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At State and Federal Level, Regulators Continue to Struggle With Fracking Wastewater

The oil and gas industry often complains about the patchwork of rules that exist from state to state and county to county. They say that the rules are so variable that it’s like having to get a new driver’s license every time you drive across a state line. Public safety advocates suggest a simple fix: federal oversight of drilling. Standardize the rules. But the drilling industry recoils at the very notion.

Several recent developments illustrate exactly why. Witness the two diametrically opposed directions federal and state regulators are heading. Officials at the U.S. Environmental Protection Agency, on the one hand, are considering strengthening rules on how oil and gas wastewater is handled by classifying some of it as hazardous waste. Meanwhile, state regulators in Pennsylvania, where the most active Marcellus shale drilling is currently underway, are considering a move to loosen wastewater rules.

Pennsylvania is currently poised to enact rules that would encourage oil and gas companies to use the heavily polluted wastewater from abandoned coal mines, called acid mine drainage, instead of fresh water. While supporters of this rule change say it’s a win-win situation for the environment and for drillers, opponents of the bill say that a key incentive in the bill goes overboard and could wind up creating worse problems down the road.

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.

Keystone XL Decision Highlights Coziness Between Oil and Gas Industry, Obama Administration

This past week was good to the oil and gas industry. First, President Obama talked up jobs gains from drilling and labeled natural gas a “bridge fuel” in his State of the Union address, using terminology favored by natural gas advocates.

Then, on Friday, the Obama administration released a much-awaited assessment of the Keystone XL pipeline’s environmental impacts which concluded that pipeline construction “remains unlikely to  significantly impact the rate of extraction in the oil sands,” effectively turning a blind eye to the staggering carbon emissions from tar sands extraction and expansion plans.

While Mr. Obama’s warm embrace of fossil fuels surprised some environmentalists, it should come as little surprise in light of prior comments made by the CEO of the American Petroleum Institute (API).

“It's our expectation it will be released next week,” Jack Gerard confidently told Reuters, referring to the Keystone XL assessment, while many were still speculating that the report might not be issued until after the November mid-term election. “We're expecting to hear the same conclusion that we've heard four times before: no significant impact on the environment.”

Mr. Gerard added that these predictions were based on sources within the administration.

In fact, as the Keystone decision-making process has unfolded, the oil and gas industry has had — as they’ve enjoyed for decades — intensive access to decision-making in the White House.  This access has helped form the Obama administration’s schizophrenic energy policy, in which the President backs both renewable energy and fossil fuels without acknowledging that the two are competitors. When fossil fuels gain market share, renewables lose.

While even the World Bank has called for immediate action on climate change, the API, which has worked hard to shape Obama’s views on fossil fuels, has also worked to create doubt around the very concept of fossil-fuel-driven climate change and to downplay the impact their industry has had.

There’s no question that the oil and gas industry wields enormous sway inside Washington D.C.

The API has spent $9.3 million dollars this year alone on reportable lobbying expenses, the highest amount in the group’s history, according to data from OpenSecrets.org. This summer, a DeSmog investigation found that API spent $22.03 million dollars lobbying at the federal level on Keystone XL and/or tar sands issues since June 2008, when the pipeline project was first proposed.

Amid Calls for EPA to Reopen Fracking Investigations, States Confirm Contaminated Groundwater

Republican Sen. James Inhofe said it. Colorado Governor John Hickenlooper said it. Even former Environmental Protection Agency chief Lisa Jackson said it.

For over a decade, oil and gas executives and the policy makers who support them have repeated a single bold claim: there has never been a single documented case where fracking contaminated groundwater. 

But a blockbuster investigative report by the Associated Press offered up new evidence earlier this month that the shale industry’s keystone environmental claim is simply not true.

Multiple states confirmed that drilling and fracking contaminated groundwater supplies, the investigation found. There have been thousands of complaints from people living near drilling over the past decade, the AP reported, and three out of the four states from which the AP obtained documents confirmed multiple instances where oil and gas companies contaminated groundwater.

Out of the four states the AP obtained documents from, only Texas reported no confirmed oil and gas-related groundwater contamination. But one high-profile incident in Texas has again come under scrutiny, as a report quietly released by the Obama administration on Christmas Eve has called the adequacy of the state’s investigation into question.

On Monday, over 200 environmental groups called on President Obama to reopen the federal investigations into that case and others in Pennsylvania and in Wyoming, and to personally meet with people whose drinking water supplies have been polluted.

“The previously closed EPA investigation into these matters must be re-opened,” said the letter, sent the day before Mr. Obama's State of the Union address. “These three are among a growing number of cases of water contamination linked to drilling and fracking, and a significant and rapidly growing body of scientific evidence showing the harms drilling and fracking pose to public health and the environment.”

In Push For Nuclear Power, Climate Change Concerns Overlooked

Three years ago the world was reminded of the dangers nuclear energy poses when catastrophe struck Japan at the Fukushima power plant. Since then the gravity of the disaster has grown more evident as cleanup efforts have turned into a debacle. In the last month alone we have seen news of radioactive water leaks at the site, lawsuits from U.S. Navy sailors who responded to the initial disaster and are now developing cancer and ongoing harm to the fishing industry.

The nuclear industry is often portrayed as a climate-neutral alternative to coal and natural gas. An industry-tied movie called Pandora's Promise, recently featured at Sundance and debuted through Netflix and iTunes, has been promoting this very perspective.

But nuclear power plants need cooling water, which means they are often situated on shorelines. That makes these plants more vulnerable to the consequences of climate change, such as sea level rise. They are also more at risk of being affected by the ever-growing number and severity of storms tied to climate change, such as Hurricane Sandy.

Case in point: National Oceanic and Atmospheric Administration researchers recently concluded that a small six-foot-high miniature tsunami that hit near a New Jersey nuclear power plant this summer was not the result of a seismic event (as tsunamis usually are). Instead, the researchers concluded that the surge was caused by a sudden atmospheric pressure change. The nuclear plant, Oyster Creek, did not report any damage. But experts say there was a cautionary lesson on offer: expect the unexpected. Climate change will cause more destructive and seemingly freakish events like this. Emergency planners need to plan for them — especially when the risks are high as is the case with nuclear plants.

New Carbon Rules for Power Plants A Missed Opportunity To Rein in Natural Gas Emissions, Critics Say

One of the linchpins of the Obama administration’s high-stakes plan to address climate change moved one step closer to implementation this week, as the EPA officially published proposed new carbon emissions standards for power plants, drawing fire from environmentalists who say the rules for natural gas power plants are too lenient.

The proposed rules cover both natural gas and coal-fired electrical plants, which are responsible for 40 percent of America’s carbon dioxide emissions.

The rules would make it virtually impossible for new coal-fired power plants to be built, unless carbon capture and sequestration technology is used, but sets standards that can be easily achieved by natural gas power plants without using any similar tools.

This has led to an outcry from environmental groups like the Center for Biological Diversity.

“If the EPA is serious about the climate crisis, it needs to be serious about reducing greenhouse pollution from all power plants — regardless of whether they are fueled by gas or coal,” Bill Snape, the senior counsel for the Center said in a statement. “The bottom line is that we can do better.”

The rules for coal plants are not expected to have much direct impact on new power plant construction plans—utilities planned to build very few coal plants even before the EPA proposed its rule.

But once they are finalized, the standards for new power plants will trigger a key clause of the Clean Air Act, and the EPA will next be required to create similar carbon dioxide emissions guidelines that would govern the existing 6,500 coal and natural gas power plants nationwide.

It’s important because it establishes the form that these regulations will take,” John Coequyt, of the Sierra Club’s Beyond Coal Campaign told ThinkProgress.

The EPA move is part of Mr. Obama’s overall climate strategy, which disappointed many observers who criticize its support of fracking and its underwhelming effectiveness. “The Obama administration is aiming for reductions by 2020,” Brad Plumer wrote in the Washington Post’s Wonkblog earlier this week. “But that's not nearly enough to avert a 2°C rise in temperatures, which is the broader goal.”  

Mr. Obama’s climate plan calls for a heavy reliance on natural gas, which produces roughly 50 to 60 percent as much carbon dioxide as coal when burned, to help transition away from coal. But there is strong evidence that natural gas, which is primarily composed of the powerful greenhouse gas methane, may be worse for the climate than coal. The Obama climate plan, in that case, would represent a move from the frying pan into the fire.

Despite Flaws, Pennsylvania Regulators Fast Track FirstEnergy Coal Ash Disposal Plans

Across the U.S., the shale rush has unleashed a frenzy of excitement about domestic energy supplies.

But the oil and gas produced from fracking comes along with billions of gallons of wastewater and tons of mud and rock that carry radioactive materials and heavy metals.

As problems with disposal mount, the industry has offered mostly vague promises of “recycling” to describe how the waste will be handled over the long run.

As the nation gears up to produce vast amounts of shale oil and gas — and the toxic waste that comes along with it — it’s worth taking a look back at the failures of another industry to handle its toxic waste responsibly — the coal industry. 

Communities across America are still struggling to resolve problems left behind decades ago from coal mining and related industrial pollution.

These aren’t merely yesterday’s problems – the ash from burning coal at coal-fired power plants remains the single largest wastestream in the U.S.

Toxic Coal Ash Disposal Proves Costly and Hazardous, Duke Energy's Sutton Lake Contamination Questioned

A new report out from Wake Forest University concludes that coal ash waste from Duke Energy’s Sutton coal plant in Wilmington, NC is elevating levels of selenium pollution in nearby Sutton Lake. The lake, prized by fishermen for its largemouth bass population, has been contaminated, according to a study released today by Prof. Dennis Lemly, Research Associate Professor of Biology at Wake Forest, with high levels of selenium. Selenium has been linked to deformities in fish – including two-headed trout – and can cause a condition known as selenosis if people consume high enough doses in their food or drinking water.

Several conservation groups, including the Sierra Club and the Southern Environmental Law Center, which joined the University in announcing the findings, filed suit against Duke Energy Progress, Inc. this summer, arguing that pollution from the Sutton plant's coal ash is “killing a regional fishing lake and is threatening a community’s drinking water.”

The new report, which found that the coal ash pollution kills over 900,000 fish and deforms thousands more in Sutton Lake each year, is likely to bolster the plaintiffs' case in that suit.

The research also highlights one of the most fundamental problems with American energy policy: policy-makers and the public have been unwilling to recognize the true costs of the fuels we use to make electricity.

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.

George W. Bush on Keystone XL: "Build the Damn Thing"

Make private companies happy. Don’t worry about the environment. Stop fretting about long-term sustainability. Forget renewables, property concerns, the safety of our water and air. Make private companies happy.

This was the 43rd president's message to the current administration at the DUG East conference held by the shale gas industry on Thursday.

With characteristic bluntness, George W. Bush spoke his mind on energy policy to several thousand oil and gas executives gathered in Pittsburgh at an exclusive luncheon on Wednesday.

“I think the goal of the country ought to be 'how do we grow the private sector?'” Mr. Bush said. “That ought to be the laser-focus of any administration. And therefore, once that’s the goal, an issue like Keystone pipeline becomes a no-brainer.”

“If private sector growth is the goal and Keystone pipeline creates 20,000 new private sector jobs, build the damn thing,” Mr. Bush said, prompting a burst of applause from the more than 4,000 oil and gas executives attending the conference.

In his candor, Mr. Bush also highlighted the essence of what burns bright but short in the fossil-fuel doctrine.

In emphasizing a get-it-now, don’t-worry-about-the-future approach to energy, he drove home why the Keystone XL pipeline has become such a lightning rod issue. The reason: it is symbolic of the overall short-sightedness of increasing our long-term addiction to oil rather than pushing with urgency toward renewable energy.

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