Thomas DiNapoli

Tue, 2014-02-04 20:29Sharon Kelly
Sharon Kelly's picture

Risks of Fracking Boom Draw Renewed Attention from Investors

A coalition of investors called out five oil and gas companies for failing to measure or reduce risks associated with fracking on Tuesday, singling out companies both large and small for how they’ve handled the myriad risks associated with shale oil and gas extraction.

Shareholders in five companies — ExxonMobil, Chevron, EOG Resources, Occidental Petroleum and Pioneer Resources — filed resolutions objecting to the ways that the companies describe the risks of hydraulic fracturing and their failures to reduce the environmental and social impacts of fracking.

“The damaging impacts of hydraulic fracturing on air, water, and local communities have made the public understandably nervous and resistant to permitting this controversial industrial activity,” said Leslie Samuelrich, President of Green Century Capital Management, which together with the New York State Comptroller Thomas DiNapoli, filed the resolution at EOG Resources.

“Companies that fail to demonstrate a public commitment to identifying and mitigating their impacts will fail to earn the public trust,” she added, “and may put shareholder value at risk.”

Four of the five companies – ExxonMobil, Chevron, EOG Resources, and Occidental Petroleum –  received failing scores in a recent report that examined how companies disclosed the impact of fossil fuel extraction and graded their efforts to mitigate risks. Disclosing the Facts: Transparency and Risk in Hydraulic Fracturing Operations focused on 24 companies that use fracking, assessing the ways each handled toxic chemicals, water and waste, air emissions, community impacts, and governance. EOG Resources received a score of 6 out of 32, Chevron a score of 3, ExxonMobil and Occidental Petroleum each got a score of just 2.

That has some investors, including those overseeing New York City’s pension fund, worried.

Thu, 2011-08-11 06:15Carol Linnitt
Carol Linnitt's picture

New York Comptroller DiNapoli Introduces Frack Fund To Cover Industry Damage

Marcellus Protest

Although New York State comptroller Thomas DiNapoli has yet to take a stance on the issue of hydraulic fracturing within his state, he introduced legislation on Tuesday that will require the gas industry to pay into a frack fund that would cover environmental damages caused by the controversial process. The fund would be on standby during drilling and ready to issue compensation to landowners affected by fracking’s unfortunate side-effects, like air pollution and water contamination.

Taking its shape from an oil spill fund created in the 1970s that DiNapoli administers, the proposed legislation would require drillers to post a liability bond for damages before they begin. The legislation also proposes increased state involvement in emergency cleanup for which drillers will pay a surcharge on drilling permits.

Subscribe to Thomas DiNapoli