Original Message --------
Subject: Marcellus Shale
Date: Mon, 11 May 2009 16:19:42
From: Walter Hang <>
To:

Greetings,

Please call me when you get a chance. I would like to discuss a possible Marcellus Shale campaign.

DEC reportedly plans to release a Supplemental Environmental Impact Statement on Marcellus Shale natural gas drilling as early as June. A short comment period will follow. Once that regulatory hurdle is cleared, and I have no idea how long that could take, drilling and production could begin in earnest.

We might be able to undertake a series of actions that could delay Marcellus Shale drilling until a sound regulatory framework is established. That would be extremely challenging to say the least, but it could be done, particularly because natural gas prices are depressed by the recession. That should help put a damper on drilling.

We could generate widespread press coverage by documenting massive environmental problems caused by existing natural gas drilling. I found one incredible humdinger of a problem. If I looked hard, I might find more.

We could similarly raise red flags by revealing the profound shortcomings of the DEC's current oil and gas regulatory program. For example, fewer than 20 inspectors reportedly provide oversight for more than 15,000 existing oil and gas wells. There are also few, if any, places to treat "fracking" wastewater without causing pollution hazards.

Bolstered by those two efforts, we could organize hundreds of individuals, groups as well as local, state and federal officials into a formidable campaign. Our goals would be four-fold.

First, we would try to impose major drilling fees to fund adequate regulatory efforts.

Second, we would try to enact legislation or adopt regulations that require insurance coverage for natural resources damages. Alternatively, performance bonds could be required prior to drilling.

Third, we would try to make sure that natural gas drilling imposes strict as well as joint and several liability for toxic clean up. That should provide full-backstop protection.

Fourth, we would require a comprehensive regulatory system to be established prior to drilling, including zoning limitations, fracking wastewater treatment, air pollution controls, noise abatement, highway protections, etc.

If Marcellus Shale drilling can be delayed substantially, various natural gas firms might give up their existing leases. This has already happened in Tioga County with Fortuna. That turn of events would provide more time to enact proper safeguards.

Finally, under a best case scenario, Judith would be appointed Region II EPA administrator and we could really crank up the pressure on her, Pete, Stu and Val. Our goal would be to revive environmental protection programs that have been systematically eliminated over the last 25 years.

Any successes achieved in New York could be replicated in other states where the Marcellus formation exists.

Cheers,

w