September 5, 2010 8:33 PM

A Burning Debate Over Natural Gas Drilling

By
Armen Keteyian
(CBS)  The natural gas-producing shale that lies under 34 states is now being seen as a game-changer in helping meet the nation's energy needs for decades to come. But the process of extracting that natural gas, dubbed "fracking," is fueling environmental fears. CBS News chief investigative correspondent Armen Keteyian has more:

"You can't live like this - it's so stressful every single day."

Homeowner Stephanie Hallowich is like many in western Pennsylvania who have watched their once-pristine neighborhood become an industrial site. Sprawling plants with flares that reach high into the night, noxious smells, trucks, and containment ponds with unknown chemicals are among the complaints of people who live in areas where natural gas companies have descended.

Hallowich believes three natural gas-drilling operations bordering her property turned her well-water black, forcing her to purchase a tank of fresh water every month.

The air? Uncertain.

"I'm very afraid, health-wise, for the kids, just because of the exposure to the water and the constant not-knowing what we're breathing in outside," she said.

The Hallowich home sits near the center of the Marcellus Shale, an energy-rich geological formation stretching from New York to Tennessee.

Three-quarters of Pennsylvania contain vast energy riches buried deep underground in shale formations, representing hundreds of billions of dollars in untold wealth locked up in rock - a potential goldmine for natural gas companies.

"The development of shale gas in the Marcellus and across the country is a very important part of the nation's energy strategy," said Kathryn Klaber, president of the Marcellus Shale Coalition, a natural gas industry group

Big players are rushing in. Exxon has invested $30 billion in the Marcellus in recent months. Foreign investors are also swooping in. India's largest company, Reliance, has purchased a large stake. China, Korea, and Britain are investing in gas drilling in the Marcellus shale.

As gas companies rush in to make deals with landowners for the right to drill, the money on the table - signing fees and royalties - is substantial, and hard to argue with in a recession . . . hundreds of thousands of dollars in some cases.

In Pennsylvania, 60 gas companies hold 4,504 permits to drill, almost half (1,915) granted this year alone.

What's driving the drilling rush here, and across the country, are advances in hydraulic fracturing, or "hydro-fracking," a process whereby millions of gallons of water, sand and chemicals are blasted deep underground - about 5,000 feet - forcing cracks in the shale and freeing natural gas for collection.

It is at the surface where problems have been reported, like blowouts and spills into ground water . . .

. . . And - as depicted in the HBO documentary "Gasland" - ignition at the kitchen sink.

"Gasland": Is "Fracking" Polluting America?

At public meetings, environmental groups and pro-drilling landowners who receive royalties ("It's my house, it's my land, my property, I deserve to be able to frack if that's what I want to do," says one) have squared off over potential health risks and safety.

"There's no such thing as zero-impact drilling," says John Hanger, head of Pennsylvania's Department of Environmental Protection. Since 2008 he's doubled the number of state regulators (100 to 205) and inspectors (21 to 45) to oversee the gas industry.

Hanger told Keteyian that there is evidence of chemical contaminants in water. "Spills and surface leaks have, in fact, contaminated people's drinking water," he said.

Yet nationwide the industry is not required to disclose what potentially toxic chemicals - like hydrochloric acid - are used in the drilling process.

A provision of a law proposed by the Bush administration and passed by Congress in 2005 (dubbed by opponents the "Halliburton loophole") stripped the EPA of its ability to regulate "fracking" - leaving the job of regulatory enforcement in the hands of cash-strapped, undermanned state agencies.

Since then, drilling companies have been allowed to put millions of gallons of unknown chemicals into the ground without reporting it, making it difficult to link pollution claims to drilling.

What environmentalists fear most is widespread contamination to the watershed, on which millions of people depend.

"I think the industry's way out of bounds for not disclosing the list of chemicals," Hanger said. "I think the industry is close to insane to allow that issue to become a source of suspicion."

Much like the quality of air and water now surrounding thousands of home sites like Stephanie Hallowich's.

Legislation is being proposed in the Senate, sponsored by Sen. Robert Casey, D-Pa., called the Fracturing Responsibility and Awareness of Chemicals (FRAC) Act.

Copyright 2010 CBS. All rights reserved.
Add a Comment See all 59 Comments
by pleasestoptheinsanity July 20, 2011 2:44 PM EDT
Tell Mayor Bloomberg and Gov. Cuomo WE DON'T WANT FRACKING IN UPSTATE NEW YORK- THE RISKS ARE TOO GREAT-

Mayor Bloomberg- NYC: 212.639.9675
email- http://www.nyc.gov/html/mail/html/mayor.html

Gov. Cuomo- NYC: 212-681-4580 Albany: 518-474-8390
email- http://www.governor.ny.gov/contact/GovernorContactForm.php

Read more: http://www.cbsnews.com/8618-500251_162-6836255.html?assetTypeId=58&messageId=11049810&tag=contentMain;contentBody#ixzz1SfkNIBoX
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by hogman2010 September 17, 2010 8:41 AM EDT
Not trying to change the subject, but take a look at this immediate human /animal contact, run-off and residuals of these synthetic chemicals:
Permethrin, Resmethrin, Sumithrin: Synthetic Pyrethroids For Mosquito Control fixing to be sprayed all over "Gasland". I guess the side effects will be traced back to the Oil & Gas drilling. Oh no...I can see the answer... Gasland CZAR, Mosquito CZAR...
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by Camper1102 September 17, 2010 8:14 AM EDT
Please look up and read all of the 1,435 violations given by the DEP to these gas drillers, and see why even if this process was safe (which it's not) that this is going to be a disaster if we don't stop this now!
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by hogman2010 September 16, 2010 4:39 PM EDT
Please educate youself by going to Arkansas Oil & Gas Commission website and click on Hydraulic Fracturing information. This will explain the process more clearly and why and how it is allowed. Hopefully you can then speak with "common sense" about the subject instead of believing what you see and hear on CBS or HBO. That's a big problem with today, too much TV, the source of information, "Trash in Trash out". One more question you may want to ask about "GasLand". Have the gas wells near the homes of concern been fracked? You may want to find out, because I don't think they have. Also, check to see if the gas isn't naturally occurring at the surface in the area. Gas and oil leak out naturally in many places. It was discovered at the surface. I would also call a vet and check the animals for "gasland" mange.
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by songbird538 September 13, 2010 10:55 AM EDT
The debate needs to be reframed - not 'yes' or 'no' to shale gas extraction, but whether we as a society care enough to slow things down to learn how to do it with a much less risky process. There is no hurry execpt for those who want to 'take the money and run' and damn the rest of us - and future generations. We need a national moratorium until environmental impact studies are done and more benign processes are designed. The debate should be slow, safe, wise extraction as opposed to fast, risky and greedy.
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by gaetanomarano September 9, 2010 12:16 PM EDT
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::: BreakingNewsBlog.us for CBS :::
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by PAroughneck September 9, 2010 12:15 PM EDT
Congratulations CBS, for a fine example of really shoddy journalism. Had your reporter spent a few minute verifying facts he would have found a listing of chemicals used in fracturing right here,
http://www.dep.state.pa.us/dep/deputate/minres/Oilgas/FractListing.pdf
I hardly think this qualifies as "secret chemicals".
Reply to this comment
by singletax September 9, 2010 12:15 PM EDT
The drillers and energy companies did not create Marcellus shale, nor did the landowners who are being played by these energy companies. This shale is a gift of nature. Every citizen should receive a payment as is done in Alaska with oil.
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by PAroughneck September 9, 2010 12:15 PM EDT
Congratulations CBS, a fine example of some really shoddy journalism. Had your reporter bothered to spend a few minutes fact-checking, he would have discovered that on the Pennsylvania DEP website one can find the state required list of fracturing chemicals and their concentrations used by each well service company operating in PA. I do believe that a list provided on a state government site doesn't quite fall under the headline of "SECRET CHEMICALS". Pretty good piece from an 'investigative' reporter who obviously can't find time to investigate.
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by weneedwater September 9, 2010 12:15 PM EDT
When I first heard of this process, I was totally shocked. I mean just off the top, who would think that using millions of gallons of fresh water a day to FRACTURe the earth would be a good thing? Then add to it the chemicals which the gas companies are loath to reveal? This process will decimate great regions of our country and render them wastelands. The US regulations on fracking are much more lax than any other country. We have been sold and due to the questionable "mineral rights" loophole, property owners don't even have any say in many cases over their own property. I don't see how this is a democratic process...
despicable...
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