[Top News] from [REUTERS]
[Green Business]
Jon Hurdle
PHILADELPHIA
Wed Dec 30, 2009 3:57pm EST
U.S. states strive to regulate shale gas industry
PHILADELPHIA (Reuters) - As U.S. energy companies scramble to mine natural gas from shale deposits, state regulators are struggling to keep pace amid criticism that they lack the resources to enforce environmental laws.
Shale gas trapped deep underground is considered one of the most promising sources of U.S. energy and one that is generating jobs, royalties for landowners and tax revenue for cash-strapped state governments.
But environmentalists and small-town neighbors of drilling operations say officials have been slow to respond to their complaints of air and water pollution resulting from drilling, production or gas processing.
Neighbors of drilling sites complain their claims are often dismissed as insignificant or outside state control, though they received a morale boost last week when New York City asked New York state to ban shale gas drilling in the city's watershed.
Energy companies say they work hard to prevent spills and note that science has yet to link the chemicals used in the controversial technique to break through layers of rock to illness.
Agencies such as Pennsylvania's Department of Environmental Protection, which is monitoring the rapid development of the massive Marcellus Shale, argue that they keep a close watch on gas companies and don't hesitate to penalize rule-breakers.
"We are not turning a blind eye to the problem," DEP Secretary John Hanger told Reuters. "Our role is to maximize the benefits and minimize the costs."
Shale gas is being tapped by advances in horizontal drilling, and by hydraulic fracturing, or "fracking," a technique that critics say contaminates drinking water with chemicals that can cause cancer and a range of illnesses.
Hanger rejected claims the agency is facilitating Marcellus development with minimal regulation. He said the number of drilling inspectors has risen to 120 from 75 in February 2009. They regulate more than 800 Marcellus wells that have been drilled since 2005.
In September, the DEP fined Cabot Oil & Gas Corp. $56,500 for three spills of a drilling lubricant and banned it from hydraulic fracturing until it bolstered safeguards.
The increased oversight is being paid for by higher fees levied on energy companies, the secretary said.
WYOMING, NEW YORK
In Wyoming, whose economy is heavily dependent on oil and gas, some in the farming community of Pavillion say the state's Department of Environmental Quality has shown little interest in complaints about trucks spilling drilling fluids on roads or requests to test water.
"There's a lot of pressure from the government to allow industry to proceed," said John Fenton, a Pavillion farmer whose water well is contaminated. "They are not hindering the industry in any way."
In New York state, 17 inspectors and other officials monitor about 15 traditional vertical wells in the Marcellus Shale, and the state is considering opening the formation to the type of horizontal drilling that critics fear.
Stephanie Hallowich, from the southwest Pennsylvania town of Hickory, said the DEP has downplayed or ignored her complaints about air and water contamination from a complex of gas installations near her home.
In October, a compressor station experienced what she said was a sudden, violent release of gas that shook her house and filled the air around it with foul-smelling gas. "It sounded like a jet engine," Hallowich said.
State inspectors found the incident to be a routine albeit loud depressurization of compressor station equipment.
"The company is now being required to alert area residents when they are doing scheduled blow downs," said Teresa Candori, a spokeswoman for the DEP.
Hallowich rejected the DEP's statements that it is adequately regulating the Marcellus boom.
"They have not been responsive," she said. "There have been no violations, and they have not been keeping up with inspections."
(Reporting by Jon Hurdle; Editing by Daniel Trotta and Cynthia Osterman)
[Green Business]
Catherine Hornby
AMSTERDAM
Wed Dec 30, 2009 12:23pm EST
Dutch court to take on Shell Nigeria cases
AMSTERDAM (Reuters) - Royal Dutch Shell and its Nigerian unit will face compensation demands in a Dutch court for alleged damage caused by oil spills in Nigeria after the court ruled on Wednesday it was competent to handle the cases.
Environmental group Friends of the Earth Netherlands and four Nigerians aim to sue Shell and Nigeria-based Shell Petroleum Development Co. (SPDC) in a district court in The Hague on charges related to incidents of oil spills in Nigeria.
Shell had asked for a ruling on whether the Dutch court had jurisdiction over SPDC's Nigerian activities, but the court rejected a claim of incompetence.
"The court has decided that it is competent, so we will be handling the case," said a court spokeswoman. "The facts are connected and for reasons of efficiency the cases against Royal Dutch Shell and Shell Nigeria will be handled jointly."
The plaintiffs, farmers and fishermen in the oil-rich Niger Delta, say that oil leaking from Shell activities has polluted their farmlands and fish ponds, and are demanding that Shell clean up the oil and compensate them.
After several failed attempts to address the issue in Nigeria, the plaintiffs decided to bring the cases to the Netherlands as Shell is a partly Dutch firm, said a spokeswoman for Friends of the Earth.
"For years, these people have been trying to get Shell to clean up its mess," Friends of the Earth said. "The court decision is an initial victory for all Nigerians that have been fighting for years for a cleaner habitat and justice."
Shell has said the spills in question were caused by sabotage. Oil companies active in Nigeria have grappled with militant sabotage activities in recent years which have hit production in the world's eighth-biggest crude oil exporter.
Shell will be able to enter a statement of reply to the claims on February 10, the court spokeswoman said. Shell said on Wednesday it was disappointed with the court's ruling, describing the issues as 'purely Nigerian matters'.
Friends of the Earth's Dutch arm has said Shell has the authority and the control to ensure oil spills are prevented and are cleaned up. They argue the spills are part of a systematic pattern over decades.
(Reporting by Catherine Hornby; editing by David Cowell and Hans Peters)
[Green Business]
SYDNEY
Wed Dec 30, 2009 11:11am EST
Australian bushfires destroys almost 40 homes
SYDNEY (Reuters) - A major bushfire in the west Australian outback has destroyed almost 40 homes, officials said on Wednesday, as firefighters end a third month of fighting bushfires across the country.
Fire officials say the Australian summer could be one of the worst bushfire seasons, with a series of catastrophic warnings already issued for big fires in at least three states.
Australia's most deadly bushfires occurred last February, when the "Black Saturday" infernos killed 173 people and destroyed thousands of homes in the southern Victoria state.
As a result of the "Black Saturday" fires, officials adopted a "catastrophic" warning which advises residents to evacuate homes in the face of major bushfires.
Until the west Australian fire this week, property losses had been few. No one has died in the fires this summer.
Three firefighters and a woman from the wheat-belt town of Toodyay, in Western Australian state, suffered minor injuries in the latest bushfire, which burned 3,000 hectares (7,400 acres).
"It's a devastating fire with great destruction," Western Australian state Premier Colin Barnett told reporters.
Bushfires are a natural phenomenon in Australia, due to its hot, dry environment. Lightning strikes over dry land are the most common cause, followed by human intervention such as fires that get out of control.
Australia's bushfire danger period is from October to March, covering the end of spring, all of summer and the start of autumn, when temperatures are highest and humidity lowest.
A decade-long drought and hot, dry interior outback winds have left much of Australia a tinderbox.
(Reporting by Michael Perry; Editing by Bill Tarrant)
[Green Business]
AMSTERDAM
Wed Dec 30, 2009 10:09am EST
Small leak resolved at Shell's Pernis refinery
AMSTERDAM (Reuters) - A minor leak from a pipeline in Royal Dutch Shell's Pernis refinery in Rotterdam has been resolved and operations are running as usual, a spokesman for the oil major said on Wednesday.
Shell alerted nearby residents that the leak was causing a smell in the area of the 412,000 barrels-per-day refinery, but a spokesman said the issue was resolved and no units were affected by it.
(Reporting by Catherine Hornby, editing by Anthony Barker)
[Green Business]
Jon Hurdle
PHILADELPHIA
Wed Dec 30, 2009 3:57pm EST
U.S. states strive to regulate shale gas industry
PHILADELPHIA (Reuters) - As U.S. energy companies scramble to mine natural gas from shale deposits, state regulators are struggling to keep pace amid criticism that they lack the resources to enforce environmental laws.
Shale gas trapped deep underground is considered one of the most promising sources of U.S. energy and one that is generating jobs, royalties for landowners and tax revenue for cash-strapped state governments.
But environmentalists and small-town neighbors of drilling operations say officials have been slow to respond to their complaints of air and water pollution resulting from drilling, production or gas processing.
Neighbors of drilling sites complain their claims are often dismissed as insignificant or outside state control, though they received a morale boost last week when New York City asked New York state to ban shale gas drilling in the city's watershed.
Energy companies say they work hard to prevent spills and note that science has yet to link the chemicals used in the controversial technique to break through layers of rock to illness.
Agencies such as Pennsylvania's Department of Environmental Protection, which is monitoring the rapid development of the massive Marcellus Shale, argue that they keep a close watch on gas companies and don't hesitate to penalize rule-breakers.
"We are not turning a blind eye to the problem," DEP Secretary John Hanger told Reuters. "Our role is to maximize the benefits and minimize the costs."
Shale gas is being tapped by advances in horizontal drilling, and by hydraulic fracturing, or "fracking," a technique that critics say contaminates drinking water with chemicals that can cause cancer and a range of illnesses.
Hanger rejected claims the agency is facilitating Marcellus development with minimal regulation. He said the number of drilling inspectors has risen to 120 from 75 in February 2009. They regulate more than 800 Marcellus wells that have been drilled since 2005.
In September, the DEP fined Cabot Oil & Gas Corp. $56,500 for three spills of a drilling lubricant and banned it from hydraulic fracturing until it bolstered safeguards.
The increased oversight is being paid for by higher fees levied on energy companies, the secretary said.
WYOMING, NEW YORK
In Wyoming, whose economy is heavily dependent on oil and gas, some in the farming community of Pavillion say the state's Department of Environmental Quality has shown little interest in complaints about trucks spilling drilling fluids on roads or requests to test water.
"There's a lot of pressure from the government to allow industry to proceed," said John Fenton, a Pavillion farmer whose water well is contaminated. "They are not hindering the industry in any way."
In New York state, 17 inspectors and other officials monitor about 15 traditional vertical wells in the Marcellus Shale, and the state is considering opening the formation to the type of horizontal drilling that critics fear.
Stephanie Hallowich, from the southwest Pennsylvania town of Hickory, said the DEP has downplayed or ignored her complaints about air and water contamination from a complex of gas installations near her home.
In October, a compressor station experienced what she said was a sudden, violent release of gas that shook her house and filled the air around it with foul-smelling gas. "It sounded like a jet engine," Hallowich said.
State inspectors found the incident to be a routine albeit loud depressurization of compressor station equipment.
"The company is now being required to alert area residents when they are doing scheduled blow downs," said Teresa Candori, a spokeswoman for the DEP.
Hallowich rejected the DEP's statements that it is adequately regulating the Marcellus boom.
"They have not been responsive," she said. "There have been no violations, and they have not been keeping up with inspections."
(Reporting by Jon Hurdle; Editing by Daniel Trotta and Cynthia Osterman)
[Green Business]
Catherine Hornby
AMSTERDAM
Wed Dec 30, 2009 12:23pm EST
Dutch court to take on Shell Nigeria cases
AMSTERDAM (Reuters) - Royal Dutch Shell and its Nigerian unit will face compensation demands in a Dutch court for alleged damage caused by oil spills in Nigeria after the court ruled on Wednesday it was competent to handle the cases.
Environmental group Friends of the Earth Netherlands and four Nigerians aim to sue Shell and Nigeria-based Shell Petroleum Development Co. (SPDC) in a district court in The Hague on charges related to incidents of oil spills in Nigeria.
Shell had asked for a ruling on whether the Dutch court had jurisdiction over SPDC's Nigerian activities, but the court rejected a claim of incompetence.
"The court has decided that it is competent, so we will be handling the case," said a court spokeswoman. "The facts are connected and for reasons of efficiency the cases against Royal Dutch Shell and Shell Nigeria will be handled jointly."
The plaintiffs, farmers and fishermen in the oil-rich Niger Delta, say that oil leaking from Shell activities has polluted their farmlands and fish ponds, and are demanding that Shell clean up the oil and compensate them.
After several failed attempts to address the issue in Nigeria, the plaintiffs decided to bring the cases to the Netherlands as Shell is a partly Dutch firm, said a spokeswoman for Friends of the Earth.
"For years, these people have been trying to get Shell to clean up its mess," Friends of the Earth said. "The court decision is an initial victory for all Nigerians that have been fighting for years for a cleaner habitat and justice."
Shell has said the spills in question were caused by sabotage. Oil companies active in Nigeria have grappled with militant sabotage activities in recent years which have hit production in the world's eighth-biggest crude oil exporter.
Shell will be able to enter a statement of reply to the claims on February 10, the court spokeswoman said. Shell said on Wednesday it was disappointed with the court's ruling, describing the issues as 'purely Nigerian matters'.
Friends of the Earth's Dutch arm has said Shell has the authority and the control to ensure oil spills are prevented and are cleaned up. They argue the spills are part of a systematic pattern over decades.
(Reporting by Catherine Hornby; editing by David Cowell and Hans Peters)
[Green Business]
SYDNEY
Wed Dec 30, 2009 11:11am EST
Australian bushfires destroys almost 40 homes
SYDNEY (Reuters) - A major bushfire in the west Australian outback has destroyed almost 40 homes, officials said on Wednesday, as firefighters end a third month of fighting bushfires across the country.
Fire officials say the Australian summer could be one of the worst bushfire seasons, with a series of catastrophic warnings already issued for big fires in at least three states.
Australia's most deadly bushfires occurred last February, when the "Black Saturday" infernos killed 173 people and destroyed thousands of homes in the southern Victoria state.
As a result of the "Black Saturday" fires, officials adopted a "catastrophic" warning which advises residents to evacuate homes in the face of major bushfires.
Until the west Australian fire this week, property losses had been few. No one has died in the fires this summer.
Three firefighters and a woman from the wheat-belt town of Toodyay, in Western Australian state, suffered minor injuries in the latest bushfire, which burned 3,000 hectares (7,400 acres).
"It's a devastating fire with great destruction," Western Australian state Premier Colin Barnett told reporters.
Bushfires are a natural phenomenon in Australia, due to its hot, dry environment. Lightning strikes over dry land are the most common cause, followed by human intervention such as fires that get out of control.
Australia's bushfire danger period is from October to March, covering the end of spring, all of summer and the start of autumn, when temperatures are highest and humidity lowest.
A decade-long drought and hot, dry interior outback winds have left much of Australia a tinderbox.
(Reporting by Michael Perry; Editing by Bill Tarrant)
[Green Business]
AMSTERDAM
Wed Dec 30, 2009 10:09am EST
Small leak resolved at Shell's Pernis refinery
AMSTERDAM (Reuters) - A minor leak from a pipeline in Royal Dutch Shell's Pernis refinery in Rotterdam has been resolved and operations are running as usual, a spokesman for the oil major said on Wednesday.
Shell alerted nearby residents that the leak was causing a smell in the area of the 412,000 barrels-per-day refinery, but a spokesman said the issue was resolved and no units were affected by it.
(Reporting by Catherine Hornby, editing by Anthony Barker)
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