Natural gas companies reveal the risks of hydraulic fracturing (explosions, leaks and spills) to their shareholders, but not to landowners, according to a report released yesterday by the Environmental Working Group, reports Neela Banerjee of the Los Angeles Times. The report reveals companies that have led the push to drill in the Mid-Atlantic and Northeast described in "explicit terms" to shareholders the risks of fracking. However, the companies and the land acquisition companies working for them "did not mention to landowners the same potential safety and environmental risks."
One company, Cabot Oil & Gas, said in a 2008 securities filing of the company's performance about the risks involved with fracking: "Our business involves a variety of operating risks, including: well-site blowouts, cratering and explosions; equipment failures … pollution and other environmental risks." But Craig Sautner and his wife Julie said in the report "they were never told of any risks when they leased about 3.5 acres of their land in Dimock, Pa., to Cabot in 2008." After drilling began, their well-water became contaminated, as well as the water of 18 other Dimock families. Cabot disputed the findings and would not respond to Banerjee for comment.
Jack Norman, chief executive of Elexco Land Services, a property acquisition company, said his company doesn't disclose as much to landowners as it does in securities filings because the actual risk of accidents is low. He told Banerjee companies don't benefit from disclosing risk to landowners: "No one is going to go out there and say something like, 'At one of every 10,000 of our wells, we may have an incident.' No one will do it." Authors of the report say companies "clearly have a double standard" when discussing risk with landowners and shareholders, saying because landowners are not warned of potential risk, they are signing legally binding contracts without understanding their property, health, finances and communities are at risk. (Read more)
One company, Cabot Oil & Gas, said in a 2008 securities filing of the company's performance about the risks involved with fracking: "Our business involves a variety of operating risks, including: well-site blowouts, cratering and explosions; equipment failures … pollution and other environmental risks." But Craig Sautner and his wife Julie said in the report "they were never told of any risks when they leased about 3.5 acres of their land in Dimock, Pa., to Cabot in 2008." After drilling began, their well-water became contaminated, as well as the water of 18 other Dimock families. Cabot disputed the findings and would not respond to Banerjee for comment.
Jack Norman, chief executive of Elexco Land Services, a property acquisition company, said his company doesn't disclose as much to landowners as it does in securities filings because the actual risk of accidents is low. He told Banerjee companies don't benefit from disclosing risk to landowners: "No one is going to go out there and say something like, 'At one of every 10,000 of our wells, we may have an incident.' No one will do it." Authors of the report say companies "clearly have a double standard" when discussing risk with landowners and shareholders, saying because landowners are not warned of potential risk, they are signing legally binding contracts without understanding their property, health, finances and communities are at risk. (Read more)
No comments:
Post a Comment