November 15, 2010 12:56 AM

Energy: The Pros and Cons of Shale Gas Drilling

By
CBSNews
The Environmental Protection Agency is just beginning to study the effects of fracking on drinking water: is the problem fracking per se, or human error?

Or consider what happened in the Appalachian town of Dimock, Pa. In the shale gas gold rush, Dimock is the ghost town.

"How many of you lost your water supply?" Stahl asked a group of residents.

All of them raised their hands.

A company called Cabot Oil and Gas paid many of the folks in Dimock $25 an acre, and they were happy until one day a water well exploded.

"My boy had come over the night before and said, he just said, 'Dad, we got gas in the water over there.' I can actually shake the jug up and light it," Bill Ely told Stahl. "I can take my water, just put it in a gallon jug, shake it up, turn it up and it'll explode."

Ely demonstrated it for Stahl by hooking a hose from his well to a jug and lighting it; there was an audible pop.

State authorities have determined that gas leaked into the water because of a poor cement job; Cabot now supplies bottled water to the residents, but has admitted no guilt. So the company is being sued by some residents.

"This is a poor area. This is the perfect place to come in and drill. A lot of guys didn't have work. Now they're driving trucks. The bars are hopping, the rentals are full. So there is an economic boom here, but at what price?" Victoria Switzer asked Stahl.

"I can live without natural gas. I can't live without my water," Craig Sautner remarked.

"You have these landowners who will say that their water was clean. They could drink. They couldn't light it on fire. And then the gas industry came in and now taking a shower makes them sick. There are too many landowners who are describing the exact same scenario. And so it can't just be a coincidence. There's something wrong here," the Sierra Club's Michael Brune said.

"So here we have natural gas from shale touted as the solution to our energy problems by one group. Another group says it's the biggest environmental nightmare," Stahl remarked.

"Ah well, actually, they're both correct," Brune said. "So what we need to do is we need to promote gas as a cleaner alternative to coal and oil, but hold the industry accountable for tighter standards."

Which Aubrey McClendon says he'd go along with, because he says natural gas is such a huge game changer: "If you use natural gas, America can establish independence from OPEC and can put Americans back to work. We can lower our carbon emissions, and we can begin to improve the economy as well by not exporting a billion dollars a day of American wealth. The greatest wealth transfer in human history takes place every day. And it doesn't have to."

As part of its study, the EPA asked nine companies to disclose to the government the chemicals used in fracking. Eight complied; only Halliburton said no, so last Tuesday the EPA subpoenaed them.
Produced by Shachar Bar-On and Meghan Frank

Copyright 2010 CBS. All rights reserved.
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