Showing posts with label groundwater contamination. Show all posts
Showing posts with label groundwater contamination. Show all posts

09 May 2012

Auction of Michigan Oil & Gas Leases Attracts Protesters

Story first appeared in The Detroit Free Press.

An auction of state-owned oil and gas leases attracted a throng of protesters and bidders Tuesday, the latter shelling out more than $3.6 million for the drilling rights to more than 90,000 acres across Lower Michigan.

All of the 18,347 acres on the auction block in Oakland County -- some surrounding popular and exclusive lakes in West Bloomfield and Commerce Township -- were sold, bringing in more than $616,000.

A representative of the company that obtained much of the Oakland County acreage, Jordan Development of Traverse City, said discussion of development plans was premature.

Jordan has operating oil and gas wells in Jackson and Calhoun counties but has no immediate plans for new wells in southeast Michigan. All of the Oakland County acreage is classified as nondevelopment, meaning that no drilling would be permitted on the surface; any extraction would have to be through directional drilling from nearby.

The auction also featured 23,419 acres in Barry County in west Michigan, much of it in and around the Yankee Springs state recreation area. That brought out a crowd of protesters to Constitution Hall in Lansing and resulting in several brief disruptions.

One protester, who stood up as bids were being taken and began to talk over the auctioneer, was taken into custody.

The focus of much of the opposition was on a drilling technique called hydraulic fracturing, or fracking, which opponents believe can lead to contamination of water resources.

One of those carrying an anti-fracking sign outside the hall was worried about the health impacts.

State regulators counter that Michigan has some of the most stringent safety rules in the country, and decades of relatively problem-free experience with fracked wells.

Tuesday's auction prices were far short of the record $178 million two years ago.

Any proposed drilling in the West Bloomfield area around Cass Lake will meet with stiff opposition. West Bloomfield is slated to take up a proposed resolution Monday that would ban drilling and fracking in the township.

Jordan Development said that the company hoped to avoid conflict if plans proceeded to drill. They have done a lot of development in northern Michigan in areas with residential and resort development, and price themselves on getting along with people.


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26 April 2012

Natural Gas Drilling in Michigan Up for Debate

Story first appeared in The Detroit News.

Michigan legislators are considering tightening the state's regulations on a controversial natural gas extraction technique.

A bill introduced this week by House Democrats would require companies producing natural gas in Michigan through hydraulic fracturing to fully disclose the chemical solution used in their processes — a level of openness the industry has long opposed.

Hydraulic fracturing, or "fracking," has been used to harvest natural gas in Michigan for decades. To release gas trapped deep in the earth, companies pump a water/chemical mix, or "fracking fluid," into the shale formations below the surface. That causes the rock structures to fracture, releasing the natural gas there to be pumped back up to the surface.

In recent years, producers have utilized new technologies to drill vertically and then several thousand meters horizontally, opening up far more area for harvesting than was before possible.

But concerns over the impacts of fracking have made the process the target of criticism from environmental groups. In other states, fracking fluid is believed to have contaminated groundwater supplies.  The involvement of Fracking Experts is extremely important to make sure that proper procedures are followed to avoid additional environmental contamination.

In the past, companies in Michigan have only been required to disclose 99.5 percent of their fracking formula. The rest has been considered proprietary information that gas companies could keep to themselves.

This week, Democrats in Michigan are introducing a bill that would require companies seeking permits for hydraulic fracturing to disclose their complete recipe for fracking fluid. This would require a full disclosure before a permit can be given. Michigan residents just want to know what's being put into the ground and, probably, the water.

Deep below the top third of Michigan's Lower Peninsula lies the Collingwood shale formation — a natural gas deposit that has drawn great interest in recent years from exploration companies. Calgary, Alberta-based Encana Corp. has dug three test wells over the last two years to judge the viability of hydraulic fracturing there.

A spokesman for Encana has said the company already voluntarily participates in a database that provides the communities where it drills with the baseline 99.5 percent of information. And in cases where questions arise over possible groundwater contamination from fracking, the company has provided local officials with the full content of its fluid. Encana feels that their approach has been a good balance between providing the proprietary cover companies want and at the same time, providing access that the public feels is warranted.

Without having seen the reporting requirements of the new bill, Hock declined to discuss what impact it might have on Encana's future plans for exploration in Michigan.

A policy director for the Michigan Environmental Council, said there has been a shift in the political climate on full disclosure for hydraulic fracturing in recent years. Natural Gas Experts have made it clear that they feel that the full chemical solution should be provided to avoid environmental contamination.


For more local and Michigan business related news, visit the Michigan Business News blog.
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