Fracking in New York State: Weighing Risks and Benefits

ABSTRACT

The controversial decision to ban fracking in New York State, most notably in the Marcellus Shale formation, was informed by global, national, state, and local issues that have general relevance. Without prejudging whether fracking can be undertaken safely, we discuss the science of fracking, focusing primarily on widely reported public health and environmental risks, especially those associated with greenhouse gas emissions. Based upon such concerns, any reconsideration of the fracking ban in New York should include, at a minimum, consideration of imposing public and environmental health risk management requirements as proven feasible and successful via industry experience. Fracking should be viewed as one choice among alternative energy strategies, all of which pose risks, rather than simplistically classified as either safe or unsafe. Assuming that our energy needs will continue to grow, our goal should be to guide the evolution of our energy portfolio toward sustainable sources as they emerge as feasible energy alternatives.

Notes

1 Portions of this article were published previously: Michaels, Robert A. and Randy W. Simon. Fracking in New York State: Weighing risks and benefits. Albany, New York State Bar Association, NYSBA Municipal Lawyer, 27(3):12–16, Fall 2013.

2 Argonne National Laboratory investigators estimated methane leakage at 2.0 percent over the life cycle of the well, and at 1.2 percent for drilling, completion, and production activities. Prior to large-scale adoption of fracking, USEPA estimated leakage at 1.4 percent over the life cycle, and at 0.4 percent for drilling, completion, and production. The U.S. National Oceanic and Atmospheric Administration (US NOAA) reported methane leakage rates of 4 percent at a shale gas field near Denver (Pétron et al. 2012), and of nearly 9 percent in the Uinta Basin in Utah (Tollefson 2013, page 493).

3 Superfund represents a form of industry-funded public insurance, whereas the specialty insurance market also offers private insurance to the energy sector: owners and contractors for pollution releases during fracking, with optional coverage for completed operations. A private insurance requirement would constitute another avenue for management of long-term risks.

4 Broome County, New York Code: § 222-7. Mineral and gas rights. All County-owned property which exceeds five acres shall be sold subject to the retention of subsurface mineral and gas rights by the County except in the case of an approved hardship sellback on foreclosed property pursuant to § 222-13.