Ohio & Fracking Waste: The Case for Better Waste Management
Insights on Ohio’s massive fracking waste gap, Class II injection well activity, and fracking waste related legislation
Shell’s Falcon Pipeline Under Investigation for Serious Public Safety Threats
Breaking News
The Falcon Ethane Pipeline System is at the center of major investigations into possible noncompliance with construction and public safety requirements and failing to report drilling mud spills, according to documents obtained from the Pennsylvania Department of Environmental Protection (PA DEP) by FracTracker Alliance. These investigations, which are yet to be released, also uncovered instances of alleged data falsification in construction reports and Shell Pipeline Company firing employees in retaliation for speaking up about these issues.
3/17/21 Press release: https://www.fractracker.org/falcon-investigation-press-release-fractraccker-alliance/
Key Takeaways
- Shell’s Falcon Pipeline, which is designed to carry ethane to the Shell ethane cracker in Beaver County, PA for plastic production, has been under investigation by federal and state agencies, since 2019. The construction of the pipeline is nearing completion.
- Allegations in these investigations include issues with the pipeline’s coating, falsified reports, and retaliation against workers who spoke about issues.
- Organizations are calling on public agencies to take action to protect public welfare and the environment along the entire pipeline route through Ohio, West Virginia, and Pennsylvania.
- These investigations reveal yet another example of the life-threatening risks brought on by the onslaught of pipeline construction in the Ohio River Valley in the wake in the fracking boom. They also reveal the failure of public agencies to protect us, as documents reveal the federal agency that oversees pipeline safety did not adequately respond to serious accusations brought to its attention by a whistleblower.
- These new concerns are coming to light as people across the country are demanding bold action on plastic pollution and the climate crisis through campaigns such as Build Back Fossil Free, Plastic Free President, and Future Beyond Shell. On a local level, residents in the Ohio River Valley continue to shoulder the health burdens of the fracking industry, despite a recent ban on fracking in the eastern part of Pennsylvania, which a growing body of scientific evidence verifies. The Falcon Pipeline, which would transport fracked gas for plastic production, is directly at odds with these demands.
Shell’s attempts to cut corners while constructing this 98-mile pipeline, likely motivated by the increasingly bleak economic prospects of this project, present serious public safety concerns for the thousands of residents along its route in Pennsylvania, West Virginia, and Ohio.
These allegations are serious enough to warrant immediate action. We’re calling on the Pipeline and Hazardous Materials Safety Administration (PHMSA) to thoroughly examine these allegations and suspend construction if not yet completed, or, in the case that construction is complete, operation of the Falcon Pipeline. Furthermore, we call on state environmental regulators to fully investigate construction incidents throughout the entire pipeline route, require Shell Pipeline to complete any necessary remediation, including funding independent drinking water testing, and take enforcement action to hold Shell accountable. Read our letters to these agencies here.
These investigations were featured in a March 17th article by Anya Litvak in the Pittsburgh Post-Gazette.
3/18/21 update:
Additional coverage of this story was published in a Times Online article by Daveen Ray Kurutz, a StateImpact Pennsylvania article by Reid Frazier, and an Observer-Reporter article by Rick Shrum.
Pipeline workers speak out
According to documents obtained through a public records request, a whistleblower contacted PHMSA in 2019 with serious concerns about the Falcon, including that the pipeline may have been constructed with defective corrosion coating. PHMSA is a federal agency that regulates pipeline operation. The whistleblower also shared environmental threats occurring within the DEP’s jurisdiction, prompting the PA DEP and Pennsylvania Attorney General’s Office to get involved.
Many of the issues with the Falcon relate to a construction method used to install pipelines beneath sensitive areas like roads and rivers called horizontal directional drilling (HDD). Shell Pipeline contracted Ellingson Trenchless LLC to complete over 20 HDDs along the Falcon, including crossings beneath drinking water sources such as the Ohio River and its tributaries. FracTracker and DeSmog Blog previously reported on major drilling mud spills Shell caused while constructing HDDs and how public agencies have failed to regulate these incidents.
Falcon Pipeline Horizontal Directional Drilling locations and fluid losses
This map shows the Falcon Pipeline’s HDD crossings and spills of drilling fluid spills that occurred through 3/5/2020. To see the data sources, click on the information icon found in the upper right corner of the map header as well as under the map address bar.
View Map Full Sized | Updated 6/16/20
PHMSA’s incomplete investigation
Correspondence between the PA DEP and PHMSA from February 26, 2020 reveal the gravity of the situation. While PHMSA conducted an inquiry into the whistleblower’s complaints in 2019 and concluded there were no deficiencies, PA DEP Secretary Patrick McDonnell wrote that his agency felt it was incomplete and urged PHMSA to conduct a more thorough investigation. Secretary McDonnell noted the PA DEP “has received what appears to be credible information that sections of Shell’s Falcon Pipeline project in western PA, developed for the transportation of ethane liquid, may have been constructed with defective corrosion coating protection,” and that “corroded pipes pose a possible threat of product release, landslide, or even explosions.”
FracTracker submitted a Freedom of Information Act request with PHMSA asking for documents pertaining to this inquiry, and was directed to the agency’s publicly available enforcement action webpage. The page shows that PHMSA opened a case into the Falcon on July 16, 2020, five months after Secretary McDonnell sent the letter. PHMSA sent Shell Pipeline Company a Notice of Amendment citing several inadequacies with the Falcon’s construction, including:
- inadequate written standards for visual inspection of pipelines;
- inadequate written standards that address pipeline location as it pertains to proximity to buildings and private dwellings;
- compliance with written standards addressing what actions should be taken if coating damage is observed during horizontal directional drill pullback; and
- inadequate welding procedures
Shell responded with its amended procedures on July 27, 2020, and PHMSA closed the case on August 13, 2020.
Of note, PHMSA states it is basing this Notice on an inspection conducted between April 9th and 11th, 2019, when construction on the Falcon had only recently started. PHMSA has confirmed its investigation on the Falcon is ongoing, however we question the accuracy of self reported data given to PHMSA inspectors should be questioned
The PA DEP also brought the matter to the attention of the US Environmental Protection Agency.
Timeline of events in the Falcon investigation
Public knowledge of these investigations is limited. Here’s what we know right now. Click on the icons or the event descriptions for links to source documents.
Ohio and West Virginia
The Falcon pipeline also crosses through Ohio and briefly, West Virginia. While we do not know how these states are involved in these investigations, our past analyses raise concerns about the Ohio Environmental Protection Agency’s (OEPA) ability to regulate the pipeline’s HDD crossings.
One of the focuses of the Pennsylvania DEP’s investigation is the failure to report drilling fluid spills that occur while constructing a HDD crossing. The PA DEP shut down all HDD operations in November, 2019 and forced Shell to use monitors to calculate spills, as was stated in permit applications.
A horizontal directional drilling (HDD) construction site for the Falcon Pipeline in Southview, Washington County, Pennsylvania. You can see where the drilling mud has returned to the surface in the top left of the photo. Photo by Cyberhawk obtained by FracTracker Alliance through a right-to-know request with the Pennsylvania Department of Environmental Protection.
The Falcon Pipeline’s HDD locations are often close to neighborhoods, like the HOU-02 crossing in Southview, Washington County, Pennsylvania. Photo by Cyberhawk obtained by FracTracker Alliance through a right-to-know request with the Pennsylvania Department of Environmental Protection.
To our knowledge, the OEPA did not enforce this procedure, instead relying on workers to manually calculate and report spills. Shell’s failure to accurately self-report raises concerns about the safety of the Falcon’s HDD crossings in Ohio, including the crossing beneath the Ohio River, just upstream of drinking water intakes for Toronto and Steubenville, Ohio.
Public water system wells, intakes, and Drinking Water Source Protection Areas nears the Falcon Pipeline Route. Note, the pipeline route may have slightly changed since this map was produced. Source: Ohio EPA
The Shell ethane cracker
The Falcon is connected to one of Shell’s most high-profile projects: a $6 billion to $10 billion plastic manufacturing plant, commonly referred to as the Shell ethane cracker, in Beaver County, Pennsylvania. These massive projects represent the oil and gas industry’s far-fetched dream of a new age of manufacturing in the region that would revolve around converting fracked gas into plastic, much of which would be exported overseas.
Many in the Ohio River Valley have raised serious concerns over the public health implications of a petrochemical buildout. The United States’ current petrochemical hub is in the Gulf Coast, including a stretch of Louisiana known colloquially as “Cancer Alley” because of the high risk of cancer from industrial pollution.
Construction of the ethane cracker and the Falcon pipeline have forged forward during the COVID-19 pandemic. In another example of the culture of fear at the worksite, several workers expressed concern that speaking publicly about unsafe working conditions that made social distancing impossible would cost them their jobs. Yet the state has allowed work to continue on at the plant, going so far as to grant Shell the approval to continue work without the waiver most businesses had to obtain. As of December 2020, over 274 Shell workers had contracted the coronavirus.
Weak outlook for Shell’s investment
While the oil and gas industry had initially planned several ethane crackers for the region, all companies except for Shell have pulled out or put their plans on hold, likely due to the industry’s weak financial outlook.
A June 2020 report by the Institute for Energy Economics and Financial Analysis (IEEFA), stated that:
Royal Dutch Shell owes a more complete explanation to shareholders and the people of Pennsylvania of how it is managing risk. Shell remains optimistic regarding the prospects for its Pennsylvania Petrochemical Complex in Beaver County, Penn. The complex, which is expected to open in 2021 or 2022, is part of a larger planned buildout of plastics capacity in the Ohio River Valley and the U.S. IEEFA concludes that the current risk profile indicates the complex will open to market conditions that are more challenging than when the project was planned. The complex is likely to be less profitable than expected and face an extended period of financial distress.
Many of Pennsylvania’s elected officials have gone to great lengths to support this project. The Corbett administration enticed Shell to build this plastic factory in Pennsylvania by offering Shell a tax break for each barrel of fracked gas it buys from companies in the state and converts to plastic (valued at $66 million each year). The state declared the construction site a Keystone Opportunity Zone, giving Shell a 15-year exemption from state and local taxes. In exchange, Shell had to provide at least 2,500 temporary construction jobs and invest $1 billion in the state, giving the company an incredible amount of power to decide where resources are allocated in Pennsylvania.
Would the state have asked Shell for more than 2,500 construction jobs if it knew these jobs could be taken away when workers spoke out against life-threatening conditions? Will the politicians who have hailed oil and gas as the only job creator in the region care when workers are forced to hide their identity when communicating with public agencies?
States fail to regulate the oil and gas industry
The PA DEP appears to have played a key role in calling for this investigation, yet the agency itself was recently at the center of a different investigation led by Pennsylvania Attorney General Josh Shapiro. The resulting Investigating Grand Jury Report revealed systematic failure by the PA DEP and the state’s Department of Health to regulate the unconventional oil and gas industry. One of the failures was that the Department seldom referred environmental crimes to the Attorney General’s Office, which must occur before the Office has the authority to prosecute.
The Office of Attorney General is involved in this investigation, which the PA DEP is referring to as noncriminal.
The Grand Jury Report also cited concerns about “the revolving door” that shuffled PA DEP employees into higher-paying jobs in the oil and gas industry. The report cited examples of PA DEP employees skirting regulations to perform special favors for companies they wished to be hired by. The watchdog research organization Little Sis listed 47 fracking regulators in Pennsylvania that have moved back and forth between the energy industry, including Shell’s Government Relations Advisor, John Hines.
National attention on pipelines and climate
The Falcon Pipeline sits empty as people across the nation are amping up pressure on President Biden to pursue bold action in pursuit of environmental justice and a just transition to clean energy. Following Biden’s cancellation of the Keystone XL pipeline, Indigenous leaders are calling for him to shut down other projects including Enbridge Line 3 and the Dakota Access Pipeline.
Over a hundred groups representing millions of people have signed on to the Build Back Fossil Free campaign, imploring Biden to create new jobs through climate mobilization. Americans are also pushing Biden to be a Plastic Free President and take immediate action to address plastic pollution by suspending and denying permits for new projects like the Shell ethane cracker that convert fracked gas into plastic.
If brought online, the Falcon pipeline and Shell ethane cracker will lock in decades of more fracking, greenhouse gasses, dangerous pollution, and single-use plastic production.
Just as concerning, Shell will need to tighten its parasitic grip on the state’s economic and legislative landscape to keep this plant running. Current economic and political conditions are not favorable for the Shell ethane cracker: financial analysts report that its profits will be significantly less than originally presented. If the plant is brought online, Shell’s lobbyists and public relations firms will be using every tactic to create conditions that support Shell’s bottom line, not the well-being of residents in the Ohio River Valley. Politicians will be encouraged to pass more preemptive laws to block bans on plastic bags and straws to keep up demand for the ethane cracker’s product. Lobbyists will continue pushing for legislation that imposes harsh fines and felony charges on people who protest oil and gas infrastructure, while oil and gas companies continue to fund police foundations. Shell will ensure that Pennsylvania keeps extracting fossil fuels to feed its ethane cracker.
The Falcon pipeline is at odds with global demands to address plastic and climate crises. As these new documents reveal, it also poses immediate threats to residents along its route. While we’re eager for more information from state and federal agencies to understand the details of this investigation, it’s clear that there is no safe way forward with the Falcon Pipeline.
Royal Dutch Shell has been exerting control over people through the extraction of their natural resources ever since it began drilling for oil in Dutch and British colonies in the 19th Century. What will it take to end its reign?
References & Where to Learn More
- FracTracker Petrochemicals & Plastics articles and imagery: https://www.fractracker.org/categories/by-content/petrochemicals/
- FracTracker Falcon EIA webpage: https://www.fractracker.org/projects/falcon-public-eia/
- FracTracker June 16, 2020 article Falcon Pipeline Construction Releases over 250,000 Gallons of Drilling Fluid in Pennsylvania and Ohio
- Future Beyond Shell Campaign: https://futurebeyondshell.org/ (see this campaign’s social media toolkit here)
Topics in this Article
Health & Safety | Legislation & Politics | Petrochemicals & Plastics | Pipelines
The fight to protect Alaska’s Arctic National Wildlife Refuge
Overview
For the past four decades, groups of Alaska Natives including the Gwich’in and Iñupiat, international institutions including the United Nations and the Inter-American Commission on Human Rights, the US government, the state of Alaska, and environmental groups have debated whether or not oil extraction should be allowed in the Arctic National Wildlife Refuge (ANWR).
Made up of 19.3 million acres in northeastern Alaska, ANWR is an area with great cultural significance and ecological richness. Fossil fuel extraction poses significant material, reputational, and human rights risks according to the Gwich’in Steering Committee, a group formed in 1988 in response to proposals to drill for oil in the coastal plain of ANWR, or what they call the Sacred Place Where All Life Begins, Iizhik Gwats’an Gwandaii Goodlit.
In the past few months, the Trump administration issued nine leases, the first ever in the Arctic refuge’s coastal plain, even as major oil companies skipped out on bidding in the area and all major U.S. and Canadian banks pledged not to fund fossil fuel development in the Refuge. The sale was a major flop, which points to the larger movement away from fossil fuels, an inevitable transition reinforced by President Joe Biden’s 60-day moratorium on oil and gas leasing on federal lands.
But despite efforts to protect ANWR, leases that went through under the Trump administration threaten to further violate human rights and damage wildlife.
The great risk of ecological devastation from oil & gas exploitation
Described as “North America’s Serengeti,” ANWR is the continent’s most intact and remote wilderness environment, a landscape of fragile tundra ecosystems and diverse wildlife. The Refuge is home to more than 40 fish and mammal species and over 200 bird species. Though harsh, the landscape exists in a delicate balance. Specially-adapted plant species thrive during long winters and short growing seasons, supporting annual wildlife migrations and hibernations, ecosystem functions, and a wealth of natural resources.
Of particular significance is Area 1002, mapped in Figure 2 below. The 1.5-million-acre area site within ANWR sits between the north slope of the Brooks Range in Alaska and the Beaufort Sea, and is the summer calving and feeding site of the Porcupine caribou, and a site sacred to the Gwich’in Tribe.
The Porcupine caribou herd has travelled the 1,500-mile trek, the longest documented terrestrial mammal migration in the world, to gather there for at least the past 23,000 years.
The herd is one of the area’s keystone species (i.e., if it were removed from the ecosystem, the landscape’s functional integrity would suffer and drastically change). The 125,000-strong herd plays a key ecological and cultural role in the Refuge, and the distribution and health of the herd is a direct indicator of the health of the entire ecosystem. Their annual journey provides them with good forage and relief from predators and mosquitos.
Oil and gas development could interfere with the Caribou herd’s migrations as industrial disturbances discourage the instinctual movements of pregnant and nursing caribou mothers – especially problematic given their slow reproductive rate – and could diminish the population.
The Porcupine caribou herd in the Arctic National Wildlife Refuge (ANWR), Alaska. Photo courtesy of NWF Blogs, 2015.
Oil & Gas in ANWR
ANWR is also the site of oil fields, estimated by the US Geologic Survey in 2001 to contain between 11.6 to 31.5 billion barrels of oil (BBO) versus the 1987 estimate of 4.8 to 29.4 BBO, (95- and 5-percent probabilities) and mean values are 20.7 BBO versus 13.8 BBO (current assessment compared to 1998 assessment). and natural gas liquids (NGLs).
Opponents of drilling in the Arctic – including Indigenous groups, environmental organizations, and scientists – say these figures are outdated and that environmental and public health risks far outweigh any revenue. Proponents claim drilling here would significantly reduce prices and US foreign oil dependence, but such assertions are highly suspect. Market projections have shown that oil and gas exploration and production in ANWR’s North Slope would not increase US energy security or lower gas prices. Resource uncertainty and decreasing demand for fossil fuels nationally reveal a market that lures fewer and fewer investors.
Alaskan Native communities in the North Slope
For millennia, the northern Alaskan alpine tundra has been home to Native communities – including the Gwich’in, Hare, Iñupiaq, and Koyukon, who have a legacy of living sustainably in this complex, fragile, and sometimes very demanding, environment (see Figure 1). The health and wellbeing of these communities is intricately tied to the health of the environment surrounding them.
Along Alaska’s coast, outside of ANWR between Prudhoe Bay and Barrow (Utqiagvik) where oil and gas extraction is happening already, the current environmental damage from oil and gas extraction is undeniable. Extractive activities have disconnected wildlife corridors and negatively affected subsistence hunting, and the local tourism industry oriented around polar bear and whale viewing opportunities has suffered.
Though the issue has divided Alaskan communities, all those living in and around ANWR will likely face challenges borne of further oil and gas development.
Alaska’s Native peoples have led a decades-long fight to protect the area from unsustainable oil and gas development. This industry brought jobs, but introduced significant change to the way of life on the North Slope of the Athabaskan Gwazhał (Brook’s Mountain Range). Corporate profit has, in some locations, superseded the rights for health and safety of the Native people of this region.
Language Groups and Natural Features of the North Slope of Alaska
This map shows the Arctic National Wildlife Refuge in the context of oil fields; Native Alaskan language groups in Alaska and eastward into Canada; along with the habitats of the Central Arctic, Western Arctic, and Porcupine caribou herd — a species held sacred by the Gwich’in people. Please note that the Native Alaskan language group territories should be interpreted somewhat loosely, as it’s difficult to estimate the precise location and distinction between groups. See Figure 2 for a detailed map of the oil fields.
Figure 1: Language groups and natural features of the North Slope of Alaska, FracTracker Alliance, January 2021. Language boundaries were taken from the Alaskan Native Language Center, and data from Alaska DCRA Data. Boundaries of these caribou herds are fluid, and may change from year to year. Caribou herd boundaries digitized by FracTracker from compiled images compiled from U.S. Fish and Wildlife Service, Western Arctic Caribou Herd Working Group, and Wikipedia. Oil and gas area boundaries digitized by FracTracker from compiled images from North Slope Borough: Department of Planning & Community Services, and the U.S. Geological Survey (USGS). Alaska ecoregions (including Coastal Plain) from USGS (link is a direct data download).
Trump’s Last-Minute Leasing in ANWR
President Trump claimed that the January 6, 2021, lease sale’s potential revenue would offset the costs of major 2017 tax cuts.
But pressure from drilling opponents – including Alaskan Natives, environmental activists, and scientists – a global recession, low oil prices, and waning faith and interest in the oil and gas sector curbed expected lease sales. Major oil companies chose to forego the auction – a sale that US banks (and some Canadian institutions) refused to bankroll. The auction received only three bidders – one of which was the State of Alaska – and generated only a fraction of the revenue it was projected to raise. Half of the parcels drew no bidders at all.
Results of the January 2021 oil & gas lease sale in Area 1002
This map shows parcels purchased by three entities during the January 6, 2021 lease sale in Area 1002, a site of particular cultural and ecological importance within ANWR.
Figure 2: Results of the January 6, 2021 oil and gas lease sale in Area 1002, FracTracker Alliance, January 2021. Data layer for oil and gas lease area digitized by Karen Edelstein using a Bureau of Land Management map.
Despite the lukewarm response, the BLM received 13 bids on 11 lease tracts (symbolized in Figure 2, above, with diagonal red lines). This area spans 437,804 acres, is valued at a little over 14.4 million dollars and is estimated to contain eight billion barrels of recoverable oil.
Knik Arm Services and Regenerate Alaska each secured one parcel. Half of the sale’s revenue will go to the federal government, and half will go to the State of Alaska. The leases auctioned off are renewable and active for ten years. The BLM announced on January 19 that it signed and issued leases on nine of the 11 tracts. View the record of lease sales here.
40 Year Timeline Leading to the Recent Auction
The Trump Administration’s leasing decision followed 40 years of gridlock over oil and gas exploration and drilling in one of the nation’s most pristine environments. The timeline below outlines major developments in the struggle to protect ANWR:
1960: President Dwight Eisenhower establishes an 8.9-million-acre expanse in Alaska’s tundra as the nation’s first ecosystem-scale conservation area, specifically for its “unique wildlife, wilderness, and recreational values.”
1972: The Arctic Slope Regional Corporation (ASRC) was recognized under the Alaska Native Claims Settlement Act, which transferred 44 million acres to Indigenous control and instigated the creation of 12 regional, private, for-profit companies intended to represent and protect Indigenous business interests and their ownership of the land and its resources.
1977: Margaret Murie, American naturalist, author, adventurer, and conservationist and recipient of the Presidential Medal of Freedom stood before Congress on behalf of the Arctic National Wildlife Refuge, testifying to why we must defend our last wild places.
1980: President Jimmy Carter signs into law the Alaska National Interest Lands Conservation Act (ANICLA), which expands the protected area to 19.3 million acres and renames it the Arctic National Wildlife Refuge (ANWR). The Act mandates that potential oil reserves in the 1.5-million-acre Coastal Plain be considered for development only with Congress’ authorization.
1987: Under President Ronald Reagan, an Environmental Impact Statement (EIS) for ANWR’s oil and gas exploration is drafted, and the US Department of Interior recommends Congress open the Coastal Plain for exploration.
2002 – 2003: During President George W. Bush’s Administration, the House repeatedly approves drilling in ANWR – only to be met with the Senate’s rejection.
2012: The Gwich’in people present and defend a Resolution to Protect the Birthplace and Nursery Grounds of the Porcupine Caribou Herd to Congress and the President. The Resolution recognizes and affirms their right to continue and protect their way of life and the protection of the caribou they revere and depend on.
2015: President Barack Obama’s Administration releases the U.S. Fish & Wildlife Service’s Comprehensive Conservation Plan for ANWR, calling for core areas – including the Coastal Plain – to be designated as wilderness, the highest level of protection for public lands.
2017: Following House instructions, the Senate Energy & Natural Resources Committee legislates $1 billion in revenue creation between 2018 – 2027, and to that end, passes an ANWR drilling provision. President Donald Trump signs the bill into law through the Tax Cuts & Jobs Act, which makes several significant changes to individual income tax and — notably – mandates energy and job creation and economic growth for future generations, through which the Trump Administration and Republican lawmakers advance fossil fuel industry expansion. The law includes the ANWR lease provision as a way to generate revenue to offset the associated tax cuts, in turn opening up the Coastal Plain to drilling.
April, 2018: Gwich’in Council International (GCI) publishes Impact Assessment in the Arctic: Emerging Practices of Indigenous-led Review, identifying the strategic approaches Indigenous governments are taking as they lead their own major project assessment.
“Gwich’in Council International (GCI) represents 9,000 Gwich’in in the Northwest Territories (NWT), Yukon, and Alaska as a Permanent Participant in the Arctic Council; the only international organization where Indigenous peoples have a seat at the decision-making table alongside national governments. GCI supports Gwich’in by amplifying our voice on sustainable development and the environment at the international level to support resilient and healthy communities.”
December, 2018: The Trump administration’s Bureau of Land Management (BLM) released a draft environmental impact statement (DEIS) for oil and gas leasing in ANWR. Many opposed the DEIS as a violation of indigenous rights. The Center for American Progress analyzed public opinion concerning drilling in the refuge and found that an overwhelmingly majority opposed to drilling the refuge. Of the 1 million comments submitted in response to the draft EIS, 99 percent opposed the proposed oil and gas activity.
March 26, 2019: Gwich’in leaders from across the United States and Canada were joined by faith leaders, scientists, and veterans to stand before Congress and testify on behalf of the Arctic National Wildlife Refuge and its coastal plain, and to support passage of The Arctic Cultural and Coastal Plain Protection Act. Witnesses included Ms. Bernadette Demientieff, Executive Director, Gwich’in Steering Committee; The Honorable Galen GilbertChief, Arctic Village Council; The Honorable Dana Tizya-Tramm, Chief, Vuntut Gwitchin First Nation; The Honorable Victor Joseph, Chief/Chairman, Tanana Chiefs Conferece; Mr. Sam Alexander, Board Member, Gwich’in Council International; Mr. Fenton Rexford, Advisor to the Mayor of the North Slope Borough, Tribal Member, Native Village of Kaktovik; Rev. Mark Lattime, Bishop of Alaska, The Episcopal Church; Dr. Steven Amstrup, Chief Scientist, Polar Bears International; Mr. Chad Brown, Founder, Soul River, Inc.; Mr. Richard Glenn, Executive Vice President, External Affairs, Arctic Slope Regional Corporation; Mr. Matthew Rexford, Tribal Adminisrator, Native Village of Kaktovik.
October 2019: The Gwich’in Steering Committee, Cultural Survival, Land is Life, First Peoples Worldwide, and the American Indian Law Clinic at the University of Colorado submitted a report to the the United Nations Human Rights Council. In the report, “Observations on the State of Indigenous Human Rights in the United States of America,” groups state that “The government of the United States has repeatedly failed to protect the human rights of the Gwich’in by aggressively pursuing oil and gas development in the Coastal Plain of the Arctic National Wildlife Refuge without first obtaining the Free, Prior and Informed Consent of the Gwich’in Nation.”
September 2020: Fifteen states sue the Trump Administration over drilling in ANWR, and two more lawsuits from environmental and social justice organizations and Indigenous groups assert that oil operations would violate the rights of Indigenous populations and threaten the landscape and wildlife it sustains. BLM withdraws approximately 460,000 acres from the plan after extensive comment and protest from Alaskan Natives, environmental nonprofit organizations, and the Canadian government, though the majority of the leases remain on the table.
In the same month, the U.S. Department of the Interior (DOI) released the Final Environmental Impact Statement (EIS) for the Coastal Plain Oil and Gas Leasing Program. Its release was a clear suppression of science and public opinion.
U.S. Secretary of the Interior David Bernhardt made the following dubious claims: “Affordable energy and great paying energy jobs help power our nation’s economy, which is clearly thriving under President Trump’s policies,” stated. After rigorous review, robust public comment, and a consideration of a range of alternatives, today’s announcement is a big step to carry out the clear mandate we received from Congress to develop and implement a leasing program for the Coastal Plain, a program the people of Alaska have been seeking for over 40 years.”
December 2020: The Gwich’in Steering Committee, including Tribal Governments and Village Councils, and more than a dozen conservation groups seek a temporary restraining order and preliminary injunction prohibiting Trump from approving and issuing oil and gas leases along the Coastal Plain. The filing asserts that it is well-known and documented that seismic exploration would cause irreparable harm to the landscape, its biodiversity, and its people, as well as their tribal archaeological and cultural resources – negative impacts that go beyond the lease tracts granted to purchasers, because it promises rights-of-way and easements that breach parcel boundaries.
January 5, 2021: The day before the lease auction, an Alaskan judge denies the lawsuit from Indigenous and environmental groups arguing that the lease sales were based on inadequate, outdated environmental review. The judge claims the group didn’t provide enough evidence of environmental transgressions to warrant an injunction.
“This is bum news but it’s not going to stop us from fighting to protect it,” said Bernadette Demientieff, chair of the Gwich’in Steering Committee that brought the lawsuit. “This is sacred land to the Gwich’in. This is our way of life, and we’re not going to just allow anyone to come in and destroy our way of life, because our children are going to be the ones who have to live with the destruction that they caused.”
January 6, 2021: President Trump opens up the lease sale in a public auction hosted and streamed live on the BLM website.
January 19, 2021: On their last full day in office, the Trump Administration announces it had officially issued oil and gas leases in ANWR. The outgoing administration also tried to push through a law requiring banks to finance many industries, including oil and gas companies and assault weapons manufacturers, that major institutions – counting JP Morgan Chase and Goldman Sachs – announced they would no longer finance.
January 20, 2021: President Joe Biden signed 17 executive orders his first day in office – 30 in the first three days – that reverse several of his predecessor’s environmentally-damaging policies . Biden directed the Secretary of the Interior to “place a temporary moratorium on all activities of the Federal Government relating to the implementation of the Coastal Plain Oil and Gas Leasing Program, as established by the Record of Decision signed August 17, 2020, in the Arctic National Wildlife Refuge. The Secretary shall review the program and, as appropriate and consistent with applicable law, conduct a new, comprehensive analysis of the potential environmental impacts of the oil and gas program.”
Subsequently, the Department of the Interior issued Secretarial Order No. 3395, implementing a 60-day suspension of new oil and gas leasing and drilling permits for federal land and water.
On the same day, one of the preexisting lease holders, 88 Energy, published an update related to its operations on the North Slope of Alaska, stating plans to extract oil from the Coastal Plain by drilling directionally into the land from state land.
The Gwich’in Steering Committee released the following statement in response: “The Gwich’in Steering Committee opposes all forms of development and calls on Regenerate Alaska and its parent company, 88 Energy, to halt its plans.”
January 27, 2021: Biden issues a pause on oil and gas leasing in non-tribal federal lands and offshore waters, which lengthened the 60-day moratorium issued the week prior. He also ordered the creation of an interagency working group to prioritize economic revitalization of communities dependent on fossil fuels, and to focus on transitioning these workers to cleaner energy industries.
“We’re not going to lose jobs; we’re going to create jobs,” Biden said in his remarks about this executive order. Republicans criticized this move, saying it will eliminate jobs and hurt US businesses, but Biden’s order didn’t apply to all permitting. He added, “We’re not going to ban fracking,” a point he emphasized in his 2020 presidential campaign.
Did we miss anything? Let us know if you have important milestones to add to the timeline above!
The future of ANWR
Despite his plan to temporarily halt oil and gas leasing, Biden has approved at least 31 drilling permits since his inauguration. The Department of the Interior – whose top officials Biden put in charge of oil permitting decisions – states that the order, set to expire March 20, does not equate to a drilling permit freeze and does not apply to tribal lands. However, energy companies are still worried they may not be able to secure permits.
There are a few tactics that Biden can use to delay oil and gas exploration in ANWR, including reopening the Department of Interior’s record of decision (ROD), instituting a bid rejection, or delaying permits that companies need to search for oil and build infrastructure – though it is possible that companies could secure their leases and just wait for the administration to change (in their favor).
But if Biden wants to stick to his plan for a “just energy transition,” and advance his environmental justice, racial equity, and job creation priorities, he has to listen to Alaskan Natives and integrate their interests moving forward. Their input and right to manage their lands must be prioritized.
“We are eager to hear the Biden administration’s plan to replace the economy that it’s brought to a standstill, and look forward to working side-by-side with the President to create new, sustainable solutions,” said Voice of the Arctic Iñupiat (VOICE) President Sayers Tuzroyluk.
Voice of the Arctic Iñupiat is a nonprofit organization and communication network working across North Slope communities to address and participate in legislation, regulations, and government programs to protect their culture, and to ensure natural resource development in a safe and responsible manner.
Biden will also need to prioritize fossil fuel industry workers whose livelihoods are uncertain from his extended moratorium – for people in ANWR, and in other US communities.
The Takeaway
Regulatory actions to open ANWR for drilling in ANWR have significant and potentially grievous implications for Alaska’s Native peoples, and do not bode well for Alaska’s air, water, and landscape, and the biodiverse species such as the Porcupine caribou that call it home.
Increased fossil fuel activity will also continue to alter the landscape and hinder its function by disconnecting migration and breeding habitat, disturbing and/or displacing animal populations, threatening their survival, and destroying the delicate ecological balance of the Coastal Plain.
However this issue is resolved, the rights of Alaskan Natives should be foremost in future decision-making and is of utmost importance to the future of their epic lands. Following their leadership, there’s hope that the solution will be equitable for both people and the environment
References & Where to Learn More
Gwich’in Steering Committee – The Gwich’in Steering Committee was formed in 1988 in response to proposals to drill for oil in the Sacred Place Where Life Begins, the coastal plain of the Arctic National Wildlife Refuge.
The Gwich’in Place Name and Story Atlas is an interactive Story Map that invites visitors to explore the culture, history, traditional knowledge, and land use of the Gwich’in through Gwich’in place names. The Atlas is the result of more than two decades of collaboration between the Gwich’in Social and Cultural Institute, Gwich’in Elders, and traditional land users living in the Gwich’in Settlement Region communities of Aklavik, Fort McPherson, Inuvik and Tsiigehtchic.
The Gwich’in Elders’ Biographies Research Project is a project of the Gwich’in Social & Cultural Institute’s Department of Cultural Heritage. Researchers interviewed 24 elders from the four Gwich’in communities, and collected their life histories. Many of the elders describe a very traditional lifestyle of moving seasonally on the land, being the last generation to live in this traditional manner. Their stories communicate their love and knowledge of the land, and speak to the importance of family ties, place names, legends, and historical events. They also offer snapshots of the sweeping changes the Gwich’in experienced in the 20th century.
The Right to be Cold is Sheila Watt-Cloutier’s memoir of growing up in Quebec’s Arctic on the front lines of climate change. “It is the story of an Inuk woman finding her place in the world, only to find her native land giving way to the inexorable warming of the planet.” She became one of the most influential Indigenous environmental, cultural, and human rights advocates in the world. She served as the elected Canadian president of the Inuit Circumpolar Council from 1995 to 2002, and in 2002 she was elected its international chair. She launched the world’s first international legal action on climate change through a petition to the Inter-American Commission on Human Rights.
Saqiyuq: Stories from the Lives of Three Inuit Women by Nancy Wachowich, Apphia Agalakti Awa, Rhoda Kaukjak Katsak and Sandra Pikujak Katsak offers a collection of stories from a grandmother, daughter, and granddaughter from the Baffin Island community of Pond Inlet, Nunavut. Saqiyuq is the Inuktitut word for ‘a strong wind that suddenly shifts direction.’ Their stories illustrate the shift in Inuit life from nomadic subsistence hunting to permanent settlement in communities, and offer insight into the “enforced acculturation of the Inuit and the imposition of religious and cultural values useless to Inuit culture.”
A Moral Choice: The Human Rights Implications for the Gwich’in of Drilling in the Arctic National Wildlife Refuge by the Gwich’in Steering Committee, 2005.
Alaskan Natives https://www.alaskan-natives.com/
The Northern Alaska Environmental Center https://northern.org/
Environment America https://environmentamerica.org/blogs/environment-america-blog/ame/our-decades-long-campaign-defend-arctic-national-wildlife-refuge
NRDC https://www.nrdc.org/protect-arctic-national-wildlife-refuge
The Arctic Institute https://www.thearcticinstitute.org/topics/climate-and-environment/
The Arctic Council https://arctic-council.org/en/news/environment-and-climate/
Topics in this Article
Social | Legislation & Politics | Wildlife & Ecology
Kern County’s Drafted EIR Will Increase the Burden for Frontline Communities
Overview
This article focuses on the city of Arvin as an example to show how some Frontline Communities in California are completely surrounded by an unrelenting barrage of carcinogenic and toxic air pollutants from oil and gas wells. Kern County’s proposed environmental impact report (EIR) would streamline the approval of an additional 67,000 new oil and gas wells in the County and thus further degrade air quality. We provide several recommendations for how local and state decision-makers can better protect public health from these serious threats.
Upstream greenhouse-gas and volatile organic compound (VOC) emissions from oil and gas extraction have been drastically under-reported throughout the United States, and California’s emissions regulations for oil and gas production wells are not comprehensive enough to protect Frontline Communities. The contribution of VOCs from the oil and gas extraction sector is responsible for California’s central valley and Kern County communities being exposed to the worst air quality in the country. As carcinogens, air toxics, and precursors to ozone, VOC’s present a myriad of health threats.
The contribution of VOCs from the well-sites in Kern, in addition to the cumulative burden of the Central Valley’s degraded air quality, puts Kern residents at considerable risk. Obvious loopholes in the California Air Resources Board’s oil and gas rule must be addressed immediately, and revised to prevent the cumulative impact of multiple exposure sources from causing additional documented negative health impacts. Additionally Kern County’s proposed environmental impact report (EIR) would streamline the approval of an additional 67,000 new oil and gas wells in the County and thus further degrade air quality. It is crucial that the EIR is instead revised to eliminate extraction near sensitive populations. (For more details on this proposal, see our more in depth environmental justice analysis of Kern County and our article on the proposed EIR.)
In support of establishing new public health rules that protect Frontline Communities, Earthwork’s Community Empowerment Project, in collaboration with the Central California Environmental Justice Network and FracTracker Alliance, has focused on documenting the uncontrolled emissions from extraction sites within and surrounding the small city of Arvin, California. Using infrared cameras with state of the art optical gas imaging (OGI) technology, the team documented major leaks at multiple well-sites. Footage from Arvin spans the years from 2016-2020. A collection of this footage has been compiled into the interactive story map that follows.
Toxic Emissions Filmed at Oil and Gas Wells in Arvin, CA
This StoryMap explores how current California regulations fail to stop emissions from tanks on oil and gas well-sites by looking at examples of emissions from well-sites in Arvin, California. Place your cursor over the image and scroll down to advance the StoryMap and explore a series of maps charting the fracking-for-plastic system. Click on the icon in the bottom left to view the legend.
View Full Sized Map | Updated 3/4/21
Data sources:
- CalGEM AllWells data, used for identification of oil and gas well sites in Arvin, CA
- California School Campus Database (CSCD), used for school footprint data
- U.S. EPA’s AirData mapping portal
The cases of uncontrolled emissions in the story map provides just an example of the inventory of uncontrolled emissions sources in Kern County, and California at large. Finding and filming emissions sources while using OGI cameras in California is not at all uncommon, otherwise there would not be seven prime examples just in the City of Arvin. Prior to 2018, emissions from these well-sites went completely unregulated. While the California oil and gas rule (COGR) was developed to address greenhouse gas emissions from small sources, certain aspects of the rule are not being enforced by the local air districts. Rather than requiring tanks to have closed evaporation systems the air districts allow operators to set pressure/vacuum hatches to open and emit toxic and carcinogenic vapors when pressure builds inside tanks. While this is a safety mechanism on tanks, in practice it allows tanks to be consistent sources of exposure that put neighboring communities at risk. Specifically, California Code of Regulations, Title 17, Division 3, Chapter 1, Subchapter 10 Climate Change, Article 4, § 95669, Leak Detection and Repair, Paragraph I states that “Hatches shall remain closed at all times except during sampling, adding process material, or attended maintenance operations.”
Degraded Air Quality
New research from Harvard, Berkeley and Stanford has shown that living near oil and gas drilling and extraction exposes Frontline Communities to emissions of VOC’s and ozone that put them at risk for a variety of health impacts. Researchers at Stanford have linked proximity and density of oil and gas wells to preterm birth for pregnant mothers (Gonzalez et al. 2020), even at large distances. Similar research from UC Berkeley showed mothers living near oil and gas drilling and extraction are also at risk of birthing infants with low birth weight (Tran et al. 2020). The study found pregnant people who lived within 0.62 miles (1 kilometer) of the highest producing wells were 40% more likely to have low birth weight babies and 20% more likely to have babies who were small for their gestational age compared to people living farther away from wells or near inactive wells only. Most recently, new research from Harvard University shows that even very low ambient levels of ozone, particulate matter (PM2.5), and nitrogen dioxide increased hospitalizations for cardiac and respiratory conditions (Wang et al. 2021). These are the primary and secondary pollutants emitted from oil and gas extraction sites and also result from burning fossil fuels. The magnitude of the impact on public health is also much larger than previously considered. Another article recently published by researchers at Harvard shows that fossil fuel air pollution is responsible for 18% of total deaths, worldwide (Vohra, et al. 2021).
While the COGR rule is a step in the right direction to reduce emissions, oil and gas’s legacy of degradation to ambient air quality has placed the Central Valley in the worst categories for these pollutants in the country. This puts Kern residents at considerable risk. The local health department continues to report improved conditions and increased numbers of healthy air days, but the truth is the mean, median and maximum values of ozone concentrations at US EPA monitoring locations in Kern County have remained relatively constant at harmful levels from 2015-2019. Expanding the data to 2020 shows a two sharp decreases in ambient levels of pollutants that correspond to decreases in reported production volumes for the county. The first decrease in 2016 corresponds to a drop in production following the institution of State Bill requirements for fracking permits. The decrease in 2020 is a result of the slowed production and burning of fossil fuels related to the Covid-19 Pandemic, as shown below in Figure 1.
Figure 1. Plot of annual Maximum 1 hour Ozone concentrations at all monitoring locations in western Kern County. Ozone concentrations are presented in parts per million. Annual trends in ambient concentrations of ozone. Note the decrease in concentrations in 2016 and in 2020. Both events correlate to decreases in production.
Using the U.S. EPA’s AirData mapping portal, air quality data for Kern County was exported, compiled and plotted to show trends over time. Above in Figure 1, annual ambient concentrations of ozone are shown. The trends of ambient concentrations follow similar trends in the spatial and temporal distribution of CalGEM reported production volumes. FracTracker Alliance is conducting more thorough analyses of these correlations, so stay tuned for future reports.
The locations of these monitoring locations are shown below in the map in Figure 2. Note that there are not any monitors in northwestern Kern, near large oil fields including North Belridge and Lost Hills. The communities near these fields, such as the City of Lost Hills are predominantly Latinx with elevated levels of linguistic isolation and poverty.
Figure 2. Map of Air Quality Monitors in Kern County.
Conclusion
Permitting new oil and gas wells in Kern County is certain to degrade the already harmful local and regional ambient air quality of the Central Valley. Kern County’s proposed EIR, as it stands will streamline an additional 67,000 sources of VOCs to the inventory of emissions already impacting communities. The health impacts from concentrations of ozone are well established, and the release of VOCs are major risk driver for communities living closest to oil and gas extraction operations as well as for regional public health. Together, these primary and secondary pollutants create a major risk driver for Kern County communities. Globally, these emissions are responsible for upwards of 8 million premature deaths annually. The burden on Frontline Communities in Kern County is likely much higher, and will only grow if the currently drafted EIR is passed. Additional air quality monitoring stations in northwestern Kern County should be installed immediately to help track air quality impacts.
To reduce this harm to Frontline Communities, California Senator Scott Weiner has submitted a new senate bill. Senate Bill 467 would stop the issuance of hydraulic fracturing permits and create a public health setback distance of 2,500 feet from homes, schools and other health care facilities for all new drilling permits. The bill would also create a program to provide new training and job opportunities for workers who would be negatively impacted by the bill. Senate Bill 467 provides the first step for a green transition away from the health impacts resulting from fossil fuel industries.
The Take Away
Built on sound data and ample research, FracTracker recommends the following measures be taken to protect the health of California’s overburdened Frontline Communities: Kern County should revise its environmental impact report to address the onslaught of harmful oil and gas emissions (EIR), California Air Resources Board’s oil and gas rule should close its loophole allowing emissions from the pressure/vacuum hatch on the tank to be exempt from regulation, and legislators should educate themselves on the importance of 2,500 foot setbacks requirements for oil and gas wells.
References & Where to Learn More
FracTracker’s public comments regarding recommendations to modify the Kern County Draft Environmental Impact Report (EIR): https://www.fractracker.org/a5ej20sjfwe/wp-content/uploads/2021/03/Kern.EIR_.comments_FracTrackerAlliance_3.8.21_compressed.pdf
FracTracker California articles, maps, and imagery: https://www.fractracker.org/map/us/california/
Earthwork’s Community Empowerment Project: https://www.youtube.com/playlist?list=PL9BS7nDf-8tqlaUT8pc0Yr0Tpfl0UFDMK
Newsom Well Watch, a collaboration between FracTracker and Consumer Watchdog: https://newsomwellwatch.com/
Topics in this Article
Infrastructure | Health & Safety | Legislation & Politics | Social
California Oil & Gas Setbacks Recommendations Memo
Kyle Ferrar, Western Program Coordinator for FracTracker Alliance, contributed to the December 2020 memo, “Recommendations to CalGEM for Assessing the Economic Value of Social Benefits from a 2,500’ Buffer Zone Between Oil & Gas Extraction Activities and Nearby Communities.”
Below is the introduction, and you can find the full memo here.
Introduction
The purpose of this memo is to recommend guidelines to CalGEM for evaluating the economic value of the social benefits and costs to people and the environment in requiring a 2,500 foot setback for oil and gas drilling (OGD) activities. The 2,500’ setback distance should be considered a minimum required setback. The extensive technical literature, which we reference below, analyzes health benefits to populations when they live much farther away than 2,500’, such as 1km to 5km, but 2,500’ is a minimal setback in much of the literature. Economic analyses of the benefits and costs of setbacks should follow the technical literature and consider setbacks beyond 2,500’ also.
The social benefits and costs derive primarily from reducing the negative impacts of OGD pollution of soil, water, and air on the well-being of nearby communities. The impacts include a long list of health conditions that are known to result from hazardous exposures in the vulnerable populations living nearby. The benefits and costs to the OGD industry of implementing a setback are more limited under the assumption that the proposed setback will not impact total production of oil and gas.
The comment letter submitted by Voices in Solidarity against Oil in Neighborhoods (VISIÓN) on November 30, 2020 lays out an inclusive approach to assessing the health and safety consequences to the communities living near oil and gas extraction activities. This memo addresses how CalGEM might analyze the economic value of the net social benefits from reducing the pollution suffered by nearby communities. In doing so, this memo provides detailed recommendations on one part of the broader holistic evaluation that CalGEM must use in deciding the setback rule.
This memo consists of two parts. The first part documents factors that CalGEM should take into account when evaluating the economic benefits and costs of the forthcoming proposed rule. These include factors like the adverse health impacts of pollution from OGD, the hazards causing them and their sources, and the way they manifest into social and economic costs. It also describes populations that are particularly vulnerable to pollution and its effects as well as geographic factors that impact outcomes.
The second part of this memo documents the direct and indirect economic benefits of the proposed rule. Here, the memo discusses the methods and data that should be leveraged to analyze economic benefits of reducing exposure to OGD pollution through setbacks. This includes the health benefits, impacts on worker productivity, opportunity costs of OGD activity within the proposed setback, and the fact that impacted communities are paying the external costs of OGD.
Please find the full memo here.
Oil and Gas Wells on California State Lands
The fossil fuel industry has historically taken advantage of the nation’s mineral estate for private profit, while outsourcing the public health debts of degraded environmental quality to Frontline Communities. While President Biden has recently ordered the Department of Interior to put a 60-day halt on permitting new oil and gas drilling permits on federal lands, no such policy exists for state lands in California. Governor Newsom’s administration has allowed the California Geological Energy Management Division to issue rework and new drilling permits on California state lands, bringing the total number of operational oil and gas wells on state lands up to a total of 178, almost half of which are “idle.” This number pales in comparison to the number of California oil and gas wells on federal lands; a total of 6,997 operational wells.
FracTracker Alliance has mapped out the operational oil and gas wells located on state lands in California, using the California Protected Areas Database. The areas containing the highest concentrations of oil and gas wells on state lands include two sensitive ecosystem environments. Figure 1 shows the 102 operational oil and gas wells located in Southern California’s Bolsa Chica Ecological Preserve. The wells are part of the Huntington Beach oil field. The preserve shares marine habitat with a marine protected area (MPA) and is habitat for numerous rare and several endangered species. More sensitive habitat also threatened by oil and gas extraction; Figure 2 shows the oil and gas production wells on the Sacramento River Delta, just upriver of the Bay Area. It is habitat for several threatened and endangered species such as the Delta Smelt and Giant Garter Snake.
California needs Governor Newsom to take a stand against the further exploitation of California’s public lands. A ban on permitting new wells on state land and a commitment to plug existing wells would set an example for Biden’s administration to make the current 60-day freeze a permanent policy.
Figure 1. The Bolsa Chica Ecological Preserve hosts over 100 operational oil and gas wells that put the preserve’s ecological habitat at risk.
Figure 2. There are 50 operational oil and gas wells permitted on California state lands in the Sacramento River Delta.
See more California maps and articles here.
By Kyle Ferrar, Western Program Coordinator, FracTracker Alliance
Energy Security, International Investment, and Democracy in the US Shale Oil & Gas Industry
FracTracker’s Ted Auch coauthored a recent article in the journal Democracy & Security that considers the US shale oil and gas industry through a national security lens.
This paper was authored by Bryan T. Stinchfield , Ted Auch & Eve Bratman.
Article Abstract
Proponents of the US shale oil and gas industry argued that American citizens’ economic prosperity and national security were at stake if the industry was not rapidly expanded. Following copious amounts of a certain type of “patriotic” rhetoric, the industry grew rapidly. Simultaneously, foreign ownership of US shale industry infrastructure occurred in tandem with calls for new policies and laws to limit US citizens’ democratic rights with regard to the industry’s activities. As a result, we argue that the development of the US shale industry has weakened national security by creating negative security externalities and eroding democratic values. We offer implications for other democratic societies rich in natural resources.
Figure 1. Vicious cycle within the US shale industry.
The intent of some of the industry’s proponents is to criminalize protest, peaceful and otherwise. When peaceful protests are intentionally lumped in with not-peaceful protests, the effect is a weakening of democracy.
Energy Security, International Investment, and Democracy: The Case of the United States Shale Oil and Gas Industry
Bryan T. Stinchfield , Ted Auch & Eve Bratman
To cite this article: Bryan T. Stinchfield , Ted Auch & Eve Bratman (2020): Energy Security, International Investment, and Democracy: The Case of the United States Shale Oil and Gas Industry, Democracy and Security, DOI: 10.1080/17419166.2020.1811969
To link to this article: https://doi.org/10.1080/17419166.2020.1811969
Ted Auch
Straight Talk on the Future of Fracking Jobs in Pennsylvania
Fracking has been raised as an issue that could determine the outcome of the 2020 US presidential election. Republican candidates have cited erroneous figures of how many fracking jobs exist in Pennsylvania, and have falsely claimed that Democratic presidential candidate Joe Biden and running mate Kamala Harris seek to ban fracking. And while the Democratic candidates have made suggestive comments in the past, they have made their position clear. As Senator Harris stated in the vice presidential debate: “I will repeat, and the American people know, that Joe Biden will not ban fracking. That is a fact.”
The debate around this issue is not on whether or not fracking should be banned– something neither party advocates– but rather around the facts. Republican candidates have inflated the extent of fracking jobs by up to 3500 percent. But the natural gas industry and the fracking boom have failed to deliver the job growth and prosperity that was predicted by proponents a decade ago. In reality, the total number of jobs in the natural gas industry in Pennsylvania never reached more than 30,000 over the last five years and is now less with the industry’s economic decline.
The total number of jobs in the natural gas industry in Pennsylvania never reached more than 30,000 over the last five years and is now less with the industry’s economic decline.
The debate should not be around the facts- those are already firmly established. The debate should be around how to best support fossil fuel workers in the inevitable transition to cleaner energy. What does a just transition that supports workers and the climate look like?
FracTracker Alliance and The Breathe Project have compiled a fact sheet to help us answer this question based on where Pennsylvania currently stands.
Breathe Project
Energy Innovation Center – Suite 140
1435 Bedford Avenue
Pittsburgh, PA 15219
Straight Talk on the Future of Jobs in Pennsylvania (September 2020)
The Breathe Project and FracTracker Alliance have crafted the following messaging for refuting the conflated job numbers being touted by pro-fossil fuel organizations and political candidates regarding fracking and jobs in Pennsylvania that, in some cases, has inflated natural gas jobs in the state by 3500 percent.
The natural gas industry and the fracking boom have failed to deliver the job growth and prosperity that was predicted by proponents a decade ago. The total number of jobs in the natural gas industry in Pennsylvania never reached more than 30,000 over the last five years and is now less with the industry’s economic decline.
FACT: The Pa. Dept. of Labor and Industry (DLI) reported that direct employment in natural gas development totaled 19,623 in 2016. This was down from 28,926 total natural gas development jobs in 2015. This includes jobs in drilling, extraction, support operations and pipeline construction and transportation. (StateImpact, 2016)
Pa. DLI calculated the employment figures using data from six data classifications at the U.S. Bureau of Labor Statistics — specifically, the North American Industry Classification System (NAICS) codes for cured petroleum and natural gas extraction, natural gas liquid extraction, drilling oil and gas wells, support activities for oil and gas operations, oil and gas pipeline and related structures and pipeline transportation of natural gas. (Natural Gas Intel, 2016)
Inflated estimates of fracking-related jobs in Pennsylvania under previous Gov. Tom Corbett included regulators overseeing the industry as gas jobs, truck drivers, and those working in highway construction, steel mills, coal-fired power plants, sewage treatment plants, and others. Pa. Gov. Tom Wolf’s administration revised the way gas industry jobs were calculated to reflect a more accurate depiction of jobs in the sector.
FACT: Food & Water Watch calculated that there were 7,633 jobs pre-boom (2001 – 2006), which rose to 25,960 oil and gas industry jobs post-boom (2016 – 2018). (FWW, March 2020)
Food & Water Watch created a more accurate model using a definition that encompasses only jobs directly involved with domestic oil and gas production, specifically: oil and gas extraction; support activities for oil and gas operations; drilling oil and gas wells; oil and gas pipeline construction; and pipeline transportation.
FACT: The Food & Water Watch analysis also reports that misleadingly broad definitions in industry-supported job reports overstated the industries’ scope. The industry analysis included broad swaths of manufacturing industries including “fertilizer manufacturing,” convenience store workers, and gas station workers, which accounted for nearly 35 percent of all oil and gas jobs in their analysis. (FWW, PwC at 5 and Table 4 at 9, 2019)
FACT: As a point of comparison, in 2019, close to 1 million state residents were working in healthcare, 222,600 in education, and over 590,000 in local and state government. (Pennsylvania Bureau of Labor Statistics, July, 2020)
FACT: To forecast fracking-related job growth, the American Petroleum Institute used a model with exaggerated multipliers and faulty assumptions, such as the amount of purchases made from in-state suppliers, and it double counted jobs, leading to wildly optimistic estimates. (Ohio River Valley Institute, August 2020)
FACT: In addition, many of the jobs claimed in a 2017 American Chemistry Council Appalachian petrochemical economic impact study would arise in plastics manufacturing, which raises two concerns. First, both the ACC study and subsequent reports by the U.S. Department of Energy assume that 90% of the ethylene and polyethylene produced by imagined Appalachian cracker plants would be shipped out of the region to be used in manufacturing elsewhere in the country and the world. Of the 10% that would presumably stay in the region, much or most of it would serve to replace supplies that the region’s plastics manufacturers currently source from the Gulf Coast. (Ohio River Valley Institute, August 2020)
The fracking and petrochemical industries create unsustainable boom and bust cycles that do not holistically improve local economies.
FACT: Economic analyses show that the oil and gas industry is a risky economic proposition due to the current global oversupply of plastics, unpredictable costs to the industry, a lower demand for plastics, and increased competition. The analyses call into question industry’s plans to expand fracking and gas infrastructure in the region. (IEEFA, August 2020)
FACT: Plans to build petrochemical plants in Beaver County, Pennsylvania and Belmont, Ohio, for the sole purpose of manufacturing plastic nurdles will not be as profitable as originally portrayed. (IEEFA Report, June 2020)
A clean energy economy is the only way forward.
FACT: The Dept. of Energy’s U.S. Energy and Employment Report (2017) and E2 Clean Jobs Pennsylvania Report (2020) shows that clean energy jobs in Pennsylvania employ twice as many people as the fossil fuel industry prior to the pandemic.
FACT: The 4-state region of Ohio, West Virginia, Kentucky and Pennsylvania has formed a coalition of labor, policy experts and frontline community leaders called Reimagine Appalachia. This coalition is in the process of addressing the vast number of jobs in renewable and clean energy industries in a report that will be published this fall.
Reimagine Appalachia seeks major federal funding packages that will create jobs, rebuild infrastructure and addresses climate change that will ensure that no one is left behind going forward.
Sources
O’Leary, Sean. “The Not-So-Natural Gas Boom,” Westvirginiaville.com, Aug. 10, 2020.
O’Leary, Sean. “Lies, damned lies, and economic impact studies,” Ohio River Valley Institute, Aug. 31, 2020.
O’Leary, Sean. “Game Unchanged . . . But, Not Unchangeable,” Ohio River Valley Institute, Aug. 11, 2020. Food & Water Watch. “Phantom Jobs: Fracking Job Creation Numbers Don’t Add Up,” March 2020.
Natural Gas Intel
Pa. Dept. of Environmental Protection Energy Programs. 2020 Pennsylvania Energy Employment Report,
Institute for Energy Economics and Financial Analysis (IEEFA). “IEEFA report: Financial risks loom for Shell’s Pennsylvania petrochemicals complex,” June 4, 2020.
IEEFA. “Petrochemicals may be another bad bet for the oil industry,” Aug. 19, 2020.
E2. “Clean Jobs Pennsylvania 2020,” April 15, 2020.
Natural Gas Intel. “Direct Employment in Natural Gas Development Declines by One-Third in Pennsylvania,” Dec. 23, 2016.
PennLive. “How many jobs has Marcellus Shale Really Created?” Jan. 5, 2019.
StateImpact, “Pa. oil and gas jobs down 32 percent since last year,” Dec. 23, 2016.
The Breathe Project is a coalition of citizens, environmental advocates, public health professionals and academics using the best available science and technology to improve air quality, eliminate climate pollution and make our region a healthy, prosperous place to live.
FracTracker Alliance is a 501(c)3 organization that maps, analyzes, and communicates the risks of oil, gas, and petrochemical development to advance just energy alternatives that protect public health, natural resources, and the climate.
Feature image of construction of the Royal Dutch Shell cracker plant in Beaver County, Pennsylvania, October 2019. Ted Auch, FracTracker Alliance.
New York State Closes the Fracking Waste Loophole
Overview
On August 3, 2020, New Yorkers rejoiced in Governor Cuomo’s signing of legislation to protect the Empire State from Pennsylvania’s fracking waste. Although New York State has banned high-volume, horizontal hydraulic fracturing, or “fracking” within its borders, a fracking waste loophole allowed numerous landfills to received both solid and liquid waste products from drilling operations just south of its border, according to records from the Pennsylvania Department of Environmental Protection (PA DEP).
What has been at stake
A regulatory loophole in New York State’s laws exempted drilling waste from scrutiny as hazardous materials. Therefore, solid and liquid wastes from drilling operations — including many constituents which are considered secret or “proprietary” — were sent to landfills, and in some cases, spread on roads and walkways in the state. Municipalities were provided with very little understanding of the risks those materials might be posing to air and water quality in and around landfills. Until the signing of this legislation, New York State Department of Environmental Conservation has considered road-spreading of waste brine from both conventional and unconventional oil and gas wells that was spread on roads a “BUD,” or a beneficial use determination.
Nevertheless, research has shown that produced water from fracking operations can contain tens to thousands of times the allowable drinking water concentration limit of radium, strontium, barium, lead, arsenic, and other elements. Human health impacts of all phases of drilling operations were explored in a recent paper by Wollin et al. (May 2020).
Water that flows to the surface from oil and gas wells, so-called ‘produced water’, represents a mixture of flow-back, the injected frac fluid returning to the surface, and the reservoir water present in natural oil and gas deposits. Among numerous hazardous compounds, produced water may contain bromide, arsenic, strontium, mercury, barium, radioactive isotopes and organic compounds, particularly benzene, toluene, ethylbenzene and xylenes (BTEX). The sewage outflow, even from specialized treatment plants, may still contain critical concentrations of barium, strontium and arsenic. Evidence suggests that the quality of groundwater and surface water may be compromised by disposal of produced water.
Carcinogenic and radioactive wastes that are brought to the surface with both conventional and unconventional drilling technologies can have toxic impacts on human health and the natural environment, impacting the endocrine, nervous, cardiovascular, and respiratory systems, as well as air and water quality. According to the Natural Resources Defense Council, more than 75 percent of the chemicals used in fracking are associated with harm to human organs, while 25 percent are tied to cancer and other genetic mutations.
How could this be allowed?
Although the federal Resource Conservation and Recovery Act (RCRA)—passed in 1976—specifically safeguards human and environmental health, an amendment to the Act in 1980 exempted from regulation all waste from oil and gas exploration, development, and production. Despite close to 40 years of federal oversight of pollution created by countless industries, oil and gas operations have been subject to far more lax regulations. And although states can pass their own regulations to supplement the federal rule-making, this had not occurred in New York State.
The lead-up to the legislation
The recent legislation to close the fracking loophole in New York State was sponsored in 2019 by Senator Rachel May and Assemblyman Steve Engelbright. Lawmakers had been deadlocked on the issue since 2011, but through much hard work, political and public will, and a favorable complement of elected officials, after the bills finally passed both the New York State Senate and Assembly, they could move to Governor Andrew Cuomo’s desk, where they were signed into law in early August, 2020. According to EarthWorks, all oil and gas waste will be
- Subject to laboratory analysis to determine whether it has the characteristics of hazardous waste (i.e., ignitability, corrosivity, reactivity, and toxicity)
- Subject wastes to clearer, stronger management regulations like processing, tracking and marking of loads, recordkeeping with a manifest system, reporting to DEC, and specific requirements for clean up in the case of a spill
In addition, the law ensures that waste is disposed of only at facilities equipped to safely handle it.
Now, even wastes like brine from conventional drilling operations must undergo laboratory analysis to determine whether they have characteristics consistent with hazardous materials.
Here’s a look back at our history of accepting fracking waste from Pennsylvania into New York State.
Visualizing a long history of oil and gas waste coming to New York State from Pennsylvania
FracTracker has annually mapped the flow of drilling waste from Pennsylvania to New York State.
To view the map a full screen, click here
Since 2011, nearly 29,000 barrels of fracking liquid waste (drilling fluids, fracturing fluids, produced waters, etc.), along with close to 645,000 tons of solid waste (drill cuttings—some of it radioactive, sludge, contaminated soils, etc.) from Pennsylvania drilling operations have been disposed of in New York State. For more references on radioactivity in drilling materials, explore this resource. Drilling waste reports available from 2010 through the present show a steady decline in waste sent to New York State, beginning in 2011. Nonetheless, New York’s landfills have received as much as 11,548 barrels of drilling waste, and 214,168 tons of solid waste in a given year.
PA DEP’s records are far from complete prior to 2016, however, with disposal destinations unknown for close to 2/3 of liquid waste (see yellow portions of the bar chart in Figure 1) generated between 2012 and 2015.
Figure 1. Pennsylvania’s liquid unconventional drilling waste disposal by state, 2010-2019
In more recent years, waste products were accounted for more accurately, as well as shipped to injection wells in Ohio.
On a relatively smaller scale, one can also see how West Virginia’s acceptance of Pennsylvania’s fracking waste has skyrocketed in 2018 and 2019, particularly in comparison to states other than Pennsylvania and Ohio (Figure 2).
Figure 2. Pennsylvania’s liquid unconventional drilling waste disposal by state (excluding Pennsylvania and Ohio), 2010-2019
In general, records indicate more solid waste disposal occurring within Pennsylvania over time, with Ohio accepting varying quantities from year to year, and New York State steadily receiving less over time (Figure 3).
Figure 3. Pennsylvania’s solid unconventional drilling waste disposal by state, 2010-2019
Now that the regulatory loophole has been closed, these numbers should drop to near zero. Data about waste coming from Pennsylvania to New York in the first half of 2020 support that assertion (Figures 4 and 5).
Figure 4. Pennsylvania’s liquid unconventional drilling waste disposal by state, January-May 2020
Figure 5. Pennsylvania’s solid unconventional drilling waste disposal by state, January-May 2020
In conclusion
FracTracker applauds New York State for closing the fracking waste loophole and in doing so, continuing to set high standards to protect its residents from the human and environmental impacts created by oil and gas extraction. We hope that other states will follow suit, and develop their own stringent standards to protect human and environmental health, in particular where federal legislation like RCRA has fallen woefully short.
By Karen Edelstein, Eastern Program Coordinator, FracTracker Alliance
Feature photo by Ted Auch, FracTracker Alliance, with aerial support by Lighthawk
Trends in Proposed State Legislation to Weaken Environmental Regulations
As the oil and gas industry feels pressure from former allies and see lending windows from their most loyal banking partners begin to dry up, they will be forced to cut costs elsewhere, and cut corners everywhere. This will come in the form of more industry-friendly regulations on the federal level under the current administration, as well as less stringent oversight at the state level. These trends are explicit manifestations of their desperation and influence.
The state-level laws the oil and gas industries are advocating for can easily fly under the radar. Most people just don’t have the bandwidth to educate themselves on the quiet development of these bills, nor to advocate against them. Much of the public’s attention is understandably focused on the COVID-19 pandemic, mass unemployment, and racial inequality. And, much of the critical attention around oil and gas legislation has correctly focused on the critical infrastructure legislation and related policy proposals we focused on in Part I of this series.
Below, we outline current attempts to weaken environmental regulations in Ohio, North Dakota, and Michigan. It is important to note that this is not an all-inclusive outline, but rather the bills we are aware of through our network of frontline and nonprofit contacts.
Ohio’s House Bill 545
A bill that would be hazardous to the health of all Ohioans, HB 545, intended to “Establish conditions for sale of brine as a commodity,” was introduced by first-term State Representative Adam Holmes, and second-termer Craig Riedel of Western Ohio. This bill would charge the Ohio Department of Natural Resources’ (ODNR) Division of Oil and Gas Resources Management with establishing “conditions and requirements for the sale of brine from oil or gas operations as a commodity, and to exempt that commodity from requirements otherwise applicable to brine.” What could possibly go wrong? The dangers of potentially highly radioactive fracking waste have been known for years, and were recently detailed in great reporting by Justin Nobel for Rolling Stone. Countless others have spent years crying out against radioactive fracking waste being produced, transported, and disposed of all across the Appalachian regions of Ohio, Pennsylvania, and West Virginia.
So, quite a bit could – and likely would – go horribly wrong if we allow ODNR to put lipstick on this fracking waste pig, as it were. The worst part about this is that Representative Holmes knows, (or at least should know), better, given that he lives in Nashport, roughly two miles south of a very active Class II Salt Water Disposal Well, and just a couple more miles from nearly a dozen more injection wells (Figure 1).
Figure 1. Existing and Pending Ohio Class II Salt Water Disposal Injection Wells and Proposed Fracking Waste Docks.
In Ohio, it isn’t just about legislation. As part of the Division of Oil & Gas Resources Management’s ongoing Five Year Rule Review, a change was made to the Ohio Administrative Code (OAC) that went into effect last October. This change permits a saltwater disposal well owner to submit “on or before the fifteenth day of February of each calendar year … a statement of the volume of brine injected in the well for the immediately preceding calendar year.”
This change from quarterly to annual reporting will have profound implications for what little monitoring citizens are permitted. Clearly, the state has little interest or money to conduct monitoring.
An example of how great the lag could be, and how annual data will essentially be useless for any real-time concerns and/or incidents, the current year’s brine volume data will not be available until February 2021, and even then, the operator will have chances to revise the data. FracTracker has been compiling this data quarterly for years, and we will continue to make data that does exist publicly available.
One has to ask who prompted the demand for this change, and who exactly is on The Oil & Gas Division’s review committee. From the vantage point of most Ohioans concerned about this issue, this reporting change is going in the opposite direction of where a state with primacy over its Class II Wells should be going. When the US EPA has primacy over a state’s wells, as it does in Pennsylvania and Virginia, disposal volumes and pressures are reported annually, but the data are at least broken out monthly. (Note: More on Class II Well primacy and the language that allows states to maintain primacy will come in a future piece.)
As Buckeye Environmental Network Executive Director Teresa Mills and matriarch of the Ohio environmental watchdog community told me, “We have less and less and less information. While Pennsylvania’s website has its problems, it is 150% better than what citizens have access to in Ohio.”
Michigan’s Senate Bill 0431
Michigan’s Senate Bill 0431, introduced by Senate Democrat Adam Hollier in August 2019, was quickly reassigned to the Transportation and Infrastructure Committee in Lansing, after being originally introduced in the Natural Resources Committee. This is just the next step in taking away local control from communities. The language of the bill on Line ten states unapologetically that:
“A local unit of government shall not, by ordinance or otherwise, prevent, prohibit, or deny a permit, approval, or other authorization for the extraction, by mining, of natural resources from any property, by a person with property, possessory, or contractual rights to do so … if … The natural resources are valuable …[and] Very serious consequences would not result from the extraction of the natural resources … For purposes of this section, a consequence is very serious if it substantially exceeds the ordinary impacts of customary mining operations, and poses an actual and unnecessary risk to public health, safety, or welfare that cannot be avoided or ameliorated through the imposition of reasonable controls or conditions on the mining operations.”
If you ask residents of towns like Ludington and South Rockwood, Michigan, what it is like to live next to silica sand mines, they’ll tell you they have very little faith in the recently rebranded Michigan Department of Environment, Great Lakes, and Energy (DEGLE), formerly the Department of Environmental Quality (DEQ). This is the same DEQ that was responsible for the Flint water crisis, in which several of its employees plead no contest to misdemeanors related to their actions during the crisis.
When I called Senator Hollier’s office and asked what the motivation for this bill was, his staffer told me that in their eyes, if a mine proposal were to meet or exceed the rigorous requirements of DEGLE, then they felt it was important that no further hurdles be placed in the proposal’s way moving forward.
Another concern of Michiganders that I have spoken to about this bill, and silica sand mining in general, is this stipulation regarding bonding and reclamation:
“The amount of financial assurance shall be the product of $1,500.00 multiplied by the number of acres disturbed by mining operations, but not yet reclaimed, excluding roadways, plant sites, and open water areas that will remain after completion of reclamation … Reclaiming slopes of the banks of the excavation not exceeding one (1) foot vertical to three (3) feet horizontal, measured from the nearest setback line into any area disturbed by mining operations.”
Most folks believe: A) A bond of $1,500 is way too low, considering all the long-term damage from surface mining; B) The carving out for roadways, plant sites, and open water areas leaves a tremendous amount of any mine’s remaining footprint devoid of any chance of reclamation, and ensures potential environmental and human health hazards in perpetuity, and; C) The one foot rise over three feet run threshold leaves a vast amount of any mine’s footprint extremely unstable.
The general sentiment among Michigan nonprofit organizations is summed up by a note I received from Michigan Environmental Council (MEC) President & CEO Conan Smith, stating:
“I believe this bill is part of an intrigue that we’ve been monitoring as two very rich political donors fight over a proposed gravel mine [in] Metamora Township … one who owns the proposed mine, one who neighbors it and is opposed.
We are, as you might imagine, opposed to this bill. The exemption of local control and [the] presumption that an extractive operation is so necessary as to preempt other local concerns and priorities is in itself sufficiently egregious for us. However, this legislation would also leave the extractive industry almost entirely free of citing regulation, as there is no detailed process at the state level either.
The philosophical challenge we face here, as in many cases, is the tension between private property rights and public health, safety, and welfare. With this bill, the sponsors want a presumption that any activity on private land is reasonable, unless it results in a ‘very serious consequence,’ (a term which has basis in current law that this bill also erases). The new definition of seriousness would essentially be something that is not a normal part of the extractive action. Thus, for example, hundreds of trucks rolling down a dirt road might not be a very serious consequence because that’s just part of normal operations …”
In a sign of how quickly support for legislation shifts, and how elected officials will use crises like COVID-19 to push what Naomi Klein calls “Shock Doctrine,”[1] policy designed to facilitate a frictionless transition to “disaster capitalism,” MEC’s Policy Director Sean Hammond told us on May 21st of this year that, “Without the environmental community or local governments changing their positions, I see it very unlikely that this will move anywhere.” But just nine days later, MEC’s President and CEO emailed a group of those concerned about this bill, saying: “Bad news, friends. We learned yesterday that this bill has sudden new life and may be getting a hearing soon … We could certainly use help to dissuade lawmakers from taking this up.”
But much of the above has come from those at the policy level, living a healthy distance from Michigan’s mines. For the perspective of someone who actually lives next to a mine, I turned to a close friend and hero of mine, Doug Wood, and his wife Dawn, residents of South Rockwood in Monroe County, just a couple miles southwest of Detroit (Figures 3 and 4). Doug and Dawn sent me the following text regarding SB 0431:
“Ever since frac sand mining came to my community, the mine has expanded and accelerated, crushing silica 12 hours a day, right next to homes. It has been a constant battle to get the local government and the quarry to install air monitoring. Now the AGGREGATE industry is pushing to pass this law, Senate Bill 0431, which takes away all the local community’s controls, including [the control of] fugitive dust. I feel that if this law passes, it will be the end of a healthy, livable community.”
Figure 2. Current and Potential Silica Mining Activity, South Rockwood, Michigan, with Dawn and Doug Wood’s property in the southwest corner of the Light Green US Silica and Sylvanian Minerals Potential Polygon.
Figure 3. The Sylvanian Minerals/US Silica frac sand mine in South Rockwood, Michigan, in August 2017 (top) and June 2020 (bottom), with the Wood’s house to the left/west.
North Dakota’s Senate Bill 2344
North Dakota’s Senate Bill 2344 was first introduced to the Energy and Natural Resources Committee on January 21st of this year by Senators Jessica Unruh (R), Dwight Cook (R), and Donald Schaible (R). The North American oil and gas industry knows it has a massive waste issue that it can’t seem to get its collective head around, and in North Dakota, it has countered this structural uncertainty by claiming that landowners do not own the “subsurface pore space” beneath their property, and that this pore space entitles an operator to inject waste into such voids, without compensating landowners.
As Dakota Resource Council Executive Director Scott Skokos told me, “What I’ve heard from attorneys is that this is a taking. Prior to the law change, the porous ground beneath you was part of your property rights, but now it is the government’s … The reason is that it is a taking without compensation! At the legislative hearings, I’ve never seen so many ranchers and mineral owners at the legislature. They thought that because they are a privileged class they would be listened to, and they weren’t. When they got railroaded, they said, ‘What? The government doesn’t work for me?’” Many that are following this bill and associated legal efforts to challenge it think it has a good chance to make it all the way to the US Supreme Court, because it renders the state’s Oil and Gas Production Damage Compensation Act toothless.
Skokos went on to tell me that in “a prior world, where landowners actually had agency over their property in North Dakota, the state’s Century Code clearly stated in Section 38-11.1-04 that landowners were entitled to damages equivalent to ‘lost land value’ and/or ‘lost use of and access to the surface owner’s land.’”
In Mosser v. Denbury Resources, Inc.[2] in 2017, “Use of Pore Space,” and by association, SB 2344, began to percolate as a topic actually up for debate. The Mosser family did not contest the right of Denbury to dispose of fracking waste within their unitized area. This is only because they were hoping to get fair market value for waste disposal, if they would eventually have to incur the costs of damage to their property.
They alleged “claims for nuisance, for trespass and for damages under the Oil and Gas Production Damage Compensation Act.” Judge Charles Miller ruled in favor of the Mossers and stated clearly that surface owners did in fact own pore space; surface owners are entitled to the above damages resulting from pore space use; the surface owner does not have to demonstrate they are using the pore space; and most importantly, compensation per barrel that others are paying for fracking waste disposal may be used by landowners to determine damages.
This ruling was not to the industry’s liking, and they were determined to have the last word, so they worked with the aforementioned Republican Senators to write SB 2344, which contains tons of language regarding the use of pore space for natural gas and CO2 storage, as well as for Enhanced Oil Recovery (EOR) purposes. Senator Jessica Unruh, when not working on behalf of the good people of North Dakota’s District 33, is the Environmental Manager at Coyote Creek Mining Company. Also, it is important to note that Donald Schaible is the sole sponsor of HB 1426, mentioned earlier, that increased penalties for riot offenses.
The most jaw-dropping component of SB 2344 is that it would add a new definition to the state’s Century Code for the term “land,” to be defined as the solid material of earth – regardless of ingredients – but excluding pore space! Yes, those little voids in the rock beneath North Dakotans homes, or maybe up to and including cracks in the soil during dry summers, would not be classified as land, and ipso facto would not entitle landowners to damages if such voids were to be filled in with, say, radioactive fracking waste!
One can only hope that the “get off my land,” fiercely independent, and at times, Libertarian facade North Dakotans like to display will roar when this bill gets traction. I mean after all, isn’t the motto of Tea Party enthusiasts and Second Amendment zealots “Don’t Tread on Me?”
This is Part II of a two-part series on concerning legislation related to the oil, gas, and petrochemical industries. Part I focuses on repressive “critical infrastructure” bills intending to criminalize environmental protestors. Such legislation has already been passed in 11 states.
By Ted Auch, PhD, Great Lakes Program Coordinator
[1] Ms. Klein’s website describes the “Shock Doctrine” as the following: “It is a story about violence and shock perpetrated on people, on countries, on economies … [The Shock Doctrine] explodes the myth that the global free market triumphed democratically, and that unfettered capitalism goes hand-in-hand with democracy. Instead … it has consistently relied on violence and shock, and reveals the puppet strings behind the critical events of the last four decades.”
[2] For a helpful summary of what Mosser v. Denbury Resources, Inc. means to North Dakota landowners and the legal world more broadly, the reader can refer to pages eight to 11 of the University of North Dakota School of Law’s April 2019 “Energy Law Symposium”.
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