Shocking Conflict of Interest: Private Water Companies Partner With Fracking Lobby

[kpete]

Shocking Conflict of Interest: Private Water Companies Partner With Fracking Lobby
Selling water to drillers, two of the nation's biggest private water utilities may soon profit from treating the wastewater.
April 19, 2012 |




Two of the country's largest private water utility companies are participants in a massive lobbying effort to expand controversial shale gas drilling -- a heavy industrial activity that promises to enrich the water companies but may also put drinking water resources at risk.

The situation -- which some watchdogs describe as a troubling conflict of interest -- underscores the complex issues raised by the nationwide push to privatize infrastructure and services like water, prisons, and roads.

The water companies -- American Water and Aqua America -- are leading drinking water suppliers in Pennsylvania, where drilling is booming. They also sell water to gas companies -- which use a drilling technique that requires massive amounts of water -- and have expressed interest in treating drilling wastewater, a potentially lucrative opportunity.

These investor-owned, publicly traded water utility companies are also dues-paying "associate members" of the gas industry's powerful Marcellus Shale Coalition, a fact confirmed by coalition spokesman Travis Windle, who says associate members pay $15,000 annually in dues. "Our associate members are really the backbone of the industry," adds Windle.

http://www.alternet.org/water/155065/shocking_conflict_of_interest%3A_private_water_companies_partner_with_fracking_lobby/

[MADem]

1. That's called "One hand washes the other, both wash the face" and there ya go.

They should be ASHAMED of themselves.

The private water companies make money selling the water.

They also make money if the water tastes like shit and is dangerous to drink.

It's more than cleaning up after 'em, it's selling their "clean" product when the other stuff becomes un-usable or untrusted or tastes like shit.

[badtoworse]

2. Where's the conflict?

I'd rather have a water company treating wastewater than a gas company.

The water company has an incentive to protect the resource and do it right.

[Frack Glop]

4. water company treat frack water

read up on the chemicals used in fracking and what's in the "produced water" that will be "treated"

Some of the substances can be "treated" - most can't, including strontium and other radioactive elements.

Produced water is what comes up after the initial flowback from the frack. It continues to come up to the surface for the life of the well. Produced water is heavy in BRINE, 4-5 times more saltier than sea water. Additionally, the produced water picks up naturally occurring substances such as lead, arsenic, benzene, toluene, radium, strontium.

Your assumption that a water company has incentive to protect the resource is faulty. Water company will make more money providing water to the frackers than it will to the general public. Like any corporation - it's incentive is to make more money for it's shareholders. Providing water is just a vehicle for making money. Read my series - Connecting the Dots: The Marcellus Natural Gas Play Player: http://fracktoids.blogspot.com/

Let's take a look at Aqua America:

the CEO of Aqua America is Nicholas DeBenedictis. He is also on the board of directors for the Exelon Corporation (oil-gas industry). Sitting next to him on the board of directors is former Gov. Tom Ridge, also former Homeland Security Secretary.

When Tom Ridge left Homeland Security position, he formed a corporation called Ridge Policy Group. Essentially a big lobbying firm. Ridge Policy Group was hired by Marcellus Shale Coalition (industry backed front-group) to promote Natural Gas legislation. Tom Ridge is also counted on the ALEC "alumni" roster.

Michael Krancer, PA-DEP Secretary, was Assistant General Counsel for Exelon Corporation.

Aqua America and Penn-Virginia Resources Partners (PVR) formed a joint subsidy - Aqua-PVR. This is the corporation which is buying up land along the rivers to build water withdrawal stations and pipelines to transport water to the frack fields in Pennsylvania. PVR has 51% controlling interest in Aqua-PVR, Aqua America has 49%

More recently, PVR is in the process of acquiring midstream pipelines/facilities from Chief Gathering. PVR's investors in this project is Riverstone Investments. If you check out Riverstone, you will find the Management and Board of Directors were formerly from Goldman-Sachs, Morgan-Stanely, Citibank, Bank of America etc.

Chief Gathering is a subsidiary of Chief Oil & Gas. CEO of Chief Oil & Gas is Trevor Rees-Jones. In 2008 he donated $1,000,000 to American Crossroads, this is Karl Rove's super-duper PAC organization. Chief Oil & Gas is a member of Marcellus Shale Coalition, and it's Press Relations person - Kristie Gittens is listed on the MSC executive board and is MSC's treasurer.

Chief Oil & Gas is a subsidiary of Devon Energy. Devon Energy completed a deal earlier this year with Sinopec. a chinese corporation.

Aqua America and Penn-Virgina Resource Partners are both members of the Marcellus Shale Coalition (MSC).

Prior to Corbett's official creation the Marcellus Shale Advisory Commission, he had a transitional committee formed to address issues surrounding the Marcellus Shale and energy. Nicholas DeBenedictis had a seat on that committee.

In the original posted article. A Travis Windell is cited as MSC spokesperson. Windell's employer is FTI Consulting, a PR/Lobbying firm. Prior to being employed by FTI Consulting, Windell worked in the US House of Representatives as a press officer for Rep. JOHN BOEHNER, another ALEC member to boot.

FTI Consulting is also very much involved with the operations of ENERGY-IN-DEPTH (EID) - another gas industry front group. EID's website domain is registered under a company called Dittus Communications. Dittus was bought up by FD-Americas, a subsidiary of FTI-Consulting and later FD-AMERICA name was dropped and became FTI Strategic Solutions - a division of FTI Consulting.

now, tell me again that these corporations give a shit about clean water?

[Frack Glop]

3. What the Frack is Going on Fracking Friday ?

What the Frack is Going on Fracking Friday ?
On next Friday 4/27 I will be a guest on What the Frack is Going on Fracking Friday 8pm-10pm est

http://fracktoids.blogspot.com/2012/04/what-frack-is-going-on-fracking-friday.html

[Frack Glop]

5. Win Win for Who?

http://fracktoids.blogspot.com/2012/03/win-win-for-who.html
Late in 2011, two companies, Aqua America and Penn-Virgina Resource Partners formed a joint venture subsidiary called Aqua-PVR Water Services LLC.

EXCERPT: Aqua America, PVR Partners Form JV for Private Water Pipeline in Pa.


" .....to construct and operate a private pipeline system to supply fresh water to natural gas producers drilling in the Marcellus Shale in north-central Pennsylvania. The 12-inch diameter steel pipeline will largely parallel the trunkline of PVR's gathering system in Lycoming County and will share PVR's existing rights-of-way.

PVR is constructing the fresh water pipeline and handling negotiation of water pipeline capacity contracts with producers. Aqua will operate the system when completed and handle water intake supply arrangements. Aqua and PVR each anticipate investing approximately $12 million for construction of the first segment of the project. The joint venture has entered into an agreement with Range Resources - Appalachia, LLC a wholly owned subsidiary of Range Resources to supply fresh water to three of Range's water impoundments, and negotiations with other area producers for supply agreements are on-going."

see my other connect the dots articles on corporate-political fracking connections:
You Can’t Tell the Players Without a Scorecard!
Connecting the Dots: The Marcellus Natural Gas Play Players – Part 1
By Dory Hippauf
http://commonsense2.com/2011/12/naturalgasdrilling/connecting-the-dots-the-marcellus-natural-gas-play-players-part-1/

Chesapeake Energy – Peeking Behind the Curtain
Connecting the Dots: The Marcellus Natural Gas Play Players – Part 2
By Dory Hippauf
http://commonsense2.com/2012/01/national-politics/connecting-the-dots-the-marcellus-natural-gas-play-players-part-2/

Energy-in-Depth (EID): The “GAS”roots
Connecting the Dots: The Marcellus Natural Gas Play Players – Part 3
By Dory Hippauf
http://commonsense2.com/2012/02/naturalgasdrilling/connecting-the-dots-the-marcellus-natural-gas-play-players-part-3/

Cabot, PA DEP and Dimock
Connecting the Dots: The Marcellus Natural Gas Play Players – Part 4
By Dory Hippauf
http://commonsense2.com/2012/03/naturalgasdrilling/connecting-the-dots-part-4/

Pieces of Silver - Act 13
Connecting the Dots: The Marcellus Natural Gas Play Players – Part 5
By Dory Hippauf
http://commonsense2.com/2012/04/naturalgasdrilling/connecting-the-dots-marcellus-shale-play-players-part-5/

Aubrey McClendon: Chesapeake Energy’s Little Problem
Connecting the Dots: The Marcellus Natural Gas Play Players–Part 6
By Dory Hippauf
http://commonsense2.com/2012/05/naturalgasdrilling/aubrey-mcclendon-chesapeake-energy%E2%80%99s-little-problem/