Colo. cities profit by selling water for fracking

FORT COLLINS | Some northern Colorado cities are earning thousands of dollars selling municipal water for use in hydraulic fracturing or fracking.

The Fort Collins Coloradoan reported Sunday (http://noconow.co/yTJ5VR ) that the town of Windsor sold more than 8.4 million gallons to the oil and gas industry for nearly $17,000 between Nov. 1 and March 1.

The town sold no water to energy companies the previous two years. The volume has grown so quickly that town officials haven't had time to consider the implications.

"It's really kind of is a phenomenon." Town Manager Kelly Arnold said. "There's been no policy discussion on this. I would define it as an emerging issue."

In 2011, Greeley sold more than 491 million gallons, mostly to the oil and gas industry, for $1.6 million.

Fort Lupton sold about 154 million gallons of municipal water to the oil and gas industry in 2011 for more than $677,000. The city is using the money to pay down its $20 million debt on a water treatment plant.

"It's been a benefit to us, a great benefit," said City Administrator Claud Hanes.

Fracking uses pressurized water, sand and chemicals to crack open fissures within wells and improve the flow of oil and gas.

Colorado regulators project that about 5.2 billion gallons of water will be used this year for fracking statewide, compared with 4.5 trillion gallons used by agriculture each year.

Some conservationists argue increasing use of fracking could consume more water than the state can spare, especially if elected officials and the energy industry's calculations are wrong.

"They don't understand what the cumulative impact is going to be if we put in another 100,000 wells," said Phillip Doe of Littleton, a former environmental compliance officer for the U.S. Bureau of Reclamation.

If all the wells that exist today were fracked multiple times, "it's not hard to come up with calculations that come up with Denver's annual water use," he said. "This stuff goes underground and never comes back."

Thom Kerr, acting director of the Colorado Oil and Gas Conservation Commission, said much of the water does come back over time.

http://www.aurorasentinel.com/email_push/news/article_c3ab1158-6c41-11e1-b4a2-0019bb2963f4.html

Hickenlooper May Be in Bed With the Oil Industry, But Coloradans Have His Wake-up Call

Governor Hickenlooper had a few particularly cozy days with the oil and gas industry the other week. First, he appeared in industry-funded ads in newspapers and on radio stations across the state, proclaiming that no water in Colorado had been contaminated by fracking. After being forced to issue a weak mea culpa amid cries of ethics violations over his unabashed hawking of the oil and gas industry, Hickenlooper then claimed that fracking fluids are edible: "You can eat this -- the CEO of Halliburton took a big swig of this thing. And not to be outdone, I took a swig of it myself."

Then, the governor issued an Executive Order to create an industry-dominated task force that will examine how to take local control away from communities across the state that don't want drill rigs near homes or their children's schools.

And now, satisfied with a job well done, Governor Hickenlooper jetted to Houston, Texas, to be the keynote speaker of an industry conference touting fracking.

If these antics have you thinking that Governor Hickenlooper no longer represents the people of Colorado and works full-time for the oil and gas industry, you're not off base: Governor Hickenlooper took over $75,000 from the oil and gas industry for his gubernatorial campaign.

Even so, the grassroots movement that opposes fracking in Colorado is starting to win. Up and down the Front Range -- from Colorado Springs to El Paso County, from Erie to Longmont to Boulder County -- communities are standing up to pass moratoria on fracking. Why? Because their air quality is 10 times worse than Houston, Texas, as a result of oil and gas drilling. Or because there is a fracking well being planned 350 feet from their children's elementary school. Or because their home values have plummeted due to proposed fracking in their neighborhood.

Click to read more ...

Cleveland Law Firm Provides Expert Legal Help with Fracking Problems and Opportunities

Several significant environmental concerns surround the fracking process. These include the potential contamination of water tables, improper disposal of waste water, and earthquakes such as the one that recently took place in Youngstown, Ohio. Property owners with water or land contaminated by a fracking well should consult Lowe Eklund Wakefield & Mulvihill Co., LPA who will carefully review the situation and offer advice on available litigation options.

In addition to the potential environmental problems, fracking is an occupation that may be very dangerous, resulting in significant injury or even death. Individuals who have been injured by any aspect of the fracking process should contact the firm for expert legal help. Lowe Eklund Wakefield & Mulvihill Co., LPA is highly experienced in assisting personal injury victims with any legal situation, including potential workers' compensation claims and injury lawsuits.

http://www.marketwatch.com/story/cleveland-law-firm-provides-expert-legal-help-with-fracking-problems-and-opportunities-2012-03-12

Chevron Sticks to Fracking Plans Despite Low Gas Prices

Despite low natural gas prices, Chevron looks intent on pushing into the natural gas market in the U.S. The company plans to double its drilling in the Marcellus play this year while also drilling a few exploration wells in the Utica play despite gas prices touching their lowest point in a decade, making shale exploration less profitable. ^[1]

Chevron’s decision to press on with shale exploration mirrors that of rival Exxon Mobil, which has decided against production cuts. Companies like ConocoPhillips on the other hand have announced that they would reduce spending on natural gas resources in North America.

However, we anticipate that gas prices will recover longer term, and its commitment to natural gas exploration could add significant value to the company as depicted by our sum of the parts analysis.

http://www.forbes.com/sites/greatspeculations/2012/03/12/chevron-sticks-to-fracking-plans-despite-low-gas-prices/

Ohio Shale Boom Entices Schools and Municipalities

The lure of economic prosperity might entice local governmental officials and schools to enter into shale drilling leases, the Associated Press reports. Steubenville will earn a $590,000 one-time payment and a 19 percent royalty on 100 acres recently leased to the natural gas industry, according to the Columbus Dispatch. It has one of the highest unemployment rates in America. County and municipal leaders in the region surrounding Wayne National Forest remain leery about drilling on the land due to environmental concerns relating to the potential impact of fracking.

* An economic report created by the Ohio Oil and Gas Association revealed the industry reinvested nearly $238 million on development new well exploration in the state.

* Denison University officials hosted a public forum to discuss leasing 45 acres of land north of the campus and the potential hazards associated with fracking, according to the Newark Advocate.Bowling Green geologist Andrew Kear said there have been no instances of fracking water contamination in Ohio.

* Hocking College officials are reviewing a $3 million natural gas lease proposal. School President Ron Erickson told the Dispatch the environmental impact is being weighed before any decision is made.

* Natural gas and oil producers distributed approximately $1 billion in royalty payments to schools, landowners, municipalities and businesses since 2000. An additional $61million in free natural gas was given to property owners with mineral interests and wells on their property, according to the Ohio Oil and Gas Association.

http://news.yahoo.com/ohio-shale-boom-entices-schools-municipalities-172200270.html

Fracking concerns lead to more water tests in Wyoming

CHEYENNE, Wyo. -- The state of Wyoming, the U.S. Environmental Protection Agency and two American Indian tribes announced Thursday they have agreed to additional testing of groundwater that the federal agency says may have become contaminated by gas development that includes hydraulic fracturing.

They also agreed to postpone a scientific peer review of a draft EPA report on the contamination in the Pavillion area in central Wyoming until after the additional sampling and analysis. The peer review had been scheduled to begin within the next several weeks and now won't get under way this fall, according to the EPA.Hydraulic fracturing, or fracking, uses pressurized water, sand and chemicals to crack open fissures within wells and improve the flow of oil and gas. A report released in December was the first time the EPA said fracking may have polluted groundwater in a specific case.

EPA officials have maintained that the report doesn't carry implications for the pollution risk of fracking in other geologic formations or fracking generally.

Gov. Matt Mead said Thursday that the U.S. Geological Survey will conduct two more rounds of testing before July. The first round of new testing could occur within the next month.

http://www.timescall.com/news/nationworldnews/ci_20136013/wyoming-water-tests-fracking-concern-pavillion

Fracking failing to crack China, Europe shale

Some shale formations in Europe and China are impervious to drilling techniques that opened vast reserves of natural gas and oil from Texas to Pennsylvania, said Rex Tillerson, Exxon Mobil Corp.’s chief executive officer.

New methods and tools will need to be invented to tap many of the shale fields that energy companies and governments expect eventually to yield a bonanza of fuel, Tillerson said during a meeting with analysts in New York today.

Exxon, the largest U.S. gas producer after its 2010 acquisition of shale driller XTO Energy, failed in its first two efforts to crack gas-rich shale fields in Poland. Gas discovered in a pair of wells finished during the final three months of last year didn’t flow, even after the company used high-pressure jets of water and sand to create fissures in the rocks.

“Some of the shales don’t respond as well to hydraulic fracturing,” Tillerson said during a meeting with reporters after his presentation to analysts. “It’s going to take research and time in the lab to understand that.”

http://business.financialpost.com/2012/03/09/fracking-failing-to-crack-china-europe-shale/?__lsa=0b97b816