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Report Details DEC's Improper Gas and Oil Regulation

09/26/12




Assemblywoman Barbara Lifton will be joining Binghamton Mayor Matt Ryan and Toxics Targeting President Walter Hang this afternoon at a news conference in regards to the state DEC’s gas and oil regulation.

Hang says the DEC Mineral Resources Annual report shows billions of gallons of untreated gas and oil brine wastewater was dumped into pits and streams across the state.

Hang says the practice was supposed to be outlawed back in 1987 but continues to this day, and believes this contradicts an assertion the agency has made about problems associated with gas drilling.

He says the report details hundreds of millions of dollars are needed to plug and clean up nearly 5,000 abandoned vertical gas drilling and oil wells across the State.

Hang believes these reports further back his stance that a moratorium on high volume hydraulic fracturing should continue in New York State.

He adds much of these problems stemmed from conventional vertical fracking wells over the years.

NY records show history of oil, gas well problems

09/26/12

This article appeared in the following publications (see Attachments below for PDF-versions):

  1. Wall Street Journal
  2. CBS News
  3. Business Week
  4. Seattle Post-Intelligencer
  5. San Francisco Chronicle
  6. San Antonio Express-News
  7. Huffington Post
  8. Newsday (Long Island)
  9. The Post-Standard (Syracuse, NY)
  10. WWOR (NJ/Manhattan)
  11. WAMC (Albany, NY) AUDIO
  12. The Republican (Western, Mass.)
  13. WTOV (Wheeling WV)
  14. WTRF (Wheeling WV, CBS affiliate)
  15. WCHS (Huntington WV)
  16. NY FoxNews
  17. North Country Public Radio
  18. The Republic (Columbus, IN)
  19. Hometown Stations (Lima, OH)
  20. Press-News (Minerva, OH)
  21. WFMJ (Youngstown OH, NBC)
  22. WTVG (Toledo, OH)
  23. WJTV (Jackson MS, CBS)
  24. WVVA (Bluefield, WV, NBC)
  25. WCAX, (Burlington, VT, CBS)
  26. Society of Environmental Journalists

ALBANY, N.Y. — State regulators claim a strong record of oil and gas drilling oversight, but their own reports reveal thousands of unplugged abandoned wells and other industrial problems that could pose a threat to groundwater, wetlands, air quality and public safety.

Annual reports and incident reports prepared by Department of Environmental Conservation staff and reviewed by The Associated Press run counter to the agency's long-stated assertion that the types of problems reported in other states have been prevented in New York by strong regulations.

The review comes as New York officials prepare to issue a decision on whether to allow hydraulic fracturing, or fracking, a lucrative method of extracting natural gas that has raised environmental concerns.

"Division of Mineral Resources annual reports over two decades show that the DEC's inadequate regulation of gas and oil extraction activities resulted in thousands of unresolved pollution threats to public health and the environment," said Walter Hang, president of Toxics Targeting, an Ithaca-based consulting firm that provided the reports. Hang leads an effort to ban natural gas drilling in New York, where drilling has been on hold since the DEC began an environmental impact review in 2008.

That same year, then-DEC Commissioner Pete Grannis said: "As a result of New York's rigorous regulatory process, the types of problems that have occurred in states without such strong environmental laws and rigorous regulations haven't happened here."

A DEC spokeswoman said agency enforcement personnel have resolved or are working to address problems noted in the agency's reports, including oil spills and soil and water contamination. She also noted that under the proposed new regulations on natural gas drilling, the DEC would get help capping wells because companies would have to survey the land within a mile of a new well and plug, at the driller's expense, any wells found there that are "orphans" — unplugged wells with no known owner.

"By and large, complaints received by DEC regarding potentially leaking wells have proven to be from wells drilled before environmental regulations were put in place, or were from naturally occurring sources of contamination," spokeswoman Emily DeSantis said Wednesday.

"DEC takes all complaints of water contamination seriously and works with the state Health Department to ensure New York residents have a safe source of drinking water," DeSantis said. If fracking is allowed, new regulations include "multiple protections and measures required to safeguard the integrity of New York's drinking water supplies," DeSantis added.

But environmental groups have questioned whether DEC oversight is strong enough. A study released in July by Earthworks, an environmental group, found that in New York, well inspections occur too infrequently and too irregularly; fines are inadequate; lack of data prevents public scrutiny of DEC's oversight; and citizen complains aren't used efficiently to improve oversight.

The problem of orphan wells is widespread in drilling states. The Interstate Oil and Gas Compact Commission estimates the number at about 50,000 nationwide. Pennsylvania officially lists about 8,200 abandoned wells.

Annual reports from the New York DEC's Division of Mineral Resources as early as 1995 have repeatedly identified unplugged, abandoned wells as a major problem, with about 4,800 known and an equal number yet to be discovered in woods, backyards, playgrounds and even under buildings.

"One of the biggest challenges facing the oil and gas regulatory program is the growing liability of idle and abandoned wells," Gregory Sovas, former director of the minerals division, wrote in the 1995 report. These wells pose a liability for local taxpayers, he said. "This is not a hypothetical worst-case scenario, but reflects current events already happening in the counties."

For example, in the Allegany County community of Bolivar 65 miles southeast of Buffalo, workers found several abandoned well while constructing a school bus garage, and in Wyoming County, the DEC plugged a well that was leaking brine in a school parking lot, according to the DEC reports. Such wells pose a risk for groundwater contamination by providing a pathway for hydrocarbons and other toxic pollutants to migrate to the water table.

In addition to unplugged wells, the DEC reports identify vegetation killed by leaking waste pits, brine leaking from rusted storage tanks, and crude oil contaminating residential wells and streams.

The agency said the cost of plugging abandoned wells ranges from $5,000 to $50,000 per well. DeSantis said the DEC has plugged more than 115 wells since 2002 using $459,000 from the Oil and Gas Account. The account balance is currently $156,000, and there are 4,100 wells on the priority list. The Environmental Protection Agency has plugged another 126 abandoned, leaking wells, DeSantis said.

Leaking brine storage tanks were also identified as a problem in the DEC reports. In 1996, DEC inspectors found that about 40 percent of brine tanks examined at active well sites were leaking or had holes in them. The 1997 report said enforcement efforts had reduced the number to 7 percent.

In addition to annual reports, the DEC also has individual spill reports detailing numerous incidents. For example:

— In September 2011, a family in Bolivar had black crude oil in their sinks, toilets and shower. Tests of their well found crude that matched oil sampled at an oil well more than 1,000 feet away. DeSantis said the DEC upgraded and deepened the family's well and has done quarterly water testing that has shown no petroleum contamination.

— In December 2010, oil was reported in a residential water well in nearby Scio. The resident believed it came from an oil well about three-quarters of a mile up the road; he hired a local well driller to clean out his water well. DeSantis said investigators found evidence of oil drilling on the site decades ago.

— In May 2011, a man in nearby Allentown, N.Y., alerted the DEC to an oil separator pond at a neighboring drilling site. The inspector found crude oil had been discharged into a stream leading to the Genesee River. The driller was ordered to clean up the spill and install a device to prevent discharges to the creek. DeSantis said additional action against the driller is being considered.

© 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.

Anti-fracking group cries foul on DEC

09/26/12

BINGHAMTON, N.Y. -- Anti-fracking groups say they have new, documented proof that shows New York State isn't ready for high-volume hydrofracking.

Toxics Targeting, an Ithaca-based environmental group, gathered with elected officials in Binghamton Wednesday afternoon to present information from DEC reports that it says illustrates lack of preparedness for extensive natural gas drilling.

The group says it sifted through thousands of reports, finding several examples of contamination and improper regulation at gas and oil sites around New York State. Among these are complaints from residents regarding crude oil in drinking water, residue in sinks and showers, as well as chemical waste in wetlands.

Toxics Targeting says this is evidence the state is unable to safely handle drilling techniques that are already in place and therefore shouldn't be able to use the Supplemental Generic Environmental Impact Statement to regulate fracking.

"We now know that the bedrock assertion of that entire proceeding is not true, it's demonstrably false and that's why we're calling on the governor today to withdraw the revised draft, send it back to the drawing board," said Walter Hang of Toxics Targeting.

The State DEC has been working on an environmental impact statement that would outline regulations for gas drilling for more than four years.

Hang, DEC differ over uncapped wells

09/26/12

Related Documents

BINGHAMTON — Years after an Allegany County family found crude oil pouring from its showerhead in 2008, they still don’t feel comfortable drinking their water.

A tank of brine continuously pours contaminants into a western New York lagoon. Across the state, nearly 5,000 abandoned oil and gas wells haven’t been properly capped.

Walter Hang, president of an Ithaca-based environmental database firm, Toxics Targeting, on Wednesday released a set of documents he says indicate shortcomings in the state Department of Environmental Conservation’s regulation of conventional oil and gas drilling, and lead to questions about whether the agency is equipped to regulate hydrofracking.

“I think this is a breach of public trust. I think what we’re seeing is a conspiracy of silence,” Hang said at a news conference in front of Binghamton City Hall. “For the last four years, none of this has been brought to the public’s attention by the DEC.”

The documents, culled from 25 years of annual reports from DEC’s Division of Mineral Resources, show the agency’s regulators have been attempting to grapple with a slew of uncapped wells left over from decades when regulations weren’t as strict.

Hang also took issue with the agency’s regulation of the disposal of wastewater produced in the drilling process, and enforcement of drinking water contamination issues.

At the news conference, Hang, along with Binghamton Mayor Matthew T. Ryan and Assemblywoman Barbara Lifton, D-Ithaca, called for the DEC to scrap the results of its four-year effort to draft regulations for fracking in New York.

DEC has said its review of fracking is based on a history of successfully regulating conventional drilling.

“We now know that the bedrock assertion of that entire proceeding is simply not true,” Hang said. “It’s demonstrably false.”

In 2008, DEC began currently working on a Supplemental Generic Environmental Impact Statement, or SGEIS, meant to supplement its existing oil and gas regulations to accommodate hydrofracking. Permits for fracking in New York will not be issued until the much-debated document is released.

Lifton, on Wednesday, called for the DEC to start the review process over.

“If the state of New York cannot regulate this old industry and be responsible for either cleaning up or finding the responsible parties to do the cleanups for New York state’s citizens,” she said, “how can we possibly engage in high-volume hydrofracking?”

“This is unmistakable evidence that this industry cannot come and wreak havoc on any part of our state while we just don’t have any regulatory scheme in place to control them,” said Ryan, an outspoken fracking opponent.

In a statement, DEC spokeswoman Emily DeSantis said the agency is working to plug the abandoned wells, many of which are decades old.

Hang’s claims of unenforced drinking water contamination drew the most pushback from the agency.

“DEC takes all complaints of water contamination seriously and works with the state Health Department to ensure New York residents have a safe source of drinking water,” DeSantis said. “In addition, under the requirements of the draft SGEIS, there are multiple protections and measures required to safeguard the integrity of New York’s drinking water supplies.”

Drinking water

Hang said he discovered “multiple examples of people with horrific drinking water contamination problems” that are related to oil and gas drilling and haven’t been properly resolved by the DEC. The agency contests at least two instances where Hang said enforcement was inadequate.

The worst case documented in DEC reports, Hang said, was an instance in Bolvar, where the Perkins family found crude oil in its shower four years ago.

“This family had up to 12,971,000 parts per billion of oil in their water, and they have not been able to drink their water since roughly 2008,” Hang said Wednesday. “So after the well initially got flushed out, they still had black water (that) smells like petroleum.”

In a video released by Hang, the family says the water is still discolored and smells, and they will not drink it.

However, DeSantis said state funding was used to upgrade and deepen the Perkins family’s well to a potable drinking water source and remove residual oil.

DEC records of its response to the Perkins family, also among documents released Wednesday by Hang, show the family is still complaining about petroluem smells and discoloration, although contaminants haven’t been detected in three recent tests.

In another case cited by Hang, Allegany County resident Randy Harms reported oil contaminating his drinking water well. On a visit to the site, Hang said, “you could smell the oil in the water.”

DeSantis, in response, said the homeowner told the DEC the contamination problems at this well have abated.

“DEC staff investigated the complaint and found no wells within approximately 1,800 feet of the property, and there are no active wells within a mile of the property,” DeSantis said.

In Hang’s video, Harms said his water still smells like kerosene.

Not all of the instances highlighted by Hang are directly related to drilling. Among other spill incidents Hang documented are a 70-gallon spill after a car ran through an intersection into a 5,000-gallon container of crude oil, and a truck rollover that leaked “a minimal amount” of wastewater, according to DEC documents.

Unplugged wells

In the 1995 Division of Mineral Resources annual report, then-director Gregory Stovas said something needed to be done about abandoned wells: “One of the biggest challenges facing the oil and gas regulatory program,” he wrote, “is the growing liability of idle and abandoned wells.”

The annual reports document instances of unplugged wells in a school parking lot, a playground and private yards. There are more than 4,700 across the state, Hang said.

Documents indicate unplugged wells pose the threat of contaminating groundwater or creating a walking hazard, and will cost between $5,000 and $50,000 each to fix.

DeSantis drew a distinction between the old wells the agency is still trying to locate and plug, and any new wells that would be drilled under the draft regulations for hydrofracking.

Under DEC’s draft requirements for hydrofracking, drilling companies would generally need to survey the land within one mile of the proposed well location. If an unplugged deep well is found, DEC would require it to be plugged before fracking begins.

“DEC and EPA continue to work to plug abandoned wells in New York state, many of which were drilled decades ago,” De Santis said.

Brine

Hang said his review indicates more than 80 percent of gas drilling wastewater “has traditionally been dumped into pits, ponds, and lagoons.”

At the news conference Wednesday, Hang showed pictures that showed brine leaking from a tank into a lagoon in western New York.

“When you drill for gas and oil, what do you do with this contaminated wastewater?” Hang said. “There is not a single wastewater treatment plant anywhere in New York to handle this material.”

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