A gas flare from the Shell Chemical LP petroleum refinery illuminates the sky on August 21, 2019 in Norco, Louisiana. Drew Angerer / Getty Images
By Jessica Corbett
As calls for a People's Bailout in response to the coronavirus pandemic continue to grow across the United States, a new analysis warns that the country's Big Oil companies "stand to reap yet another billion dollar bailout" thanks to the Federal Reserve's plans to buy up to $750 billion in corporate debt.
The analysis (pdf), released Wednesday by the advocacy group Friends of the Earth (FOE), explains that this expected bailout for polluters relates to a controversial $500 billion corporate slush fund included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act that Congress passed in March.
<p>According to FOE's report, <em>The Big Oil Money Pit</em>:</p><blockquote>Of that amount, Treasury Secretary Steven Mnuchin enjoys direct control over a comparatively small $46 billion reserved for aviation and industries deemed essential to "national security." But the remaining $454 billion went to the Federal Reserve, which will use the money to implement emergency lending programs for corporations and municipalities. Secretary Mnuchin must approve these lending programs and wields considerable power over their design, but the money itself will move through the Fed.<br>After weeks of unprecedented human suffering and an ongoing failure to support frontline workers, the Fed announced on April 9, 2020 how it would spend the first $195 billion of the slush fund. A full $75 billion would go to buy corporate debt. But because the Fed can leverage money appropriated by Congress, the real size of this program is $750 billion. Considering that a majority of the money from the first stimulus [is] still unspent, there is plenty of room for this program to grow.<br></blockquote><p>FOE found that the fossil fuel giants ExxonMobil, Chevron, and Conoco "are together eligible for a maximum $19.4 billion in benefits, based on their credit ratings and outstanding long-term debt."</p>
<div id="0f3d4" class="rm-shortcode" data-rm-shortcode-id="ffa4587779be08a5a8dff623feb89e8b"><blockquote class="twitter-tweet twitter-custom-tweet" data-twitter-tweet-id="1250456629532692481" data-partner="rebelmouse"><div style="margin:1em 0">NEW ANALYSIS: Trump’s admin just announced a $750 billion corporate slush fund -- money that will enrich oil execs… https://t.co/9fz8NWZzDv</div> — Friends of the Earth (@Friends of the Earth)<a href="https://twitter.com/foe_us/statuses/1250456629532692481">1586967067.0</a></blockquote></div><p>The Fed <a href="https://www.commondreams.org/newswire/2020/03/24/blackrock-must-manage-climate-risk-it-takes-fed-debt-buyout-program" target="_blank">has hired</a> BlackRock, the world's largest asset manager, to administer part of its debt-buying efforts related to the pandemic. "As BlackRock begins purchasing 'high yield' exchange-traded funds (ETFs) to bolster corporate debt markets," FOE warns, "energy companies (predominantly oil and gas) stand to benefit disproportionately as the largest single issuer of junk bonds, at 11% of the entire U.S. market."</p>
<p>Other key takeaways from the report include:</p><ul><li>There are 12 fracking-focused oil and gas companies that could potentially qualify for the new program. Together, they may be eligible for over $24.1 billion in potential benefits.</li><li>Major fracking company Continental Resources, whose debt was recently downgraded to below investment grade by S&P, is potentially eligible for as much as $1.5 billion under new, weaker standards announced by the Federal Reserve.</li></ul>
<p>Echoing climate campaigners' <a href="https://www.commondreams.org/news/2020/04/03/we-need-peoples-bailout-not-polluters-bailout-climate-groups-move-preempt-big-oil" target="_blank">comments</a> after President Donald Trump met with fossil fuel executives at the White House earlier this month, FOE senior policy analyst Lukas Ross <a href="https://foe.org/news/new-report-big-oils-money-pit-to-reap-stimulus-billions/" target="_blank">said</a> in a statement Wednesday that "oil company bailouts are simply throwing good money after bad."</p><p>"Congress and the Democrats must stop this endless stream of handouts to an industry that is exploiting a public health crisis for financial gain," Ross declared. "These potential payoffs to major campaign contributors are the least efficient way of re-starting the economy and will just serve to enrich oil executives."</p><p>"Oil companies are trying to punt the financial reckoning of their fracking debacle and Congress should not enable their addiction with public tax dollars," he added. "Instead of pumping money into an irresponsible industry that plays shell games with its debt, Congress should focus on providing direct support to workers and communities on the frontlines of coronavirus."</p><p>As the Trump administration has<a href="https://www.commondreams.org/news/2020/03/19/amid-climate-crisis-and-raging-pandemic-trump-blasted-morally-bankrupt-multibillion" target="_blank"> tried</a> to spend billions of taxpayers dollars to "fill up" the country's Strategic Petroleum Reserve (SPR) and major banks are <a href="https://www.commondreams.org/news/2020/04/10/critics-decry-massive-step-wrong-direction-big-banks-move-buy-fracking-industry" target="_blank">reportedly preparing</a> to take over fossil fuel assets with CARES Act funding, climate action advocates have <a href="https://www.commondreams.org/news/2020/04/03/we-need-peoples-bailout-not-polluters-bailout-climate-groups-move-preempt-big-oil" target="_blank">charged</a> that "we need a people's bailout, not a polluters' bailout!"</p><p>Hundreds of community leaders, lawmakers, and groups—including FOE—have joined the demand for Congress to pursue a <a href="https://thepeoplesbailout.org/" target="_blank">people's bailout</a> guided by five key principles:</p>
<div id="90a82" class="rm-shortcode" data-rm-shortcode-id="d4dd414f6709a83588b90e27c5ce37cb"><blockquote class="twitter-tweet twitter-custom-tweet" data-twitter-tweet-id="1250127963166826497" data-partner="rebelmouse"><div style="margin:1em 0">The response to one existential crisis must not fuel another. Let's not perpetuate the status quo of fossil fuel pr… https://t.co/VJPOCAFuxd</div> — Sierra Club (@Sierra Club)<a href="https://twitter.com/SierraClub/statuses/1250127963166826497">1586888707.0</a></blockquote></div>
<p>The new FOE report includes some specific calls to action directed at Congress:</p><ul> <li>Prioritize direct aid to still neglected workers and communities on the frontlines of the crisis.</li><li>Engage in aggressive oversight to ensure BlackRock does not benefit unfairly from purchasing its own products or needlessly bolster fossil fuel assets.</li><li>Eliminate Secretary Mnuchin's authority to waive crucial protections banning companies receiving bailouts stock buybacks.</li><li>Make future stimulus aid conditional on new and binding protections for workers and the environment.</li><li>Make oil, gas, and coal companies ineligible for support from existing stimulus programs, unless it is conditioned on a phaseout of existing production and an iron-clad commitment to existing pension and environmental liabilities.</li></ul><p>"Much more work needs to be done, both to support workers and families in the face of COVID-19 and to prevent a runaway bailout of the fossil fuel industry," the report says. "Congress cannot afford to wait."</p>
<p class=""><em>Reposted with permission from <a href="https://www.commondreams.org/news/2020/04/15/amid-calls-peoples-bailout-feds-corporate-debt-buying-could-mean-billion-dollar-big" target="_blank">Common Dreams</a>.</em></p>From Your Site Articles
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A large fracking operation with Mount Meeker and Longs Peak looming in the background on December 28, 2017 in Loveland, Colorado. Helen H. Richardson / The Denver Post / Getty Images
by Andrea Germanos
The Trump administration on Friday released a new land use plan for southwestern Colorado that community and conservation advocacy groups warn is a "dangerous" pathway towards increased fossil fuel extraction that makes no "climate, ecological, or economic sense."
<p>Published officially Friday in the <a href="https://www.federalregister.gov/documents/2020/04/10/2020-07316/notice-of-availability-of-the-record-of-decision-for-the-uncompahgre-field-office-approved-resource" target="_blank">Federal Register</a>, the Bureau of Land Management's "Approved Resource Management Plan" for the Uncompahgre Field Office affects 675,800 acres of public lands and 971,220 acres of federal mineral estate and spans six counties. It gives a 20-year blueprint for how the land can be used for purposes such as oil and gas drilling as well as livestock grazing, and was issued by the Interior Department over objections raised in public comments.</p><p>The advocacy groups opposed to the plan <a href="https://biologicaldiversity.org/w/news/press-releases/trump-administration-plan-expands-fossil-fuel-extraction-across-southwestern-colorado-2020-04-09/" target="_blank">say</a> that expanding fracking in the region over the next decades will not only add fuel to the planetary climate crisis, but will also adversely impact local organic agriculture and endangered species.</p><p>"This plan, unconscionable as the connections between fossil fuel emissions and global climate change become clearer every day, has the potential to exponentially increase greenhouse gas pollution in the region over the next decade, when we need to be drastically reducing emissions," said Melissa Hornbein with the Western Environmental Law Center.</p>
<p>According to the groups,</p><blockquote>The plan would allow fracking on more than half of the 675,000 acres of public land and almost a million acres of federal minerals that it covers, and coal extraction on another 371,000 acres. The BLM's environmental impact analysis fails to tally direct and indirect climate pollution that would result from fossil fuel production.<br></blockquote><p>According to Natasha Léger, executive director of Citizens for a Healthy Community, the plan is "exactly the type of federal action that is responsible for accelerating climate and environmental degradation, which cannot be allowed to stand if we have any hope of protecting present and future generations, rare and irreplaceable ecosystems like the North Fork, and meeting Colorado's goals for a clean and renewable energy future."</p><p>The new plan sets up a clash between Colorado's new law calling for a halving of carbon emissions by 2030 and what the advocacy groups say could be a 2,300% increase over the next decade in climate pollution as a result of the BLM's proposal for increased oil and gas extraction.</p><p>"Ultimately," said Rebecca Fischer, climate and energy program attorney for WildEarth Guardians, "the Trump administration is testing Colorado's commitment to its new climate law, and its success depends on the state stepping up to defend bold climate action."</p>
<p class=""><em>Reposted with permission from <a href="https://www.commondreams.org/news/2020/04/10/trump-advances-climate-doom-massive-fracking-expansion-federal-lands-colorado" target="_blank">Common Dreams</a>.</em></p>From Your Site Articles
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Like many other plant-based foods and products, CBD oil is one dietary supplement where "organic" labels are very important to consumers. However, there are little to no regulations within the hemp industry when it comes to deeming a product as organic, which makes it increasingly difficult for shoppers to find the best CBD oil products available on the market.
<p>Here you can learn about the importance of organic hemp oil, why it's better for the environment, and which CBD companies actually make trustworthy products with sustainable farming processes. origins which weigh heavily on many consumers who want to buy a product that's produced in the best way possible for not only themselves to ingest, but for the environment as well through sustainable farming methods. </p><h2>What Is CBD Oil?</h2><p>First things first, CBD stands for cannabidiol, and it's a cannabinoid found within cannabis sativa plants. This plant compound is believed to have many potential benefits, and it is primarily derived from hemp plants via a CO2 extraction process. </p><p>Since CBD is extracted from industrial hemp, which contains only trace amounts of THC (the psychoactive component in cannabis plants), this means that CBD won't make you feel high like marijuana, which has much higher levels of THC that causes psychoactive effects. Instead, the effects of CBD are much more subtle and promote a general sense of calm and relaxation in most users.</p><h2>What Makes a CBD Oil Organic?</h2><p>In terms of organic labels, perhaps the most important (and prominent) certification comes from the United States Department of Agriculture (USDA). This government organization has been labeling foods as "organic" for many years, but what exactly does this certification entail? Essentially, a label indicating that a product is "USDA Organic" or "Certified Organic" means that at least 95% of the ingredients are obtained from organic sources.</p><p>For a crop to be considered organic by the USDA, it must be grown without the use of industrial solvents, irradiation, genetic engineering (GMOs), synthetic pesticides, or chemical fertilizer. Instead, farmers rely on natural substances and <a href="https://www.usda.gov/media/blog/2012/03/22/organic-101-what-usda-organic-label-means" rel="noopener noreferrer" target="_blank">mechanical, physical, or biologically based farming</a> techniques to cultivate healthy and organic crops.</p><p>Before the passage of the 2018 Farm Bill, no hemp-derived products could be dubbed as "certified organic" since the hemp plant and its extracts were still categorized as a Schedule I Controlled Substance. However, it's still difficult for CBD companies to obtain a USDA certified organic label for their products due to the legal grey area that still surrounds CBD extracts. </p><p>Because of these challenges, and due to the fact that industrial hemp has only recently become an agricultural crop, very few CBD oils are USDA certified organic. Rather, many CBD products contain hemp extracts from plants that were grown in organic conditions but may not be federally certified.</p><h2>What are the Best Organic CBD Oil Brands?</h2><p><em>Each product featured here has been independently selected by the writer. If you make a purchase using the links included, we may earn commission.</em></p><em><br></em>
<h2>Why Organic Hemp Oil Matters</h2><p>Hemp is a unique plant, not only for its rich cannabinoid content, but also for its ability to absorb a wide variety of components in soil. But this trait poses great risks when it comes to the creation of CBD products derived from hemp.</p><p>Because hemp has a high capacity for compound uptake, this means that the plants can retain <a href="https://www.remedyreview.com/industry/lab-test-results/" target="_blank">harmful chemicals like pesticides</a>, heavy metals, and other residual solvents. This is especially true when it comes to synthetic chemicals that are more toxic to humans, and difficult to remove once they have been absorbed by the hemp plant.</p><p>Organic farming practices help reduce the risk of hemp crops absorbing harsh chemicals that may later end up in CBD oil after extraction. When you're taking CBD as a wellness supplement to help alleviate your symptoms or improve your overall well-being, the last thing you want is to ingest compounds that might negatively outweigh the benefits of CBD. This is an important reason to look for third party lab test results when shopping for CBD products since these certificates of analysis can show the full cannabinoid and terpene profile of a hemp extract, as well as test results that search for the presence of any residual solvents.</p><p>In addition to creating a better end product, organic farming practices are also better for the environment. Sustainable and organic farming methods may <a href="https://www.helpguide.org/articles/healthy-eating/organic-foods.htm" rel="noopener noreferrer" target="_blank">reduce pollution, conserve water, reduce soil erosion, increase soil fertility, and use less energy</a>. The use of natural pest deterrents as opposed to chemical pesticides is also better for nearby animal populations and ecosystems.</p><h3>Organic vs. Natural</h3><p>While there are only a select few companies offering certified organic ingredients in their products, almost every brand in the CBD market creates "natural" products. The term "all-natural" or "plant-based" does not mean that a product is organic, and since hemp oil is a natural derivative of hemp plants, these products are often referred to as all-natural. However, there are some synthetic CBD oils that should be avoided because they are chemically constructed and may produce unwanted side effects that are not caused by naturally derived CBD extracts.</p><h2>What are the Benefits of Organic CBD Oil?</h2><p>There's a long list of potential CBD oil health benefits, and some of the most common wellness advantages include:</p><ul class="ee-ul"><li><a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2503660/" target="_blank">Chronic pain relief</a></li><li><a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4604171/" target="_blank">Anti-anxiety effects</a></li><li>Better sleep</li><li><a href="https://www.psychologytoday.com/us/blog/inner-source/201901/cbd-oil-mental-health-should-you-take-it-too" rel="noopener noreferrer" target="_blank">Improvements in mood</a></li><li>Internal balance and regulation</li></ul><p>When dealing with pain, inflammation, sleep issues, and mental health struggles, it can be hard to find sufficient treatment options. The use of certain prescriptions can cause unwanted side effects, yet they are often the only solution for patients with these medical conditions. In search of other therapies, people have started to flock towards CBD oil as an alternative remedy for a variety of conditions. However, it should be noted that CBD products are not approved by the Food and Drug Administration (FDA), and you should seek your doctor's advice before using CBD if you have a serious medical condition.</p><h2>Look at the Labels Before You Buy CBD Oil</h2><p>When you go online to buy CBD oil, you'll quickly realize there is an overwhelming number of brands that are saturating the market. It can be difficult to determine which products are truly as good as they make themselves out to be. Always look for up-to-date third-party lab tests so you know you are getting a great product, and don't hesitate to contact the brand if you have any additional questions. And if you're intent on purchasing 100% organic CBD oil, it's best to look for certified products or brands that are held to strict regulatory standards.</p><p><strong>Melena Gurganus </strong>is the Reviews Editor at EcoWatch. She is passionate health and wellness and her writing aims to help others find products they can trust. Her work has been featured in publications such as Health, Shape, Huffington Post, Cannabis Business Times, and Bustle.<br></p>
Spruce
<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDY4NjI3OC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyOTM2NzgzOX0.axY0HjeqRctJsR_KmDLctzDpUBLBN-oNIdqaXDb4caQ/img.jpg?width=980" id="774be" class="rm-shortcode" data-rm-shortcode-id="8379f35b1ca8a86d0e61b7d4bfc8b46e" data-rm-shortcode-name="rebelmouse-image" alt="spruce organic cbd oil" data-width="710" data-height="959" /><p>As one of the best brands in the business, Spruce CBD is well-known for its potent CBD oils that feature many additional beneficial phytocannabinoids. This brand works with two family-owned, sustainably focused farms in the USA (one located in Kentucky and one in North Carolina) to create its organic, small product batches. The max potency Spruce CBD oil contains 2400mg of full-spectrum CBD extract, but the brand also offers a lower strength tincture with 750mg of CBD in total.</p>
$89
CBDistillery
<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDcwMjkzNC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYyMTU4OTM4Nn0.ypRdeDSBcE87slYrFfVrRwtJ2qGIK6FD5jBB4pndTMo/img.jpg?width=980" id="b473b" class="rm-shortcode" data-rm-shortcode-id="9930b53c9d58cb49774640a61c3e3e75" data-rm-shortcode-name="rebelmouse-image" alt="cbdistillery cbd oil" data-width="1244" data-height="1244" /><p>All of the products from CBDistillery are <a href="https://ushempauthority.org/" target="_blank" rel="noopener noreferrer">U.S. Hemp Authority Certified</a>, and for good reason. The company only uses non-GMO and pesticide-free industrial hemp that's grown organically on Colorado farms. Its hemp oils are some of the most affordable CBD products on the market, yet they still maintain a high standard of quality. CBDistillery has a wide variety of CBD potencies across its product line (ranging from 500mg to 5000mg per bottle) and offers both full-spectrum and broad-spectrum CBD oils to give customers a completely thc-free option.</p>
$35
FAB CBD
<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDY4NjIyNS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY2NDIwOTEyMn0.MlTjz096FJ0ev_-soK7_Z-FeQeJczWoeh9Qi9SSkHsY/img.jpg?width=980" id="04b26" class="rm-shortcode" data-rm-shortcode-id="76aa4862f44603242e318982acea6646" data-rm-shortcode-name="rebelmouse-image" alt="fab cbd oil" data-width="800" data-height="800" /><p>For an organic CBD oil that has it all, FAB CBD offers plenty of variety for any type of consumer. All of its products are made with zero pesticides and extracted from organically grown Colorado industrial hemp. FAB CBD oil comes in five all-natural flavors (mint, vanilla, berry, citrus, and natural) and is also available in four strengths (300, 600, 1200, and 2400mg per bottle).</p>
$39
NuLeaf Naturals
<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDY4NjIxOS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY1NzExNTgyMX0.D6qMGYllKTsVhEkQ-L_GzpDHVu60a-tJKcio7M1Ssmc/img.jpg?width=980" id="94e4a" class="rm-shortcode" data-rm-shortcode-id="3609a52479675730893a45a82a03c71d" data-rm-shortcode-name="rebelmouse-image" alt="nuleaf naturals organic cbd oil" data-width="600" data-height="600" /><p>As an industry-leading brand, it comes as no surprise that NuLeaf Naturals sources its CBD extract from organic hemp plants grown on licensed farms in Colorado. The comany's CBD oils only contain two ingredients: USDA certified organic hemp seed oil and full spectrum hemp extract.</p><p>NuLeaf Naturals uses one proprietary CBD oil formula for all of its products, so you will get the same CBD potency in each tincture (60mg per mL), but can purchase different bottle sizes depending on how much you intend to use.</p>
$38.50
Charlotte's Web
<img type="lazy-image" data-runner-src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yNDcwMjk3NS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY0MzQ0NjM4N30.SaQ85SK10-MWjN3PwHo2RqpiUBdjhD0IRnHKTqKaU7Q/img.jpg?width=980" id="84700" class="rm-shortcode" data-rm-shortcode-id="a2174067dcc0c4094be25b3472ce08c8" data-rm-shortcode-name="rebelmouse-image" alt="charlottes web cbd oil" data-width="1244" data-height="1244" /><p>Perhaps one of the most well-known brands in the CBD landscape, Charlotte's Web has been growing sustainable hemp plants for several years. The company is currently in the process of achieving official USDA Organic Certification, but it already practices organic and sustainable cultivation techniques to enhance the overall health of the soil and the hemp plants themselves, which creates some of the highest quality CBD extracts. Charlotte's Web offers CBD oils in a range of different concentration options, and some even come in a few flavor options such as chocolate mint, orange blossom, and lemon twist.</p>
$60
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The land around Red Knoll near Kanab, UT that could have been razed for a frac sand mine. Tara Lohan
By Tara Lohan
A sign at the north end of Kanab, Utah, proclaims the town of 4,300 to be "The Greatest Earth on Show."
<p>It's a rare case of truth in advertising.</p><p>Kanab sits just seven miles north of the Arizona state line, at the crossroads of some of the Southwest's most beautiful places. In every direction a geologic wonderland awaits. To the north is Zion National Park with its breathtaking valley of 2,000-foot-tall rust and white sandstone cliffs. The sweeping expanse of Grand Staircase-Escalante National Monument stretches to the east of town, and just to the south you'll find the Grand Canyon's North Rim.</p><p>You don't even need to leave Kanab, which is ringed by the famously red-hued Vermillion Cliffs, to get socked by jaw-dropping beauty.</p><p>It's this landscape that drew Susan Hand to Kanab 25 years ago when she opened Willow Canyon Outdoor to sell gear, maps, books and coffee to local and visiting adventurers. And it's this landscape and the community's gateway-to-the-wonderland experience, the economic bedrock of this tourism-dependent town, that she worried would be destroyed by a new industrial project proposed for development 10 miles north of town last year.</p>
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMjU3MTQwNi9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY1NzUwMzE4Mn0.j0ue0NpGZ6SmCOp2nsB5Wq5xW_3inxdnj6lisCjvk4Y/img.jpg?width=980" id="5f14e" class="rm-shortcode" data-rm-shortcode-id="086fbe67cfe97cd3f99b7171e9d6166c" data-rm-shortcode-name="rebelmouse-image" />
Kanab, UT is a popular tourist destination. Tara Lohan
<p>There, a company called <a href="https://www.srsands.com/" target="_blank">Southern Red Sands LLC</a> had announced plans to build a facility to mine and process massive amounts of sand for use by oil and gas companies conducting hydraulic fracturing. The sand is a lesser-known but substantial aspect of the fracking process. Round grains of silica sand serve as a "proppant" to keep underground fissures in the shale open as oil and gas are pumped out. Fracking a single well can require thousands of tons of sand.</p><p>"I really wanted to keep an open mind, but the more I learned about the project, the more concerned I got," Hand told The Revelator when I visited Kanab in September.</p><p>She had reason to be worried. The first decade of the fracking boom relied heavily on so-called "frac sand" sourced mostly from Midwest states like Minnesota and Wisconsin, where mining reduced verdant green hills to piles of dust.</p><img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMjU3MTQwNy9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTY1MjM5ODQ5N30.m2MnLpSKNSSqDdHJll878KCLxqnLsIOiUJnLvpzGijI/img.jpg?width=980" id="d4a23" class="rm-shortcode" data-rm-shortcode-id="eb596df046f7339251d578b504289d6a" data-rm-shortcode-name="rebelmouse-image" />
Frac sand in Wisconsin. Tara Lohan
<p>But mining in the Midwest has its limits. Sand is expensive to ship across the country, so as fracking has taken off in Utah, Texas and New Mexico, companies have looked to find more local sources to trim costs.</p><p>That's when the proposed mine in Kanab entered the story.</p><p>Southern Red Sands, a two-person start-up backed by Utah real-estate developer Kem Gardner, hoped to establish the region's next frac sand mine in a scenic area of state-owned lands outside Kanab called Red Knoll.</p><p>City and county officials quickly gave their blessing — and a combined 1,200 acre-feet of water rights a year — after only cursory consideration.</p><p>But residents became concerned about impacts to scenic beauty, water resources and local businesses. They teamed up to fight back, forming a community group called <a href="https://keepkanabunspoiled.org/" target="_blank">Keep Kanab Unspoiled</a>.</p><p>It was beginning to feel like a familiar story.</p><p>The struggle between extractive industries and environmental protection is not a new one in Utah. A fight is still raging nearby over the boundaries of Bears Ears National Monument and Grand Staircase-Escalante, both of which <a href="https://www.sltrib.com/news/environment/2019/08/23/new-grand-staircase-plans/" target="_blank">President Trump slashed</a> in order to increase drilling and mining opportunities.</p><p>Despite public pushback and some legal challenges, though, the frac sand mine seemed to be cruising toward approval as recently as October. It still needed an environmental impact assessment from the Bureau of Land Management, and the two water transfers needed approval from the state engineer. The project definitely wasn't a done deal, but in industry-friendly Utah, it had a good shot.</p><p>So it may have come as a surprise to a number of residents when Southern Red Sands announced at the beginning of January that it was abandoning the proposed project.</p><p>What happened? And are there any lessons that other communities fighting extraction threats can learn?</p><p>"Speak out, pull together like-minded neighbors, organize and don't give up," Hand told me after hearing the news. "But also, try to be nice."</p><p>Surprisingly, it's that last bit that may have made a big difference — along with a good hard look at the economics of the endeavor.</p>The Threats
<p>Von Del Chamberlain is a white-haired, soft-spoken Kanab resident. Born in 1934, he spent his youth exploring the red rock and his career studying the stars. The astronomer and former director of Salt Lake City's Hansen (now Clark) Planetarium retired to his hometown 15 years ago and hoped to start a public observatory.</p><p>He realized that Kanab's prized dark-night skies would be threatened by a 24-7 mining operation. But that wasn't even his biggest concern with the project.</p><p>"The beauty here is the thing that will sustain this area economically for as far in the future as we can possibly see," he said.</p><p>Opponents like Chamberlain usually cited two big concerns: environmental impacts, particularly the threat to water resources, and the local economy. But in Kanab it's hard to separate the two.</p><p>"It doesn't matter what kind of an economy you want to develop here," said Hand. "Even if you have an industrial economy or an extractive economy — if you don't have water, you're out."</p><p>The water supply, which draws on underground aquifers, currently supports the town's tourist-driven economy, ranching, and the county's biggest employer — <a href="https://bestfriends.org/" target="_blank">Best Friends Animal Society</a>, known worldwide through the <em>Dogtown</em> TV series on the National Geographic Channel. The nonprofit owns a 3,700-acre sanctuary, the country's largest no-kill animal shelter, and would have been the mine's closest neighbor.</p><p>Best Friends, which employs 400 locals and draws 35,000 out-of-town visitors a year to its sanctuary, came to see the proposed mine as an existential threat. Their property relies on wells, seeps and springs that come from the same aquifer the project's two wells would tap.</p><img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMjU3MTQwOC9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYzMTM5ODM1Mn0.jYaypt91ZWksmnFyu0MSkj7QBs8R99Wj0-u_2RGmfek/img.jpg?width=980" id="f6ad2" class="rm-shortcode" data-rm-shortcode-id="9b35827fa5c21d58a67f902848aa3318" data-rm-shortcode-name="rebelmouse-image" />
Groundwater seeps to the surface at the Best Friends animal sanctuary in Kanab, Utah. Tara Lohan
<p>Last July Kanab's city council approved a 50-year contract for 600 acre-feet a year of water rights for the project and Kane County Water Conservancy District, which oversees water servicing for the unincorporated areas of the county, agreed to provide an additional 600 acre-feet of water. That combined amount equals about 740 gallons per minute, although Southern Red Sands contended it would use only about a third of that.</p><p>Many local residents were shocked by the water-rights transfer. A <a href="https://lpputah.org/wp-content/uploads/2018/05/2016-Water-Needs-Assessment.pdf" target="_blank">2016 water needs assessment</a> found that Kane County Water Conservancy District's reliable supply would be in deficit by 2035. And the district's executive director, former state representative Mike Noel, has been a <a href="https://www.sltrib.com/news/2018/03/17/in-new-complaint-group-says-utah-rep-mike-noel-hid-potential-conflicts-as-he-sought-lake-powell-pipeline-water-for-land-he-owns/" target="_blank">vocal advocate</a> for a pricy proposed pipeline to send Lake Powell water to southern Utah communities, including near Kanab, under the premise that the region is already running short on water.</p><p>"We knew that it would damage our seeps and our springs, and we weren't sure yet the full impact besides some drawdown to our groundwater, but we were really concerned," Bart Battista, an environmental engineer responsible for facilities management at Best Friends' Kanab sanctuary, told me. "It boggles my mind that the city wasn't as concerned."</p><p>But documents unearthed by local radio station KUER showed that officials at nearby Zion National Park already <a href="https://www.documentcloud.org/documents/6558286-191002-ZionNationalPark-LetterOfConcern.html" target="_blank"><em>were</em> concerned</a> that the project could reduce flows into the East Fork of the Virgin River, which flows through the park, by reducing the amount of water from underground seeps and springs that feed the river.</p><p>Wanting to learn more about how the project could affect the region's water, Best Friends <a href="https://www.waterrights.utah.gov/docImport/0618/06184902.PDF" target="_blank">commissioned a study</a> from hydrogeologist Kenneth Kolm of Hydrologic Systems Analysis, a firm that's completed water studies for other Utah towns.</p><p>Kolm found that the mine posed the potential for decline in productivity to wells owned by both Best Friends and the city's water supply. The project could also decrease flows into nearby Kanab Creek and dry up perennial streams and springs, including one that feeds an area of habitat that's home to the Kanab ambersnail — currently federally protected as endangered.</p><p>The amount of water being withdrawn wasn't the only issue. The proposed project site and its sandy soil are also vitally important to local hydrology.</p><p>"The sand is the first ticket to collecting water," said Hand. It captures rain and holds it in place long enough for it to sink into the water table and not run off. But the sand is exactly what would be removed from the site, further threatening the region's water supply.</p><p>"I realized for the first time how small and vulnerable our watershed actually is," she added.</p><p>Southern Red Sands hoped to start digging on 640 acres of land around Red Knoll, an aptly name rise of coral-colored rock and sand. The area is managed as part of Utah's School and International Trust Lands Administration (SITLA), where state-owned property can be leased (often for resource extraction), with revenue being funneled to education.</p><p>The operation would have started by bulldozing all the trees, shrubs, grasses and forbs, then scraped up to 30 feet of the earth from the exposed surface. The sand would then be processed — washed with water and chemicals, then dried and sorted — in a facility with up to six 120-foot-tall silos. After that it would be loaded into trucks and hauled out.</p><p>A small fraction of the remaining sediment — mostly the fine silts and clays — would be put back on the land. But that change in geology could mean a big change for the aquifer. How big would depend on the scope of the project, though.</p><p>In addition to the SITLA land, Southern Red Sands had acquired placer claims — mineral exploration rights — for 12,000 surrounding acres managed by the BLM. And although the company said it planned to mine only 700,000 tons a year from the SITLA property, the facility would have had the capacity and water rights to accommodate much more.</p><p>"If they're building a plant with a capacity of 3 million tons a year, that's presumably because they expect to be able to produce that," Dean Baker, a Kanab resident and opponent of the project told me in December. "They may never do that, but you don't build extra capacity without the idea that you might use it."</p>The Resistance
<p>Water issues are paramount in arid Utah, but the mine was likely to come with some other potential problems.</p><p>If Southern Red Sands did build out to end of their claims, they'd be within 10 miles of Zion National Park and workers at Best Friends would be looking over their fence line at the operation — not to mention potentially breathing its dust.</p><p>Mining, processing and trucking frac sand can release tiny particles of crystalline silica into the air. Inhaling those particles regularly can cause lung disease, including cancer and silicosis, a chronic disease that, like "black lung" for coal miners, can be deadly.</p><img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMjU3MTQwOS9vcmlnaW4uanBnIiwiZXhwaXJlc19hdCI6MTYxODk4ODQ3OX0.w_Q_2eMaoarF3NGk1G4d6v9NcMoZQv9xkGWoSmw5im0/img.jpg?width=980" id="46cd6" class="rm-shortcode" data-rm-shortcode-id="f5f31f858e67ff7bcfc537ff2c59bec4" data-rm-shortcode-name="rebelmouse-image" />
<p> <em>Reposted with permission from <a href="https://therevelator.org/frac-sand-kanab/" target="_blank">The Revelator</a>.<a href="https://www.ecowatch.com/r/entryeditor/2644859821#/" target="_self"></a></em><em></em></p>Dust in the air at a frac sand processing facility in Wisconsin. Tara Lohan
<p>The facility would likely run with lights and noise 24-7, which could be <a href="https://therevelator.org/fracking-wildlife/" target="_blank">detrimental to wildlife</a>. And adding more diesel-spewing, slow-stopping big rigs hauling 50,000 pounds of sand down the town's one main road concerned residents, too.</p><p>With so much at risk, opponents employed a number of tactics to try to fight the mine.</p><p>Keep Kanab Unspoiled held community meetings. They invited Kolm, the geologist who did the independent study, to report his findings, and started <a href="https://www.change.org/p/gardner-company-stop-the-zion-kanab-frac-sand-mine" target="_blank">an online petition</a> to discourage the company from moving forward.</p><p>Best Friends — an established national nonprofit with considerably more financial resources — took the lead role in mounting legal challenges. The organization filed an appeal of a conditional use permit approved by the county and formally objected to the water transfers, which needed to be approved by the state engineer.</p><p>But during the fall, Best Friends decided to shift tactics. Lawsuits could just lead to years of legal battles, something beyond the organization's longstanding mission.</p><p>"We might alienate our donors and members," Battista explained. "The appeal of Best Friends crosses party boundaries — animal welfare is something everybody can support." Apparently environmental action is not.</p><p>They decided the best approach was to sit down and talk with the company and its backers.</p><p>Battista couldn't disclose details of the negotiations — which went on for months — but on Jan. 9 Best Friends and Southern Red Sands released a <a href="https://therevelator.org/joint-statement-from-southern-red-sands-and-best-friends-animal-society/" target="_blank">joint statement</a> saying that the company "had decided not to pursue its business ventures in Kane County."</p><p>The members of Keep Kanab Unspoiled were elated by the news.</p><p>"It's so heartening how so many people from our community came together to amplify a voice that is seldom acknowledged by our elected representatives and institutions," Hand tells me. "I'm relieved that an area I love won't be sacrificed on the altar of fossil fuel consumption. I'm grateful that this threat to our travel and tourism economy is diminished."</p><p>It would be comforting to think that the driving force behind the decision boiled down to preserving the scenic beauty or the region's groundwater resources, but it's more likely it had to do with money.</p><p>"Economics played some role," Battista said. "The market for frac sand has changed and [Best Friends] had financial viability assessments of the project to show that the mine wouldn't be a good idea. Economically it just didn't make sense to any of us. I think that our studies corroborated that."</p><p>This was a main talking point of Keep Kanab Unspoiled, bolstered by research done by Baker, who also happens to be <a href="http://cepr.net/about-us/staff/dean-baker" target="_blank">an economist and cofounder</a> of the Center for Economic and Policy Research.</p><p>The frac sand industry — and the larger fracking industry — is volatile. The number of rigs drilling for oil tends to fall when prices get low. Rigs plunged with falling prices from 2014 to 2016 and last year saw <a href="https://www.reuters.com/article/usa-rigs-baker-hughes/u-s-drillers-cut-oil-rigs-for-record-11th-month-baker-hughes-idUSL2N27A0L0" target="_blank">record declines</a> in rig numbers. In addition, fracking costs more than traditional drilling — and the industry has also been overspending to keep the fracking boom from going bust.</p><p>A research organization in Norway found that the amount of money being spent to drill for oil by 40 U.S. shale oil companies outpaced the money being made by selling that oil. That deficit cost companies almost $5 billion in just the first quarter of 2019, <a href="https://www.desmogblog.com/2019/08/08/bleak-financial-outlook-us-fracking-industry" target="_blank">DeSmog reported</a> in August.</p><p>It's a scenario that's happened before.</p><p>With oil prices now around $60 a barrel, the industry is hanging on. If prices dip much lower, it could be trouble. A decade into the fracking frenzy, investors are worried that the best spots have been drilled and many debts won't be paid.</p><p>There's even more uncertainty when it comes to producing and selling the sand. Companies used to rely almost exclusively on Midwest sand, but now more areas are getting in on the game.</p><p>The consequences of failures in the fracking business model are real.</p><p>Falling oil prices and a shifting market for frac sand recently took down Emerge Energy Services — owner of eight frac sand facilities in Wisconsin — which <a href="https://www.wpr.org/frac-sand-producer-wisconsin-declares-bankruptcy" target="_blank">filed for bankruptcy</a> last summer and left behind unsafe levels of <a href="https://www.wpr.org/arsenic-levels-bankrupt-frac-sand-mine-7-times-higher-state-cleanup-standards" target="_blank">arsenic and heavy metal contamination</a> for the community to clean up.</p><p>That's a scenario that Baker worried could happen in Kanab. Southern Red Sands said their intended market was in Utah's Uintah Basin 350 miles north, but a new frac sand mine just opened in the basin. "It's almost inconceivable they'd be able to compete with them because the biggest cost with frac sand is the shipping," said Baker. "There are some operations in the San Juan basin [in New Mexico and Colorado] but it's not clear to me that they could beat those out either."</p><p>Even though economics played a role in halting the project, he believes community efforts were important, too.</p><p>"The fact they faced serious legal obstacles at every step in their path had to be a factor," he said. "It is a nice, and unfortunately rare, victory for the environment."</p><p>Best Friends worked to ensure the hard-earned victory wasn't short-lived, either. It also purchased Southern Red Sands' 12,000 acres of mineral rights.</p><p>"We want to make sure that no one else comes in here in two years if the market's better and tries to put in another sand mine, we just don't think that it's the right thing for this area," said Battista. "We want to make sure that in perpetuity, there's not a threat to the sanctuary."</p><p>As for Hand, she's now looking at the bigger picture. She saw the fight over frac sand in Kanab as a microcosm of the global fight over fossil fuels and climate change.</p><p>"While we can embrace a sense of triumph, it's likely to be brief," she said. "When it comes to protecting wild places and using our resources carefully, our work will never be done. The next development project is already bubbling. I do feel more hopeful for each success, but climate change marches on."</p>From Your Site Articles
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Trending
Green Groups Sue to Stop Trump Admin From Allowing Fracking on 1 Million+ Acres of California Public Lands
15 January 2020
Fracking
A pump jack and frac tanks stand in a field being developed for drilling next to a farm over the Monterey Shale formation on March 24, 2014 near Lost Hills, California. David McNew / Getty Images
Environmental groups are suing to stop the Trump administration from fracking in California.
<p>The suit, <a href="https://www.nrdc.org/sites/default/files/complaint-california-fracking-20200114.pdf" target="_blank">filed in Los Angeles Tuesday</a>, comes in response to the Bureau of Land Management's (BLM) decision to open more than a million acres of <a href="https://www.ecowatch.com/tag/public-lands" target="_self">public lands</a> to oil and gas leasing, <a href="https://www.sfchronicle.com/news/article/Groups-sue-to-stop-California-oil-leases-citing-14975432.php" target="_blank">the San Francisco Chronicle reported</a>. The decision was finalized in December and covers eight Central California counties as well as land bordering <a href="https://www.ecowatch.com/tag/national-parks" target="_self">national parks</a>.</p><p>"Trump's illegal, deeply unjust fracking plan would be a disaster for Central Valley communities, as well as our <a href="https://www.ecowatch.com/climate-change/" target="_self">climate</a>, <a href="https://www.ecowatch.com/tag/wildlife" target="_self">wildlife</a> and <a href="https://www.ecowatch.com/tag/water" target="_self">water</a>," Clare Lakewood, a senior attorney at the <a href="https://www.biologicaldiversity.org/" target="_blank">Center for Biological Diversity</a> (CBD) said in a press release received by EcoWatch. "We need to phase out fracking and oil drilling, not throw open our public lands to polluters. The future of our beautiful state and our children depends on it."</p>
<p>CBD is joined in the suit by the <a href="https://www.nrdc.org/" target="_blank">Natural Resources Defense Council</a>, the <a href="https://ccejn.org/" target="_blank">Central California Environmental Justice Network</a>, <a href="https://lpfw.org/" target="_blank">Los Padres ForestWatch,</a> the <a href="https://www.npca.org/" target="_blank">National Parks Conservation Association</a>, the <a href="https://www.sierraclub.org/?_ga=2.165394431.1575656929.1579079993-187939755.1579079993&_gac=1.48574932.1579079993.Cj0KCQiAjfvwBRCkARIsAIqSWlPJZ8FCeVHpjbIwZjoBjpzUXTU-To-2EgXiD_GuBcGUOXVsqlVPfS4aAhZlEALw_wcB" target="_blank">Sierra Club</a>, <a href="http://www.patagoniaworks.com/" target="_blank">Patagonia Works</a> and the <a href="https://www.wilderness.org/" target="_blank">Wilderness Society</a>. <a href="https://earthjustice.org/" target="_blank">Earthjustice</a> is representing them. The groups contend that the plan is illegal because the BLM failed to consider the harm fracking in the region could do to public health, recreation, groundwater, air and the climate. They also warn of the potential for <a href="https://www.ecowatch.com/tag/earthquakes" target="_self">earthquakes</a> caused by the extraction technique.</p><p>BLM spokeswoman Serena Baker told the San Francisco Chronicle that the agency's plan simply opened the lands to a variety of uses. Any specific plans to drill for oil or frack would have to be approved or denied based on their economic viability and environmental impact.</p><p>The plan would allow fracking in Fresno, Kern, Kings, Madera, San Luis Obispo, Santa Barbara, Tulare and Ventura counties, as well as on parcels of land near the Carrizo Plain National Monument, Sequoia and Kings Canyon national parks and within 10 miles of Yosemite National Park.</p>
<p><a href="https://www.ecowatch.com/tag/conservation" target="_self">Conservation</a> groups are worried about how this could impact the region's already troubled air quality, <a href="https://eu.usatoday.com/story/news/politics/2020/01/14/conservation-groups-sue-trump-administration-over-california-fracking-plan/4467511002/" target="_blank">USA Today pointed out</a>. Three cities in the area, Fresno, Bakersfield and Visalia, were <a href="https://www.ecowatch.com/air-pollution-americans-2635507557.html?rebelltitem=2#rebelltitem2" target="_self">listed</a> among the American Lung Association's latest tally of the five cities with the worst year-round particulate matter <a href="https://www.ecowatch.com/tag/air-pollution" target="_self">air pollution</a>. The pollution could also impact national park visitors. Sequoia National Park already had 296 more unhealthy air days over a nine-year period than Los Angeles.</p><p>"Throughout this planning process, the Trump administration has ignored our warnings about the long-term impacts to nearby communities and national parks, in favor of short-term gains for oil and gas developers," Mark Rose, Sierra Nevada program manager for the National Parks Conservation Association, said in the press release. "This plan could allow drilling near several of our most cherished public lands, like Sequoia and Kings Canyon National Parks and Cesar E. Chavez National Monument, which already suffer from some of the worst air quality of any park units in the country."</p><p>The administration's plans also run counter to California's own desires for its state's energy policy. In November 2019, Gov. Gavin Newsom <a href="https://www.ecowatch.com/fracking-in-california-2641413784.html" target="_self">announced a moratorium</a> on fracking permits until they were reviewed by independent scientists. He also banned a new well-drilling technique linked to a leak that spilled 1.3 million gallons of oil and water in the Central Valley in the summer of 2019.</p>
<p>"BLM's ill-considered plan to fling wide the door to fracking on public lands is yet another assault on California's efforts to protect its environment and move away from dirty <a href="https://www.ecowatch.com/tag/fossil-fuels" target="_self">fossil fuels</a>," Ann Alexander, a senior attorney with the Natural Resources Defense Council, said in the press release. "Gov. Newsom just announced curbs on oil drilling, but BLM is charging full speed ahead with it. California is trying to find a way to rationally address its limited water supply, and now BLM is greenlighting activities that can contaminate it with toxic chemicals. This federal war on California really needs to stop."</p><p>The federal government hasn't sold any oil and gas leases in the state since 2012, when a federal judge ruled that a plan to issue oil leases in Monterey County had not considered the environmental impacts of fracking. But the Trump administration is trying to change that, both with its Central California plan and with a separate push to open 725,500 acres along the Central Coast and in the Bay Area to fracking. The second plan is being challenged by a lawsuit filed in October.</p>
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As Fracking Companies Face Bankruptcy, U.S. Regulators Enable Firms to Duck Cleanup Costs
24 December 2019
Fracking
Heavy equipment sits on the edge of a rocky stream bank as part of U.S. Bureau of Land Management-Forest Service reclamation efforts for abandoned oil and gas wells in the eastern U.S. Bureau of Land Management
By Justin Mikulka
In over their heads with debt, U.S. shale oil and gas firms are now moving from a boom in fracking to a boom in bankruptcies. This trend of failing finances has the potential for the U.S. public, both at the state and federal levels, to be left on the hook for paying to properly shut down and clean up even more drilling sites.
<p>Expect these companies to try reducing their debt through the process of bankruptcy and, like <a href="https://www.cnn.com/2019/11/01/business/murray-energy-coal-bankruptcy-pension/index.html" target="_blank">the coal industry</a>, attempting to get out of environmental and employee-related financial obligations.</p>
<h3>The Bankruptcy of EP Energy</h3><p>In October, EP Energy — one of the largest oil producers in the Eagle Ford Shale region in Texas — <a href="https://www.bizjournals.com/sanantonio/news/2019/10/07/major-eagle-ford-player-declares-bankruptcy.html" target="_blank">filed for bankruptcy</a> because the firm couldn't pay back almost $5 billion in debt, making it the largest <a href="https://www.wsj.com/articles/ep-energy-files-largest-u-s-energy-bankruptcy-since-2016-11570204927" target="_blank">oil and gas bankruptcy</a> since 2016.</p><p>EP Energy hasn't produced a profit since 2014 and <a href="https://www.bloomberg.com/news/articles/2019-10-04/apollo-and-elliott-team-up-to-save-ep-energy-stake-in-bankruptcy" target="_blank">Bloomberg reported</a> that the company would need oil to be at "a price closer to $70 per barrel" for EP to be profitable. Oil has not come close to averaging over <a href="https://www.macrotrends.net/1369/crude-oil-price-history-chart" target="_blank">$70 a barrel</a> since 2014.</p><p>Despite its financial struggles at current low oil prices, the company plans to continue operating after restructuring and eliminating up to $3 billion in debt. However, EP has not identified any funds that it would be setting aside for well cleanup, which is not unusual for an oil and gas company.</p><p>In response, <a href="https://cases.primeclerk.com/EPEnergy/Home-DocketInfo?DockRelatedSearchValue=182" target="_blank">as part of the bankruptcy proceedings,</a> the <a href="https://www.desmogblog.com/sites/beta.desmogblog.com/files/EP%20Energy%20Govt%20Objections.pdf" target="_blank">U.S. Department of the Interior filed a document</a> arguing that EP Energy is still responsible for its obligations to assure the "decommissioning, plugging, and abandonment" of any of the EP Energy wells that are located on leased federal and tribal lands.</p><p>Ideally, that would mean EP Energy sets aside funds for the proper cleanup and end-of-life processes for its oil and gas wells, which number <a href="https://webcache.googleusercontent.com/search?q=cache:i3sPT5lEYgAJ:https://www.bizjournals.com/sanantonio/news/2019/10/07/major-eagle-ford-player-declares-bankruptcy.html+&cd=5&hl=en&ct=clnk&gl=us" target="_blank">more than 800 in the Eagle Ford region</a>.</p><p>However, the federal government hasn't even named a number yet for how much that should be. The Bureau of Land Management and Bureau of Indian Affairs "are currently still assessing the status of reclamation and plugging and abandonment obligations across the Debtors' onshore federal and Indian leases," writes the Interior Department.</p>
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">In EP Energy <a href="https://twitter.com/hashtag/bankruptcy?src=hash&ref_src=twsrc%5Etfw">#bankruptcy</a>, US Interior Department wants to make sure that enough money is set aside for cleanup. For financially struggling companies, cleanup is becoming the tail that's wagging the dog. <a href="https://t.co/LDrnMr01rn">https://t.co/LDrnMr01rn</a></p>— Clark Williams-Derry (@ClarkWDerry) <a href="https://twitter.com/ClarkWDerry/status/1195714652543471616?ref_src=twsrc%5Etfw">November 16, 2019</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<p>The federal government is only getting around to assessing EP Energy's potential liabilities once the firm is already in the bankruptcy process, revealing one of the flaws in the current system. Federal and state governments have not been holding fracking companies fully liable for the environmental damage and cleanup costs of their drilling activity.</p><p>Joshua Caleb Macey, a visiting assistant professor at Cornell law school who specializes in bankruptcy and energy law, told DeSmog that the situation with EP Energy was "frustrating and completely normal."</p><p>According to the Interior Department filing, "Regardless of its bankruptcy, the Debtor is required to comply with all applicable federal laws."<br><br>As <a href="https://www.desmogblog.com/2019/10/18/public-paying-cleanup-fracking-boom-oil-gas-bonds" target="_blank">I've reported before</a>, oil and gas companies are legally required to hold a certain amount of funds to pay for well cleanup costs, a process known as bonding that varies by state and for <a href="https://www.ecowatch.com/tag/public-lands">public lands</a>.</p><p>Because companies are rarely required to have those funds available before they start drilling (and thanks to industry-friendly regulators and politicians), in reality oil and gas companies can walk away from cleanup obligations with relative ease, which has become the pattern for bankrupt <a href="http://www.ecowatch.com/tag/coal">coal</a> companies.</p>
<h3>Including Cleanup Costs Would Make Extraction 'Uneconomic'</h3><p>Federal and state regulators have been failing to require companies to <a href="https://www.desmogblog.com/2019/10/18/public-paying-cleanup-fracking-boom-oil-gas-bonds" target="_blank">fully fund expected cleanup liabilities</a>, which helps mask the true cost of oil and gas production. Passing environmental cleanup costs on to the taxpayer amounts to a backdoor subsidy for the oil and gas industry.</p><p>Requiring oil and gas companies to pay for shutting down and cleaning up wells would greatly increase the cost of drilling for many oil and gas wells. The fracking industry already <a href="https://www.desmogblog.com/finances-fracking-shale-industry-drills-more-debt-profit" target="_blank">can't make money</a> pumping <a href="https://www.ecowatch.com/tag/fossil-fuels">fossil fuels</a> out of shale in the U.S., and that's without these firms coming even close to fully <a href="https://bismarcktribune.com/bakken/as-abandoned-oil-wells-climb-regulators-consider-ways-to-stop/article_58c39a16-73a1-5592-ba5f-fc7c9c50cbcd.html" target="_blank">funding their cleanup costs</a>.</p><p>However, <a href="https://www.aberdeennews.com/news/sd-environmental-board-waits-to-plug-abandoned-natural-gas-wells/article_d0a4518b-1733-5a7a-b5f3-65508e26ad66.html" target="_blank">more state governments</a> are realizing <a href="https://www.npr.org/2019/09/06/758284873/cleaning-up-abandoned-wells-proves-costly-to-gas-and-oil-producing-states" target="_blank">the scale of this problem</a> and starting to look at increasing and enforcing bonding requirements for oil and gas well cleanup. However, in oil-rich places like Alberta, Canada, and Alaska, regulators are realizing that <a href="https://www.theglobeandmail.com/opinion/article-alberta-ignores-the-ticking-time-bomb-of-orphaned-oil-and-gas-wells-at/" target="_blank">the money just isn't there</a>.</p>
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Hey <a href="https://twitter.com/jkenney?ref_src=twsrc%5Etfw">@jkenney</a> <a href="https://twitter.com/Alberta_UCP?ref_src=twsrc%5Etfw">@Alberta_UCP</a> after your sustained attacks on the Liberal government, why are you now begging for taxpayer money to clean up Alberta's abandoned oil wells? Oil companies must pay for that. Not us. Hands off our tax dollars. The oil shareholders should pay. <a href="https://twitter.com/hashtag/cdnpoli?src=hash&ref_src=twsrc%5Etfw">#cdnpoli</a></p>— Trish Palmer (@TrishPalmerYVR) <a href="https://twitter.com/TrishPalmerYVR/status/1201196546563248129?ref_src=twsrc%5Etfw">December 1, 2019</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<p>In 2018, the natural gas driller Amaroq Resources <a href="https://www.petroleumnews.com/pntruncate/771890741.shtml" target="_blank">acquired the Nicolai Creek assets</a> in southwest Alaska from the bankrupt Aurora Gas. This transaction was delayed when the Alaska Oil and Gas Conservation Commission (AOGCC) announced $7 million in bonding required for the gas wells associated with the purchase. This is the point where the state government had the power to make Amaroq provide adequate bonding for well cleanup.</p><p>The AOGCC then agreed to reduce that amount to $200,000 and the deal went ahead.</p><p>Since that deal, the commission increased the minimum statewide bonding level to $400,000 per well for the first one to 10 wells. Amaroq would be required to abide by these new regulations and has appealed this decision. Company president Scott Pfoff explained that these new bonding requirements make the business "uneconomic."</p><p>And that is the reality. If oil and gas companies were required to pay for the full end-of-life cost of their wells, much of their inventory becomes uneconomic. This is where taxpayers come in.</p>
<h3>Fracking Industry Wants to Dump Wastewater in Streams and Rivers to Save Money</h3><p>Failure to require <a href="https://medium.com/westwise/new-analysis-taxpayers-could-be-on-the-hook-for-billions-to-clean-up-abandoned-oil-and-gas-wells-b0e1e28d20c2" target="_blank">adequate bonding for oil and gas cleanup</a> costs is just one of many backdoor government subsidies for the oil and gas industry. The failure to regulate <a href="https://www.desmogblog.com/2019/01/29/fracking-industry-gas-flaring-problem" target="_blank">flaring and venting of the potent greenhouse gas methane</a> during oil drilling is another example.</p><p>Fracking firms, which spend a lot of borrowed money to pump out a lot of oil and gas for not much (or any) profit, are experiencing a <a href="https://www.wsj.com/articles/frackers-face-harsh-reality-as-wall-street-backs-away-11551009601" target="_blank">collapse in financing</a>. Thanks to the industry's failed business model, these companies are desperate for ways to cut costs.</p><p>One of the major costs associated with hydraulic fracturing, or fracking, is <a href="https://www.desmogblog.com/2018/09/18/fracking-industry-waste-water-nightmare" target="_blank">acquiring, pumping and disposing of water</a>, which, after a driller is finished with it, typically contains corrosive levels of salts and contaminants including naturally occurring radioactive materials, chemicals and oil residues. This area has become a major target for the industry to save money.</p>
<img lazy-loadable="true" src="https://assets.rebelmouse.io/eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJpbWFnZSI6Imh0dHBzOi8vYXNzZXRzLnJibC5tcy8yMjIxMDU3My9vcmlnaW4ucG5nIiwiZXhwaXJlc19hdCI6MTYzNjE2Njg2Mn0.lMtMV5SmNv1KnJe05RVbuXuKPfhX1WhynPydQ0AKag8/img.png?width=980" id="a58de" class="rm-shortcode" data-rm-shortcode-id="74142d5134868c830b71c57da8431b80" data-rm-shortcode-name="rebelmouse-image" />
A graphic showing the water cycle during hydraulic fracturing. U.S. Environmental Protection Agency, 2016
<p>As <a href="https://www.washingtonpost.com/national/health-science/fracking-is-not-the-cause-of-quakes-rather-its-frackings-wastewater/2015/04/27/e87a6e82-e9f4-11e4-aae1-d642717d8afa_story.html?utm_term=.9934b60ef334" target="_blank">The Washington Post pointed out in 2015</a> (and as I highlighted last year), when it comes to fracked shale oil and gas production, "currently there is no way to treat, store, and release the billions of gallons of <a href="http://www.ecowatch.com/tag/wastewater">wastewater</a> at the surface." The industry's current range of (legal) approaches to <a href="https://www.desmogblog.com/2018/09/18/fracking-industry-waste-water-nightmare" target="_blank">disposing of its massive amounts of wastewater</a> involves injecting it underground, which in some cases is tied to increased earthquake activity, using it to irrigate crops or de-ice roads, and sending it to municipal water treatment plants lacking equipment to properly treat it.</p><p>Treating oil and gas drilling wastewater is possible, but expensive. As S&P Global Platts <a href="https://www.spglobal.com/en/research-insights/articles/us-oil-drillers-face-growing-issue-of-water-disposal-fuel-for-thought" target="_blank">recently reported</a>, according to a study by the Texas Alliance of Energy Producers and Independent Petroleum Association of America, for Permian drillers in Texas, "Economically, treatment costs must come down."</p><p>The study concludes that dealing with wastewater is already a limiting factor in this prolific region: "Some Permian sub-basins are currently constrained due to insufficient injection well capacity. Projected production growth will worsen the situation."</p><p>With this glut of wastewater combined with high costs, the industry is looking for a cheap alternative. The latest preferred approach seems to be lobbying governments to change the rules to allow dumping wastewater with limited treatment into <a href="http://www.ecowatch.com/tag/rivers">rivers</a> and streams.</p><p>In November, E&E News reported that there's movement to allow or expand such wastewater dumping in <a href="http://www.eenews.net/stories/1061525917" target="_blank">Oklahoma</a>, Texas, <a href="https://www.koat.com/article/sides-clash-over-benefits-drawbacks-of-fracking/30126134" target="_blank">New Mexico</a> and <a href="http://www.eenews.net/stories/1061647463" target="_blank">Pennsylvania</a>, all states with major fracking industries. "Within a year, Oklahoma could get approval from EPA to start issuing permits that will allow the oil industry to dispose of briny oil field waste in waterways," E&E wrote.</p><p>As space for injection wells becomes scarce, the industry hopes to dump its wastewater in streams and rivers, once again passing on potential environmental and financial liabilities to the public.</p><p>A 2017 working group looking for alternatives for Oklahoma oil field wastewater (also known as "produced water") found "the most cost-effective means of reducing disposal is for oil companies to treat and clean that produced water so it can be reused for things like fracking," <a href="https://stateimpact.npr.org/oklahoma/2017/04/27/the-most-practical-alternative-to-quake-causing-disposal-wells-is-reusing-wastewater-research-group-finds/" target="_blank">reported NPR's StateImpact Oklahoma</a>.</p><p>However, recycling produced water to again frack wells results in more toxic produced water, which can't be recycled indefinitely. With injection wells increasingly unable to handle the volume of water produced by the industry, shale firms have been seeking cheap alternative disposal methods, including dumping the water in rivers and streams.</p><p>However, the 2017 analysis concluded that treating produced frack water to the point it could be safely dumped into rivers or used to irrigate agriculture wasn't economically viable.</p><p>Owen Mills, the director of water planning for the Oklahoma Water Resources Board, explained to StateImpact Oklahoma why this wasn't an option for the industry: "It's incredibly expensive to do that and it takes a lot of energy."</p><p>To properly treat the fracking wastewater to the point it is no longer a threat to human health and the environment would be incredibly expensive, and that is why the industry is lobbying to change the rules about disposing its wastewater. If it succeeds, expect the eventual clean up costs — also incredibly expensive — to be billed to the American public.</p>
<p><em>Reposted with permission from <a href="https://www.desmogblog.com/2019/12/20/fracking-oil-gas-bankruptcies-cleanup-costs-regulators" target="_blank">DeSmogBlog</a>.</em></p>From Your Site Articles
- In Alabama, a Cleanup Unearths Toxins—and Scandal - EcoWatch ›
- Will the Public End up Paying to Clean up the Fracking Boom ... ›
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The message of the global movement to ban fracking and get off fossil fuels envisions a different future, one that starts with cutting off pollution at the source. cta88 / iStock / Getty Images Plus
By Wenonah Hauter
Donald Trump's scheduled visit to a fracking industry gathering in Pittsburgh this week is a hugely symbolic moment for the 2020 election campaign, as well as the urgent battle to contain climate catastrophe.
<p>Trump will give the keynote address at the Shale Insight conference, a regular get-together for gas industry heavyweights. If he manages to stay on message — no small feat — he will tout his support for fracking and <a href="https://www.ecowatch.com/tag/fossil-fuels" target="_self">fossil fuel</a> projects in Pennsylvania and Ohio, two states that are absolutely critical to his re-election. Promoting dirty energy, so the conventional wisdom goes, delivers votes. But there's no reason to believe this is true.</p><p>Trump's trip to Pittsburgh underscores his administration's vision for long-term fossil fuel dependence, along with increased pollution and <a href="http://www.ecowatch.com/tag/plastics" target="_self">plastics</a> production. The gas industry has the exact same agenda, and it desperately needs a Trump re-election to maintain profitability. Several leading candidates pursuing the Democratic nomination, including Bernie Sanders and Elizabeth Warren, offer a distinctly different vision: A rapid shift away from fossil fuels and towards a strong Green New Deal that would ban fracking.</p><p>Fossil fuel corporations have an alarming plan for the future of Pennsylvania, the Appalachian region and the rest of America: A massive buildout of <a href="http://www.ecowatch.com/tag/pipelines" target="_self">pipelines</a>, power plants and petrochemical 'cracker' plants that turn fracked gas into plastic. Our recent report, "<a href="https://www.foodandwaterwatch.org/insight/fracking-endgame-locked-plastics-pollution-and-climate-chaos" target="_blank">The Fracking Endgame</a>," finds there are more than 700 of these projects planned or underway. This all adds up to increased greenhouse gas emissions, <a href="http://www.ecowatch.com/tag/air-pollution" target="_self">worsening air quality</a> in vulnerable communities and generating more of the single use plastics choking our oceans and waterways.</p><p>The message of the global movement to ban fracking and get off fossil fuels envisions a different future, one that starts with cutting off pollution at the source. You cannot do that with cap and trade plans or voluntary agreements with polluters; we must stop the drilling, and building the pipelines and power plants that last for decades.</p><p>Republicans and shadowy fossil fuel-funded front groups are eager to hammer the message that taking action to save our climate will cost jobs — and, more importantly to them, will hopefully cost Democrats votes on Election Day. Unfortunately, this trope is embraced by some Democrats too, who seem to think that swing state voters care more about the profits of the fracking industry than the health of their communities or the future of the planet.</p><p>In reality, Democratic voters overwhelmingly back the calls to ban fracking: a new AP/NORC poll found that just 9 percent of Democrats support policies that would encourage more fracking; independent voters are close behind. Under any conventional theory of politics, candidates would be wise to listen. And what about a heavily fracked state like Pennsylvania? <a href="https://stateimpact.npr.org/pennsylvania/2018/03/29/poll-most-pennsylvania-voters-say-climate-change-causing-problems-now/" target="_blank">55 percent of respondents in one poll</a> said the negative environmental impacts of gas drilling were not worth the supposed economic benefits. This is a stunning turnaround from the results the same poll recorded just a few years ago. Pennsylvanians have seen for themselves that fracking has delivered water contamination, air pollution and an array of public health problems.</p><p>So, while Trump takes the stage in Pittsburgh to tout fracking and taunt those of us fighting for a livable future, Americans should see it for what it is: A preview of one part of the White House's desperate re-election scheme. While Donald Trump will run as the champion of a disastrous addiction to fossil fuels and fracking, Democrats should proudly champion a different vision: Cutting off fossil fuels, a fair and just transition for workers, meaningful collaboration with affected communities, and massive investments in renewables. We can deliver desperately-needed jobs in Appalachia building our clean energy future, instead of relying on petrochemicals and dirty energy infrastructure that jeopardize local health and safety.</p><p>Presidential candidates who call for an end to fracking are not pursuing a dangerous policy that will cost them votes. They are doing precisely what is necessary for this moment. They should welcome the contrast with Trump's energy agenda.</p>
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Can the Environmental Movement Carry a ‘Green Wave’ Into #2020? <a href="https://t.co/sqV5qV9K8f">https://t.co/sqV5qV9K8f</a> <a href="https://twitter.com/Revelator_News?ref_src=twsrc%5Etfw">@Revelator_News</a> <a href="https://twitter.com/sunrisemvmt?ref_src=twsrc%5Etfw">@sunrisemvmt</a></p>— EcoWatch (@EcoWatch) <a href="https://twitter.com/EcoWatch/status/1128042329162620930?ref_src=twsrc%5Etfw">May 13, 2019</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<p><em><br/>Wenonah Hauter is the executive director of the consumer advocacy group Food & Water Action. </em></p><p><em>Reposted with permission from our media associate <a href="https://www.commondreams.org/views/2019/10/22/trump-seeks-frack-2020-election#" target="_blank">Common Dreams</a>.</em></p>From Your Site Articles
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Cleanup costs for abandoned oil and gas wells once the producers have moved on could fall heavily on the public.
Susan Vineyard / iStock / Getty Images Plus
Susan Vineyard / iStock / Getty Images Plus
By Justin Mikulka
Increasingly, U.S. shale firms appear unable to pay back investors for the money borrowed to fuel the last decade of the fracking boom. In a similar vein, those companies also seem poised to stiff the public on cleanup costs for abandoned oil and gas wells once the producers have moved on.
<p>"It's starting to become out of control, and we want to rein this in," Bruce Hicks, assistant director of the North Dakota Oil and Gas Division, <a href="https://bismarcktribune.com/bakken/as-abandoned-oil-wells-climb-regulators-consider-ways-to-stop/article_58c39a16-73a1-5592-ba5f-fc7c9c50cbcd.html" target="_blank">said in August</a> about companies abandoning oil and gas wells. If North Dakota's regulators, some of the <a href="https://www.desmogblog.com/2019/10/01/whistle-blower-lehto-oneok-north-dakota-gas-plants-spill" target="_blank">most industry-friendly in the country</a>, are sounding the alarm, then that doesn't bode well for the rest of the nation.</p><p>In fact, officials in North Dakota are using Pennsylvania as an example of what they want to avoid when it comes to abandoned wells, and with good reason.</p><p>The <a href="https://aoghs.org/petroleum-pioneers/american-oil-history/" target="_blank">first oil well</a> drilled in America was in Pennsylvania in 1859, and the oil and gas industry has been drilling — and abandoning — wells there ever since. Pennsylvania's Department of Environmental Protection (DEP) says that while it only has documentation of 8,000 orphaned and abandoned wells, it estimates the state actually has over a half million.</p><p>"We anticipate as many as 560,000 are in existence that we just don't know of yet," DEP spokesperson Laura Fraley told <a href="https://stateimpact.npr.org/pennsylvania/2019/03/11/state-reaches-7m-agreement-over-1400-abandoned-oil-and-gas-wells/" target="_blank">StateImpact Pennsylvania</a>. "There's no responsible party and so it's on state government to pay to have those potential environmental and public health hazards remediated."</p><p>According to StateImpact, "The state considers any well that doesn't produce oil and gas for a calendar year to be an abandoned well."</p><p>That first oil well drilled in Pennsylvania was 70 feet deep. Modern fracked wells, however, can be well over 10,000 feet in total length (most new fracked wells are drilled vertically to a depth where they turn horizontal to fracture the shale that contains the oil and gas). Because the longer the total length of the well, the more it costs to clean up, the funding required to properly clean up and cap wells has grown as drillers have continued to use new technologies to greatly extend well lengths. Evidence from the federal government points to the potential for these costs being shifted to the tax-paying public.</p><p>The Government Accountability Office (GAO) <a href="https://www.gao.gov/products/GAO-19-615?utm_medium=social&amp;utm_source=twitter&amp;utm_campaign=usgao" target="_blank">released a report this September</a> about the risks from insufficient bonds to reclaim wells on <a href="https://www.ecowatch.com/tag/public-lands">public lands</a>. It said, "the bonds operators provide as insurance are often not enough to cover the costs of this cleanup." The report cited a Bureau of Land Management (BLM) official's estimate of $10 a foot for well cleanup costs.</p><p><a href="https://stateimpact.npr.org/pennsylvania/2019/03/11/state-reaches-7m-agreement-over-1400-abandoned-oil-and-gas-wells/" target="_blank">StateImpact Pennsylvania</a> noted that costs to reclaim a well could add up to $20,000, and DEP spokesperson Fraley said they could be "much, much higher." The <a href="https://www.gao.gov/products/GAO-19-615?utm_medium=social&amp;utm_source=twitter&amp;utm_campaign=usgao" target="_blank">GAO report </a>noted that "low-cost wells typically cost about $20,000 to reclaim, and high-cost wells typically cost about $145,000 to reclaim."</p><p>In North Dakota, where state regulators have raised concerns about this growing problem, one of the top industry regulators, State Mineral Resources Director Lynn Helms, estimated that wells there cost<a href="https://bismarcktribune.com/bakken/as-abandoned-oil-wells-climb-regulators-consider-ways-to-stop/article_58c39a16-73a1-5592-ba5f-fc7c9c50cbcd.html" target="_blank"> $150,000 to plug and reclaim.</a></p><p>And this problem isn't just in the U.S. Canada is facing a similar cleanup crisis. </p>
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">We always talk about the oil biz in Canada as BIG MONEY on the one hand, environmental issues on the other. But this episode taught me that cleaning up abandoned oil wells will soon COST Canada $50 Billion+. So....? <a href="https://t.co/qcn3d2invI">https://t.co/qcn3d2invI</a></p>— Jesse Brown (@JesseBrown) <a href="https://twitter.com/JesseBrown/status/1128353492345720832?ref_src=twsrc%5Etfw">May 14, 2019</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<h3>Financial Bonding Requirements for Well Cleanup</h3><p>Legally, oil and gas companies are required to set aside money to pay for well cleanup costs, a process known as bonding. These requirements vary by state and for public lands, but in all cases, the amounts required are so small as to be practically irrelevant.</p><p>The GAO report reviewed the bonds held by the Bureau of Land Management for wells on public lands and found that the average bond per well in 2018 was worth $2,122.</p><p>The Western Organization of Resource Councils <a href="http://www.worc.org/media/Bonding-Amount-Matrix-3.pdf" target="_blank">summarized bonding requirements </a>by state, and none of them came even close to being adequate to cover estimated costs to deal with old wells. In North Dakota, a $50,000 bond is required for a well. But a $100,000 bond can cover up to 6 wells, which comes out to $16,667 per well — or approximately one tenth of the estimated cost to reclaim a well in that state.</p><p>North Dakota has a history of bending to oil and gas industry pressure when it comes to regulations. While North Dakota's bonding rules fall far short of what's needed to actually cover full cleanup costs, the reality on the ground is much worse. Regulators allow companies to "<a href="https://www.prairiebusinessmagazine.com/news/government-and-politics/4665276-north-dakota-regulators-talk-abandoned-oil-wells-ahead-hearings" target="_blank">temporarily abandon</a>" wells, which requires no action from companies for at least seven years. Wells can hold this "temporary status" for decades. And another practice in the state allows a company to sell old, under-performing wells to another company, passing along the liability but not the bonding funds.</p><p>By any measure, the amount of private money currently allocated in the U.S. to plug and reclaim oil and gas wells is a small fraction of the real costs. That means oil and gas wells — and the U.S. had <a href="https://www.eia.gov/petroleum/wells/" target="_blank">one million active wells in 2017</a>, and even more abandoned — will either be left to fail and potentially contaminate the surrounding water, air and soil, or the public will have to pick up the tab. This represents just one of the many ways the public subsidizes the oil and gas industry.</p>
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Statewide, 639 oil wells are considered abandoned. <br><br>The fund has a balance of $22 million, yet Helms estimates the state could potentially be on the hook for a far greater amount.<a href="https://t.co/58Oz4rrQ5i">https://t.co/58Oz4rrQ5i</a></p>— TXsharon (@TXsharon) <a href="https://twitter.com/TXsharon/status/1179547951846350848?ref_src=twsrc%5Etfw">October 3, 2019</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<h3>A South Dakota Case Study</h3><p>South Dakota allows companies to post a $30,000 bond for as many wells as the company chooses to drill. Spyglass Cedar Creek is a Texas-based company that was operating in South Dakota and recently <a href="https://rapidcityjournal.com/news/opinion/editorial/ours-state-needs-larger-bonds-from-energy-companies/article_c3bb4f3a-73f5-5711-98a7-529935917c6f.html" target="_blank">abandoned 40 wells</a>, which the state has estimated will have a cleanup cost of $1.2 million.</p><p>However, there is a twist to this story. That $30,000 bond doesn't really exist. The owners of the company had put $20,000 of it into a Certificate of Deposit. But when the state went looking for that money, the owners said they had cashed it in 2015 because, as reported by the <a href="https://rapidcityjournal.com/news/local/purpose-of-natural-gas-project-bond-was-forgotten-company-says/article_df7d21c8-c5dc-5925-82ea-6df4caa037ca.html" target="_blank">Rapid City Journal</a>, "company officials did not remember what the money was for."</p><p>Spyglass Cedar Creek does not have the money set aside that was required to clean up these wells, the state does not have recourse to get that money, and some of the wells are reportedly leaking. So, what can be done?</p><p>According to Doyle Karpen, member of the South Dakota Board of Minerals and Environment, the answer is for the taxpayers of that state to cover the cost.</p><p>"I think the only way we can correct this is go to the Legislature and ask for money," Karpen <a href="https://www.aberdeennews.com/news/sd-environmental-board-waits-to-plug-abandoned-natural-gas-wells/article_d0a4518b-1733-5a7a-b5f3-65508e26ad66.html" target="_blank">said earlier this year.</a></p><h3>Following the Coal Industry Business Model</h3><p>What is starting to unfold with the oil and gas industry is very similar to what has already been playing out with the U.S. <a href="http://www.ecowatch.com/tag/coal" rel="noopener noreferrer">coal</a> industry.</p><p><a href="https://publicintegrity.org/environment/while-zombie-mines-idle-cleanup-and-workers-suffer-in-limbo/" target="_blank">According to a Center for Public Integrity investigation</a>, more than 150 coal mines (and dozens of uranium mines) have been allowed to idle indefinitely, enabling their owners to avoid paying for the costs of cleanup.</p><p>In April, the Stanford Law Review published the paper, "<a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3136711" target="_blank">Bankruptcy as Bailout: Coal Company Insolvency and the Erosion of Federal Law</a>," which notes that almost half the coal mined in the U.S. is done so by companies that have recently declared bankruptcy.</p><p>The paper notes how the bankruptcy process is used by coal companies to rid themselves of environmental cleanup liabilities and pension costs "in a manner that has eviscerated the regulatory schemes that gave rise to those obligations."</p><p>Yet coal company executives often receive <a href="https://grist.org/climate-energy/coal-company-paid-its-execs-8-million-in-bonuses-just-before-filing-for-bankruptcy/" target="_blank">healthy bonuses</a>, even as they are driving companies into <a href="https://www.wsj.com/articles/westmoreland-paid-millions-in-executive-bonuses-in-year-before-bankruptcy-1541804141" target="_blank">bankruptcy.</a></p><p>This summer, Blackjewel famously failed to pay its coal miners, and even pulled funds out of their bank accounts, after the company suddenly declared bankruptcy in July. That prompted workers to sit on train tracks in Kentucky, blocking a $1 million shipment of coal, in a <a href="https://www.courier-journal.com/story/news/2019/09/26/eastern-kentucky-coal-miners-end-blackjewel-railroad-blockade-protest/3775735002/" target="_blank">two-month protest</a>. And Blackjewel is poised to leave behind <a href="https://southerlymag.org/2019/08/25/blackjewel-left-coal-miners-without-pay-now-it-might-leave-appalachia-thousands-of-acres-of-land-to-clean-up/" target="_blank">thousands of acres of mined land in Appalachia</a> without adequate reclamation.</p><h3>Privatize the Profits, Socialize the Losses</h3><p>The mineral extraction business model in the U.S. is set up to maximize profits for executives, even as they lose investor money and bankrupt their companies. That is true of the coal industry and <a href="https://www.desmogblog.com/2018/05/29/flip-well-fracking-shale-halcon-resources-floyd-wilson" target="_blank">that is true of the shale oil and gas industry</a>.</p><p>At the same time, the regulatory capture by these industries at both state and federal levels allows private companies to pass on environmental cleanup costs to the public, and the inadequate bonding system for oil and gas well reclamation represents just one more example.</p><p>The so-called fracking revolution in America has resulted in many new records: <a href="https://www.desmogblog.com/2019/09/23/us-exporting-fracking-oil-gas-climate-catastrophe" target="_blank">record amounts</a> of U.S. oil and gas exported (to the detriment of a livable climate), new levels of human <a href="https://www.westword.com/news/long-awaited-colorado-health-study-finds-significant-risks-from-fracking-11516032" target="_blank">health impacts</a> on surrounding communities, record numbers of industry-induced <a href="http://oklahoman.com/earthquakes" target="_blank">earthquakes</a>, record amounts of flaring <a href="https://www.desmogblog.com/2019/01/29/fracking-industry-gas-flaring-problem" target="_blank">natural gas</a> in oil and gas fields, and record-breaking <a href="https://marcellusdrilling.com/2017/05/great-scott-eclipse-drills-new-longest-lateral-in-world-in-utica/" target="_blank">depths and lengths of wells.</a></p><p>And the cleanup costs for the fracking boom are also poised to be staggering.</p>
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Abandoned Texas oil wells seen as "ticking time bombs" of contamination <a href="https://t.co/ilukEcTWBC">https://t.co/ilukEcTWBC</a> via <a href="https://twitter.com/TexasTribune?ref_src=twsrc%5Etfw">@TexasTribune</a></p>— lifeintheshale (@lifeintheshale) <a href="https://twitter.com/lifeintheshale/status/1135978911349858304?ref_src=twsrc%5Etfw">June 4, 2019</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<p><em>Reposted with permission from our media associate <a href="https://www.desmogblog.com/2019/10/18/public-paying-cleanup-fracking-boom-oil-gas-bonds" rel="noopener noreferrer" target="_blank">DeSmogBlog</a>.</em></p>Related Articles Around the Web
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Fracking Study Shows Toxic Chemical Exposure 2,000 Feet From Drilling Sites
18 October 2019
Fracking
A fracking well looms over a residential area of Liberty, Colorado on Aug. 19. WildEarth Guardians / Flickr
A new multiyear study found that people living or working within 2,000 feet, or nearly half a mile, of a hydraulic fracturing (fracking) drill site may be at a heightened risk of exposure to benzene and other toxic chemicals, according to research released Thursday by the Colorado Department of Public Health and Environment (CDPHE)
<p>The <a href="https://drive.google.com/file/d/1pO41DJMXw9sD1NjR_OKyBJP5NCb-AO0I/view" target="_blank">study</a> concluded that people living within almost a half-mile radius of a fracking well have an increased risk of feeling the effects of chemical exposure though headaches, nausea, dizziness, nosebleeds and respiratory trouble, according to <a href="https://www.denverpost.com/2019/10/17/colorado-oil-gas-health-risks-study/" target="_blank">The Denver Post</a>.</p><p>Until now, Colorado has had a 500-foot minimum distance that drilling wells can be from homes. The <a href="https://drive.google.com/file/d/1pO41DJMXw9sD1NjR_OKyBJP5NCb-AO0I/view" target="_blank">study</a> found that, in certain conditions, toxic <a href="https://www.ecowatch.com/tag/chemicals" target="_self">chemicals</a> like benzene, toluene and ethyltoluenes could be up to 10 times the recommended levels at a 500-foot distance. As you move away from the fracking site, the chemicals dissipate, but could still be at unsafe levels at 2,000 feet away, as <a href="https://www.newsweek.com/colorado-fracking-study-shows-toxic-chemicals-2000-feet-away-drilling-sites-1466091" target="_blank">Newsweek</a> reported.</p><p>That takes into account only the chemicals that are known. Some chemicals used in the hydraulic fracturing process are trade secrets. As <a href="https://www.newsweek.com/colorado-fracking-study-shows-toxic-chemicals-2000-feet-away-drilling-sites-1466091" target="_blank">Newsweek</a> reported, a recent <a href="https://www.pfpi.net/secret-fracking-chemicals-threaten-ohioans-health-drinking-water" target="_blank">study from the Partnership for Policy Integrity</a> noted that natural gas drillers use a law that allows some of their chemicals to remain secretive.</p><p>"Secret exposure to chemicals that our own EPA reports as a potential hazard to human health is unconscionable," said Alan Lockwood, MD, of Physicians for Social Responsibility (PSR) to <a href="http://newsweek/" target="_blank">Newsweek</a>. "Healthcare professionals can't possibly treat patients properly, make protective public health plans and decisions, and protect first responders without knowing what chemicals are in the environment."</p><p>The <a href="https://drive.google.com/file/d/1pO41DJMXw9sD1NjR_OKyBJP5NCb-AO0I/view" target="_blank">CDPHE report</a> strengthens Governor Jared Polis' argument that emissions from Colorado's powerful oil and gas industry need to be reined in. The finding also helps explain the complaints 750 residents living near oil and gas facilities made to the state's health department, said state toxicologist Kristy Richardson, as <a href="https://www.denverpost.com/2019/10/17/colorado-oil-gas-health-risks-study/" target="_blank">The Denver Post</a> reported. Around 60 percent of those complaints involved symptoms commensurate with chemical exposure, such as headaches, dizziness and difficulty breathing.</p><p>Computer modeling from the study is expected to help regulators set new standards for the minimum distance a drilling site can be from a home.</p><p>"This study is the first of its kind because it used actual emissions data to model potential exposure and health risks," said CDPHE environmental programs director John Putnam, according to <a href="https://www.denverpost.com/2019/10/17/colorado-oil-gas-health-risks-study/" target="_blank">The Denver Post</a>. "While we pursue further research, we won't delay enacting stricter emissions standards for chemicals that cause human effects, ozone pollution and climate change. This study reinforces what we already know: We need to minimize emissions from oil and gas sources."</p><p>State regulators insisted they would start to take a close look at all new applications for drilling within 2,000 feet of any residence and that they would start testing air emissions around industry wells. The Colorado Oil and Gas Conservation Commission said it would start to use its money to test air quality around homes near gas wells, according to <a href="https://www.denverpost.com/2019/10/17/colorado-oil-gas-health-risks-study/" target="_blank">The Denver Post</a>.</p><p>Community activists praised the findings and insisted that state lawmakers need to prioritize community health and rein in oil and gas industry pollution.</p><p>"Dozens of children living in close proximity to oil and gas have already documented off-the-charts levels of benzene in their blood," said Colorado Rising spokeswoman Anne Lee Foster, as <a href="https://www.denverpost.com/2019/10/17/colorado-oil-gas-health-risks-study/" target="_blank">The Denver Post</a> reported. "Considering this and the corroborative data of the study, the state must pause oil and gas permitting and ensure that public health and safety is protected — as new legislation mandates."</p>
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">"There is no evidence that <a href="https://twitter.com/hashtag/fracking?src=hash&ref_src=twsrc%5Etfw">#fracking</a> can operate without threatening public health directly" <a href="https://t.co/9c3wXGzba6">https://t.co/9c3wXGzba6</a> <a href="https://twitter.com/FrackAction?ref_src=twsrc%5Etfw">@FrackAction</a> <a href="https://twitter.com/Frack_Off?ref_src=twsrc%5Etfw">@Frack_Off</a></p>— EcoWatch (@EcoWatch) <a href="https://twitter.com/EcoWatch/status/1142628425582227456?ref_src=twsrc%5Etfw">June 23, 2019</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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Well Blowout
A fracked natural gas well in northwest Louisiana has been burning for two weeks after suffering a blowout. A state official said the fire will likely burn for the next month before the flames can be brought under control by drilling a relief well.
Well Blowout
<p>DeSmog obtained drone video footage shot 13 days after the blowout, which occurred early in the morning on August 30, the day after the well was hydraulically fractured. A tower of flames reportedly shot into the air that could be seen from more than 30 miles away. While the flames are no longer as intense, the fire is still visible from a distance of more than a mile. GEP Haynesville, LLC, the well's operator, told <a href="https://www.kpvi.com/news/national_news/multi-well-natural-gas-fires-continue-to-burn-in-coushatta/article_c5778d02-afeb-5728-b067-3dbaff892351.html?fbclid=IwAR2sROJHdxV9zUD9s-azyXuf2bMrly_950ChIPkr1myWNwJ2H7tuiFsmL20" target="_blank">local ABC affiliate KPVI </a>that the fire started during flow-back operations, but the exact cause has not been determined yet.</p><p>Experts have voiced concerns over the pollution being released, especially given the length of time this <a href="https://www.ecowatch.com/tag/fossil-fuels">fossil fuel</a> well has been leaking and burning.</p><p>"Blowouts are (unintended) large, uncontrolled pollutant sources with potentially significant health and environmental consequences," Gunnar W. Schade, an atmospheric scientist at Texas A&M University, told me via email after viewing the drone video obtained by DeSmog. "Blowouts need to be shut down as soon as possible."</p><p>Sharon Wilson, Texas coordinator of environmental advocacy group Earthworks, outlined what happens during well blowouts like this.</p><p>"The gas is under pressure so if they lose control, the gas, frack fluid, produced water, and oil/condensate all blast out of the hole," Wilson said during a call after viewing the video. "They have to get specialized teams to come shut the well in." </p>Air Quality Impacts?
<p>The Louisiana Department of Environmental Quality (LDEQ) has determined that the blowout and fire present no major air quality concerns. "LDEQ responders consider this a very low-impact event," Greg Langley, LDEQ spokesperson, said via email. "The well is clean, it's gas and what is being released is being consumed in the fire." </p><p>"LDEQ is receiving daily air monitoring results from the environmental response contractor hired by the well owner," Langley explained. "The company set up four air monitors to test for sulfur dioxide, hydrogen sulfide, volatile organic compounds, and lower explosive limit. LDEQ also does periodic air monitoring with our own equipment. All meter readings have been below detection limits." </p><p>Most of the air monitoring is being done with a chemical detector called MultiRAEs, according to Langley. When asked which <a href="https://www.cdc.gov/nceh/clusters/fallon/glossary-voc.pdf" target="_blank">volatile organic compounds</a>, a class of air pollutants that includes the carcinogen benzene, were present, Langley replied, "Nothing was detected." </p><p>"It's laughable that they say there are no air impacts from this event," Wilson said. She frequently monitors oil and gas industry sites with an optical gas imaging camera that detects leaking <a href="http://www.ecowatch.com/tag/methane">methane</a> and other pollutants invisible to the naked eye. Wilson's videos have been instrumental in identifying numerous leaking wells in various shale regions across the United States, including Louisiana's Haynesville Shale, where this blowout is burning. Wilson reports her findings to state regulatory agencies, which on occasion have fined operators for the leaks she flagged. </p><p>"Even without my optical gas imaging camera, I know there are air impacts because I can see them with my naked eyes. You can see that the gas coming up is not all being burned off and the plume of smoke and gases is traveling a very far distance," Wilson said, based on the drone footage.</p><p>Wilson recommends placing air sampling equipment on a drone to survey the area above the fire and leaking well.</p><p>"The problem is the plume is up much higher than an LDEQ inspector standing on the ground holding a MultiRae meter," she said.</p><p>Wilma Subra, a technical advisor for the Louisiana Environmental Action Network, agrees that using drones would be advisable and that air canister testing should be done too. This latter approach captures air samples over a period of days and measures how much of each compound is present. Subra thinks air canister testing is the best way to know if the emissions around the blowout are a threat to human health.</p>Louisiana’s Response and Oversight
<p>The Louisiana State Police's hazmat (hazardous materials) team and the Louisiana Department of Natural Resources (LDNR), which regulates oil and gas production, are also monitoring the blowout.</p><p>Like LDEQ, these two agencies concluded the accident did not warrant alerting nearby residents of potential health concerns. A few people live within a mile and a half of the site.</p><p>"Any time there is a loss of well control, there is a concern about environmental impacts," Patrick Courreges, communications director for LDNR, told me. DNR's "first concern is for the physical safety of the workers on site and for any people potentially affected in nearby homes and businesses," but in this case the site is fairly remote and air monitoring, in place since the first day of the blowout, hasn't indicated any potential immediate impacts of harmful gases, he explained.</p><p>"Currently, well control contractors are on site, under the supervision of the operator and State Police Incident Command to keep the impacts contained as much as possible, using water to help control the heat and potential spread of flame," Courreges said. "While there is no good news in a blowout, the fire does actually help with lessening the impact of the escaping methane by burning much of it off, though obviously the goal is to get the flow of methane stopped and the fire out as soon as possible."</p><p>"The longer-term solution is likely to be the drilling of wells to intercept the affected wellheads and stop the flow of gas in the damaged wellheads," he told me. That might take a month. A design for a relief well has not been submitted yet to DNR, though one is being planned. Drilling a relief well was the same basic approach which ultimately stopped the flow of oil from BP's Macondo well blowout deep under the Gulf of Mexico in 2010.</p><p>"Full-on blowouts in hydraulically fractured Haynesville Shale wells are rare," Courreges said. "While there have been instances of valves or piping giving way over the years that required emergency response, I don't recall any blowouts on this scale from those type of wells."</p><p>Wilson is skeptical of that response. "We don't know how common this is because the industry tries very hard to keep these events quiet," Wilson said. "If they happen in a remote area, no one finds out. They are always downplayed and the regulators help with the deception." She believes that "there has never been a system in place to adequately regulate this industry, so they are allowed to self-regulate by doing their own testing."</p><p><span style="background-color: initial;">"</span>For decades we have endured these oil and gas disastrous accidents that have harmed health and pushed us into a <a href="https://www.ecowatch.com/tag/climate-change">climate crisis</a>," Wilson said, "but we don't have to put up with this anymore because the technology to transition to clean renewable energy is available today and it's cheaper. The only thing holding us back is the political will."</p>Natural Gas Blowouts
<p>Methane, the main component in natural gas, is a greenhouse gas that is <a href="https://www.scientificamerican.com/article/how-bad-of-a-greenhouse-gas-is-methane/" target="_blank">up to 86 times more potent </a>than carbon dioxide in the first 20 years after entering the atmosphere. A study organized by the Environmental Defense Fund (<span style="background-color: initial;">EDF</span>) and published in June last year reports that the U.S. oil and gas supply chain is <a href="https://www.desmogblog.com/2018/06/21/methane-leaks-oil-gas-60-higher-epa-estimates-science-study-edf" target="_blank">leaking roughly 60 percent more </a>methane than previous Environmental Protection Agency (<span style="background-color: initial;">EPA</span>) estimates, which largely relied on industry self-reports.</p><p>Wilson compared this blowout to the 2015 <a href="https://www.desmogblog.com/2018/03/23/aliso-canyon-disaster-phmsa-natural-gas-storage-regulation" target="_blank">Aliso Canyon</a> catastrophe in southern California and the <a href="https://www.reuters.com/article/us-exxon-xto-natgas-ohio/exxons-xto-caps-leaking-ohio-gas-well-20-days-after-blowout-idUSKCN1GJ355" target="_blank">2018 XTO blowout in Ohio</a>, which both gushed large amounts of methane. "This blowout is a huge deal," Wilson said. "We are at the climate breaking point and no one can even say how much methane is blasting into the air."</p><p>Schade told me that estimating the amount of pollutants released from the "flare" (the industry term for intentionally burning natural gas in oil fields) is possible by looking at data from the <a href="https://www.ngdc.noaa.gov/eog/viirs/download_global_flare.html" target="_blank">National Oceanic and Atmospheric Administration's Visible Infrared Imaging Radiometer Suite (VIIRS)</a>. This source will show data about the flare detected by satellite, allowing the atmospheric scientist to calculate the estimated amount of heat and emissions. </p><p>After reviewing the satellite data available so far, Schade reported the heat generated from this burning Louisiana well is at least three times the magnitude of the largest flares in the Permian oil fields of neighboring Texas. According to his estimates, this burning well may be releasing approximately 8,700 pounds of <a href="https://www3.epa.gov/region1/airquality/nox.html" target="_blank">nitrogen oxides</a>, pollutants that lead to smog and acid rain, each day.</p><p>"The emissions from such a source can be enormous," said Schade.</p>From Your Site Articles
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Babies Born Near Oil and Gas Wells Are 40 to 70% More Likely to Have Congenital Heart Defects, New Study Shows
22 July 2019
Energy
A new fracking rig and a pumping rig stand beside a house Feb. 10, 2016 in an Oklahoma City, Oklahoma neighborhood. J Pat Carter / Getty Images
By Julia Conley
Proximity to oil and gas sites makes pregnant mothers up to 70 percent more likely to give birth to a baby with congenital heart defects, according to a new study.
<p><br/></p>
<p>Led by Dr. Lisa McKenzie at the University of Colorado, researchers <a href="https://www.eurekalert.org/pub_releases/2019-07/uoca-gpo071819.php" target="_blank">found</a> that the chemicals released from oil and gas wells can have serious and potentially fatal effects on babies born to mothers who live within a mile of an active well site — as about 17 million Americans do.</p><p>The researchers studied more than 3,000 newborns who were born in Colorado between 2005 and 2011. The state is home to about <a href="https://corising.org/colorado-map-oil-gas-wells/" target="_blank">60,000 fracking sites</a>, according to the grassroots group Colorado Rising. In areas with the highest intensity of oil and gas extraction activity, mothers were 40 to 70 percent more likely to give birth to babies with congenital heart defects (CHDs).</p><p>"We observed more children were being born with a congenital heart defect in areas with the highest intensity of oil and gas well activity," said McKenzie in a statement.<br></p><p>The study was more precise than previous reports about the link between oil and gas extraction and CHDs. The researchers studied families in which the pregnant mother lived near an active oil or gas well up to the second month of pregnancy, when fetal cardiac development takes place.</p><p>They also estimated the level of intensity of the oil and gas activity, determined exactly how close the pregnant mothers lived to the well sites, and ensured there were no other significant <a href="http://www.ecowatch.com/tag/air-pollution">air pollution</a> sources which could skew their results.</p><p>One science journalist, on social media, called the study "extremely convincing."</p>
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">This study that found a 40-70% increased risk of congenital heart defects in children born close to oil and gas infrastructure is extremely convincing. They adjusted for all the things I wondered about when I first saw the headlines.<a href="https://t.co/Unccpzi9MD">https://t.co/Unccpzi9MD</a></p>— Dave Levitan (@davelevitan) <a href="https://twitter.com/davelevitan/status/1152226809238478853?ref_src=twsrc%5Etfw">July 19, 2019</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">This study that found a 40-70% increased risk of congenital heart defects in children born close to oil and gas infrastructure is extremely convincing. They adjusted for all the things I wondered about when I first saw the headlines.<a href="https://t.co/Unccpzi9MD">https://t.co/Unccpzi9MD</a></p>— Dave Levitan (@davelevitan) <a href="https://twitter.com/davelevitan/status/1152226809238478853?ref_src=twsrc%5Etfw">July 19, 2019</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<p>Biologist Sandra Steingraber was among the experts on the dangers of <a href="https://www.ecowatch.com/tag/fossil-fuels">fossil fuel</a> extraction who pointed to the study as the latest evidence that allowing oil and gas wells to operate, especially near communities, is a public health hazard.</p><p>"It's a strong study," Steingraber wrote on Twitter after reading the paper, noting that the researchers built on knowledge scientists already have about chemicals that are known to be harmful to prenatal health and that are released during <a href="http://www.ecowatch.com/tag/fracking/" rel="noopener noreferrer">fracking</a>.</p>
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">2/ First of all, the link makes sense. We know that these specific birth defects, which affect the valves and great arteries of the heart, are associated w prenatal exposure to benzene/diesel exhaust, and we know that benzene/diesel exhaust are found in air near fracking sites.</p>— Dr. Sandra Steingraber (@ssteingraber1) <a href="https://twitter.com/ssteingraber1/status/1152205104453496832?ref_src=twsrc%5Etfw">July 19, 2019</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<p>Previous studies about the effects of oil and gas drilling on cardiac health of newborns "did not take into account stage of pregnancy or what was happening at the wellpad during that window of time," <a href="https://twitter.com/ssteingraber1/status/1152207596918595584" target="_blank">wrote</a> Steingraber. "This matters because the cardiac structures form very early in development — during the first two months. If fracking is literally wrecking the hearts of unborn babies it has to do so in early pregnancy."</p><p>"Looking at where mothers lived immediately before pregnancy and during the first critical weeks after conception and what was going on at nearby fracking wells, researchers found startling patterns," she <a href="https://twitter.com/ssteingraber1/status/1152208690025549826" target="_blank">added.</a></p><p>CHDs are the leading cause of death in infants who have birth defects. Babies born with CHDs are more likely to show a "failure to thrive," experience brain injury and exhibit developmental challenges.</p><p>The study comes as President Donald <a href="http://www.ecowatch.com/trump-watch/" rel="noopener noreferrer">Trump</a> plans to open up <a href="https://www.thecalifornian.com/story/news/2019/05/13/trump-administration-california-central-coast-public-lands-oil-gas-fracking/1189281001/" target="_blank">725,000 acres of public land</a> in California to oil and gas companies. The president has <a href="https://www.commondreams.org/news/2019/07/17/trumps-drilling-leases-public-lands-could-release-47b-metric-tons-carbon-more-all-28" target="_blank">offered</a> a total of 378 million acres of <a href="https://www.ecowatch.com/tag/public-lands" rel="noopener noreferrer">public land</a> and water for oil and gas drilling activities since taking office.</p><p>Steingraber called on opponents of fossil fuel extraction to speak out about their opposition by appealing to lawmakers and in letters to the editor, noting that McKenzie has been targeted by oil and gas giants for years as they fight research revealing the public health dangers they pose.</p>
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Study: Babies With Low Birth Weights More Likely Near Pennsylvania Fracking Sites <a href="https://t.co/vqOPN7KLVU">https://t.co/vqOPN7KLVU</a> <a href="https://twitter.com/foodandwater?ref_src=twsrc%5Etfw">@foodandwater</a> <a href="https://twitter.com/greenwatchdogNY?ref_src=twsrc%5Etfw">@greenwatchdogNY</a></p>— EcoWatch (@EcoWatch) <a href="https://twitter.com/EcoWatch/status/941501836187656192?ref_src=twsrc%5Etfw">December 15, 2017</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<p><em>Reposted with permission from our media associate <a href="https://www.commondreams.org/news/2019/07/19/babies-born-near-oil-and-gas-wells-are-70-more-likely-have-congenital-heart-defects?cd-origin=rss" rel="noopener noreferrer" target="_blank">Common Dreams</a>.</em><br/></p>From Your Site Articles
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A pumpjack in the Permian Basin. blake.thornberry / Flickr
By Sharon Kelly
On Monday, The Wall Street Journal featured a profile of Scott Sheffield, CEO of Pioneer Natural Resources, whose company is known among investors for its emphasis on drawing oil and gas from the Permian Basin in Texas using horizontal drilling and hydraulic fracturing, or fracking.
<p>Back in 2014, Sheffield told Forbes that he expected Pioneer could produce a million barrels of oil a day from the Permian basin by 2024 – up from 45,000 barrels a day in 2011.</p><p>Now, Sheffield, who left the helm of Pioneer in 2016 and returned this February, says that those million-barrel-a-day plans are looking increasingly doubtful as the industry has struggled to prove to investors that it's capable not only of producing enormous volumes of oil and gas, but that it can do so while booking profits rather than losses.</p><p>"We lost the growth investors," Sheffield <a href="https://www.wsj.com/articles/a-leader-of-americas-fracking-boom-has-second-thoughts-11561388670" target="_blank">told</a> the Journal. "Now we've got to attract a whole other set of investors."</p>
<h3>Doubts on Shale Gas and Shale Oil</h3><p>Mr. Sheffield's comments on the shale oil industry's fiscal difficulties come on the heels of a warning from the former CEO of the country's largest natural gas producer about the shale gas industry's financial distress.</p><p>Steve Schlotterbeck, former CEO of America's largest producer of natural gas, described the impact of over a decade of fracking on Marcellus shale drilling companies at a recent petrochemical industry conference.</p><p>"In a little more than a decade, most of these companies just destroyed a very large percentage of their companies' value that they had at the beginning of the shale revolution," he said, in remarks <a href="https://www.desmogblog.com/2019/06/23/former-shale-gas-ceo-says-shale-revolution-has-been-disaster-drillers-investors" target="_blank">reported</a> by DeSmog on Sunday. "Excluding capital, the big eight basin producers have destroyed on average 80 percent of the value of their companies since the beginning of the shale revolution."</p><p>Doubts about the shale drilling industry's financial prospects have simmered nearly as long as the industry has been producing oil and gas. "There is undoubtedly a vast amount of gas in the formations," The New York Times <a href="https://www.nytimes.com/2011/06/26/us/26gas.html" target="_blank">reported</a> in 2011, citing concerns among industry insiders dating back to 2009. "The question remains how affordably it can be extracted."</p><p>In the years since, shale drillers churned out massive volumes of <a href="https://www.ecowatch.com/tag/fossil-fuels">fossil fuels</a>, first shale gas then shale oil, pushing American oil production up 12 million barrels a day, according to Energy Information Administration figures cited by The Journal.</p><p>At the same time, they have spent hundreds of billions of dollars more than they've earned from selling the fossil fuels they drew from the ground.</p><p>"Over the past 10 years, 40 of the largest independent oil and gas producers collectively spent roughly $200 billion more than they took in from operations, according to a Wall Street Journal analysis of data from financial-information firm FactSet," the Journal reported. "During that time, a broad index of U.S. oil-and-gas companies fell roughly 10%, while the S&P500 index nearly tripled."</p><p>Schlotterbeck, the former CEO of EQT who now serves on the board of directors for the Energy Innovation Center Institute which offers training for workers in the <a href="http://www.eictraining.org/Energy-Safety-Passport" target="_blank">oil and gas</a>, <a href="http://www.eictraining.org/scalo-professional-roofing" target="_blank">solar</a>, and <a href="http://www.eictraining.org/cart_builder.cfm" target="_blank">construction trades</a>, offered his view of the end results for investors at the petrochemical industry conference on Friday.</p><p>"The fact is that every time they put the drill bit to the ground, they erode the value of the billions of dollars of previous investments they have made," he <a href="https://www.desmogblog.com/2019/06/23/former-shale-gas-ceo-says-shale-revolution-has-been-disaster-drillers-investors" target="_blank">said</a> in his presentation. "It's frankly no wonder that their equity valuations continue to fall dramatically."</p>
<h3>Belt-Tightening Comes Amid Regulations Rollbacks</h3><p>Sheffield's own company has a rocky track record when it comes to translating production into profits.</p><p>"In August 2015, Mr. Sheffield said Pioneer's wells were expected to yield 45% to 60% returns on investment at the oil prices at that time, excluding costs such as administrative expenses and taxes. The company lost $218 million in the second quarter of that year," the Journal reported.</p><p>"The company acknowledged that capital spending exceeded operating cash flow in 2015, but said it is focused on changing that in 2019 and beyond," it continued.</p><p>The industry's financial troubles have caused drillers like <a href="https://www.apnews.com/c412162fe50749eeae8be384ed5c3993" target="_blank">Devon Energy</a> to begin layoffs.</p><p>EQT, which is in the midst of a <a href="https://www.reuters.com/article/us-eqt-corp-shareholders/rice-energy-founder-says-eqts-turnaround-dependent-on-his-board-takeover-plan-idUSKCN1TC2XL" target="_blank">management struggle</a>, said in January that it had also <a href="https://triblive.com/business/eqt-confirms-layoffs-but-details-are-scant/" target="_blank">laid off</a> workers.</p><p>So too, is Pioneer.</p><p>"Among those who are leaving is Mr. Sheffield's own brother, Thomas Sheffield, the company's vice president of health, safety and environment," the Journal reported in its Monday profile.</p><p>That belt-tightening comes as the <a href="http://www.ecowatch.com/trump-watch/" target="_self">Trump administration</a> has pushed to roll back federal environmental regulations.</p><p>More than 80 regulations and rules written to protect the environment have either been rolled back on Mr. Trump's watch or are in the midst of rollbacks, according to <a href="https://www.nytimes.com/interactive/2019/climate/trump-environment-rollbacks.html" target="_blank">a tracker</a> published by The New York Times.</p><p>Eighteen of those rules applied specifically to "drilling and extraction," the Times observed, and others affect the drilling industry, like the scrapping of <a href="http://www.ecowatch.com/tag/methane" target="_self">methane</a> emission <a href="https://www.epa.gov/newsreleases/epa-withdraws-information-request-oil-and-gas-industry" target="_blank">reporting requirements</a> for drillers and rules aimed at <a href="https://www.nytimes.com/2018/09/18/climate/trump-methane-rollback.html" target="_blank">curbing methane leaks</a> on public lands.</p>
<h3>"Aggressive" Estimates</h3><p>Timothy Dove, who helmed Pioneer from 2016 until February, had predicted the company could grow its fossil fuel production at least 15% a year while cutting cost overruns.</p><p>But those projections drew pushback from company insiders, the Journal reported.</p><p>"Several times in recent years, technical staffers raised concerns to management that Pioneer was being too aggressive with how it talked up its prospects to investors and potential business partners, according to people familiar with the matter," the Journal reported. "In one of those instances, the company eventually walked back internal production forecasts for some of its wells in the Permian, according to one of the people. In other instances, Pioneer continued to use what some of the people said were overly optimistic estimates."</p><p>The following year, Pioneer spent $549 million more than it earned from selling fossil fuels, the Journal reported, adding that oil prices had climbed $10 higher than the $55 a barrel that Dove had said would allow Pioneer to raise production while matching spending and earnings. Sheffield told the Journal that Pioneer's board of directors had been surprised to learn that the company's management had gone $350 million over the board's approved $500 million 2018 budget hike.</p><p>Mr. Sheffield told the Journal he was backing away from million barrel-a-day plans for Pioneer. But he also maintained it would be technically possible to produce at that rate, economics aside.</p><p>"But my point is the rock will produce over one million barrels a day," he told the Journal.</p><p>Few observers would doubt that drillers can produce vast amounts of fossil fuels from shale, given the industry's history of rapidly increasing production.</p><p>An unsettled question remains, however — as it has since the early days of the shale rush — at what cost?</p>
<blockquote class="twitter-tweet"><p lang="en" dir="ltr"><a href="https://twitter.com/hashtag/Fracking?src=hash&ref_src=twsrc%5Etfw">#Fracking</a> in 2018: Another Year of Pretending to Make Money <a href="https://t.co/FoGWSclUq3">https://t.co/FoGWSclUq3</a> <a href="https://twitter.com/DeSmogBlog?ref_src=twsrc%5Etfw">@DeSmogBlog</a> <a href="https://twitter.com/NYAgainstFRACK?ref_src=twsrc%5Etfw">@NYAgainstFRACK</a></p>— EcoWatch (@EcoWatch) <a href="https://twitter.com/EcoWatch/status/1076960800974274560?ref_src=twsrc%5Etfw">December 23, 2018</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<p><em>Reposted with permission from our media associate <a href="https://www.desmogblog.com/2019/06/24/wall-street-journal-reports-ceo-major-shale-oil-company-has-second-thoughts-fracking-rush" target="_blank">DeSmogBlog</a>.</em></p>From Your Site Articles
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Total Ban on Fracking Urged by Health Experts: 1,500 Studies Showed 'Damning' Evidence of Threats to Public Health, Climate
20 June 2019
Fracking
An oil drilling site in a residential area of Los Angeles, California on July 16, 2014. Faces of Fracking / Flickr
By Jake Johnson
A comprehensive analysis of nearly 1,500 scientific studies, government reports, and media stories on the consequences of fracking released Wednesday found that the evidence overwhelmingly shows the drilling method poses a profound threat to public health and the climate.
<p>The sixth edition of the <a href="https://concernedhealthny.org/compendium/" target="_blank">Compendium of Scientific, Medical, and Media Findings Demonstrating Risks and Harms of Fracking</a> (the Compendium), published by Physicians for Social Responsibility and Concerned Health Professionals of New York, found that "90.3 percent of all original research studies published from 2016-2018 on the health impacts of fracking found a positive association with harm or potential harm."</p><p>The <a href="https://concernedhealthny.org/wp-content/uploads/2019/06/Fracking-Science-Compendium_6.pdf" target="_blank">analysis</a> also found that:</p><ul><li>69 percent of original research studies on water quality found potential for, or actual evidence of, fracking-associated water contamination;</li><li>87 percent of original research studies on air quality found significant <a href="http://www.ecowatch.com/tag/air-pollution">air pollutant</a> emissions; and</li><li>84 percent of original research studies on human health risks found signs of harm or indication of potential harm.</li></ul><p>"There is no evidence that fracking can operate without threatening public health directly and without imperiling climate stability upon which public health depends," the Compendium states.</p><p>Sandra Steingraber, Ph.D., co-founder of Concerned Health Professionals of New York, said in a <a href="https://www.commondreams.org/newswire/2019/06/19/new-analysis-fracking-science-1500-studies-finds-serious-harms-public-health" target="_blank">statement</a> that "the case against fracking becomes more damning" with the publication of each edition of the Compendium.</p><p>"As the science continues to come in, early inklings of harm have converged into a wide river of corroborating evidence," said Steingraber. "All together, the data show that fracking impairs the health of people who live nearby, especially pregnant women, and swings a wrecking ball at the climate. We urgently call on political leaders to act on the knowledge we've compiled."</p>
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">MUST READ: <a href="https://twitter.com/PSRenvironment?ref_src=twsrc%5Etfw">@PSRenvironment</a> and Concerned Health Professionals of New York <a href="https://twitter.com/ssteingraber1?ref_src=twsrc%5Etfw">@ssteingraber1</a> have released the 6th edition of the <a href="https://twitter.com/hashtag/fracking?src=hash&ref_src=twsrc%5Etfw">#fracking</a> science <a href="https://twitter.com/hashtag/Compendium?src=hash&ref_src=twsrc%5Etfw">#Compendium</a>! Compiling and analyzing ~1500 studies, this critical resource shows how <a href="https://twitter.com/hashtag/FrackingHarmsHealth?src=hash&ref_src=twsrc%5Etfw">#FrackingHarmsHealth</a>! <a href="https://t.co/QW8ioIYKUU">https://t.co/QW8ioIYKUU</a> <a href="https://t.co/jztVLQgBoI">pic.twitter.com/jztVLQgBoI</a></p>— PSR Environment (@PSRenvironment) <a href="https://twitter.com/PSRenvironment/status/1141405907240329217?ref_src=twsrc%5Etfw">June 19, 2019</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<p>According to the Compendium, the first edition of which was published in 2014, the "feverish pace" of U.S. <a href="https://www.ecowatch.com/tag/fossil-fuels">fossil fuel</a> extraction — which has <a href="https://www.commondreams.org/news/2019/05/30/gas-loser-and-its-time-move-report-debunks-big-oil-myth-natural-gas-can-help-fight" target="_blank">accelerated</a> under President Donald <a href="http://www.ecowatch.com/trump-watch/">Trump</a> — "has spurred a massive build-out of fracking infrastructure," putting air quality and water sources at risk in communities across the United States.</p><p>In addition to the harmful effects of fracking on those who live near oil and gas development projects, the Compendium found, the drilling practice is "also at odds with the emerging scientific consensus on the scale and tempo of necessary <a href="https://www.ecowatch.com/tag/climate-change">climate change</a> mitigation and with rising public alarm about the impending climate crisis that this consensus has amplified."<br></p><p>"Despite efforts by the gas industry to suppress all health data on fracking, the Compendium documents the serious harm fracking holds for pregnant women, children, and those with respiratory disease," Walter Tsou, MD, MPH, interim executive director of Philadelphia Physicians for Social Responsibility, said in a statement. "We need to ban fracking."</p><p>The sixth edition of the Compendium comes just days after more than 100 environmental groups <a href="https://www.commondreams.org/news/2019/06/17/because-public-health-crisis-pennsylvania-gov-urged-investigate-link-between" target="_blank">sent a letter</a> urging Pennsylvania Gov. Tom Wolf to investigate the link between fracking and the emergence of rare childhood cancers in rural Pennsylvania counties.</p><p>As Steingraber — one of the letter's signatories — <a href="https://www.dailyclimate.org/84-of-fracking-studies-show-the-industry-harms-human-health-2638919002.html" target="_blank">told</a> online environmental outlet The Daily Climate on Wednesday, much of the data in the Compendium comes from Pennsylvania, which is <a href="https://ballotpedia.org/Fracking_in_Pennsylvania" target="_blank">home to</a> over 100,000 active oil and gas wells.</p><p>"What makes fracking different from any other industry I've studied in public health is that there's no industrial zone," Steingraber said. "It's taking place literally in our backyards, and unfortunately some of the best evidence for both polluting emissions and emerging health crises is coming out of southwestern Pennsylvania."</p>
<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Feds to Sell Even More Public Land for <a href="https://twitter.com/hashtag/Fracking?src=hash&ref_src=twsrc%5Etfw">#Fracking</a> Near Sacred Park <a href="https://t.co/AJPxc2OuWi">https://t.co/AJPxc2OuWi</a> <a href="https://twitter.com/FrackAction?ref_src=twsrc%5Etfw">@FrackAction</a> <a href="https://twitter.com/Frack_Off?ref_src=twsrc%5Etfw">@Frack_Off</a></p>— EcoWatch (@EcoWatch) <a href="https://twitter.com/EcoWatch/status/1091879047674630145?ref_src=twsrc%5Etfw">February 3, 2019</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
<p><em>Reposted with permission from our media associate <a href="https://www.commondreams.org/news/2019/06/19/we-need-ban-fracking-new-analysis-1500-scientific-studies-details-threat-health-and?cd-origin=rss" target="_blank">Common Dreams</a>.</em></p>From Your Site Articles
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