Category Archives: national ocean politics

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.

Mint Press News: Revelation: Feds OK’d Offshore Drilling Without Full Environmental Review

Revelation: Feds OK’d Offshore Drilling Without Full Environmental Review

By Trisha Marczak | July 31, 2013

surfers oil rig
Surfers enjoy the waves near a conventional offshore oil platform in the Gulf of Mexico. These rigs could soon be joined by offshore fracking operations. In fact, in California, it turns out they already exist. (Photo/berardo62 via Flickr)

Environmental advocates are crying foul after the discovery that oil companies are using the controversial process known as fracking to extract oil off the coast of California, warning that the West Coast operations could become the norm from the Arctic to the Gulf of Mexico.

According to documents obtained through a Freedom of Information Act request filed by the news organization Truthout, two fracking operations have been ongoing in the Santa Barbara Channel since 2009 without the environmental review normally required under federal regulations.

The same discovery was made by the Environmental Defense Center, which indicated that its research confirmed that Venoco Inc. conducted an offshore fracking operation in 2009. According to the center, no public disclosure was made before the fracking began.

“It’s completely illegal for the agency to approve fracking in the outer continental shelf without conducting a complete environmental impact statement,” Center for Biological Diversity Senior Counsel Kassie Siegel told Truthout.

The offshore fracking operations were approved by the Bureau of Ocean Energy Management, Regulation and Enforcement as a regular oil drilling operation.

According to documents obtained by Truthout, oil companies Venoco and Dcor LLC modified drilling permits already in place to pave the way for the fracking operations.
An email obtained by Truthout indicates the federal government knew the companies were fracking. In an email sent on behalf of the bureau’s chief of staff, Thomas Lillie, to a fellow employee, he posed the question: “Has there been an EIS (Environmental Impact Statement) to assess the environmental consequences of fracking on the OCS? How can we begin to review permit requests without that?”

That’s the question environmental organizations are asking, too.

“Venoco’s fracking operation was allowed under existing authorizations, and no further environmental analysis or public disclosure was made prior to the operation, despite the fact that offshore oil development raises its own host of environmental issues,” the Environmental Defense Center states on its website.

Those environmental issues, including groundwater contamination and propensity for spills, are still being debated as onshore fracking spreads in California and around the nation. There are also issues relating to the wells’ location near seismic faults.

The Bureau of Ocean Energy Management justified its endorsement of fracking operations using the argument that updated permits were approved after all new threats were assessed. But according to the Center for Biological Diversity, that doesn’t do the trick, either scientifically or technically.

Venoco, however, claims it does. Its website illustrates the company as one “concerned about the environment.”

“We operate in areas with extensive environmental regulations such as in and around the Santa Barbara Channel as well as in prime agricultural areas such as the Sacramento Basin,” the company’s site states.

California landlocked fracking questioned
California sits atop the Monterey shale formation, estimated to hold a potential 15 billion barrels of crude oil, representing the largest reserve in the nation.

In April, the federal Bureau of Land Management lost a lawsuit filed by the Sierra Club over the issuing of leases to oil companies to drill in the Monterey shale. The Sierra Club successfully argued that leases were improperly given to the oil companies without the proper environmental reviews.

In all, roughly 17,000 acres of land in the Monterey shale formation was leased by the federal government to oil companies.

This is, essentially, the beef environmental organizations have with the Bureau of Ocean Energy Management.

According to a bureau fact sheet obtained by Truthout, the agency has allowed fracking to occur 11 times in the last 25 years. However, a spokesperson for the bureau told Truthout the exact number of fracking operations is not known, as it would require combing through years of files.

The offshore fracking is similar to the process used on land to drum up oil locked in shale – a combination of water, chemicals and silica sand is shot into the earth to break up and extract hidden oil.

In the sea, it’s no different, although the process doesn’t require as much water or silica sand, otherwise known as frac sand. According to Truthout, offshore fracking uses 7 percent of the frac sand and 2 percent of the combined water and chemicals used in onshore fracking wells.

On land and sea
The offshore fracking discovery comes at a time when the safety of onshore fracking is being debated in the U.S. The Environmental Protection Agency has yet to release its study on the impact of fracking – recently announcing it would be delayed until 2016.
In the meantime, the effect on groundwater supplies is being monitored by people on both sides of the debate.

A study released by the University of Texas this month indicates water supplies surrounding fracking wells had elevated and toxic levels of arsenic, strontium and selenium, all associated with the fracking process.

The study assessed water samples taken from 100 private wells, 91 of which were within 3 miles of drilling sites.

The University of Texas study echoed one released this year by Duke University that found fracking operations were linked to groundwater contamination.

The study looked at roughly 140 water samples from Pennsylvania’s Marcellus shale formation and discovered methane levels were 23 times more prevalent in homes less than a mile from a fracking well.

The University of Texas study comes after the National Energy Technology Laboratory, or NETL, released a report indicating groundwater supplies near a Pennsylvania fracking site did not show any signs of contamination. However, the report was only preliminary, and the laboratory intends to release its full report in 2014.

“NETL has been conducting a study to monitor for any signs of groundwater contamination as a result of hydraulic fracturing operations at a site on the Marcellus Shale formation in Pennsylvania,” NETL said in a statement following the preliminary report release. “We are still in the early stages of collecting, analyzing, and validating data from this site. While nothing of concern has been found thus far, the results are far too preliminary to make any firm claims. We expect a final report on the results by the end of the calendar year.”

On top of issues associated with groundwater contamination, fracking has raised questions associated with wastewater disposal and spills.

This month, Exxon Mobil was fined $100,000 for a fracking wastewater spill that contaminated the Susquehanna River in 2010. The EPA discovered water tested near the spill included elevated levels of chlorides, strontium and barium, chemicals also found in the company’s wastewater storage tanks.

Within three months, two major fracking fluid spills occurred at fracking well sites operated by Carrizo Oil and Gas. In May, a fracking well sent 9,000 gallons of fracking fluid onto nearby property in Pennsylvania. In March, a fracking well sent 227,000 gallons of fracking fluid into another Pennsylvania community.

These are the types of incidents environmental advocates are worried about, especially when there’s now a possibility such spills could occur in the ocean. While the offshore fracking process requires less fracking fluid, the possibility for detection and cleanup is in question, particularly when most people aren’t aware that offshore fracking is taking place.

Special thanks to Richard Charter

Fuel Fix: Perry to lawmakers: Do more to advance offshore drilling

http://fuelfix.com/blog/2013/07/19/perry-to-lawmakers-do-more-to-advance-offshore-drilling/

Posted on July 19, 2013 at 3:08 pm by Jennifer A. Dlouhy

ric petty
Texas Gov. Rick Perry prepares for a presidential debate in October 2011. AP Photo/Scott Eells, Pool)

Congress can do more to advance offshore drilling in the Gulf of Mexico and Atlantic Ocean while boosting the economies of coastal states, eight governors said Friday.

Options rage from giving states a greater share of federal drilling royalties to passing legislation that would force the Interior Department to make more coastal tracts available for oil and gas development, the group of coastal governors said.

The governors, including Texas’ Rick Perry, made their pleas in a letter to their congressional delegations in the nation’s capital.

“During this congress, legislators will consider several matters that directly and indirectly affect the future of offshore energy development,” said the governors, who all represent coastal states. “As our federal representatives, we strongly urge you to act in concert to champion outer continental shelf energy and, by effect, the vitality of our coastal and state economies.”

The group – banded together as the OCS Governors Coalition – offered five recommendations.

At the top of their list: expanding an existing program for sharing offshore drilling revenue with states near the activity.

“Currently, the Atlantic coast states and Alaska are generally not eligible to share in revenues generated by oil, gas and renewable energy development in the outer continental shelf,” the group said. “These states should be treated equitably with all states.”

The governors may be preaching to the choir, since several of the recipients already have sponsored legislation that would open up the revenue-sharing program – which is set to begin for the Gulf Coast in 2017 – to all coastal states.

The Senate Energy and Natural Resources Committee is set next week to hold a hearing on one of those proposals, a measure by Sens. Lisa Murkowski, R-Alaska, and Mary Landrieu, D-La., that would also move up the timeline for the Gulf revenue sharing program so it starts sooner. Their measure also would do away with a $500 million annual cap on what Gulf states can collect.

Under their bill, every state with ocean views would be able to participate and collect up to 37.5 percent of the royalties from any offshore energy production, whether it comes from oil and gas or wind and solar.

But the proposal is controversial – particular among offshore drilling foes, who believe the lure of revenue could encourage cash-strapped states to support oil and gas development in nearby waters.

In a March letter to Wyden and Murkowski, eight senators insisted they would “vigorously oppose any effort that expands or provides further incentive for offshore oil and gas drilling in areas where drilling is currently prohibited.”

The coastal governors also endorse plans to expand access to new outer continental shelf areas. The Obama administration’s five-year plan for selling offshore oil and gas leases through June 2017 contains a dozen auctions of territory in the Gulf of Mexico and three of tracts near Alaska.

But regulators at the Interior Department’s Bureau of Ocean Energy Management opted not to plan an auction of leases near Virginia, where a sale had previously been scheduled (and canceled after the 2010 Gulf spill). Some Alaskan areas and southern California acreage, near existing development, also were left out of the plan.

The coastal governors say the administration should have opened access to new frontiers and should finish its ongoing review of the environmental effects of seismic research along the Atlantic that could help pinpoint possible oil and gas reserves.

OCS governors letter – this is the version sent to Sen. Mary Landrieu (see attached file)
OCS-governors-letter-this-is-the-version-sent-to-Sen-Mary-Landrieu.pdf OCS-governors-letter-this-is-the-version-sent-to-Sen-Mary-Landrieu.pdf
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Special thanks to Richard Charter