Category Archives: fracking

NewYork Times: Amid Pipeline Debate, Two Costly Cleanups Forever Change Towns

August 10, 2013

By DAN FROSCH
MARSHALL, Mich. – As the Obama administration inches closer to a decision on whether to approve construction of the much-debated Keystone XL pipeline, costly cleanup efforts in two communities stricken by oil spills portend the potential hazards of transporting heavy Canadian crude.

PIPELINE-1-articleLarge
Sean Proctor for The New York Times

The Environmental Protection Agency estimated in May that 180,000 gallons of oil sands crude remained in the Kalamazoo River in Michigan, three years after a pipeline ruptured.

It has been three years since an Enbridge Energy pipeline ruptured beneath this small western Michigan town, spewing more than 840,000 gallons of thick oil sands crude into the Kalamazoo River and Talmadge Creek, the largest oil pipeline failure in the country’s history. Last March, an Exxon Mobil pipeline burst in Mayflower, Ark., releasing thousands of gallons of oil and forcing the evacuation of 22 homes.

Both pipeline companies have spent tens of millions of dollars trying to recover the heavy crude, similar to the product Keystone XL would carry. River and floodplain ecosystems have had to be restored, and neighborhoods are still being refurbished. Legal battles are being waged, and residents’ lives have been forever changed.

“All oil spills are pretty ugly and not easy to clean up,” said Stephen K. Hamilton, a professor of aquatic ecology at Michigan State University who is advising the Environmental Protection Agency and the state on the cleanup in Marshall. “But this kind of an oil is even harder to clean up because of its tendency to stick to surfaces and its tendency to become submerged.” Before July 26, 2010, hardly anyone in Marshall had heard of Enbridge Energy Partners, a Houston firm whose parent company is based in Calgary, Alberta.

On a recent midsummer morning, the Kalamazoo looked almost the way it once did. Towering oak trees draped over the water in the heat. Hawks patrolled the deep green riverbanks. An elderly couple lugged fishing tackle toward a shady area. If not for two motorboats whirring downstream and three men probing the water with poles, there would have been no sign that anything had gone wrong.

Much of Kalamazoo’s plant and animal life has returned. But ridding the water of all the oil – some of which sank to the river floor and continues to generate a kaleidoscopic sheen – has proved elusive. Though a 40-mile stretch of the river has reopened after being closed for two years and most of the oil has been recovered or has evaporated, vestiges of the spill are everywhere. “For Sale” signs dot the rolling cornfields and soy farms. Once-coveted riverfront homes sit vacant.

Matt Davis, a real estate agent here, said he had struggled to sell homes since the spill. “Enbridge hopes people forget,” Mr. Davis said. “But this is my town. This is where I grew up. Enbridge isn’t from around here. “We didn’t ask for them to have their pipeline burst in our backyard. Make it right. Take care of the mess you made.”

In May, the E.P.A. found that Enbridge had drastically underestimated the amount of oil still in the river. The agency estimated that 180,000 gallons had most likely drifted to the bottom, more than 100 times Enbridge’s projection. It has ordered Enbridge to dredge sections of the river where stubborn beads of oil remain submerged. The dredging started on July 30, and stretches of the river are being closed again. Construction crews have rumbled onto the riverfront in nearby Comstock Township, angering residents and business owners who remain fearful of another accident.

Jason Manshum, an Enbridge spokesman, said the company was working to address the township’s concerns as it followed the orders of the E.P.A. “This is the single-largest incident in the history of our organization,” he said. “From the beginning, in July 2010, we said that we would be committed to this community and the natural environment, for as long as it would take to right the rupture that happened. About three years later to the day, we’re still here.”

Larry Bell, who owns Bell’s Brewery, one of the country’s largest craft beer makers, was shocked earlier this summer to see workers clear a staging area next to his brewery near Marshall. “We’re going to be downwind of this thing,” said Mr. Bell, who filed a lawsuit last month asserting that Enbridge did not get permission from the local condominium association to build its dredge pad.

“If those airborne contaminants come in, it’s going to get into our ingredients,” Mr. Bell said. “We see that as irreparable. They can’t compensate me for taking away my business.”

Since the spill, Enbridge has become one of the largest landowners in the area – buying out 154 residential properties within a 200-foot swath that the company determined was most affected. By many accounts, Enbridge paid a fair price and has begun to put some properties up for sale. The company has also donated millions of dollars to build roads and parks along the river. Still, the emotional scars of losing property run deep.

For nearly 30 years, Deb Miller and her husband owned a carpet store along the Kalamazoo. After the spill, Enbridge offered to buy the property but not the store, Ms. Miller said. Nearing retirement and worried that the land’s value would plummet, the Millers liquidated their business and sold the land. “We could have worked that store for another 10 years,” said Ms. Miller, 59, who now has two part-time jobs. “For us to physically move our business at our age was more than we could fathom. It was an agonizing decision.”

The same sentiment echoes in Mayflower, Ark., a quiet, working-class town of about 2,200 tucked among the wetlands and dogwood thickets near Little Rock. On March 29, an Exxon Mobil pipeline burst near the Northwoods subdivision, spilling an estimated 210,000 gallons of heavy Canadian crude, coating a residential street with oil. Twenty-two homes were evacuated.
Now, four months later, the neighborhood of low-slung brick homes is largely deserted, a ghostly column of empty driveways and darkened windows, the silence broken only by the groan of heavy machinery pawing at the ground as remediation continues.
After E.P.A. monitoring found air quality to be safe, residents of 17 of the homes were allowed back. But only a few have returned.

“People here are still unsure about whether it’s safe for their families,” said April Lane of the Faulkner County Citizens Advisory Group, a community organization working with residents. Exxon has offered to buy the 22 evacuated homes, or to compensate owners for diminished property value. The company also said it would buy 40 additional properties if the owners could not sell them within four months. So far, Exxon has spent $2 million on temporary housing for residents and more than $44 million on the cleanup, said Aaron Stryk, an Exxon spokesman.

“We can’t say it enough: We are so, so sorry this incident took place and for the disruption and for the inconvenience that has taken place,” Mr. Stryk said. “We are staying in Mayflower until the job is done.” For some, the money cannot replace the lives they once led. Jimmy Arguello and his wife, Tiffany, lived in Northwoods for six years, in the first home they owned, built by Mr. Arguello, a plumber, and his friends.

The day the pipeline broke, the Arguellos were told by the police to pack for a few days. But for three months, the couple and their two young sons stayed at hotels – six in all – before settling into an apartment in nearby Conway. Exxon has paid their living expenses, but the impact on the family has been “heartbreaking,” Mr. Arguello said. Worried about raising his children near an oil spill, he has decided to sell his home to Exxon. “It’s hard not to know where your family is going to go and where we’re going to end up,” he said. “I built that house six years ago. And now I’m not going back.” Ryan Senia, a 29-year-old engineer, is also selling to Exxon. Mr. Senia, who has stayed at a friend’s house since being evacuated, said he worried he would never be able to put his home on the market otherwise. “Everyone you know is gone,” he said.

During the last few months, several lawsuits have been filed on behalf of dozens of residents who live both in and near the subdivision. The State of Arkansas and the Justice Department have also filed a claim, saying that the spill polluted waterways and that Exxon did not immediately repair the pipeline.

Exxon would not comment on pending litigation, Mr. Stryk said, adding that it had been transparent in its clean up efforts.
There is no sense of how long those efforts will continue. A protective boom has been strung across Lake Conway; so far, no oil has reached it. Workers were still searching for residual oil in a nearby marsh. And crews in Northwoods continue to monitor for oil that seeped into the foundations of several homes. “We’re tired of it,” Mr. Arguello said. “We’re ready for it to be over.”
Here in Marshall, Enbridge projects that its total cleanup cost will run to nearly $1 billion.

An E.P.A. spokeswoman, Anne Rowan, said that even after the company dredges the Kalamazoo, about 162,000 gallons of oil will remain. It cannot be recovered immediately without causing a significant adverse impact to the river, Ms. Rowan said.
Michigan’s Department of Environmental Quality, meanwhile, has undertaken a huge study to examine soil and sediment. Since the spills, the pipeline industry has emphasized that oil lines remain safe and reliable, and that major spills are rare. “Are we satisfied? No,” said Peter T. Lidiak, the American Petroleum Institute’s pipeline director. “We are trying to not have any releases and not have properties damaged and people impacted. Because that’s not the business we’re in.”
For Deb Miller, the spill will forever haunt Marshall. “They can try and beautify along the river, but they can never give us back all of our neighbors who have moved out,” Ms. Miller said. “There are not enough zeros to pay us for what we’ve been through.”

Special thanks to Richard Charter

OpposingViews.com: Big Gas Is Fracking Offshore California Where Even Oil Drilling Is Banned

http://www.opposingviews.com/i/society/environment/big-gas-fracking-offshore-california-where-even-oil-drilling-banned#

hmmmmmmmmmmmm Who knew? DV

By Sarah Rae Fruchtnicht, Tue, August 06, 2013

Hydraulic fracturing has been occurring off the coast of California for about 15 years, in the same sensitive waters where all new oil leases were banned since the 1969 Union Oil Santa Barbara spill, the third worst spill in American history.

The California Coastal Commission wasn’t even aware the offshore fracking was taking place, according to Grist, because it happens three miles off the coast, in federal jurisdiction. California, however, has the right to reject federal permits if water quality is in danger.

Regulators have allowed fracking in the Pacific Ocean to occur at least 12 times since the late 1990s, according to federal documents released by the government to The Associated Press through the Freedom of Information Act. A new fracking project was recently approved.

Gas companies want to frack the Santa Barbara Channel, the same place where the 3 million gallons of crude oil from Union Oil’s Platform A were spilled in 1969. The spill was the worst of its time. Today it is the third worst spill behind BP’s Deepwater Horizon spill in 2010 and the Exxon Valdez Spill in Alaska in 1989. The Santa Barbara spill killed thousands of sea birds, dolphins, elephant seals and sea lions.

DeSmogBlog reported Tuesday that a censored Environmental Protection Agency PowerPoint presentation found a clear link between shale gas fracking and groundwater contamination in Dimock, Pa.

Currently federal regulators allow offshore fracking chemicals to be released into the sea without companies having to file a separate environmental impact report or statement on the possible repercussions.

Fracking an area that includes oil wells adds even more risk. Tulane University petroleum engineering professor Eric Smith said that high pressure fracturing could break the rock seal on old well bore and leak oil into the ocean.

The Coastal Commission plans to grill new offshore drilling projects on details pertaining to fracking now that they know it is occurring in the Pacific. They could require new, separate permits and stricter review processes for new fracking projects.

Sources: Grist, AP

Special thanksto Richard Charter

Grand Forks Herald: Interior secretary gets firsthand look at Bakken

http://www.grandforksherald.com/event/article/id/270173/

Published August 06, 2013, 11:00 PM

During her first visit to North Dakota as secretary of the interior, Sally Jewell said it’s clear to her that oilfield operators and the state recognize that more work needs to be done to reduce natural gas flaring.
By: Amy Dalrymple, Forum News Service

sally jewell

U.S. Interior Secretary Sally Jewell speaks during a media briefing at a Statoil facility in Williston, N.D., on Tuesday, Aug. 6, 2013. From left are Sen. Heidi Heitkamp, Neil Kornze, principal deputy director for the Bureau of Land Management, Sen. John Hoeven and Lt. Gov. Drew Wrigley. Amy Dalrymple/Forum News Service

WILLISTON, N.D. – During her first visit to North Dakota as secretary of the interior, Sally Jewell said it’s clear to her that oilfield operators and the state recognize that more work needs to be done to reduce natural gas flaring.

“Flaring it and venting it is obviously not capturing resources that could be leading us to energy independence,” Jewell said Tuesday.

Top executives of two oil companies gave Jewell a tour of their North Dakota operations, focusing on technology advancements and efforts to reduce natural gas flaring.

A recent report estimated that $3.6 million in natural gas is burned away each day in North Dakota.

U.S. Sens. John Hoeven and Heidi Heitkamp invited Jewell to tour the Bakken to see the state’s oil and gas development firsthand.

“There is no question that this is the epicenter of many aspects of energy development in this country,” said Jewell, who was sworn in as secretary in April.

Officials who helped lead the tours included Continental Resources CEO Harold Hamm and Statoil Senior Vice President Torstein Hole, who is based in Norway.

Continental Resources gave Jewell a tour of a location adjacent to a residential area in Williston that will have 14 oil wells on the same location, minimizing the footprint on the land.

Statoil showed the group a location in the city limits of Williston that had pipelines in place ahead of time, capturing the natural gas and eliminating the need for of thousands of truck trips to transport oil and water.

Across the state, about 29 percent of natural gas is flared, Hamm said. But Continental Resources flares 10 percent of its natural gas and captures 90 percent, with a goal to reduce the flared amount even further.

“It’s valuable and we collect it all,” Hamm said. “We’re not going to waste those hydrocarbons.”

Hamm said he expects other companies will catch up and bring that percentage down.
“They’re getting there real quick,” Hamm said of other companies.

Statoil currently flares 30 percent of the natural gas it produces due to infrastructure challenges, said Lance Langford, Statoil vice president who oversees Bakken operations.
But the company is working to reduce that percentage through the use of bi-fuel rigs, which use natural gas and reduce the amount of diesel required, and technologies that will extract the valuable natural gas liquids.

Statoil also showed Jewell a pilot project the company is working on to test a compressed natural gas liquids unit.

Jewell, whose background includes working as a petroleum engineer, asked technical questions during the tours, such as how wet the gas is and how operators build a curve to drill horizontally. When touring a drilling rig, Jewell commented that there were “no chains flying around like when I was in the industry.”

Hoeven said the goal of the visit was to emphasize that North Dakota’s approach to energy development, rather than a federal one-size-fits-all model, is producing more energy with better environmental stewardship.

“This country needs to develop a comprehensive energy plan as well,” Hoeven said. “The secretary can be very instrumental in that development.”

As Interior Secretary, Jewell plays a key role in energy development on public and tribal lands. She referenced President Barack Obama’s all-of-the-above energy policy and said “he believes it deeply.”

Jewell said she’s in favor of having federal baseline minimum standards for hydraulic fracturing that would include requirements such as disclosing the chemicals and ensuring the integrity of the wellbore.

While North Dakota and other states are sophisticated, other states don’t have experience regulating fracking, she said.

“There are a number of states that don’t have standards at all,” Jewell said.

If states’ standards meet or exceed the federal standards, operators would follow those state standards, she said.

Heitkamp, Hoeven and Lt. Gov Drew Wrigley, who also participated in the tour, repeatedly emphasized a states-first approach to energy development.

“No one knows the hydrology and geology of North Dakota better than the people who have been studying for years,” Heitkamp said.

Officials also said they are partnering with Jewell on efforts to improve the efficiency of the Bureau of Land Management, which experiences backlogs in keeping up with drilling permit applications in the Bakken.

Jewell’s tour concluded Tuesday with a visit to Theodore Roosevelt National Park.
Jewell also planned to meet with Three Affiliated Tribes Chairman Tex Hall on Tuesday, but he got caught in traffic.

“The fact that he got stuck in traffic when we had a 7 a.m. breakfast meeting says something about the boom going on here,” Jewell said.

Special thanks to Richard Charter

Bloomberg Policy & Politics: Calling All Keystone (XL) Cops! The Pipeline Hits More Snags

http://www.businessweek.com/articles/2013-08-02/calling-all-keystone-xl-cops-the-pipeline-hits-more-snags

opposes kx

Photograph by Julia Schmalz/Bloomberg

Steyer discusses his opposition to the Keystone XL pipeline during an interview in Washington
(Updates with response from U.S. Department of State’s Office of the Inspector General in the seventh paragraph.)

Three weeks back, when we last checked in on the lively, sometimes absurd fight over the Keystone XL pipeline, opponents of the project had just raised alarm about undisclosed conflicts of interest between ERM (ERM:LN), a U.K.-based company the U.S. State Department has relied on to assess the potential environmental impact of the proposed line, and TransCanada (TRP), the company that wants to build it. Previous conflict of interest allegations about the Keystone XL had led to congressional complaints and an investigation by the Office of the Inspector General. The new disclosures raised the prospect that the project might be further delayed by a new ethics inquiry.

Since then the saga has featured still more twists, including:

• President Obama chuckling (per the New York Times) as he low-balled the number of construction jobs the pipeline might create;

• revelations that a dozen or more state and federal Republican lawmakers apparently sent letters endorsing the pipeline that had been written by fossil fuel lobbyists;

• TransCanada’s announcement of a longer, 1,864-mile, $12 billion pipeline that, if completed, would certainly make good on the company’s name, and make the Keystone XL look more like the Keystone XS; and,

• Claims by the Washington-based Checks and Balances Project that a new U.S. government special investigation is underway over ERM.

As you’d expect, proponents of the pipeline were quick to dismiss the conflict-of-interest charges as a transparent ploy to derail the pipeline’s approval process. Guilty as charged, says Friends of the Earth’s Ross Hammond. His nonprofit engaged in opposition research, as it is called during election campaigns, to turn up the evidence that ERM had worked with TransCanada on projects that it had failed to disclose to the U.S. State Department.

Calling the conflict-of-interest charges tactical, however, doesn’t mean they lack merit. Here, (PDF), for example, is a 2010 document, cached online, in which ERM lists TransCanada as a client. Does this prove that ERM has been biased toward TransCanada in its Keystone assessment? No. But unless this document is a forgery, ERM appears not to have disclosed all it should have to the U.S. government. (ERM declined to comment.)

“The Keystone XL environmental review lost all credibility when ERM lied to taxpayers about what it was up to,” says Tom Steyer, president of NextGen Climate Action. “ERM’s hubris deprives the State Department and the public of the unbiased information they need. A large group of Americans will support Secretary Kerry if he insists on doing the review in a clean, straightforward way—this time, with an honest contractor.”

The State Department maintains that it has the situation well under control. “The selected contractor works directly with and under the sole direction of the Department of State while the applicant pays for the work,” says State official Jennifer Psaki.

Steyer, a semi-retired hedge fund billionaire, is a financial supporter of President Obama, and it’s not hard to imagine that Steyer encouraged Obama to nix Keystone’s development during the president’s most recent visit to Steyer’s home. (Could Steyer be where Obama got his low jobs-created number? Hard to say. Obama’s Keystone remarks have become political sport—”Kremlinology,” even; the Washington Post’s WonkBlog did terrific work fact-checking his figures).

The Office of the Inspector General confirms that it has “initiated an inquiry” into the ERM conflict of interest complaints, and whether or not that goes anywhere, the Keystone faces a second, straight-talking judge in Gina McCarthy, the new Environmental Protection Agency chief. Whether the pipeline proceeds is ultimately up to the President. But the EPA has a role to play: It is reviewing the environmental impact studies that contractors such as ERM have conducted.

When asked about Keystone XL recently, McCarthy first jokingly got up to leave, rather than be put on the spot. Then she replied that the EPA would strive to be “an honest commenter” on the XL plans. Up to now, that honesty (PDF) has been bracing, as the EPA has called the Keystone environmental impact statements insufficient and inadequate not once, but three times.
Wieners (@bradwieners) is an executive editor for Bloomberg Businessweek.

Politico: Enviros target Keystone in new pipeline spill video

http://www.politico.com/story/2013/08/enviros-target-keystone-in-new-pipeline-spill-video-95058.html
By: Matt Daily
August 1, 2013 02:10 PM EDT

An environmental group is rolling out a new tactic today to fight the Keystone XL pipeline: ananimated video showing every significant oil, gas and chemical pipeline spill in the U.S. since 1986.

The group, the Center for Biological Diversity, hopes the video will go viral and says it’s aimed at stirring up enough public awareness of the pipeline industry’s troubles to put pressure on three key Democratic senators – Bill Nelson of Florida, Michael Bennet of Colorado and Amy Klobuchar of Minnesota – to oppose any pro-Keystone legislation. It’s also hoping to influence President Barack Obama’s final call on the pipeline’s future.

The video is part of a campaign aimed at spreading a simple message: Don’t trust the pipeline industry.

(WATCH: Obama says he’ll approve Keystone only if greenhouse gases won’t worsen)

Contrary to claims by the oil and gas industry, pipelines are not a safe way to ship energy, said Noah Greenwald, director of the Arizona-based group’s endangered species program. “For so many different reasons, we need to be moving away from fossil fuels,” Greenwald said. “There’s really no safe and clean way to deal with them.”

But the oil industry has said pipelines are far safer than other transportation systems, such as rail cars or trucks.

“Safety is the number one priority for the oil and natural gas industry. Pipelines are one of the safest ways to transport crude oil, gasoline, and other petroleum products, and spills are extremely rare,” said Carlton Carroll, a spokesman for the American Petroleum Institute. “Even one spill is too many, and our industry, working with regulators, continues to apply the highest standards and the latest technologies to ensure the safe delivery of the energy needed to fuel our economy.”

(PHOTOS: Climate skeptics in Congress)

The Center for Biological Diversity is perhaps best known for its aggressive tactics to enforce the Endangered Species Act, including the many lawsuits it has filed accusing agencies like the Interior Department and EPA of refusing to impose legally required protection for creatures like the polar bear, California condor and Mexican gray wolf.

Its animated spill map is based on data culled from nearly 8,000 incidents catalogued as “significant” by the federal Pipeline and Hazardous Materials Safety Administration, including incidents that killed people, sent victims to the hospital, caused more than $50,000 in damages, released more than five barrels of volatile substances or triggered an explosion or fire. The spills featured in the video involved natural gas, oil and other hazardous liquids, such as diesel fuel, gasoline, fuel oil and anhydrous ammonia.

The group says the incidents have caused almost $7 billion in damage and killed more than 500 people since 1986.

“The numbers add up to 76,000 barrels per year, nearly 300 incidents per year,” Greenwald said.

The United States has more than 180,000 miles of oil and liquids pipelines and more than 305,000 miles of natural gas pipelines, according to industry data.

(WATCH: Obama’s full speech on climate change)

But the data also show that, at least in terms of the volume of the spills, the three lowest annual totals have occurred in the past five years, with the smallest volume in 2012. Greenwald acknowledged the downtrend in recent years, as well as the fact that a large percentage of the spills are very minor.

“A lot of the spills are small, but if it’s your land or the creek that you fish in Š it’s very damaging,” he said.

Environmentalists have pointed to the oil-sands crude that Keystone would carry as a particularly noxious type of oil that can be extremely difficult to clean up after a spill, particularly in water. That crude, which is mixed with light fluids to enable it to flow through pipelines, appears to sink in water, making it far more difficult to recover than crude oils that float on the surface.

That’s what happened when an Enbridge pipeline ruptured in July 2010, pouring more than 20,000 barrels of diluted oil-sands crude into the Kalamazoo River in Michigan. The clean-up there is still ongoing, with the costs to Enbridge likely to approach $1 billion.

Another rupture on a pipeline owned by ExxonMobil this March sent thousands of barrels of oil streaming through a neighborhood in Mayflower, Ark.

According to PHMSA data, nearly a quarter of the pipeline accidents were caused by excavation damage, while more than 18 percent were from corrosion. Another 17 percent of the incidents happen because of faulty materials or welding problems.

The Keystone fight has been raging for five years, but with an Obama administration decision on a needed permit expected before the end of the year, supporters and opponents are ramping up their rhetoric.

The Senate may also be nearing a crucial vote in September on a pro-Keystone amendment that Republicans would try to attach to widely popular energy efficiency legislation. That outcome may depend on the votes of a handful of Democrats, including Nelson, Klobuchar and Bennet.

Obama hasn’t yet tipped his hand on whether the Keystone pipeline, which would connect the oil sands fields in Alberta, Canada, to refineries on the U.S. Gulf Coast, will win the permit. But his comments this week downplaying the number of jobs that the project will create gave opponents hope that he may turn it down.

In June, he warned that the pipeline shouldn’t be built if it would increase greenhouse gases, a statement that indicated the administration could be leaning on a State Department draft report that said the pipeline was a cleaner option than railroad cars or trucks to transport the oil.

© 2013 POLITICO LLC

Special thanks to Richard Charter