February 25, 2011 07:25 ET
Newco Energy Acquisition Holdings (NEAH), LLC and Senior Energy Industry Executive Karl W. Miller Support Ban on Use of Toxic Chemicals in Hydraulic Fracturing to Produce Oil and Natural Gas
NEW YORK, NY--(Marketwire - February 25, 2011) - Newco Energy Acquisition Holdings (NEAH), LLC and Senior Energy Industry Executive Karl W. Miller today announced their support to ban the use of toxic chemicals in hydraulic fracturing to produce oil and natural gas. Mr. Miller is a major supporter and advocate for the environmentally responsible development and production of Oil and Natural Gas in the U.S.
According to Mr. Miller:
- The Oil and Natural Gas industry has brought a critical self inflicted crisis upon itself by failing to act in an environmentally responsible manner regarding the use of hydraulic fracturing. In one fell sweep, the industry has become the primary target of the Environmental Protection Agency (EPA), State and Federal lawmakers, and most importantly, the general public.
- The injection of toxic chemicals in to Oil and Natural Gas wells, many chemicals which are clearly known to be harmful to the environment, water tables, and human beings represents a catastrophic failure of the Oil and Natural Gas producers in the U.S.
- Given the continued abuse by the natural Oil and Natural Gas and mounting incidents of water table contamination, fires and other drilling related problems in high and low density populated areas, and the pending law that will in essence "kill fracking" by virtue of eliminating the use of toxic chemicals in production wells, leads to the conclusion that the States and Federal Government will in unison and individually start to ban fracking operations across the U.S.
- The first permanent drilling bans will occur in the Eastern U.S. in the Marcellus Shale formation in New York, New Jersey, West Virginia, Maryland and Pennsylvania. This geographic area has already been severely damaged by Natural Gas Fracking and substantial legal actions are pending and many more are forthcoming against production companies.
- State and Municipal pension and retirement funds in the States polluted by Oil and Natural Gas Fracking will require their money managers not to purchase and own any producers which have participated in "Fracking," essentially prohibit the purchase or ownership of these producers in public pension fund allocations.
- The EPA will be given absolute control of the Oil and Gas Producers utilizing hydraulic fracturing and any violations involving injecting toxic chemicals into the ground for drilling purposes will be dealt with in a very harsh and financially severe manner. Every Oil and Natural Gas drilling site which has had toxic chemicals utilized should be treated as an "EPA clean-up site" and will be subject to the full powers of the EPA to institute the equivalent of the "Death Penalty" to producers who violate Federal Environmental Law.
- The environmental liabilities that the Oil and Natural Gas Industry have already created by hydraulic fracturing exceed the financial capability of most Producers to cover and environmental litigation and enforcement by the EPA and State Agencies could technically bankrupt many of the producers.
- The full disclosure of specific toxic chemicals which have been utilized in the past and are currently being utilized by Oil and Natural Gas producers will be made into State and Federal Law and violations of the full disclosure law will bring swift and "going concern threatening" penalties.
(See: Disclosure of Hydraulic Fracturing Fluids: http://wilderness.org/files/State%20chemical%20disclosure%20requirements.pdf)
There does not appear to be any way for the Oil and Natural Gas industry to lobby itself out of this critical problem, which many industry experts consider a death nail to many natural gas producers. Public opinion is overwhelmingly now against "Hydraulic Fracking" and we see the momentum to ban the practice outright in a majority of the U.S. as irreversible.
Disclaimer: The views expressed are those of NEAH and Mr. Miller. Investors should seek the advice of a qualified investment professional prior to making any investment decisions.