hydraulic fracturing

Fri, 2013-09-13 06:00Sharon Kelly
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Never-Released Energy Department Report Predicts Increasing Domestic Conflicts over Water, Energy

Last summer, the United States experienced the worst drought since the Dust Bowl in the 1930s.

At the same time, the country was experiencing one of the biggest onshore drilling booms in history, powered by one of the most water-intensive extraction technologies ever invented: hydraulic fracking.

The tension between these two realities could not be clearer.

This year, as the drilling industry drew millions of gallons of water per well in Arkansas, Colorado, Oklahoma, Texas, Utah and Wyoming, residents in these states struggled with severe droughts and some farmers opted to sell their water to the oil and gas industry rather than try to compete with them for limited resources.

Even the Atlantic coast's mighty Susquehanna River faced record lows last year, leading regulators to suspend dozens of withdrawal permits – the majority of which were for fracking Pennsylvania’s Marcellus shale.

Researchers for the Federal Department of Energy saw problems like this coming, according to thousands of pages of documents about the topic provided to DeSmog, but their recommendations and warnings were consistently edited and downplayed and the final version of their report has yet to be released.

Wed, 2013-09-11 12:45Steve Horn
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Breaking: First Marcellus Fracked Gas Export Permit Approved by Energy Dept

The U.S. Department of Energy (DOE) has granted the first ever LNG export permit license to Dominion Resources, Inc. to export gas obtained from the controversial hydraulic fracturing (“fracking”) process in the Marcellus Shale basin.  

It's the fourth ever export terminal approved by the DOE, with the three others along the Gulf Coast: Cheniere's Sabine Pass LNG, Freeport LNG (50-percent owned by ConocoPhillips) and Lake Charles Exports, LLC

Located in Lusby, Maryland, the Dominion Cove Point LNG terminal will be a key regional hub to take gas fracked from one of the most prolific shale basins in the world - the Marcellus - and ship it to global markets, with shale gas exports a key geopolitical bargaining chip with Russia, the biggest producer of conventional gas in the world.

Dominion owns not only Cove Point, but also the pipeline infrastructure set to feed the terminal.

“Dominion…owns both the existing Cove Point LNG Terminal and the 88-mile Cove Point pipeline,” explained industry publication LNG Global. “Dominion Cove Point…stated in their application that natural gas will be delivered to the Cove Point Pipeline from the interstate pipeline grid, thereby allowing gas to be sourced broadly.”

DOE handed Dominion a permit lasting a generation.  

Mon, 2013-09-09 14:47Steve Horn
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University of Tennessee "Frackademia" Program Put to Rest, For Now

University of Tennessee-Knoxville's “frackademia” program proposal - set to transform UT's Institute of Agriculture into a de facto fracking land leasing agency - has been put to rest for now, according to The Tennesseean. In short: the university's premiere leasing proposal for acreage didn't recieve a single bid.   

UT-Knoxville's proposed program - as revealed in a DeSmogBlog investigation - intended to research wells fracked on 8,600 acres of Cumberland Forest land owned by UT that sits on top of the Chattanooga Shale basin. UT-Knoxville would lease the acreage off to Big Oil under the nullified plan. 

The proposal called for an initial fee of $300,000 paid by companies interested in fracking, an additional $300,000 per year, 15-percent royalties on any gas sold and a minimum of $35 per acre paid to UT-Knoxville.

“It would create a rare, controlled environment in which experts could study the environmental impact of the controversial drilling technique, while also generating revenue to finance research,” explained a March 2013 New York Times article on the proposal.

For now, the “controlled environment” conception serves as merely a prologue, its future at UT-Knoxville - if any at all - still undetermined. 

At this point, I am unsure of the next steps, if any,” Kevin Hoyt, Director of UT's Forest Resources Ag­Research and Education Center - which manages the Cumberland Forest - said in a press statement. “Those decisions will be up to UT Institute of Agriculture leadership.”

It might also be up to other key important players, too: the Haslam family.  

Tue, 2013-09-03 14:37Steve Horn
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"Frackademia" By Law: Section 999 of the Energy Policy Act of 2005 Exposed

With the school year starting for many this week, it's another year of academia for professors across the United States - and another year of “frackademia” for an increasingly large swath of “frackademics” under federal law. 

“Frackademia” is best defined as flawed but seemingly legitimate science and economic studies on the controversial oil and gas horizontal drilling process known as hydraulic fracturing (“fracking”), but done with industry funding and/or industry-tied academics (“frackademics”). 

While the “frackademia” phenomenon has received much media coverage, a critical piece missing from the discussion is the role played by Section 999 of the Energy Policy Act of 2005. Although merely ten pages out of the massive 551-page bill, Section 999 created the U.S. Department of Energy-run Research Partnership to Secure Energy for America (RPSEA), a “non-profit corporation formed by a consortium of premier U.S. energy research universities, industry and independent research organizations.” 

Under the Energy Policy Act of 2005, RPSEA receives $1 billion of funding - $100 million per year - between 2007 and 2016. On top of that, Section 999 creates an “Oil and Gas Lease Income” fund “from any Federal royalties, rents, and bonuses derived from Federal onshore and offshore oil and gas leases.” The federal government put $50 million in the latter pot to get the ball rolling. 

The Energy Policy Act of 2005's ”Halliburton Loophole” - which created an enforcement exemption from the Clean Water Act and the Safe Drinking Water Act for fracking, and made the chemicals found within fracking fluid a “trade secret” - is by far the bill's most notorious legacy for close followers of fracking.

These provisions were helped along by then-Vice President Dick Cheney's Energy Policy Task Force, which entailed countless meetings between Big Oil lobbyists and executives and members of President George W. Bush's cabinet. Together, these lobbyists and appointees hammered out the details behind closed doors of what became the Energy Policy Act of 2005, a bill receiving a “yes” vote by then-U.S. Sen. Barack Obama.

Wed, 2013-08-21 05:00Steve Horn
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Exclusive: Ousted Chesapeake Energy CEO Aubrey McClendon Launching Ohio Land Grab

Aubrey McClendon's penchant for “land grab” as a business model made the recently-ousted Chesapeake Energy CEO infamous - and he's at it again for his new start-up hydraulic fracturing (“fracking”) company in Ohio's Utica Shale basin. It's a formation he once hailed as the “biggest thing to hit Ohio since the plow.”

Under Securities and Exchange Commission investigation for sketchy business practices, McClendon departed Chesapeake with a severance package including $35 million, access to the company's private jets through 2016 and a 2.5% *return on ownership stake in* every well Chesapeake fracks through June 2014.

Since then, he launched three new start-ups: McClendon Energy PartnersAmerican Energy Partners and Arcadia Capital LLC.

American Energy Partners' headquarters are just half a mile down the road from Chesapeake's, the number two U.S. producer of shale gas behind ExxonMobil. Some of those in McClendon's Chesapeake inner circle have left Chesapeake and joined him (or reportedly intend to join him) at his new ventures.**

Though former Chesapeake employees are barred from working for McClendon, this excludes “any employee assigned to Mr. McClendon as an assistant,” “any employee who has been terminated by the Company,” “any employee who elects (or has elected) to accept any voluntary severance or retirement program offered by the Company,” or “any employee for whom the Company consents in advance to the soliciting and hiring by Mr. McClendon.” 

In other words, the scandal-ridden AKM Operations has shape-shifted into McClendon Energy Partners, American Energy Partners and Arcadia Capital LLC.

McClendon's playing the same business plan game using a different company name, with Ohio serving as the first pit stop. Although his business plans were held close to the chest since his Chesapeake departure, recent stories indicate that McClendon's Ohio “land grab” has now begun in earnest.

Fri, 2013-08-16 10:51Steve Horn
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Warren Buffett Buys Over $500 Million of Suncor Tar Sands Stock, Latest in "Dirty Deeds Done Dirt Cheap"

Warren Buffett - the fourth richest man on the planet and major campaign contributor to President Barack Obama in 2008 and 2012 - may soon get a whole lot richer.

That's because he just bought over half a billion bucks worth of Suncor Energy stock: $524 million in the second quarter of 2013, to be precise, according to Securities and Exchange Commission filings. Suncor is a major producer and marketer of tar sands via its wholly owned subsidiary Petro-Canada (formerly Sunoco) and this latest development follows a trend of Buffett enriching himself through dirty investments and deal-making. 

So far in 2013, Suncor (formerly Sun Oil Company) has produced 328,000 barrels per day of tar sands crude.

Though he receives far less negative press than the Koch Brothers, Buffett's no deep green ecologist. Not in the slightest. 

Referred to as one of 17 “Climate Killers” by Rolling Stone's Tim Dickinson in a January 2010 story, Buffett owns the behemoth holding company, Berkshire Hathway. It's through Berkshire that he's making a killing - while simultaneously killing the ecosystem - through one of its most profitable wholly-owned assets: Burlington Northern Santa Fe (BNSF).

Buffett purchased BNSF for $26 billion and was “the largest acquisition of Buffett's storied career,” Dickinson wrote.

BNSF hauls around frac sand for the controversial horizontal oil and gas drilling process known as “fracking.” The rail company also moves fracked oil from North Dakota's Bakken Shale basin, tar sands logistical equipment and tar sands crude itself and tons of coal. And not only does Buffett's BNSF haul around ungodly amounts of coal, he actually owns coal-burning utility companies, too.

Thu, 2013-08-15 08:25Steve Horn
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Keystone XL Influence Peddling Web Extends into PA Governor's Race Via Katie McGinty

Pennsylvania Democratic Party gubernatorial candidate and former head of the PA Department of Environmental Protection, Kathleen “Katie” McGinty, has hired powerful PR firm SKDKnickerbocker for her campaign's communications efforts.

SKDKnickerbocker - once known as Squier Knapp Dunn - is co-owned by President Barack Obama's former Communications Director Anita Dunn and a member of Obama's national media team for his 2008 run for President, Bill Knapp. Both Dunn and Knapp previously did PR for U.S. Secretary of State John Kerry's 2004 run for President, as well.

One of SKDKnickerbocker's key clients is TransCanada, owner of the Keystone XL tar sands export pipeline.

Another key SKDKnickerbocker client: Association of American Railroads, that industry's version of the American Petroleum Institute. Rail is an increasingly viable alternative to pipelines for bringing tar sands - and fracked oil - to market. 

Both McGinty and Dunn also have key marital connections with skin in the game for the looming decision over the prospective northern half of Keystone XL: Karl Hausker and Robert “Bob” Bauer, respectively. 

Tue, 2013-08-13 07:00Sharon Kelly
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Greenwashing Concerns Mount as Evidence of Fracking's Climate Impact Grows

Several years ago, Utah public health officials realized they had a big problem on their hands – one with national implications as other states were racing to increase oil and gas drilling. Smog levels in the state’s rural Uintah basin were rivaling those found in Los Angeles or Houston on their worst days.

The culprit, an EPA report concluded earlier this year: oil and gas operations. The industry was responsible for roughly 99 percent of the volatile organic compounds found in the basin, which mixed under sunlight with nitrogen oxides – at least 57% of which also came from oil and gas development – to form the choking smog, so thick that the nearby Salt Lake City airport was forced to divert flights when the smog was at its worst.

But the haze over the Uintah isn’t the most dangerous air pollutant coming from the oil and gas fields in the valley.

A string of studies by the National Oceanic and Atmospheric Administration show that the core ingredient in natural gas, methane, is leaking at rates far higher than previously suspected.  This methane has climate change impacts that, on a pound-for-pound basis, will be far more powerful over the next two decades than the carbon dioxide emissions that have been the focus of most climate change discussions.

The smog problem is especially pronounced in Utah. But a growing body of research nationwide suggests that methane is leaking from the natural gas industry at levels far higher than previously known.

In Washington D.C., pressure is mounting to ignore these methane leaks. The oil and gas industry says there is no time to waste. We must proceed immediately with the “all-of-the-above” national energy strategy they say, code for “drill baby drill”. This pressure is coming not only from the natural gas industry itself, but also from a surprising ally: the Environmental Defense Fund, which has supported natural gas development as a “bridge” from coal to renewables.

This position has drawn renewed accusations that the EDF is “greenwashing” for the natural gas industry.

Tue, 2013-08-06 06:00Steve Horn
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Fracking's Myriad Ties to Flawed State Dept Keystone XL Environmental Review

fracking keystone xl pipeline ERM

Most don't think of hydraulic fracturing (“fracking”) when pondering the future of TransCanada's Keystone XL tar sands export pipeline - but they should. 

There are numerous ties between key members of the fracking industry and groups pushing for approval of the Keystone XL pipeline. And these threads all lead back, one way or another, to Environmental Resources Management, Inc. (ERM Group).

ERM Group did the official U.S. State Department's environmental review for Keystone XL pipeline. The review, published in March 2013, determined the pipeline will have negligible climate change impacts (the review dealt with the northern segment of the pipeline as the southern half, now known as the “Gulf Coast Pipeline,” received an expedited Executive Order permit by President Barack Obama in March 2012).

ERM is also a paying member of the American Petroleum Institute (API), which has spent over $22 million lobbying on Keystone XL since June 2008

In its bid to provide the environmental review for the Keystone XL pipeline, ERM overtly lied on its conflict-of-interest form, saying it has no current business ties to TransCanada. ERM has an ongoing consulting relationship with the company responsible for the Alaska South Central LNG Project, also known as Alaska Gas Pipeline Project. The company, South Central LNG, is co-owned by TransCanada.

On top of lying about its current business ties, ERM stated on the conflict-of-interest form it had no “direct or indirect relationship (financial, organizational, contractual or otherwise) with any business entity that could be affected in any way by the proposed work.” In so doing, ERM may have broken federal law - 18 USC § 1001 - by making a false claim on a federal contract.

The State Department's Office of Inspector General has officially launched an inquiry into how and why State overlooked ERM's omission, allowing ERM to potentially commit a crime. 

In addition to potentially fraudulent claims about its connection to TransCanada, ERM also has significant ties to major gas industry groups and major players supporting the fracking boom in the US.

Mon, 2013-08-05 10:23Steve Horn
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Exclusive: Censored EPA PA Fracking Water Contamination Presentation Published for First Time

DeSmogBlog has obtained a copy of an Obama Administration Environmental Protection Agency (EPA) fracking groundwater contamination PowerPoint presentation describing a then-forthcoming study's findings in Dimock, Pennsylvania. 

The PowerPoint presentation reveals a clear link between hydraulic fracturing (“fracking”) for shale gas in Dimock and groundwater contamination, but was censored by the Obama Administration. Instead, the EPA issued an official desk statement in July 2012 - in the thick of election year - saying the water in Dimock was safe for consumption.

Titled “Isotech-Stable Isotype Analysis: Determinining the Origin of Methane and Its Effets on the Aquifer,” the PowerPoint presentation concludes that in Cabot Oil and Gas' Dimock Gesford 2 well, “Drilling creates pathways, either temporary or permanent, that allows gas to migrate to the shallow aquifer near [the] surface…In some cases, these gases disrupt groundwater quality.”  

Other charts depict Cabot's Gesford 3 and 9 wells as doing much of the same, allowing methane to migrate up to aquifers to unprecedented levels - not coincidentally - coinciding with the wells being fracked. The PowerPoint's conclusions are damning. 

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