May 31, 2011 11:12 PM UTC

Losing the 'PR War'--Spills, Suits, and Angry Shareholders Tar Industry's Image

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• by: ClubTwitty

The State of New York has filed suit against the federal government over fracking, alleging a failure to uphold national environmental law in moving toward approving thousands of new wells in New York and Pennsylvania.  

Shareholders for Chevron recently came close to forcing that corporation to disclose more of its fracking practices, and a similar resolution garnered almost one-third support among shareholders at Exxon-Mobile.  Both very strong showings for first-year resolutions.  

When it comes to fracking–and the explosion of this practice as companies tap into previously unexploitable plays–industry is on the defensive; ‘losing the shale PR battle’ as ‘Energy Source’ at the Financial Times put it in a column headline.

Even Texas is considering mandating fracking disclosure.  Even Texas–but thus far, not Colorado.

Colorados top oil and gas regulator and the head of one of the states leading industry lobbying groups both say federal legislation compelling disclosure of the chemicals used in hydraulic fracturing would not have prevented the states worst cases of groundwater contamination. COGCC Director David Neslin “Has the action of injecting at high pressure these fluids into the hydrocarbon formation, do we have evidence that that has contaminated groundwater? No, we dont,” said David Neslin.

The recent Duke University study–that shows a high correlation between water well contamination and heavily fracked areas–is not the smoking gun by any means, but it is cause for more study and consideration before allowing this practice to continue its rapid expansion.  

Indeed it is bad practices, shoddy mitigation work, and other mishaps that have resulted in most of the known incidences in Colorado, like the nearly 1,000 spills documented (pdf) to have occurred in the Piceance Basin alone in the last decade.

But given mounting signs that at least point to the need for better understanding–through mandated disclosure and comprehensive analysis and study–Colorado should reconsider its own position and seek to strengthen disclosure requirements and support a stronger federal role.  

New York is taking the latter course, seeking to compel that the federal government do its job in explaining and considering the possible impacts of permitting thousands of wells in the state’s watersheds, according to an article in The Hill:

New York Attorney General Eric Schneiderman opened a new front Tuesday in battles over controversial natural-gas drilling projects with a lawsuit alleging that federal agencies are shirking environmental review of dangerous development techniques.

The lawsuit alleges that several agencies have illegally failed to prepare a formal environmental impact statement (EIS) reviewing proposed natural-gas regulations issued by a federal-state compact called the Delaware River Basin Commission.

The lawsuit filed Tuesday is the latest shot in a battle over hydraulic fracturing, or “fracking,” which is an increasingly common natural-gas development method that critics fear will lead to widespread water contamination.

Better disclosure of what is being deployed in these operations as well as more thorough study and analysis of the impacts from this activity on shared resources–air, water, roads, and the like–the kind that invites public oversight and scrutiny would only benefit public confidence and likely result in real improvements to how this activity is carried out.  

After all, if companies have nothing to fear with contaminating water wells from fracking–since they all claim it has never occurred–they should welcome the scrutiny. Let valor and truth win the PR war.