Utica Shale

Tue, 2013-06-11 10:13Steve Horn
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Frackademia: University of Tennessee Set to Lease Forest For Fracking, Enriching Governor's Family

8,600 acres of the Cumberland Forest owned by University of Tennessee-Knoxville will be leased off to the oil and gas industry this August in a new form of "frackademia" - and one of the top financial beneficiaries will be the family of Republican Gov. Bill Haslam, who sits on UT-Knoxville's Board of Trustees

"Frackademia" is usually thought of as "studies" conducted by university-based "frackademic" researchers and funded by Big Oil, the old "Tobacco Playbook" in action. But UT-Knoxville has taken the game to a whole new level, leasing off land it owns so that it can study "best practices" for fracking in the Volunteer State.

"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 New York Times article on the proposal

The deal with the oil and gas industry for the acerage includes an initial fee of $300,000, plus $300,000 per year, 15-percent royalties on any gas sold and a minimum of $35 per acre paid to UT-Knoxville

The 8,600 acres sits within the Chattanooga Shale basin, a field still untapped by the industry via hydraulic fracturing ("fracking"), the toxic horizontal drilling process through which oil and gas is obtained from shale rock basins. Atlas Energy - purchased as a subsidiary by Chevron in Nov. 2010 - owns 105,000 acres in the Chattanooga, a clear example the industry has its cross-hairs on the untapped Chattanooga basin. 

UT-Knoxville's new "leasing agency" program will be run under the auspices of the university's Institute of Agriculture, officially referred to as the UT Institute of Agriculture Gas and Oil Research Initiative and a pre-bid proposal conference for prospective industry partners is set for June 21. Leases will be five years long, with a maximum allowance of three renewals, or 20 years total. 

Tue, 2012-11-06 12:40Steve Horn
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Chesapeake Energy Tied to Mansfield, OH Bill of Rights Astroturf Attack

The oil and gas industry is waging an 11th hour astroturf campaign in Mansfield, OH in an attempt to defeat the "Community Bill of Rights" referendum. 

A "yes" vote would, in effect, prohibit hydraulic fracturing ("fracking") injection wells in Mansfield, a city of 48,000 located in the heart of the Utica Shale basin between Cleveland and Columbus. 

In March 2012, the Ohio Department of Natural Resources (ODNR) conducted a study linking the 12 earthquakes that have occurred in Youngstown, OH to injection wells located in the city. Further, recent investigative reports by ProPublica show that these new dumping grounds - with a staggering 150,000 injection wells in 33 states and 10 trillion gallons of toxic fluid underground - are a public health hazard in the making.

And yet, for the most part, hardly anyone is talking about it.

Preferred Fluids Management LLC is the upstart business that received two well injection permits from the ODNR in the spring of 2011 that motivated the "Bill of Rights" initiative. Industry front groups ranging from Energy in Depth (EID), Energy CitizensOhio Energy Resource Alliance and "Mansfielders for Jobs" are leading the charge in the astroturf campaign to defeat it.

Why, though, has the fracking industry put so much time and effort into the placement of a measly two injection wells in Mansfield for this relatively unheard of LLC? Michael Chadsey of EID Ohio explained the importance of the waste dumping grounds at a forum on Jan. 30, 2012, stating,

If for some reason they just said, you know, we're going to stop this process, eventually the tanks that are on-site are going to get filled up. And then all the drilling pads are going to have to shut down and all of the truck drivers will have to stop.

So...this is the part of the process that is the end part of the process. When you shut down the end, you can't even start or continue because you have to have all the pieces of the puzzle to make this thing move. Everything is interconnected.

There's that and then there's the fact that Preferred Fluids Management LLC isn't merely a "new kid on the block." Owned and founded by Steven Mobley, the business has a story of its own worthy of sharing, as it's closely connected to gas industry powerhouse, Chesapeake Energy.

Thu, 2012-09-27 13:58Steve Horn
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Regulatory Non-Enforcement by Design: Earthworks Shows How the Game is Played

Earthworks Oil and Gas Accountability Project published a scathing 124-page report this week, "Breaking All the Rules: the Crisis in Oil & Gas Regulatory Enforcement."

The content of the report is exactly as it sounds.

That is, state-level regulatory agencies and officials often aren't doing the jobs taxpayers currently pay them to do and aren't enforcing regulations on active oil and gas wells even when required to under the law.

This is both out of neglect and also because they're vastly understaffed and underfunded, meaning they literally don't have the time and/or resources to do proper inspections.

And on those rare instances when regulatory agencies and the regulators that work for them do enforce regulations on active oil and gas wells, Earthworks demonstrated that the penalties for breaking the rules are currently so weak that it's merely been deemed a tiny "cost of doing business" by the oil and gas industry.

Fri, 2012-07-27 03:30Steve Horn
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Exposed: Pennsylvania Act 13 Overturned by Commonwealth Court, Originally an ALEC Model Bill

On July 26, the Pennsylvania Commonwealth Court** ruled PA Act 13 unconstitutional.*** The bill would have stripped away local zoning laws, eliminated the legal concept of a Home Rule Charter, limited private property rights, and in the process, completely disempowered town, city, municipal and county governments, particularly when it comes to shale gas development.

The Court ruled that Act 13 "...violates substantive due process because it does not protect the interests of neighboring property owners from harm, alters the character of neighborhoods and makes irrational classifications – irrational because it requires municipalities to allow all zones, drilling operations and impoundments, gas compressor stations, storage and use of explosives in all zoning districts, and applies industrial criteria to restrictions on height of structures, screening and fencing, lighting and noise."

Act 13 -- pejoratively referred to as "the Nation's Worst Corporate Giveaway" by AlterNet reporter Steven Rosenfeld -- would have ended local democracy as we know it in Pennsylvania.

"It’s absolutely crushing of local self-government," Ben Price, project director for the Community Environmental Legal Defense Fund (CELDF), told Rosenfeld. "It’s a complete capitulation of the rights of the people and their right to self-government. They are handing it over to the industry to let them govern us. It is the corporate state. That is how we look at it."

Where could the idea for such a bill come from in the first place? Rosenfeld pointed to the oil and gas industry in his piece.

That's half of the answer. Pennsylvania is the epicenter of the ongoing fracking boom in the United States, and by and large, is a state seemingly bought off by the oil and gas industry.

The other half of the question left unanswered, though, is who do oil and gas industry lobbyists feed anti-democratic, state-level legislation to?

The answer, in a word: ALEC.

Thu, 2012-01-19 21:24Steve Horn
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72 Percent of Ohioans Want A Fracking Moratorium, Citing Need For More Study

The unconventional gas industry's latest rush in the United States will land it in the state of Ohio, but a recent poll shows that the state's residents are not rolling out the red carpet for an industry famous for threatening drinking water supplies, causing earthquakes, noise and air pollution and trying to proliferate global addiction to fossil fuels.

Results from a Quinnipiac University poll released today shows that 59 percent of those polled have heard of or read about hydraulic fracturing, or "fracking," the complex and risky process that enables unconventional gas drilling. A whopping 72 percent of Ohioans familiar with fracking support a moratorium on the process until it is studied further.

The other 41-percent of citizens are likely to follow suit once they discover what is headed their way, and how little this industry will help them from a financial point of view in the long run.

Ohio recently found itself with the fracking shakes, as magnitude 4.0-level earthquakes struck near Youngstown on New Year's Eve. Scientists suspect the earthquakes resulted from a wastewater injection well disposing of fracking brine from Pennsylvania. The Christian Science Monitor explained in a story that the "quake triggered shaking reportedly felt as as far away as Buffalo, N.Y., and Toronto." 

These fracking-related earthquakes are not an aberation, but rather a repeated occurence linked to fracking in Texas, Oklahoma, and Arkansas, as well as abroad in the U.K., in the city BlackpoolAl Jazeera English recently ran a story on the Ohio fracking-induced earthquakes. Watch:

Multinational Gas Corporations Head to Ohio

On the financial side of things, the gas industry's rush to drill the Utica Shale is led by the nation's largest unconventional gas corporation, Chesapeake Energy. Chesapeake has a huge joint ownership stake in the Utica Shale with Total SA, the French oil and gas conglomerate. As DeSmogBlog wrote a bit over a month ago, "Total S.A. is positioning itself to acquire 25 percent of Chesapeake Energy’s stake in Ohio's Utica Shale, valued at $2.14 Billion." 

Also in on the hunt for gas in the Utica are industry giants Royal Dutch ShellChevronExxonMobil, Anadarko Petroleum, and Range Resources, a corporation now infamous for its use of psychological warfare tactics to "win the hearts and minds" of U.S. citizens in the neighboring Marcellus Shale basin.

So much for "energy independence," "boosting the local economy," and small, independent "mom and pop" gas industry start-ups.

Thankfully, Ohioans aren't drinking the kool-aid and have chosen, like the citizens of Bulgaria recently did, to fight back against the industry's destructive deceit. They are wise to demand a moratorium on fracking, which DeSmogBlog called for in Fracking The Future.

Time will tell if they succeed.

Wed, 2011-09-21 21:55Steve Horn
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Natural Gas Gold Rush, Utica Shale Edition Courtesy of John Kasich

Yesterday, the Ohio Governor's 21st Century and Economic Summit began, hosted by the controversial union-busting Governor John Kasich (R-OH), coming on the heels of an oil and natural gas funded study claiming that claimed, as the Cleveland Plain Dealer put it, "Ohio's natural gas and oil reserves are a multibillion-dollar bonanza that could create more than 204,500 jobs."

The "study" was written by the Ohio Oil and Gas Energy Education Program (OOGEEP), which, according to its website, "is funded exclusively by Ohio's crude oil and natural gas producers and royalty owners."

Quite the objective source, indeed. The summit, which concludes today, is hosted by Battelle Memorial Institute, located in Columbus, Ohio. The Plain Dealer explains that the summit is "designed to open discussions about Ohio's use of coal, natural gas and renewable energy technologies such as solar and wind as well as state-mandated energy efficiency rules."

Titled "Ohio’s Natural Gas and Crude Oil Exploration and Production Industry and the Emerging Utica Gas Formation Economic Impact Study," the timing of its release seems suspect, to say the least, based on this premise.

Kasich has already stated on multiple occasions that when it comes to drilling for gas, his motto is "drill baby, drill."

In a recent interview with ClimateWire, Kasich offered his take on the inherent ecological harms associated with natural gas drilling from cradle -- when the sand is mined for fracking, to grave -- when the gas is actually burned, saying, "There's no problem with fracking. I dismiss that."

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