Legal issues and shale gas boom

The shale gas boom and fracking revolution are having a significant impact on the economies of states like Ohio. Some environmentalists are also seeing the positive side despite the drinking water controversy as natural gas burns much cleaner that coal.

But many legal issues remain and loom on the horizon.

Ohio’s anticipated energy boom from hydraulic fracturing of shale deposits has oil and gas companies, investors and property owners scrambling for a piece of the action.

On the way to digging up the expected treasure, though, are legal sand traps that could slow or even stop production. They go well beyond the basic issue of who owns the buried oil and gas rights, disputes hashed out in courts since the start of the Utica shale rush in 2010.

Emerging battles concern possible threats to endangered species, Clean Air Act violations and claims that oil and gas drilling in Ohio is abnormally dangerous.

The Utica shale layer, centered in Ohio but stretching from Quebec to Tennessee, has been touted as holding hydrocarbons worth tens of billions of dollars — maybe $500 billion worth, if you believe the prediction of Aubrey McClendon, chief executive of Chesapeake Energy Corp., the top driller in Ohio.

The Ohio Shale Coalition estimates that almost 2,000 fracking wells will be drilled in the state by the end of 2014.
Recent fracking-law discussions at Case Western Reserve University School of Law and the McDonald Hopkins law firm in Cleveland, as well as interviews with energy-sector attorneys, suggest a boom of another sort — in legal questions that riddle the shale play.

Stay tuned as this issue develops.

Natural gas helps CO2 emissions drop

In a surprising bit of good news, CO2 emissions are dropping in the United States, and much of the credit goes to the use of natural gas.

In a surprising turnaround, the amount of carbon dioxide being released into the atmosphere in the U.S. has fallen dramatically to its lowest level in 20 years, and government officials say the biggest reason is that cheap and plentiful natural gas has led many power plant operators to switch from dirtier-burning coal.

Many of the world’s leading climate scientists didn’t see the drop coming, in large part because it happened as a result of market forces rather than direct government action against carbon dioxide, a greenhouse gas that traps heat in the atmosphere.

Natural gas has been controversial due to fracking, but the carbon emission benefits can be substantial if gas replaces coal. It’s also adding to job growth and other economic activity as well.

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