Hydraulic fracturing: Identifying and managing the risks

Environmental Claims Journal

Volumn 24, Issue 2, 2012, Pages 93-115

  Hagström, Earl L ^a   Adams, Julia M ^a  

^a Sedgwick LLP   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

DRINKING WATER; ENVIRONMENTAL LEGISLATION; FLUID INJECTION; GROUNDWATER POLLUTION; HYDRAULIC FRACTURE; NATURAL GAS;

NEW YORK [UNITED STATES]; UNITED STATES;

EID: 84861992774     PISSN: 10406026     EISSN: 1547657X     Source Type: Journal    
DOI: 10.1080/10406026.2012.674414     Document Type: Article

References (56)

1. The claim that shale gas has a lower carbon footprint than coal is the subject of much debate.
2. See R. W. Howarth, R. Santoro, and A. Ingraffea, "Methane and the Greenhouse-Gas Footprint of Natural Gas from Shale Formations," Climatic Change 106/1(2012): 106.
3. 42 USC § 300f et seq.
4. 42 USC § 300h(b)(1).
5. 42 USC § 300h(d)(2).
6. LEAF v. EPA, 118 F.3d 1467 (11th Cir. 1997).
7. LEAF v. EPA, 276 F.3d 1253 (11th Cir. 2001), cert. denied, 537 U.S. 989 (2002).
8. U.S. Environmental Protection Agency, Evaluation of Impacts to Underground Sources of Drinking Water by Hydraulic Fracturing of Coal Bed Methane Reservoirs)(June 2004)(EPA 816-R-04-003).
9. Public Law 109-58-Energy Policy Act of 2005.
10. Emergency Planning and Community Right-to-Know Act of 1986 (EPCRA) § 313(b), 42 USC § 11023(b); 40 CFR § 372.23 (2010). EPCRA § 304, 42 USC § 11004, does require reporting of releases of "extremely hazardous substances."
11. See http://www.FracFocus.com for a complete listing and status of regulations by state (accessed April 17, 2012).
12. Oil and Gas SolutionMining Act, N.Y. Environmental. Conservation Law§. 23-0303(2): The provisions of this article shall supersede all local laws or ordinances relating to the regulation of the oil, gas and solution mining industries; but shall not supersede local government jurisdiction over local roads or the rights of local governments under the real property tax law.
13. On December 28, 2011, the Youngstown, Ohio, City Council approved a moratorium on oil and gas drilling and underground injection, raising legal issues regarding the scope of Youngstown's home rule authority.
14. Civil Action No. 11-C-411 August 12, 2011.
15. W.VA, Code § 8-12-2(1969).
16. W.VA, Code § 22-1-1, et.seq (1994).
17. Anschutz, which has invested over $5.1 million on leasing and developing 22,000 acres in Dryden, has said it is considering filing a takings claim against the town.
18. 42 USC § 300h(d)(1).
19. 33 USC § 1362(B)(6).
20. 42 USC § 15942.
21. 42 USC § 6921(b)(2)(A).
22. 42 USC § 6921-6934.
23. Docket. No. SDWA-06-EAO2010-1208.
24. The legal basis for the challenge centers on whether the Web site posting of the UIC permitting requirements constitutes a "final agency action" under the Administrative Procedures Act.
25. 622 F.3d 1139 (9th Cir. 2010) cert. granted in part, 131 S.Ct. 3092 (2012 WL 28938 U.S. Jan. 06, 2012).
26. Release Date: 12/08/2011 Contact Information: EPA HQ: Larry Jackson, 202-564-0236, jackson. larry@epa.gov; EPA Region 8: Richard Mylott, 303-312-6654, mylott.richard@epa.gov.
27. USEPA, "Hydraulic Fracturing: Water," http://www.epa.gov/type/groundwater/uic/class2/hydraulicfracturing/wellshydrowhat.cfm (accessed April 17, 2012).
28. Mark E. Meremonte, John C. Lahr, Arthur D. Frankel, James W. Dewey, Anthony J. Crone, Dee E. Overturf, David L. Carver, and W. Thomas Bice, Open-File Report 02-0073.
29. "The Future of Natural Gas: An Interdisciplinary MIT Study," MIT Energy Initiative, June 2011.
30. "Hydraulic Fracturing: Meeting the Nation's Energy NeedsWhile Protecting Groundwater Resources," http://www.ngwa.org (accessed April 17, 2012).
31. "Fact-Based Regulation for Environmental Protection in Shale Gas Development," February 2012, Energy Institute, University of Texas at Austin, http://energy.utexas.edu (accessed April 17, 2012).
32. S. Plikunas, B. R. Pearson, J. Monast, A. Vengosh, and R. B. Jackson, "Considering Shale Gas Extraction in North Carolina: Lessons From Other States," discussion draft, November 2011, accepted for publication in the spring 2012 issue of Duke Environmental Law & Policy Forum
33. S. G. Osborn, A. Vengosh, N. R. Warner, and R. B. Jackson, "Methane Contamination of Drinking Water Accompanying Gas-Well Drilling and Hydraulic Fracturing," PNAS Early Edition, April 14, 2011, http://www.pnas.org/cgi/doi/10.1073/pnas.1100682108 (accessed April 17, 2012).
34. Fiorentino v. Cabot Oil & Gas Corp., No. 3:09-02284, U.S. District Court for the Middle District of Pennsylvania (Scranton) Nov. 19, 2009.
35. Baker, et al. v. Anschutz Exploration Corp. et al. (USDC NY (Rochester) No. 6:11-CV-061190CJS).
36. Bombardiere v. Schlumberger Technology Corp., CV No. 1:11-CV-50 (USDC NDW. Va. (Vicksburg)).
37. Scoma v. Chesapeake Energy Corp., Chesapeake Operating, Inc., Chesapeake Exploration, LLC, No. 3:10-cv-01385 (N.D. Tex., July 15, 2010)
38. Mitchell v. EnCana Oil & Gas (USA), Inc., Chesapeake Operating, Inc., Chesapeake Exploration, LLC, No. 3:10-cv-02555 (N.D. Tex., Dec. 15, 2010
39. Harris v. Devon Energy Prod. Co., L.P., No. 4:10-cv-00708 (E.D. Tex., Dec. 22, 2010)
40. Strudley v. Antero Resources Corp., Calfrac Well Services, Frontier Drilling LLC, No. 2011-cv-2218 (Denver County Dist. Ct., Mar. 23, 2011)
41. Andre v. EXCO Resources, Inc., EXCO Operating Co., No. 5:11-cv-00610- TS-MLH (W.D. La. April 15, 2011)
42. Beckman v. EXCO Resources, Inc., EXCO Operating Co., 5:11- cv-00617-TS-MLH (W.D. La. April 18, 2011
43. Ginardi v. Frontier Gas Services, LLC, Kinder Morgan Treating LP, Chesapeake Energy Corporation, BHP Billiton Petroleum, No. 4:11-cv-0420 BRW (E.D. Ark. May 17, 2011)
44. Tucker v. Southwestern Energy Co., XTO Energy, Chesapeake Energy Corp., BHP Billiton Petroleum, No. 1:11-cv-0044-DPM (E.D. Ark. May 17, 2011)
45. Berry v. Southwestern Energy Co., XTO Energy, Chesapeake Energy Corp., BHP Billiton Petroleum, No. 1:11-cv-0045-DPM E.D. Ark. May 17, 2011.
46. Restatement (Second) of Torts § 531 (1977). One who makes a fraudulent misrepresentation is subject to liability to the persons or class of persons whom he intends or has reason to expect to act or to refrain from action in reliance upon the misrepresentation, for pecuniary loss suffered by them through their justifiable reliance in the type of transaction in which he intends or has reason to expect their conduct to be influenced.
47. Pollution liability, property and business interruption, products liability and professional liability may also provide coverage depending on the exclusions and endorsements scripted into the policies.
48. See Fontenot v. Mesa Petroleum Co., 791 F.2d 1207, 1214 (5th Cir. 1986) ("[a] contract of indemnity. should not be read to impose liability for those losses or liabilities which are [not] expressly within its terms").
49. See, e.g., Dahlen v. Gulf Crews, Inc., 281 F.3d 487, 499, 2002 AMC 566, 579 (5th Cir.), cert. denied, 123 S. Ct. 621 (2002) (holding that the injury involved did not fall under the language of the indemnity agreement where a barge operator suffered a back injury while unloading a grocery box upon an offshore platform. The relevant indemnity agreement applied to injuries arising out of, or related to, the performance of the vessel. The injury occurred on the platform during grocery unloading, and bore no relation to the vessel or the charter contract).
50. See, e.g., Channette v. Neches Gulf Marine, Inc., 440 Fed.Appx. 258, 2011 WL 3444207 (5th Cir. 2011) (not designated for publication)
51. see also, e.g., Ray v. Global Indus., Ltd., No. 04-CV-0816, 2006 WL 305964 (W.D. La. Feb. 8, 2006) (unreported case).
52. See generally Davis Oil Co. v. TS, Inc., 145 F.3d 305 (5th Cir. 1998).
53. The Louisiana Oilfield Indemnity Act of 1981, No. 427, § 1, effective September 11, 1981, is found at La. Rev. Stat. Ann. § 9:2780 (West Supp. 1988). The Texas Anti-Indemnity Statute, Tex. Civ. Prac. & Rem. Code §§ 127.001-127.008 (Vernon 1986), was originally enacted in 1973.
54. See Transworld Drilling Co. v. Levingston Shipbuilding Co., 693 S.W.2d 19 (Tex. App.-Beaumont 1985, no writ) (addressing what type of contracts come within scope of Texas Anti-Indemnity Act).
55. See, e.g., Seal Offshore, Inc. v. American Standard, Inc., 736 F.2d 1078, 1081 (5th Cir.1984) ("Longestablished general principles of interpreting indemnity agreements require that indemnification for an indemnitee's own negligence be clearly and unequivocally expressed.")
56. See also Corbitt v. Diamond M. Drilling Co., 654 F.2d 329, 333 (5th Cir.1981) (stating that an indemnity provision should be construed to cover "all losses, damages, or liabilities which reasonably appear to have been within the contemplation of the parties." It should not be read, however, "to impose liability for those losses or liabilities which are neither expressly within its terms nor of such a character that it can be reasonably inferred that the parties intended to include them within the indemnity coverage").