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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.

Sat, 2013-11-09 11:44Sharon Kelly
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Coast Guard Proposal to Allow Barges to Haul Fracking Wastewater Draws Fire From Environmentalists

The U.S. Coast Guard released plans that would allow wastewater from shale gas to be shipped via barge in the nation’s rivers and waterways on October 30 — and those rules have kicked up a storm of controversy. The proposal is drawing fire from locals and environmentalists along the Ohio and Mississippi rivers who say the Coast Guard failed to examine the environmental impacts of a spill and is only giving the public 30 days to comment on the plan.

Three million people get their water from the Ohio River, and further downstream, millions more rely on drinking water from the Mississippi. If the Coast Guard's proposed policy is approved, barges carrying 10,000 barrels of fracking wastewater would float downstream from northern Appalachia to Ohio, Texas and Louisiana.

Environmentalists say a spill could be disastrous, because the wastewater would contaminate drinking water and the complicated brew of contaminants in fracking waste, which include corrosive salts and radioactive materials, would be nearly impossible to clean up.

The billions of gallons of wastewater from fracking represent one of the biggest bottlenecks for the shale gas industry.

States atop the Marcellus shale are brimming with the stuff. Traditionally, oil and gas wastewater is disposed by pumping it underground using wastewater disposal wells, but the underground geology of northeastern states like Pennsylvania makes this far more difficult than in states like Texas, and Ohio has suffered a spate of earthquakes that federal researchers concluded were linked to these wastewater wells. The volumes of water used by drillers for the current shale gas boom are unprecedented.

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. 

Mon, 2013-07-29 05:00Steve Horn
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LA Times: EPA Censored Key Pennsylvania Fracking Water Contamination Study

A must-read Los Angeles Times story by Neela Banerjee demonstrates that - once again - the Obama administration put the kibosh on a key Environmental Protection Agency (EPA) study on hydraulic fracturing (“fracking”) groundwater contamination, this time in Dimock, Pennsylvania.

Though EPA said Dimock's water wasn't contaminated by fracking in a 2012 election year desk statement, internal documents obtained by LA Times reporter Neela Banerjee show regional EPA staff members saying the exact opposite among friends. 

“In an internal EPA PowerPoint presentation…staff members warned their superiors that several wells had been contaminated with methane and substances such as manganese and arsenic, most likely because of local natural gas production,” writes Banerjee.

“The presentation, based on data collected over 4 1/2 years at 11 wells around Dimock, concluded that 'methane and other gases released during drilling (including air from the drilling) apparently cause significant damage to the water quality.' The presentation also concluded that 'methane is at significantly higher concentrations in the aquifers after gas drilling and perhaps as a result of fracking [hydraulic fracturing] and other gas well work,” Banerjee further explained.

It's essentially a repeat of Steve Lipsky's water contamination by Range Resources in late-2010 in Weatherford, TexasIn that case, EPA conducted a taxpayer funded study, determined Range had contaminated his water, sued Range - and then proceeded to drop the suit and censor the study in March 2012

EPA also recently kicked the can down the road on a high-profile fracking groundwater contamination study in Pavillion, Wyoming, originally set to come out in 2014. That release is now expected in 2016, another election year. Just days after EPA's decision, a Duke University study again linked fracking to groundwater contamination in the Marcellus Shale.

Mon, 2013-06-24 20:18Steve Horn
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Duke Study Links Fracking to Water Contamination As EPA Drops Study on Fracking Water Contamination

Last week, the U.S. Environmental Protection Agency (EPA) kicked the can down the road on a key study designated to examine the connection between hydraulic fracturing (“fracking”) and groundwater contamination in Pavillion, Wyoming. 

A study originally scheduled for release in 2014 and featured in Josh Fox's “Gasland 2,” it will not be complete until 2016 in a move that appears to be purely politically calculated by the Obama Administration, akin to the EPA's dropped and censored groundwater contamination study in Weatherford, TX.

Now, just days later, a damning study conducted by Duke University researchers published in the Proceedings of the National Academy of Sciences again links shale gas fracking to groundwater contamination. The Duke researchers did so by testing samples of 141 drinking water samples of Pennsylvania's portion of the Marcellus Shale basin. 

This is the Duke professor's third study linking fracking to groundwater contamination, the source of drinking water for hundreds of thousands of citizens in the Keystone State. The industry is likely to come out with the familiar chorus that the contaminated water is “naturally occuring,” but the latest Duke study shows otherwise. 

“They found that, on average, methane concentrations were six times higher and ethane concentrations were 23 times higher at homes within a kilometer of a shale gas well,” a Duke University press release explains. “Propane was detected in 10 samples, all of them from homes within a kilometer of drilling.”

Wed, 2013-01-16 11:15Steve Horn
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Breaking: Obama EPA Shut Down Weatherford, TX Shale Gas Water Contamination Study

The Associated Press has a breaking investigative story out today revealing that the Obama Administration's Environmental Protection Agency (EPA) censored a smoking gun scientific report in March 2012 that it had contracted out to a scientist who conducted field data on 32 water samples in Weatherford, TX.

That report, according to the AP, would have explicitly linked methane migration to hydraulic fracturing (“fracking”) in Weatherford, a city with 25,000+ citizens located in the heart of the Barnett Shale geologic formation 30 minutes from Dallas.

It was authored by Geoffrey Thyne, a geologist formerly on the faculty of the Colorado School of Mines and University of Wyoming before departing from the latter for a job in the private sector working for Interralogic Inc. in Ft Collins, CO

This isn't the first time Thyne's scientific research has been shoved aside, either. Thyne wrote two landmark studies on groundwater contamination in Garfield County, CO, the first showing that it existed, the second confirming that the contamination was directly linked to fracking in the area.

It's the second study that got him in trouble.

“Thyne says he was told to cease his research by higher-ups. He didn’t,” The Checks and Balances Project explained. “And when it came to renew his contract, Thyne was cut loose.”

Thu, 2011-12-08 14:41Steve Horn
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EPA Connects Dots Between Groundwater Contamination and Fracking in Wyoming

The tables turned on the gas industry today with the release of a new report by the Environmental Protection Agency (EPA) connecting the dots between fracking and groundwater contamination in the state of Wyoming, located in the hear tof the Niobrara Shale basin.

The report is sure to leave many saying, “Well, duh!” and also asking, “What took them so long?” The perils of fracking for gas in the Niobrara Shale were made famous long ago by Debra Anderson's documenary “Split Estate.” 

Report Comes on Heels of Citizen Action in Dimock, PA

The Wyoming report comes on the heels of a large citizen action involving a water delivery to 12 Dimock, Pennsylvania families, led by “Gasland” Director Josh Fox and actor Mark Ruffalo. The action centered around another case of water contaminated by Cabot Oil and Gas. Cabot was delivering clean drinking water since 2008 to the families after it contaminated their water, but recently, the Pennsylvania DEP ordered that Cabot was no longer responsible for transporting water to these families. 

Put another way, cases of water contamination are nothing “new.” 

In fact, EPA first tied fracking to contaminated underground sources of drinking water in 1987. In a 25-year old investigative report, discovered by the Environmental Working Group (EWG) and Earthjustice, the EPA outlines how fracking for shale gas contaminated a domestic water well in West Virginia.

More recently, four Duke University scientists released a study in May 2011 linking methane contamination to groundwater on fracking sites.

Fri, 2011-12-02 13:34Steve Horn
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Smeared But Still Fighting, Cornell's Tony Ingraffea Debunks Gas Industry Myths

Cornell University Professors Robert Howarth and Anthony Ingraffea made waves in April 2011 when they unveiled what is now known simply as the “Cornell Study.”

Published in a peer-reviewed letter in the academic journal Climatic Change Letters, the study revealed that, contrary to the never-ending mythology promulgated by the gas industry, unconventional (“natural”) gas, procured via the infamous hydraulic fracturing (fracking) process, likely emits more greenhouse gas pollution into the atmosphere during its life cycle than does coal. DeSmogBlog documented the in-depth details of the Cornell Study in our report, “Fracking the Future: How Unconventional Gas Threatens our Water, Health, and Climate.”

Since the report was published, the Cornell Study has receieved serioius backlash from the gas industry, in particular from Energy in Depth, the industry's go-to front defensive linebackers on all things fracking related. DeSmogBlog revealed earlier this year that Energy in Depth is an industry front group created by many of the largest oil and gas companies, contrary to its preferred “mom and pop” image. 

Dr. Anthony Ingraffea wrote a must-read piece this week for CBC News, “Does the natural gas industry need a new messenger?“ 

In his article, Dr. Ingraffea discusses and debunks many key gas industry myths, which he explained “always have at least a kernel of truth, but you have to listen to the whole story, carefully, not just the kernel.”

“With decades of geopolitical influence and billions of dollars on the table, it is not surprising that the gas industry has perpetuated…myths to keep the public in the dark, regulators at bay, and the wells flowing,” Ingraffea writes.

Let's review four of the myths exploded by Dr. Ingraffea:

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