Monday, November 2, 2009

Chesapeake Energy Corp Abandons Drilling Marcellus Shale

The Chesapeake Energy Corporation, one of the nation’s biggest gas producers, has decided not to pursue drilling for natural gas within the upstate New York watershed. The Center opposed the drilling in the New York watershed. Although the area holds substantial gas reserves, it is unfortunately in an environmentally sensitive region that supplies unfiltered water to nine million people.

Chesapeake is the largest leaseholder in the Marcellus Shale, a subterranean layer of shale rock that runs from New York to Tennessee. The shale is believed to hold substantial natural gas reserves.

But extracting gas from shale relies on a method called hydraulic fracturing that has stirred broad concerns. Water, laced with chemicals, is blasted down gas wells at high pressure to break the rock and allow gas to flow out more easily. The technology has vigorously expanded in recent years, allowing for enormous growth in the nation’s natural gas reserves.

But the concerns include the use of chemicals, the disposal of wastewater and the danger of leaks and spills into groundwater and deep aquifers. There also has been a string of explosions from Wyoming to Pennsylvania.

Under energy legislation passed in 2005, the industry won an exemption from the federal Safe Drinking Water Act. Chesapeake acquired 5,000 acres in the watershed when it bought Columbia Natural Resources a few years ago, and it is currently the only leaseholder in the area. (NYT, 11/27/09)

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