THE TROUBLE WITH NATURAL GAS

House Panel Probing Natural Gas 'Hydrofracking' Process
Ian Talley, February 19, 2010 (Dow Jones Newswires via Nasdaq)

"The House Energy and Commerce Committee…[has begun] an investigation into the potential impacts of a natural gas production process called "hydrofracking" on the environment and human health.

"Environmentalists and some lawmakers are pressing to give the Environmental Protection Agency federal oversight of the process, concerned that the drilling technique is contaminating water supplies."

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"The process, which injects water, sand and a small amount of chemicals into natural gas reservoirs under high pressure, has opened major new deposits to development, dramatically expanding estimates for domestic production. State regulators and the natural gas industry have been fighting against federal regulation, saying it could prevent or delay development of trillions of cubic feet of new resources…

"[Energy and Commerce Committee Chair Henry Waxman (D., Calif) and Energy Subcommittee Chair Ed Markey (D., Mass.)] sent out letters to eight hydrofracking service and production companies, including Halliburton Co. (HAL), BJ Services Co. (BJS) and Schlumberger Ltd. (SLB), requesting information on the process…Steve Heare, director of the EPA's Drinking Water Protection Division, said that despite claims by environmental organizations of thousands of cases, he hadn't seen any documented evidence that the hydrofracking process was contaminating water supplies. He also said state regulators were doing a good job overseeing the process. In its 2011 budget, the EPA is seeking to spend $4 million to study the environmental impacts of the process [but is not conducting any current investigations linking hydrofracking to water contaminations]."

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"Bill Kappel, a U.S. Geological Survey official, said contamination of water supplies is more likely to happen as companies process the waste water from hydrofracking. In some instances, municipal water systems that treat the water have reported higher levels of heavy metals and radioactivity. Those activities are largely already regulated by the federal government under the Safe Drinking Water and Clean Water acts…

"…[T]he American Petroleum Institute said hydraulic fracturing is a safe technology critical to developing the nation's vast natural gas reserves [that has been used for 60+ years in 1 million+ U.S. wells without a single confirmed instance of groundwater contamination]…"