Page 12 ■ Thursday, December 29, 2011


NATION & WORLD


Encana mounts response to EPA fracking report


By MEAD GRUVER Associated Press


Corp. went on the offensive Dec. 20 fol- lowing a federal report that for the fi rst time theorized a link between a petro- leum industry practice called hydraulic fracturing and groundwater pollution in a Wyoming gas fi eld. The company told reporters on a


CHEYENNE, Wyo. (AP) — Encana


the agency said could have been products of hydraulic fracturing chemicals. While Encana said EPA’s procedures for drilling two wells to test the groundwater could explain the chemicals, the EPA said that isn’t possible. Hydraulic fracturing could have fa-


conference call about the objections it had to the Dec. 8 draft report by the U.S. Environmental Protection Agency. Encana spokesman Doug Hock said the company doesn’t object to the EPA data so much as the agency’s interpretation of it.


they found benzene. We’re not disputing that,” Hock explained after the call. “That is there, naturally occurring, because they’re in a gas-bearing zone.” Encana owns many of the wells in


the Pavillion gas fi eld and employed hy- draulic fracturing, or “fracking,” to help extract that gas. Fracking has become a critical element of rapidly expanding gas development in Wyoming and nation- wide.


surized water, sand and some chemicals underground to open up fi ssures and improve the fl ow of oil or gas. Among the EPA’s preliminary fi ndings in the small, sprawling community of Pavillion was the discovery of chemicals


The process involves pumping pres-


cilitated the underground migration of benzene and other chemicals, according to the EPA report. “Alternative explanations were care-


“The benzene, for instance. Yeah,


fully considered to explain individual sets of data. However, when considered together with other lines of evidence, the data indicates likely impact to ground water that can be explained by hydraulic fracturing,” the report said. The EPA has opened a 45-day public


Associated Press


comment period on the report. A 30-day period of scientifi c peer review will fol- low the public comment period. “We welcome the public’s input, in- cluding Encana’s, during this public comment process and EPA looks forward to an ongoing constructive dialogue with the company about the safe and respon- sible development of our important natural gas resources,” spokeswoman Betsaida Alcantara said in a statement. Encana offi cials said the peer review should be fully independent without too much infl uence from either the agency or company. The EPA said a contractor will use criteria provided by EPA to fi nd peer review panel members not affi liated with EPA. Environmentalists for years have


In this Sept. 2009 photo, Encana Corp. placed two 2400 gallon water containers inside this unit on Louis Meeks’ property in Pavillion, Wyo. The ranking Republican on the Senate Environment and Public Works Committee is asking the head of the U.S. Environmental Protection Agency for more information about an EPA investigation into groundwater contamination in a Wyoming gas fi eld.


sounded the alarm about the risk of fracking contaminating groundwater. The EPA report did not link fracking


is as much as two miles deep. As a result, the shallowest fracking


and low levels of hydrocarbons found in domestic water wells in Pavillion. But the report was groundbreaking because the EPA had not previously suggested a link between fracking and groundwater pol- lution in a specifi c case. The fracking in Pavillion hasn’t been


occurred fairly close to the deepest wells used by Pavillion residents to get drink- ing water. The EPA also has been investi- gating more than 30 old industrial waste pits as possible pollution sources. The report focused on the EPA’s latest


identical to fracking elsewhere in the U.S. or even Wyoming. In Pavillion, the gas is relatively close to the surface — just a couple thousand feet down, much shal- lower than other gas fi elds where the gas


research in more than two years of study of possible contamination in Pavillion. The EPA conducted the studies at the urging of residents who said their well water had begun to stink of chemicals.


Oil approaches $100 on global security concerns


Iran a concern; Iraq set to be


major producer By JONATHAN FAHEY AP Energy Writer


NEW YORK (AP) — Oil prices rose


to near $100 a barrel Dec. 23 as worries over global security issues outweighed weak economic data in the U.S. Benchmark crude rose 21 cents to $99.74 per barrel in New York. Brent crude rose 13 cents to $108.02 per barrel in London. Tensions between Iran and western


nations, along with unrest in Syria, Bah- rain, Kazakhstan and Iraq have raised worries that oil supplies could be dis-


rupted if the unrest spreads or grows more serious. While none of those situations has


disrupted oil supplies yet, traders say it is too dangerous to sell oil or bet that oil prices will fall with tensions so high near so many important oil-producing regions. Even small disruptions in oil supplies can send prices dramatically higher. Among the biggest concerns is Iran,


the world’s fourth biggest producer of crude. The U.S. and Europe may tighten sanctions against Iran over the West’s fear that Iran is trying to build a nuclear bomb. Also, Iraq is expected to become the fastest growing producer in the Middle East in the next several years as it recovers from war and tries to tap its enormous reserves of oil. But a surge in violence there since the U.S. withdrew troops is raising concerns that Iraq won’t


be able to increase production as fast as hoped. “Iran might not passively wait for sanctions to be applied and could act unilaterally to embargo supplies,” J.P. Morgan said in a report. “We are also concerned about Iraq, where political uncertainties seem to be rising following the U.S. troop pullout.” Traders also say they expect European


fi nancial authorities to increase the fl ow of money in the regional economy to try to slow or stop the region’s slide into recession. Investors tend to buy com- modities such as oil when more money becomes available, raising their prices. Economic data in the U.S. has been mostly positive this week, which helped propel oil to four straight days of gains. Demand for oil and gas grows with the economy as shippers move more goods and consumers drive and fl y more.


Jobless claims fell and housing con-


struction increased. But the Commerce Department reported on Dec. 23 that consumer spending and incomes were growing at a very weak pace, suggesting continued sluggish economic growth. Trading volume is normally low dur- ing the next week as many traders take vacations around the Christmas and New Year’s Day holidays. Global oil mar- kets were closed Monday for Christmas. Average retail gasoline prices rose less than a penny Dec. 23 to a national aver- age of $3.22 per gallon. In other energy trading on the Ny-


mex, natural gas fell 3 cents to $3.14 per 1,000 cubic feet. Heating oil rose about a penny to $2.9234 a gallon, and gasoline futures were up almost 2 cents at $2.6530 a gallon.


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