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Marcellus Shale

Permanent trust funds: Funding economic change with fracking revenues

By Devashree Saha and Mark Muro - Brookings, April 19, 2016

The recent boom and bust of unconventional oil and gas development, or “fracking,” has reopened serious questions about resource management in many U.S. states. While the oil and gas boom generated revenue, jobs, and economic development, the recent bust has adversely impacted state budgets due to declining industry investments in exploration and production and job cuts.

The boom-bust cycle of unconventional oil and gas development highlights the need for strategic management by state governments of fracking-related revenues, not only to minimize the less desirable aspects of the boom-bust cycle but also to enhance long-term prosperity. States can address these challenges by imposing a reasonable severance (extraction) tax on their oil and gas industry and channeling a portion of the revenue into permanent trust funds. In doing so, states can convert volatile near-term revenues from unconventional oil and gas development into a longer-term and continuous source of investment funds for building sustainable and dynamic economies.

To that end, this report advances five elements of good fund governance and management that states should consider in the design and implementation of permanent trust funds:

  • Establish an effective governance framework
  • Define the fund’s revenue source, deposit, and withdrawal rules
  • Design the investment strategy
  • Seize the opportunity to invest fund earnings to economic transformation
  • Formulate explicit disclosure and transparency standards

Read the text (Link).

Stand with Dimock families as they take their water contamination case to federal jury trial

By Alex Lotorto - Energy Justice: Shale Initiative, April 3, 2015

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

UPDATE: Dimock PA families with water contamination will finally have their day in court against Cabot Oil & Gas, but only with your help. The federal jury trial will start on November 30, 2015 in the Scranton Federal Courthouse and will be the highest-profile court case related to shale gas development in history. Donations accepted here.

24 People Arrested Blocking Entrances to FERC to Protest Proposed Fracked Gas Export Facility

By Chesapeake Climate Action Network - Originally Published at Popular Resistance, July 14, 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

WASHINGTON, DC—Residents impacted by shale gas infrastructure and their supporters blocked the entrances to the Federal Energy Regulatory Commission (FERC) headquarters today in protest of the proposed Cove Point liquefied natural gas (LNG) export facility and others proposed around the country.

This is the second consecutive day of action to demand that the Obama administration take the voices of impacted communities seriously in the federal regulatory process, and that FERC reject Dominion Resources’ proposed LNG export facility in Cove Point, Maryland, just 50 miles south of the White House on the Chesapeake Bay. Over a thousand people rallied on the National Mall and marched to FERC yesterday despite scorching heat and high humidity.

Protesters linked arms and blocked the main entrance and a secondary entrance of FERC as employees came in to work this morning. A total of 24 people were arrested for the shut down, including participants from Maryland, Pennsylvania, Virginia, North Carolina, Connecticut, and Washington, D.C. The protesters were arrested by Homeland Security police and then turned over to the DC Metropolitan Police for processing. They were charged with “incommoding,” or blocking a public passageway, and are being released with a citation and $50 fine.

Pennsylvania Instructed Its Employees To Ignore Residents Sickened By Drilling

By Andrew Breiner - Think Progress, June 20, 2014

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

The Pennsylvania Department of Health instructed its employees never to talk to residents who complained of negative health effects from fracking, StateImpact Pennsylvania reported Thursday. Two retired employees of the department detailed restrictions on attending meetings, lists of topics they could not discuss, and a general departmental hostility to the idea of health problems linked to shale gas drilling. The state’s governor, Tom Corbett, declined to comment for StateImpact Pennsylvania’s story.

Pennsylvania has had more than 6,000 hydraulic fracturing wells drilled within the last six years, and zero state studies on their health impacts. In Pennsylvania, and near fracking operations across the country, people have won settlements from fossil fuel companies after being sickened. In many cases the drilling company imposes a gag order to prevent sickened people from spreading the word about what caused their illness and building the case that fracking has negative health effects.

In 2011 Pennsylvania’s Marcellus Shale Advisory Commission recommended a registry to collect health data from people living near fracking operations. Three years later, it still doesn’t exist. Across the country in Colorado, legislators tried to commission a study on the health effects of living near drilling, but fossil fuel advocates ensured its demise. Doctors want more data on health effects of fracking, but the interests of the drillers usually win out.

Former Pennsylvania Health Employees Say Bosses Enforced Silence on Shale Drilling

By Brandon Baker - EcoWatch, June 19, 2014 (reposted with permission from EcoWatch)

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.

A shocking investigative report revealed Thursday that Pennsylvania state health employees may have compounded the danger of Marcellus Shale drilling by systematically refusing to respond to residents’ concerns about it.

A former Department of Health employee said she was told not to return phone calls from residents who expressed concerns about natural gas drilling, NPR reported in its State Impact series.

“We were absolutely not allowed to talk to them,” said Tammi Stuck, who worked as a Fayette County community health nurse for nearly four decades.

Another department retiree, Marshall P. Deasy III, confirmed Stuck’s accusation. He said that drilling was the only public health issue he remembers officials enforcing silence on during his 20 years with the department.

(Working Paper #1) Global Shale Gas and the Anti-Fracking Movement

By Sean Sweeney and Lara Skinner - Trade Unions for Energy Democracy, June 2014

This paper has been prepared to assist unions and their close allies who wish to better understand the impacts of shale gas drilling, or “fracking,” and want to develop a position or approach to fracking that protects workers, communities, and the environment. It begins with a summary of the shale gas industry’s global expansion, and then looks at the opposition to fracking that has emerged in a number of key countries. A preliminary profile of the anti-fracking movement highlights the goals and characteristics of this movement as well as the issues that lie at the heart of the resistance.

The paper concludes by attempting to bring together the available information on unions’ perspectives and positions on this increasingly important issue. It also raises for discussion the prospect of unions giving support to a global moratorium on fracking based either on the precautionary principle (the health and environmental effects are not fully understood or have still to be adequately addressed) or on the more definitive assessment that fracking can never be sufficiently safe in terms of its impact on health and the environment and should therefore be stopped altogether.

Read the report (PDF).

Exaggerating the Employment Impacts of Shale Drilling: How and Why

By Frank Mauro, Michael Wood, Michele Mattingly, Mark Price, Stephen Herzenberg, and Sharon Ward - Multi-State Shale Research Collaborative, November 2013

Over the last five years, firms with an economic interest in the expansion of drilling in the Marcellus and Utica shale formations — and their allies, supporters, and trade associations — have used a variety of tools and techniques to exaggerate the employment impacts of shale drilling. These strategies have ranged from the use of inappropriate measures, such as data on new hires, to represent job growth to the misleading attribution of all jobs in “ancillary” industries to the shale industry.

A review of statements by representatives of shale drilling firms and their allies makes the motivation for this exaggeration clear — to preclude, or at least to minimize, taxation, regulation, and even careful examination of shale drilling.

Read the report (PDF).

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