Monday, March 25, 2013

N.E. Iowa struggles with state's new 'sand rush.' Mining interests are pitted against tourism, environmental concerns

A large pile of frack sand sits near the Pattison Sand Co. processing center, which includes a large dryer. The material is sent mostly by train to oil and gas companies working in North Dakota, Pennsylvania, Ohio, Oklahoma, Arkansas, Texas, Louisiana, Colorado and Canada. A large pile of frack sand sits near the Pattison Sand Co. processing center, which includes a large dryer. The material is sent mostly by train to oil and gas companies working in North Dakota, Pennsylvania, Ohio, Oklahoma, Arkansas, Texas, Louisiana, Colorado and Canada. / Perry Beeman/The Register

by Perry Beeman, Des Moines Register, March 24, 2013

DECORAH, IA. — Residents of this picturesque montage of rolling hills, trout fishing and canoeing are fighting to keep America’s headlong rush into oil-and-gas “fracking” from spoiling the scenery responsible for a healthy chunk of Iowa’s $3.1 billion outdoor recreation industry. 

They are fighting with slogan-emblazoned buttons pinned to their lapels and with meetings and facts. They are crusading online and in the grocery lines. They’re urging political leaders to at least temporarily block companies from opening new holes in the geologically fragile landscape of extreme northeast Iowa. 

There is no fracking for oil or gas in Iowa, but drilling companies covet the huge and easily accessible supplies of the hard, round grains of silica sand found in the northeast corner of the state, including Allamakee, Winneshiek and Clayton counties. The stuff is shipped from eastern Iowa to rig sites from North Dakota to Texas. 

“This is coming at us like a runaway bulldozer doing 100 miles per hour,” said Ric Zarwell of Lansing, leader of Allamakee County Protectors, a group that successfully lobbied for a moratorium on frack sand mines in Allamakee, after Minnesota mining companies came calling. “I see this as neighbors opposing invaders.” 

Zarwell and others here are calling it the “sand rush.” 

Not everyone believes the mining operations would be bad for the area. 

Some point to the hundreds of mine-related jobs that could potentially be created, and how those would also benefit other local businesses. Others say whatever eyesores the mines might create are only temporary, and point to state and federal regulations requiring that such sites be restored. 

Mark Ellis, president of the National Industrial Sand Association, said mine operators are dedicated to protecting public health. The Washington, D.C.-based trade group has produced a manual to help companies comply with various environmental regulations, he said. 

Iowa is home to one of the nation’s largest deposits of the fine-grained, round silica sand prized by drilling companies engaged in fracking, or hydraulic fracturing, a controversial — and, some say, environmentally unsound — method of harvesting oil and natural gas from buried shale. 

Fracking has exploded across much of the United States as companies maneuver to tap previously unreachable natural gas and oil reserves to ease the nation’s dependence on foreign oil. 

The process involves pumping a mixture of water, silica sand and some chemicals into the rocky layers that hold the oil and natural gas. That breaks apart the rock and holds the fissures open while fuel-producing minerals are pumped from the hidden layers of shale. 

The sand is found throughout the state, but the deposits closest to the surface are located in the rolling terrain surrounding Decorah, Lansing and Clayton, making that region easier and more profitable to mine. That’s grabbed the attention of several companies already mining extensively in Wisconsin and Minnesota, where a steady parade of trucks have stirred up dust, along with noise complaints from folks living near some excavation sites. 

The special sand — with its hard, round grains — is a favorite of drilling rig operators because it does an especially good job of holding open the cracked rock, like pingpong balls in a big jar. 

There’s plenty of demand for the stuff. U.S. production of frack sand has jumped from 8.8 million metric tons in 2009 to 13.7 million in 2010 and 24.3 million in 2011, the most recent figures available. 

“The main thing that they are interested in is that it is round and almost entirely quartz and a uniform size,” said Raymond Anderson, a geologist with the Iowa Department of Natural Resources. 

Sand miners won’t say what they pay for leases, and they also require landowners to keep that information secret. But with Iowa’s generous supplies, most believe landowners could make thousands of dollars even in a short period. 

The three geological layers that hold the sand — the St. Peter sandstone, Jordan and Wonewoc — provide thousands of spots where mines could easily be established in northeast Iowa, said Zarwell.

Mining companies tout jobs and pledge to meet environmental regulations, but Zarwell isn’t satisfied. 

If the mines came in, the promised jobs likely would go to outsiders, home values could drop, dust would threaten residents’ health, groundwater could be contaminated, and trucks would bog down traffic and damage roads and highways, he said. 

And the outdoor recreation and tourism that have defined the area could suffer most. 

“It would be gone,” Zarwell said. 

That’s a concern in Winne­shiek, Allamakee and Clayton counties, which draw a combined $53 million a year in recreational spending related to rivers alone, according to figures compiled by Catherine Kling, an Iowa State University economist focusing on natural resource and environment issues. 

Others worry about what adverse health effects might be associated with frack sand, although lung ailments caused by breathing tiny sand particles typically pose the biggest threat to mine workers and others with prolonged exposure. 

Larry Schellhammer, chairman of the Allamakee County Board of Supervisors, said the county approved the moratorium in February so it could consider restrictions on the industry to protect the scenery that drives tourism and to limit the noise and dust such operations produce. 

“Allamakee is pretty well known as one of the prettiest areas of the country,” Schellhammer said. “We like to talk about it being God’s country. We have to respect that. We have pretty heavy tourism.” 

But the county, which is already home to a dozen or more conventional sand and gravel operations, can’t ban frack sand mining forever, he said. So he and other county officials are asking the Legislature to help the county address problems when they do arise. 

They are lobbying lawmakers to allow counties to charge mining operations a fee that would help fix damaged roads and address other problems related to the business. Some mines send 200 trucks out, and back, daily, Schellhammer says. 

In the Decorah area, another top tourist stop and home to Luther College, the potential arrival of sand mines quickly set off citizen protests. Winneshiek County officials are mulling a moratorium, too. 

Karl Knudson, a Decorah lawyer who helped push through the Allamakee moratorium, said the timeout gives critics a chance to at least push for dust and noise limits. “There could be a big impact on tourism, with the likelihood that the area won’t be properly reclaimed.” 

“These hillsides are important for tourism and have Indian burial sites,” Knudson said. 

Lyle Otte has lived in Decorah for 31 years. “We hope to keep enjoying it,” he told an audience of 160 at a meeting at the local high school in February. 

“This certainly will affect tourism,” Otte said. “The fishing, hiking and biking will all be endangered” if frack sand mining expands in the county, he added. 

http://www.desmoinesregister.com/article/20130324/NEWS/303240054/N-E-Iowa-struggles-with-state-s-new-sand-rush-?

In Texas, Water Use for Fracking Stirs Concerns


A water truck parked near a West Texas drilling rig. Oil and gas companies' use of water for hydraulic fracturing has sparked growing concerns.
A water truck parked near a West Texas drilling rig. Oil and gas companies' use of water for hydraulic fracturing has sparked growing concerns.
CARRIZO SPRINGS — In this South Texas stretch of mesquite trees and cactus, where the land is sometimes too dry to grow crops, the local aquifer is being strained in the search for oil. The reason is hydraulic fracturing, or fracking, a drilling process that requires massive amounts of water.
“We just can’t sustain it,” Hugh Fitzsimons, a Dimmit County bison rancher who serves on the board of his local groundwater district, said last month as he drove his pickup down a dusty road.
From 2009 to 2012, water production from one well on his ranch fell by two-thirds, a problem Fitzsimons linked to nearby wells pumping water for fracking operations. A study commissioned by his groundwater district found that in a five-county area that includes Dimmit, fracking reduces the amount of water in the Carrizo-Wilcox Aquifer by the equivalent of one-third of the aquifer’s recharge. Recharge means the average amount of water an aquifer regains each year from precipitation and other factors.
The amount of water used in hydraulic fracturing — roughly 4 million to 6 million gallons per oil or gas well — has stirred concerns around Texas as the drought wears on and the drilling boom continues.
Studies say that fracking consumes less than 1 percent of the total water used statewide, far less than agriculture or even watering lawns. But in some drilling hotbeds like Dimmit County, the proportion of water used for fracking has reached the double digits and is growing along with the oil boom. Companies are springing up to offer recycling, and some drillers are able to use brackish water, but those technologies are often not cost-effective.
Oil and gas companies are “in the spotlight right now,” said state Rep. James Keffer, R-Eastland, the chairman of the Texas House Energy Resources Committee. Because drillers have increased their water use only recently, he said, “they have to prove themselves a little harder than others at this point in time.”
Two state legislative committees, including Keffer’s, convened a hearing last month on fracking and water use. Industry representatives testified about emerging water-saving technologies like recycling.
In 2011, only about one-fifth of the water used in fracking came from recycled or brackish water, according to a recent study prepared by the University of Texas at Austin’s Bureau of Economic Geology and financed by the Texas Oil and Gas Association.
The industry is “absolutely not doing enough” to reduce water use, said Luke Metzger, the director of the group Environment Texas.
In a typical fracking job, water blended with lesser volumes of sand and chemicals is pumped down a well to release oil or gas trapped in the pores of hard rock. The use of chemicals has stirred fears of spills and contamination, especially because companies keep some of the chemicals secret.
Increasingly, the spotlight is also on water supply problems. Some of the most oil-rich parts of Texas, including the Eagle Ford Shale and the Permian Basin, are also some of the state’s driest areas. Carrizo Springs, in the heart of the fast-developing Eagle Ford, averages 21 inches of rainfall a year.
In 2011, Texas used a greater number of barrels of water for oil and natural gas fracking (about 632 million) than the number of barrels of oil it produced (about 441 million), according to figures from the Texas Water Development Board and the Railroad Commission of Texas, the state’s oil and gas regulator.
The UT study, published in January, found that the amount of water used statewide for fracking more than doubled between 2008 and 2011. The amount is expected to increase before leveling off in the 2020s. The study’s lead author, Jean-Philippe Nicot of the University of Texas, has calculated that in 2011, nearly a quarter of the water used in Dimmit County went toward fracking. He projects that the figure will rise to about a third in a few years.
Often landowners sell groundwater to frackers. Water for fracking may sell for 35 to 50 cents a barrel, according to the Texas Water Recycling Association, a new nonprofit advocating for the water recycling industry.
Because of ambiguities in state law, local groundwater authorities differ in whether they require companies to get permits for water wells drilled to supply frackers. Legislation filed this session, Senate Bill 873, would fix the ambiguities and most likely result in increased requirements for permits.
The water demands of hydraulic fracturing contribute to another problem in oil country: wear and tear on roads. Each fracking job may need hundreds of trips by trucks bringing water to the site. The trucks also carry water away from the site. That is because roughly a quarter of the water used in fracking comes back up along with the oil or gas. Additional water, found underground near the oil, also comes up. That “produced water” must also be hauled away.
The chemical and mineral-laced water left over after a fracking job normally goes to a disposal well, where it is injected thousands of feet into the earth. But disposal wells are controversial because people living near them often object to the truck traffic and fear that the wells could contaminate the water supply. The Railroad Commission appears likely to tighten its rules on disposal well construction.
More companies are experimenting with the use of brackish water, an abundant underground resource in Texas. The water contains more salts than freshwater does. It may also contain other elements like boron, which can harm the drilling process, and the reservoirs may be deeper and more expensive to tap.
In testimony last month, Stephen Jester, an engineer with ConocoPhillips, told lawmakers that drilling a deep well in the Eagle Ford Shale region could cost $1 million, versus perhaps $70,000 or $80,000 for a shallower well.
A few companies have branched into water-free fracking. Gasfrac, a Canadian company that uses propane rather than water in fracking, drilled a well last month on a Dimmit County property adjacent to Fitzsimons’ land.
Another alternative that has drawn increasing interest is recycling. One initiative involves recycling city sewage water for use in oil fields. Alpha Reclaim Technology, a year-old company based in Bryan, is buying treated effluent from Karnes City and other municipalities in the Eagle Ford Shale. Last week it made its first effluent sale to an oil fracker, said Jeremy Osborne, its general counsel.
Other companies are creating mobile recycling units to clean water that comes from oil and gas wells and reuse it for fracking. The Railroad Commission is working on rules aimed at making it easier to do this type of recycling. It is expected to take a final vote on the changes this month.
Some have big dreams for technology. “Sometime in the future, the oil and gas industry could even be a net producer of water rather than a net user,” David Porter, a commissioner, said in an interview in January.
This is the first in an occasional series on water and fracking. More articles in this series, which is a collaboration with StateImpact Texas, will run in the coming weeks at texastribune.org and stateimpacttexas.org.


Thursday, March 21, 2013

The Story of Dryden: The Town That Fought Fracking (And Is Winning)

by Earth Justice

An upstate New York town is fighting to preserve its way of life in a lawsuit pitting a small town's rights against an out-of-state oil and gas company’s wishes.
More than a hundred towns in New York have enacted local bans or moratoriums on gas drilling, including the controversial process known as hydraulic fracturing, or "fracking," in which drillers blast millions of gallons of chemically treated water into the ground to extract gas from hard-to-reach deposits deep in the earth.
Among those municipalities is the Town of Dryden—which is now being sued.
In September of 2011, the privately-held Anschutz Exploration Corporation, owned by Forbes-ranked Phillip Anshutz (net worth: $7.5 billion), sued the Town of Dryden (population: 14,500) in a bid to force the town to accept industrial gas drilling—including fracking—within town limits.
The company brought its lawsuit after the Dryden Town Board approved a change in its zoning ordinance, clarifying that oil and gas development activities, including fracking, were "prohibited uses" of land within the town. The Dryden Town Board's unanimous, bipartisan vote followed a petition drive and a series of public hearings, in which residents spoke out 3-to-1 in favor of the change.
This is how it all started. The Dryden Resource Awareness Coalition (DRAC) was created in the spring of 2009 by Dryden residents concerned about the possible upcoming consequences that the hydraulic fracturing of gas wells drilled into the Marcellus Shale may bring not only to their own neighborhoods, but also to the state and region.
In 2010, DRAC members began collecting petition signatures from their fellow residents to ask the Town Board to develop an industrial noise ordinance and to make a firm statement against gas drilling. The journey to the successful passage of the ordinance involved the entire community, through information sessions, a listening project, collaborations with neighboring communities, and much more. DRAC members took their concerns and requests for protective action to the Dryden Town Board, using their citizens' privilege time at the beginning of each meeting. They attended each monthly meeting, reiterating their concerns and reporting on progress to the Dryden Town Board and Town Supervisor.
DRAC member Hilary Lambert recounts the story of how town residents worked together to ensure their concerns would be heard, and to, ultimately, bring about the historic vote:

Photograph icon.Start slideshow.


Fracking requires a heavy industrial buildup, complete with giant well pads containing multiple wells, miles of trucks rumbling down gravel roads, and noisy equipment that runs all night. Fracking sites, which are significant sources of volatile organic compounds, also taint local air quality by increasing ozone levels.
And then there's the issue of water. Each fracking job requires millions of gallons of water laced with sand and toxic chemicals like formaldehyde and hydrochloric acid. Some of the chemicals in fracking fluids are known carcinogens and the health effects of many additives are not fully understood, in large part because industry officials have refused to disclose precisely what they are using.
"The people of Dryden want to preserve the special character of our town and make sure it continues to be a healthy community for generations to come," said Dryden Town Supervisor Mary Ann Sumner.
"The oil and gas industry may wish it were otherwise, but municipalities have the right to determine what types of development are appropriate within their borders. We are firmly committed to defending that right."
 New York State Supreme Court ruled in favor of Dryden in February of 2012. The case is now being heard by an appellate court—though with a change in plaintiff. Norse Energy, the U.S. subsidiary of a Norwegian oil and gas company, has replaced Anschutz Exploration in the litigation—Norse then filed for Chapter 11 Bankruptcy proceedings the following month.
Earthjustice is representing the Town of Dryden in the appeal, a case that will determine whether localities can keep heavy industry like oil and gas development off the land within their borders.
The case is being watched closely as towns in other states like Colorado and Ohio pass fracking bans of their own and are threatened with lawsuits by the oil and gas industry. A victory in New York could provide encouragement and hope to communities around the country.
"The people of Dryden stood up to defend their way of life against the oil and gas industry. And, against stiff odds, they won," said Deborah Goldberg, managing attorney of Earthjustice's Northeast regional office and an expert on the environmental impacts of industrial gas development.
"The [lower court] ruling makes clear that local officials have the right to decide what industrial activities are appropriate within their communities."
"The Town of Dryden has a very strong case," said Deborah. "Two courts have ruled that localities retain their longstanding power to regulate land use, including by prohibiting industrial activities such as gas development in their communities. We'll do everything we can to ensure this victory stands."