Oil and Gas Association Exposes Environmental Groups' "Campaign of Lies"

ALBANY, NY (12/10/2010)(readMedia)-- Representatives of environmental groups took their industry smear campaign to a new low Friday, issuing a news release rife with purposeful misstatements and half-truths in an attempt to convince Gov. Paterson to sign into law a poorly drafted and ill-conceived moratorium on natural gas exploration.

Their missive to the media demonstrates they will say almost anything and claim anything to whip an unsuspecting public into a frenzied opposition to an industry that has operated safely in New York since the 1800s. Even comic book characters are now in the mix, as the groups announced the involvement of actor Edward Norton, pointing out he played the "The Hulk."

"The Hulk may be big and green – but remember that he operates purely on emotions, and can hurt people when he's not in his right mind," said Jim Smith, a spokesman for the Independent Oil & Gas Association of New York. "The same might be said for the groups supporting .S.8129-B (Thompson)/A.11443-B (Sweeney)."

Smith continued: "Even before Governor Paterson ordered the DEC to revise the regulations governing high-volume hydraulic fracturing in New York, our industry worked to educate the public with history, facts and objective science. We were met with hysterical and misleading outcries from organized environmental groups making outrageous, insulting and often fabricated claims about our industry and our history of work in New York."

Their latest news release is perhaps the most egregious example of proponents' "win at all costs" behavior. Here are a few examples:

THEY CLAIM:

"The moratorium bill only limits the Department of Environmental Conservation's issuance of new permits in '... low permeability natural gas reservoirs, such as the Marcellus and Utica shale formations.' Use of conventional, low-volume, hydraulic fracturing, with or without horizontal drilling, is still available for already permitted wells, and for proposed new wells," said Dr. Anthony R. Ingraffea, Dwight C. Baum Professor of Engineering, School of Civil and Environmental Engineering, Cornell University, and Fellow of the International Congress on Fracture (2009). "Industry and landowner claims that currently approved wells would be impacted or current jobs would be lost can only stem from a misinformed reading of the bill."

FACT:

• This is just plain wrong. By any reading, the bill does indeed bar the permitting of ANY new well using hydraulic fracturing. The text of the bill reads: Section 1. There is hereby established a suspension of the issuance of new permits for the drilling of a well which utilizes the practice of hydraulic fracturing for the purpose of stimulating natural gas or oil in low permeability natural gas reservoirs….

• The term "low permeability" does not limit this legislation to the Marcellus and Utica Shale formations. The vast majority of New York's wells are in low permeability formations – shale, sandstone or carbonate. These low-permeability natural gas reservoirs include the Bass Islands Trend, Medina Sandstone, Onondaga Reef, Oriskany Sandstone and other similar formations. These shallow, low-volume wells are quite common in Western New York and the Southern Tier, and are subject to the moratorium as written.

• This legislation is not limited to high volume hydraulic fracturing. The DEC will be unable to issue a permit for ANY natural gas or oil well which uses a de minimus amount of fluid to stimulate a well.

• 580 new well permits were issued by NYSDEC in 2009, more than 300 of which were issued during the same period in which the moratorium would apply (prior to May 15). More than 90 percent of these permits could not be issued under the moratorium.

• IOGA of NY's members – who have watched the pace of drilling activity in New York for many years – remark that the average current rate of drilling would likely not resume until many months after any moratorium were to lapse. With only half the usual number of months to drill wells, then only half as many would be developed thereafter, due to the lack of available equipment and labor to do a full year of work in half a year's time. As a result, IOGA of NY projects a net loss of nearly $800,000 in real property taxes, and $1.4 million in royalty payments.

THEY CLAIM:

• "The inclusion of vertical wells was intentional and critical. Gas companies threatened to drill vertically into the Marcellus and Utica Shale formations during the moratorium and then convert those wells into horizontal wells as soon as the moratorium sunset (emphasis added). Companies should not be allowed to side step the ongoing environmental review process ordered by Governor Paterson through a loophole for vertical wells."

FACT:

This is pure fiction. The notion of "stealth Marcellus wells" is a complete fabrication, as is the representation that the bills' sponsors intended to subject vertical wells subject to the moratorium. When this legislation passed the Senate, many members were unaware that it was technically flawed and poorly drafted, and that it would affect the vast majority of on-going oil and gas production in New York State.

Smith said, "This legislation will adversely affect a sector of New York's economy because of unsubstantiated fears. There continues to be no evidence that the one sector of the industry that this legislation will most certainly affect has done anything to warrant a forced closure of new wells."

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IOGA-NY was founded in 1980 to protect, foster and advance the common interests of oil and gas producers, as well as professionals and related industries in the State of New York. To send a message to the governor in support of natural gas exploration, visit marcellusfacts.com.

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Posted Friday December 10, 2010 at 05:03 pm by Independent Oil and Gas Association of New York