Alabama

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.

Wed, 2013-11-13 08:10Mike Gaworecki
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Oil Train Derailment, Explosion In Alabama Points To Need For Tighter Regulation

We’re all used to seeing oil spills at sea, or oil spewing from a ruptured pipeline. But lately we’ve been presented with a new image of oil spills with increasing frequency: train derailment.

Last Friday, a train carrying crude oil from the Bakken shale in North Dakota was traveling through a rural part of Alabama when 20 of its cars derailed and exploded. Firefighters left 11 of the cars to burn themselves out overnight. Flames were reportedly shooting 300 feet into the air.

The cause of the accident, as well as the extent of the oil spill into a surrounding wetlands area, can’t be determined until the fire stops burning, which officials say could take several days.

This was not the only train carrying crude oil that derailed in recent memory. It wasn’t even the only train derailment last week.

Fri, 2013-09-27 05:00Julie Dermansky
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Mobile Alabama: A Tar Sands Mecca in the Making

It took a while for the Alabama public to understand that their state is being transformed into a tar sands Mecca. Proposals for rail and pipeline transport and tar sands storage facilities were first presented in 2010, and by 2012, most were rubber stamped with no public input.

But in 2013, a handful of concerned citizens in the Mobile Bay Sierra Club and the newly formed Tar Sands Mobile Coalition cried foul. And now their cries are being heard.

Two of four proposed projects are on hold – The Plains Southcap Pipeline, which would pass through the Big Creek Lake watershed that supplies drinking water to Mobile and the vicinity, and the American Tank & Vessel project to build tar sands storage tanks in Africatown, a historic Mobile neighborhood.  

Still reeling from the BP oil spill, concerned citizens along the Gulf Coast are fighting back by educating themselves about the risks these tar sands projects present to their communities and then spreading the word to their neighbors, their elected officials and the media. 

September 17th delivered a big victory when Judge Don Davis dismissed Plains Southcap's condemnation lawsuit against Mobile Area Water and Sewer System (MAWSS). This victory opens the door for landowners to fight back. At issue was whether Plains Southcap had authority to use eminent domain to condemn the land they wanted in the Big Creek Watershed in the first place. This judge ruled they did not.

There are currently four tar sands related developments in progress in Mobile, Alabama:

Mon, 2012-04-09 12:15Farron Cousins
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Survey Says...Fracking IS Causing Earthquakes

A new report by the U.S. Geological Survey (USGS) says that the increased seismic activity taking place in certain areas of the United States is almost certainly the result of oil and gas drilling activities. The group has been studying dozens of earthquakes across America for the last 8 months and determined that the man-made quakes were taking place in areas where fracking or deep waste water injection had recently occurred.

Here is a brief snippet from the report's abstract:
  

A remarkable increase in the rate of M 3 and greater earthquakes is currently in progress in the US midcontinent. The average number of M >= 3 earthquakes/year increased starting in 2001, culminating in a six-fold increase over 20th century levels in 2011. Is this increase natural or manmade? To address this question, we take a regional approach to explore changes in the rate of earthquake occurrence in the midcontinent (defined here as 85° to 108° West, 25° to 50° North) using the USGS Preliminary Determination of Epicenters and National Seismic Hazard Map catalogs…

The modest increase that began in 2001 is due to increased seismicity in the coal bed methane field of the Raton Basin along the Colorado-New Mexico border west of Trinidad, CO. The acceleration in activity that began in 2009 appears to involve a combination of source regions of oil and gas production, including the Guy, Arkansas region, and in central and southern Oklahoma. Horton, et al. (2012) provided strong evidence linking the Guy, AR activity to deep waste water injection wells. In Oklahoma, the rate of M >= 3 events abruptly increased in 2009 from 1.2/year in the previous half-century to over 25/year. This rate increase is exclusive of the November 2011 M 5.6 earthquake and its aftershocks. A naturally-occurring rate change of this magnitude is unprecedented outside of volcanic settings or in the absence of a main shock, of which there were neither in this region. While the seismicity rate changes described here are almost certainly manmade, it remains to be determined how they are related to either changes in extraction methodologies or the rate of oil and gas production.


What’s interesting is that the USGS points out the obvious fact that has been ignored by the industry – these earthquakes are occurring in areas where earthquakes shouldn’t be happening. Still, that hasn’t stopped the dirty energy industry from denying that there is a correlation between fracking and earthquakes.

Fri, 2011-07-29 10:13Farron Cousins
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GOP Congressman Warns That EPA Could Be On The Chopping Block After 2012 Elections

Representative Mike Rogers (R-AL) told an internet-based radio program earlier this week that if the GOP is able to sweep the 2012 elections, government agencies like the Environmental Protection Agency (EPA) could be on the chopping block. Citing the erroneous fact that the EPA didn’t exist until after the Carter Administration, Rogers said that a new Republican administration would “look closely” at whether or not certain government programs were necessary, and if not, they would be “discontinued.”

Think Progress provided a transcript of Rogers’ statement:

ROGERS: You know the fact is, if in fact I think the American people do next November what they started last November, that is, cleaning house, and we do get a Republican-controlled Senate and a Republican president, I think you going to see some dramatic structural changes in this country because we can’t continue to support this infrastructure we have. And I’m not talking about just changes to the trust funds and the entitlement programs. You know, we gotta look at what we really need to be doing, and what we don’t need to be doing. For example, we didn’t have an EPA under Jimmy Carter. Who says the federal government has to have an EPA. Every state has their own environmental protection agency. Why does the federal government need to be doing that? Department of Education: I’m a big believer that education is a state and local matter, why do we need a federal department of education? I think we’ll have to look at a lot of things that we’re doing at the federal level and ask ourselves, ‘is this really what the federal role?’ And if not, discontinue it.

Thu, 2011-03-24 06:13Farron Cousins
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Remember That Oil in the Gulf of Mexico? It's Still There

As we approach the one year anniversary of the Deepwater Horizon explosion and the subsequent oil disaster that followed, residents on the Gulf Coast are still finding their beaches covered in oil.

Residents of Perdido Key, Florida were recently treated to a few thousand pounds of “tar mats” washing ashore, which prompted BP to quickly send out clean up crews during a busy spring break season for local resorts. Residents and beachgoers did their best to overlook the dark spots on their vacations, and were laying out and playing in the water just a few feet away from the oncoming oil. The Perdido removal has so far been the only instance where BP has removed a large tar mat.

Elsewhere in Florida, four other tar mats have popped up between Pensacola Beach and Navarre Beach, with cleanup efforts in those areas remaining slow. County officials are growing increasingly impatient with BP, forcing County Administrator Charles Oliver to send a letter to BP requesting immediate assistance. BP had announced, and the beaches accepted, that they would be scaling back their cleanup operations in Florida in February, since the only oil coming on shore was in the form of small tar balls.

Wed, 2011-01-19 11:38Farron Cousins
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South Headed South On Environmental Issues

Photo Credit:  http://www.southernenvironment.org

The Southern Environmental Law Center (SELC) recently released their list of the top 10 most endangered environmental areas in the nation, and the results do not bode well for the South. Nine out of the top ten areas in the nation facing severe environmental disaster are located in the Southern United States (assuming you count Tennessee and Virginia as “south.”)

Many of the areas are coastal or other forms of wetlands, and leading the list is Alabama’s Gulf Coast. Still plagued with tar balls washing up from the Deepwater Horizon / BP oil disaster last year, the SELC warns that things along the Alabama coast could become much worse in the future. In addition to the current oil coming ashore, the waters in the Gulf of Mexico are littered with oil rigs, many of which are in dire condition and could cause another catastrophic blowout dwarfing the Deepwater Horizon.

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