The Frack Myth Busters presented our views of New York’s shale gas prospects to the Senators, including Sen Latimer, Krueger, Avella and Tkaczyk. There was an audience of about 50, including reporters, a few fracking lobbyists, DEC staff, and fractavists – Clare Donahue, Julia Walsh, John Armstrong, Clark Rhodes, etc. Lou’s summary of our presentation’s conclusions are here: Excerpts from Sen. Avella’s Forum
The stars of the show were Yvonne Taylor, Beth Radow and Jannette Barth = who addressed the negative economic impacts of fracking on mortgages, other industries, road costs, health care and agriculture. Jannette suggested that a separate hearing be held to address the collateral damage of fracking – the infrastructure, frack slop on roads, etc. Best idea of the day. See Fracking Job Estimates
There was a third panel scheduled to address the insurance risks of fracking – the lack of homeowners insurance to cover frack damages – and the lack of liability insurance to cover drillers when they contaminate water, etc. But the insurance industry lobby informed the 4 panelists the night before that they could not testify ! Which speaks volumes – fracking in populated areas is uninsurable and they don’t want that talked about in public. Imagine that.
Shown below is a summary of Jannette’s analysis of the economic impacts of shale gas development in New York, she had a much more detailed graphic enumerating the negative economic impacts – which overwhelm the number of jobs created by fracking New York. The state is already being negatively impacted by collateral damage coming out of the gas fields –frack waste dumped on New York roads and in municipal water plants. And radioactive drill cuttings so “hot” they have to be trucked across the continent for disposal in a nuclear waste dump.
Wednesday, February 5, 2014
AVELLA HOSTS PUBLIC FORUM IN ALBANY ON “ECONOMIC REALITIES OF HYDROFRACKING
Yesterday Senator Tony Avella hosted a Public Forum “Economic Realities of Hydrofracking” in Albany. He was joined by former Oil and Gas Industry executives, Economists and Real Estate professionals to discuss the gas industry’s exaggeration of the economic benefits of hydrofracking versus the economic realities that are already being faced in other states including Pennsylvania.
“After hearing time and time again about the huge economic benefits New York will receive if high volume hydrofracking is permitted throughout the state, I felt it was time we actually heard from experts whether these benefits are being overstated and if there are any negative economic impacts which have yet to be revealed to the public,” stated Senator Avella. “After today’s Public Forum I am more convinced than ever that given the potential for devastating effects on the environment and public health, the overstated economic benefits and the underrated severe negative economic impacts do not justify the risk we would be taking to allow hydrofracking in New York.”
“Potential for shale gas in New York’s Southern Tier is much lower than that for Pennsylvania’s Northern Tier. The geology limits how much of this gas New York could produce. Here the Marcellus is thinner shallower, and in the east is overcooked,” stated hard rock geologist Brian Brock.
“In Pennsylvania, south of the New York border, shale is thick and deep and the wells are productive. Closer to the border, the shale is thinner and shallower as the wells become less productive. Analysis of 1,800 horizontal wells there quantifies this trend and projects rapidly diminishing gas production into New York,” stated Jerry Acton, former Systems Engineer.
Former Mobil Oil Executive Vice President Lou Allstadt stated “The way gas companies grow and increase their share prices is to keep adding to their reserves of gas each year. They carefully allocate their investments where the prospects look best. In spite of the Department of Environmental Conservation’s exuberant forecasts, there just isn’t enough gas in New York State to attract a drilling boom.”
“The growing reluctance of the mortgage and insurance industries to handle fracking-affected properties—a reluctance driven by the long tradition of objective calculation of risk in both of these industries—presents an irrefutable answer to the claims of the oil and gas industry that fracking operations can be performed safely,” stated Elisabeth N. Radow, Esq., Managing Attorney for Radow Law PLLC. “Despite the de facto moratorium on unconventional shale gas drilling, New York still faces expanding as a conduit for the transport of fossil fuel through pipelines and by rail, and as a destination for fuel storage and waste disposal from out of state drilling operations conducted by companies which are not fully insured. This scenario should be unacceptable to every New Yorker.”
“While New York pauses to study the impacts of hydrofracking, gas industry infrastructure is creeping into the state now, and threatening Seneca Lake. Permitting industrialization and potential catastrophic accidents in the heart of the Finger Lakes, by allowing Houston-based Crestwood to turn us into the Gas Storage and Transportation Hub for the Northeast, flies in the face of Governor Cuomo’s stated economic vision for the region, and if not stopped, would imperil the hundreds of millions of dollars brought into the state through wine and tourism on an annual basis,” stated Yvonne Taylor, Gas Free Seneca.
Economist from the Pepacton Institute LLC, Jannette Barth, Ph.D., stated “DEC’s economic assessment of shale gas development in NYS exaggerates benefits and ignores many costs. Research shows that American communities with extractive industries, such as shale gas development, have not experienced the positive economic impacts that were desired. These communities have instead experienced negative impacts associated with the well known resource curse and with the boom and bust cycle so characteristic of extractive industries.”
“The dSGEIS is predicated on an economic impact study that is completely misleading. The study should be scrapped and the dSGEIS revised to reflect the low rewards and high risks that fracking clearly represents for New York,” stated James “Chip” Northrup, Oil & Gas Private Investor.