EXCLUSIVE: Regulator Says Murdoch Oil Shale Company Must Fix Faulty Wells
September 02, 2011 4:43 pm ET by Sarah Pavlus
The
state of Colorado says it will require American Shale Oil, LLC, -- a
company backed by Rupert Murdoch and Dick Cheney -- to fix several
poorly cemented wells that, according to the state, appear to be
endangering ground water in western Colorado.
Halliburton -- the oil and gas giant once headed by Cheney -- conducted the cementing and cement evaluation of the wells and rated several as having "poor" cement bonds in certain segments, according to a memo that American Shale Oil (AMSO) submitted to state and federal regulators in late July.
In the July 26 memo, AMSO claimed the poor cementing in its wells "poses little threat" to groundwater resources in the Piceance Basin on Colorado's Western Slope, where the company is leasing federal land to pursue oil shale research and development.
But the state disagrees. When contacted about the AMSO memo, Steve
Shuey, a Senior Environmental Protection Specialist for the Colorado
Division of Reclamation, Mining and Safety (DRMS), told Media Matters
in a statement that the cementing fell short of the plans filed by the
company and it "appears to be inadequate to protect" the region's
aquifers. Shuey said the state would require AMSO to fix the cementing:
DRMS has reviewed the document to which you refer. We recognize that the well completion cementing was not conducted as specified in the Well Construction Designs of the approved NOI [Notice of Intent]. The current well completion status appears to be inadequate to protect the Uinta and A-Groove aquifers. DRMS will be sending AMSO a letter requiring remedial cement and completion work be performed on tomography wells TM-1 through TM-4 to ensure adequate protection of the groundwater resource.
When asked about Shuey's statement, AMSO maintained that the cementing issues identified in its July memo do not significantly impact the "protection of water quality" and told Media Matters the company would "work with the responsible agencies to resolve any outstanding concerns." According to an AMSO spokesperson:
AMSO's priority is to protect the Piceance Basin aquifers. In fact, we are initially concentrating on developing the shale located far below the aquifer and insulated from it by an impermeable cap rock. With regard to the cementing of our casings, none of the issues identified in AMSO's "Casing Cement Operations and Evaluations" memo significantly impacts our retort confinement or protection of water quality. We have several redundant systems in place to protect the aquifers. In addition to protecting the aquifers, we are documenting the effectiveness of our ground water protection program by conducting a long term aquifer monitoring baseline, operational and post operation period program. We will work with the responsible agencies to resolve any outstanding concerns.
Briana Mordick, an Oil & Gas Science Fellow at the Natural Resources Defense Council told Media Matters that the poor cementing "could cause water contamination" and said that "remedial cementing can and should be performed":
This is only a small-scale demonstration project but they're already falling short of constructing their wells to the highest, or even adequate, standards. These wells are located on wildlands that belong to the American people. The oil shale industry and regulators must not accept poorly constructed wells.
Proper casing and cementing are crucial to protecting fresh water from contamination and ensuring mechanical integrity of the well. An inadequate bond between the casing and cement can put both drinking water and the well itself at risk.
Remedial cementing can and should be performed on those wells with poor cement bonds. Well TM-4 is of particular concern because there is no cement whatsoever behind the top 700 feet of casing - an interval that contains a groundwater aquifer. This could cause water contamination and damage to the well.
Oil shale development has long enticed
investors and those seeking a route to energy independence, but no
company has yet proven a way to make the process both commercially
viable and environmentally sound.
Genie Energy -- which has a major stake in AMSO and another oil shale venture in Israel (IEI) -- acknowledged as much in a recent filing with the SEC.
Under "Risks Related to Genie Oil and Gas," the division of the energy
company focused on oil shale development, the company said: "We have no
current production of oil and gas and we may never have any."
Referencing the technology AMSO plans to test in Colorado, the company
continued, "In-situ technology for the extraction of oil and gas from
oil shale is in its early stages of development and has not been
deployed commercially at large scale. AMSO, LLC and IEI may not be able
to develop environmentally acceptable and economically viable technology
in connection therewith."
Genie Energy is currently a subsidiary of IDT Corporation, a global
telecommunications firm. However, IDT filed initial documents with the
SEC earlier this week to spin off Genie in late October. Last year, Murdoch joined the "strategic advisory board" of Genie Energy and purchased
an equity stake in Genie Oil and Gas. Other high-profile advisers and
investors include Cheney, Lord Jacob Rothschild, and Michael Steinhardt,
a prominent hedge fund investor and philanthropist.
Genie Energy clearly sees value in its association with Murdoch. It
touted the "vast experience and immeasurable value" Murdoch would bring
to the board when he joined it last September. In July, the company stood by Murdoch, calling him a "valued member of Genie Energy's Strategic Advisory Board,"
even as public outrage grew over allegations that his British tabloids
illegally hacked the voicemails of thousands of people and bribed the
police.
Fox News Channel and Fox Business Network, which are owned by Murdoch's News Corp, have repeatedly featured reports on Genie's oil shale ventures without disclosing Murdoch's conflict of interest. Other News Corp. outlets -- like The Wall Street Journal and the Times of London -- have touted the oil shale projects but disclosed Murdoch's financial stake.
So let the haters hate. It was probably a rightwing troll (or any troll, really. ideology doesnt matter to jerks.) All that really matters in this issue is that we not let these companies get away with basically poisoning the meager fresh water supplies we have.
No amount of silly thumbs down can undo that. So let 'em whine, it accomplishes nothing.
Anyone can thumbs down anything. It takes the bare minimum of thought. The only time I ever even look at thumbs up and thumbs down is when someone points out something about it in a post that they bothered to write.
Once in a blue moon the coal mining stuff gets above 2.0, which is published in the "official" USGS realtime log of quakes, but they're most always caught as that, it's thrown in comments, and it's not included in any averages or quake maps. But no, fracking would never happen in that range, lol.
but leave it to the bagger trolls here, to run with GOP talking points..
Ivebeen through a ton of earthquakes. Most of them you dont even really notice until they're over (lasting only moments) doesnt stop people from freaking out like idiots though. And that includes retroactive freaking out (freaking out abotu an earthquake that has already come and gone and is too small to produce significant aftershock.)
They don't hate government in general. They just hate the part that holds people accountable to their actions and has at the center of its agenda the citizens of the country instead of the businesses of the country. The love the part of government that they sell products to and when in office get to use to wiretap citizens.
Since 'personal responsibility' is a key tenet of Conservative ideology, you would think that they would INSIST that these 'corporate persons' adhere to it.
Perhaps, the GOP only sees a need to apply these concepts to those who are for either ideological or financial reasons not going to contribute to their political coffers?
Point out that most people would be arrested for crimes that corporations committed and, well, find yourself ignored. I have never gotten a sane response to that question. I often get one that completely nullifies any claim to personhood the corporation has, (how can yuo arrest a corporation?!) while still claiming superhuman protection.
Im surprised they didnt give corporations the vote.
Though he still has no problem raiding our piggy bank. at least the fictional one always left an IOU.
(Yeah all that does make sense. Im 25 years old. I do not know why i know any of that.)
The Point? This group has always been freaking insane and over the top. ALWAYS. He killed daddy warbucks for gods sake! Then ressurrected him later. I dont know how all that went down but it was probably stupid.
did you know that haliburton is paid 20 billion a year just for A/C in ashacanistan???
I wonder if we'll hear anything about this on ye olde Liberal Media?
($10 says I get their Oil-Shale / Pro-Fracking propaganda video in my in-box again though!)
------------------------------
IMHO
UTOPIA
No logner need haliburton worry about our petty deaths in the face of profits!
This means that they are sealing the well casing with earth. It is the best sealant available. Earth moves. It makes a fine seal when you are drilling and driving the casing in.
700 feet down? of course the earth around the casing is going to seal it up. The most you are going to seal is the first 60 feet of any well. After that nature is going to take its course.
It has been debated for a couple decades what seal is the best for any well. Is it cement or a bentonite grout? Only the future will tell. A few collages are testing the theories. What is more important is the fact that many residential wells are contaminating the aquifers. New construction is not a problem. The coalbed methane drilling and extraction is not a problem. Fracking is not a problem. We are fracking way below any water source we would ever tap into. Natural gas extraction is very GREEN. To attack Haliburton or any other gas company is against any green programs.
What regulators need to focus on is wells that are already drilled and not up to code. But, here is the catch.. There are laws and not enough to enforce.
So, we have some people in some state job that has something to do with water resources or environmental protection they will shut down a natural gas resource?
That seems a little anti green.
The gas companies are not hurting anyone. Too much "could" and "might". Let them be.
If you are bent on the fact that earth moves and they need to repair some wells because of some movement.. ok. They will fix it. Pretty much standard practice.
1. Why are he chemicals used in the fracking process secret?
2. How do you explain the contamination of water in areas fracking has taken place?
If the water they use is contaminated it will contaminate the process they use. But, I have not seen any reports of that. And, most if not all fracking is done way below any water source we tap into.
There has been no known contamination of any water source that has been used for human consumption because of fracking. The usual source for coal bed methane extraction has been areas away from any population of people.
The process is simple. Pump water out of the methane imbedded coal layers and the gas will rise. Harvest the gas and you win. Getting down there and getting the gas is the hard part.
The resource is huge and it spans many states.
2. There have been numerous accounts of water sources used by human consumption being contaminated, because of fracking.
I just watched a documentary on fracking the other night, where they explained the entire fracking process. They also showed several different people who had their drinking water contaminated, one person could actually light the water coming out of his tap on fire. Your assertion that fracking isn't done around any population of people is also untrue, because in the documentary they showed how the gas companies would pay people to perform the fracking process on their property and allow them to install the well where the gas would be retrieved. Soon as I can remember the name of the program, I will give you the name, so you can check it out.
On this list you'll find Benzene, a known carcinogen, Toluene, a substance when inhaled can cause neurological harm, and Ethylbenzene which can cause kidney damage.
How would you feel about having that stuff in your drinking water, RR?
Its your own fault. Come back when you dont want to be an ass about it.
you state,
You need to do your homework, champ.
This is a segment from the documentary that Rollo is talking about above.
The effect of fracking on residential water sources is already a pretty well documented phenomenon... its really only a surprise to you.
You know buddy, just like your comments about bigotry not being a problem in the US, you seem to have this habit of just throwing out unvetted, unverified nonsense, solely for the purpose of reifying a very dishonest, very bigoted reactionary political narrative.
Seriously, i cant tell if you just try to be so misinformed, or if someone did this to you.
Either way, with his investments in irresponsible energy baroning, and a powerful media complex whose sole purpose is to subvert the democratic process for the sake of those interests (if that isnt evident enough on Fox News, you can just get David Cameron to confirm), it looks like your dear Minister Murdoch is proving himself to much more the dreaded Puppet master than any one else.
with the reason for the suspensions. Source is Wikipedia.
Australia
On 21 February 2011, the ABC's investigative journalism program Four Corners aired a program showing incidents of gas leaks into the water basin and evidence of contamination by hydraulic fracturing in Chinchilla, Queensland as a result of drilling carried out by a Queensland gas company, QGC.[36]
There is currently a moratorium in place on the practice of hydraulic fracturing in the state of New South Wales.
[edit]Canada
Concerns about fracking began, in late July 2011, when the Government of British Columbia gave Talisman Energy a long-term water licence to draw water from the BC Hydro-owned Williston Lake reservoir, for a twenty year term. Fracking has also received criticism, in New Brunswick and Nova Scotia. The practice has been temporarily suspended, in Quebec, pending an environmental review. The Canadian Centre for Policy Alternatives has also expressed concern.[37]
[edit]France
Hydraulic fracturing was banned in France in 2011 after public pressure.[38]
[edit]New Zealand
In New Zealand, hydraulic fracturing is part of petoleum exploration and extraction on a small scale mainly in Taranaki and concerns have been raised by environmentalists.[39][40]
[edit]South Africa
There is currently a moratorium on hydraulic fracturing in South Africa's Karoo region despite the interest of several energy companies.[41]
[edit]United Kingdom
Some hydraulic fracturing is currently proceeding in the United Kingdom operated by Cuadrilla and a number of other companies. In one instance operations have been suspended after two small earthquakes subsequent to drilling operations.[42]
I suggest you do some research by entering Fracking into a search engine of your choice, and see what sorts of information is available. I suggest that you look for yourself, expand your search to include sources other than those suggested to you by allies and see the otherside of the issue. Expand your knowledge by seeking the opinions and facts presented by those you don't agree with. To have a good debate you must first seek the facts from your opponents so that you can counter their arguments with facts. To post just opinion on a site like this is just a waste of time and counter productive to your cause.
Would you explain the MMFA "jihad against oil drilling" with a little more depth? I'd like to learn!
For fun, you can actually make a chart showing the abuse of a rightwing idiot is in direct cvonnection to the apperance of a new rightwing idiot. Same day usually. Of course, Id have to be some kind of jerk to accuse them all of sockpuppeting..
oh wait, I AM some kind of jerk! You're a bunch of sockpuppeting failures who can only win through deception!
Cheney is an evil man.
Also, this is an easy shot, I feel bad about doing it, because im nice, and ill feel worse later on, but hell, I'm gonna take it, with formatting appropriate to the amount of thoguht i gave it.
I have a hard time trusting a man who has no heartbeat.
One reason for this is the weaker environmental controls here, specifically the lack of the requirement to get an environmental assessment for a first-stage (RD&D) lease. That's from Jeremy Boak, director of the industry-funded Center for Oil Shale Technology and Research and so an industry insider if there ever was one.
Is there no evil in which he and the dark prince Cheney won't indulge?
The issue here has to do with the conflict of interests. We see Murdoch owned News Corp outlets singing the praises of a Murdoch owned oil shale company without acknowledging they're part of the same, happy family, while also downplaying the contamination risks.
Evil? Perhaps not. Unethical and dishonest? Oh, hells yeah.