA) believes a lightning strike may have created the quarter inch hole in the pipeline, leading to the spill

PHMSA says it will carry out a rigorous investigation into the cause of the spill, but allowed the restart after Tesoro agreed to the agency's safety order mandating aerial monitoring of the pipeline over the next three days during the restart and then weekly for the next year, along with 20 other things.

The safety order also mandates Tesoro provide a documented updated within six months indicating how it enhanced its control room monitoring, instructs Tesoro to finish the final mechanical and metallurgical testing report of the failed pipe within 30 days and dictates that within “90 days complet[ion of] a root cause failure analysis for the Line that contains a detailed timeline of events.”

Documents obtained by Greenpeace USA under North Dakota's Open Records Statute show the oil has settled over 12 feet below the ground layer of the soil. The oil that settled on the surface was burned off.   

“At 10-12 feet below surface, there is a extensive clay layer that underlies the entire hill top,” Kris Roberts, Environmental Response Team Leader for the North Department of Health's Division of Water Quality, explained in an October 3 field report.

Wed, 2013-10-23 16:51Guest
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Documents Raise Important Questions About Tesoro's Pipeline Spill in North Dakota

This is a guest post by Jesse Coleman, cross-posted with permission from Greenpeace blog The Witness.

North Dakota, long known for its cattle ranches and open spaces, has recently become one of the oil and gas industry's most prized (and profitable) possessions, thanks to the advent of fracking. However, the price of oil and gas industry development is paid in destruction to the environment and strains to the regulatory framework meant to protect the public from a reckless industry, as Tesoro’s massive oil spill attests.

Documents from an open records request by Greenpeace have uncovered that Tesoro, a fracking giant based in San Antonio:

Possibly knew their pipeline was dangerously weak

Tesoro ran tests on the pipeline that ruptured more than 2 weeks before the spill was discovered.

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