Frack Check WV » Dominion

David and Goliath Story: Small Towns Versus Big Gas & Bigger Government

Duane Nichols — Thu, 03 Jan 2013 21:51:29 +0000

: Myersville Community Meeting

IN THE MIDST OF THE FRACKING CONTROVERSY, A RURAL COMMUNITY IN MARYLAND IS AT THE CENTER OF A CLASSIC DAVID AND GOLIATH STORY, PITTING SMALL TOWN AMERICA AGAINST BIG GAS AND EVEN BIGGER GOVERNMENT

By Ann Marie Nau, Myersville Citizens for a Rural Community, MD

As the controversy surrounding the extraction method known as hydraulic fracturing, or fracking, intensifies nationwide, Maryland has yet to issue any permits for fracking wells. In 2011, Maryland Governor Martin O’Malley signed an Executive Order establishing the Marcellus Shale Safe Drilling Initiative, which required the Maryland Department of the Environment and the Department of Natural Resources along with an advisory panel to study the issue and present recommendations regarding the extraction of natural gas in Maryland. While the Marcellus Shale Safe Drilling Initiative is not technically a moratorium on drilling and does not restrict the State’s ability to issue permits under existing law and regulation, many of the land leases signed in anticipation of drilling have expired. The issue remains contentious with some lawmakers calling for a moratorium while others insist that fracking is safe and poses an economic boon for the state.

While lawmakers continue to debate the topic of fracking in Maryland, some Maryland communities are already feeling the negative impacts of this extraction method.

The quaint town of Myersville, Maryland, nestled in the scenic Middletown Valley, finds itself at the center of a classic David and Goliath Story, pitting small town America against big gas. A rural community of approximately 1,626, they celebrate the opening day of baseball with a parade down Main Street. The volunteer fire department delights the elementary school children each summer during Field Day by spraying them with the fire hoses and by handing out candy during the annual Christmas parade. It is a community with families that have lived in the valley for generations and newcomers seeking the peace and security a small town offers.

It is here, less than 1 mile from the elementary school, closer still to the Fire Hall, which houses the only evacuation shelter, and within 2 miles of the entire town, that Dominion Transmission, Inc. (DTI), a subsidiary of power giant Dominion, seeks to place a 16,000 hp compressor station to move gas along its interstate gas pipeline. Annually, the compressor station would emit: 47,000 lbs. of Nitrogen Oxide, 10,000 lbs. of Carbon Monoxide, 2,000 lbs. of Volatile Organic Compounds, 500 lbs. of Sulfur Dioxide, 5,500 lbs. of Particulate Matter, 1,800 lbs. of Hazardous Air Pollutants and 106,000 lbs. of Carbon Dioxide.

Nitrogen Oxide causes respiratory problems, heart conditions, and lung damage. Volatile Organic Compounds are carcinogenic and toxic substances that can damage the liver, kidney and central nervous system and can combine with nitrogen oxides to form ground-level ozone, which can cause asthma and decrease lung function. Sulfur Dioxide, along with nitrogen oxide, are principal contributors to acid rain. Sulfur dioxide reacts with other chemicals to form particulate pollution, which can damage lungs and cause respiratory illness, heart conditions, and premature death.

In response to DTI’s proposal, over 600 opposition letters representing over 700 citizens, reflecting about 42% of the population, were submitted. The so-called scoping meeting where the plan to construct the station was presented yielded a standing room only crowd. Rallies were held in front of the town hall in opposition. In August, the Mayor and Town Council unanimously voted against amending the Town Master Plan, denying DTI the necessary permits to build and operate the station.

Despite the outcry, despite the Town’s findings, the project pushes forward. Because not only is Myersville fighting big business, it is fighting big government. The citizens of this town were repeatedly told that while DTI should attempt to get the appropriate local permits, ultimate approval for the project lies with the Federal Energy Regulatory Commission (FERC). Undeterred, the citizens of Myersville have continued to fight for their town. They have submitted numerous letters to FERC, outlining their objections, pointing out concerns, citing the Clean Air Act, noting the proximity of the elementary school and the Lucy School (the only Maryland Platinum LEED certified school) and pointing out numerous errors in not only the initial application but also the whole FERC process. They formed the Myersville Citizens for a Rural Community and hired an attorney.

On December 20, 2012, FERC issued its order approving the project. Despite this, the citizens of Myersville continue to battle for their community and the health and safety of their children.

Many of the citizens also believe that while DTI maintains that this infrastructure is necessary to move gas to two shippers, DTI’s real motives lie in preparing for the approval of liquefaction facilities at Cove Point in Lusby, Maryland. The gas extracted at such a heavy cost to the environment would not be used domestically to foster America’s energy independence but rather sold at higher prices in overseas markets. Dominion is one of the nation’s largest producers and transporters of energy, with a portfolio of approximately 27,400 megawatts of generation, 11,000 miles of natural gas transmission, gathering and storage pipeline and 6,300 miles of electric transmission lines. Dominion operates one of the nation’s largest natural gas storage systems with 947 billion cubic feet of storage capacity and serves retail energy customers in 15 states.

WVU Extension Program on Marcellus Criticized for Omission of Risks; Bias due to Industry Funding?

Dee Fulton — Tue, 26 Apr 2011 05:11:13 +0000

In my brief stint as a CPA, I was taught that for accounting purposes, it is not enough that a transaction is legal and not improper by technical standards. The transaction must also have the appearance of propriety. The appearance of propriety is lacking in the relationship between the WVU Extension Service and the oil and gas industry and the effect of that relationship upon the Marcellus public education series sponsored by WVU Extension Service. Recently players in the Marcellus shale gas industry donated $125,000 to the Extension Service to train and fund a program of public education regarding Marcellus shale. Chesapeake Energy and Dominion each donated $50,000 and EQT gave $25,000 in funding. The West Virginia Sierra Club has criticized this program as being incomplete in that the speakers do not address the impacts and risks which accompany Marcellus shale gas drilling. Carol Warren, an officer with the West Virginia Environmental Council, previously brought attention to this issue in a pointed Letter to the Editor published on April 14th. Ms. Warren wrote, “When I inquired whether the presentations would include information for the public about known environmental impacts, the myriad related health effects or plummeting property values, I was told there are many issues about drilling and these would have to be dealt with in later sessions. How much later? When pigs fly?” story here, Charleston Gazette 4-23-11

PS Chesapeake Energy has also helped out over the past 3 years by providing funding ($20,000 per year) for an annual national training program that encourages community development; that program is administered by WVU Extension.

Special Report: Task Force Charged with Opening Door to Chemical Industry in Kanawha Valley

Dee Fulton — Fri, 18 Feb 2011 20:05:34 +0000

Bayer CropScience Plant Entrance, Institute, WV AP photo/Jeff Gentner

Bayer Corporation wants to have a convenient supply of product for its New Martinsville,WV and Institute, WV manufacturing plants and Acting Governor Earl Ray Tomblin has created a Marcellus to Manufacturing Task Force charged with the mission of making that happen for Bayer and potentially other chemical corporations. The Governor has ordered the executives of several gas production companies, as well as other helpful principles such as reps from economic development agencies, labor, and state government to come to the table with Bayer Corporation and the Chemical Alliance Zone primarily for the purpose of expediting the development of an ethane cracker plant. An ethane cracker plant is the missing link between the natural gas industry and the chemical industry. It converts ethane, another constituent of natural gas, to ethylene. Bayer currently purchases an estimated 200 million pounds of ethylene oxide which is shipped from the Gulf region for use as feedstock in manufacturing other chemical compounds.

Before mid-January, when Dominion Resources announced that it has reached an agreement with PPG Industries on an option for Dominion to purchase land at PPG’s Natrium, WV, site, it seemed unlikely that a ethane cracker plant, estimated cost $1 billion, would materialize in West Virginia. The land is being purchased by Dominion as a site for a fractionation plant to separate non-methane components, including ethane, butane and propane, from natural gas. The Natrium site is only about 9 miles north of Bayer’s New Martinsville, W.Va. facility and is close to Dominion’s TL-404 pipeline which that firm plans to convert into a wet gas service line. Natural gas is referred to as wet gas before the heavier hydrocarbons such as ethane are removed. The Natrium site also is close to railroad, pipeline and barging services for transport of natural gas liquids.

As independent efforts by Bayer to entice a cracker plant to move in next door appear to have been nonproductive, it would greatly behoove Bayer to negotiate a deal to build a stakeholder partnership between the gas producers, the fractionator (Dominion), and an ethane producer/cracker plant operator. In addition to the cost savings of cheaper feedstock (transport costs nearly eliminated) as a motivator, the company has recently had to adapt to the loss of production. In August, 2010, Bayer was forced to agree to phase out production of aldicarb (trade name Temik) after this EPA finding: A new risk assessment conducted by EPA based on recently submitted toxicity data indicates that aldicarb no longer meets our rigorous food safety standards and may pose unacceptable dietary risks, especially to infants and young children. A closely related issue is the storage of methyl isocyanate gas (MIC), an ingredient of aldicarb, at the Institute plant. Twice as much of the highly toxic compound was stored there as was involved in the grueseome catastrophe in Bhopal, India in 1984. Half a million people were injured or killed after an explosion released the deadly MIC gas at a Union Carbide plant – the worlds’s worst industrial disaster. There had been public pressure to eliminate the storage of MIC at Institute prior to an August 2008 explosion at the Institute plant which killed 2 workers and led a congressional investigation to conclude that “it could have been worse than Bhopal.” This issue has been in recent news and a hearing is scheduled for Feb. 25th. The point is that Bayer has idle capacity at both of its WV plants; in January it was announced that 220 workers would be laid off at Institute, 44% of their workforce there. Bayer has motivation to be flexible in negotiations for a cracker plant deal as it seeks ways to return the plant to capacity. Incidentally, Bayer’s new CEO, Greg Babe, has a personal connection with New Martinsville; it’s his hometown.

A cracker in West Virginia would benefit the gas production companies because then the ethane would not have to be piped elsewhere. Historically, natural gas production has been the magnet for ethane crackers. Currently pipeline projects are being planned to move Marcellus ethane to the crackers in the Gulf region.

Among the likely candidates which may be courted for cracker plant development are Chevron, Shell, Exxon and Reliance, each of which have a more than $1 billion stake in the Marcellus Shale. Others are BP, Dow Chemical, Formosa Plastics, LyondellBasell, Koch Industries, and Westlake Chemical.

Will the public be expected to be a partner in this venture? Will TIF funds be awarded a project that emerges from the Task Force efforts? Why is there public representation in a corporate businessroom? Will, in fact, we, the citizens of West Virginia, be expected to participate in a public plan to subsidize private industry in a recovery which would lead to job creation or restoration? Of course, Bayer may not be the only chemical corporation to benefit. But it is certainly poised to be the immediate beneficiary of any successful effort to bring an ethane cracker plant to the Kanawha Valley area.

Marshall County Hosts Marcellus Shale Community Education and Information Meeting

Nicole Good — Sat, 05 Feb 2011 18:41:59 +0000

The West Virginia University Extension Service is sponsoring an education and information meeting as a way to help community members obtain factual information on issues related to Marcellus Shale Drilling and the natural gas industry. The free presentation is open to the public, and starts at 6:30 pm on Wednesday, February 9th at Sherrard Middle School in Marshall County.

This is the second education and information meeting sponsored by the WVU Extension Service. The first program took place on Tuesday, November 11, 2010 in Buckhannon, WV. The three powerpoint presentations from the November meeting are available at http://anr.ext.wvu.edu/oil_gas/presentations.

Initial funding for these programs was provided by Chesapeake Energy, EQT, and Dominion. For more information on Marcellus gas drilling sponsored by the WVU Extension Service, visit their Oil and Natural Gas page.