Investors Challenge Natural Gas Companies To Become More Accountable
Boston MA (SPX) Feb 11, 2010 Investors have unveiled a major new shareholder campaign to ensure that development of natural gas is done in a way that does not have unintended consequences for the environment and human health. Production from traditional reserves of natural gas has been dwindling, and an increasing number of new wells require hydraulic fracturing- a process where water, chemicals and particles such as sand are injected into the ground under extremely high pressure-to unlock vast reserves previously unavailable. It has been estimated that up to 80 percent of new wells will require some form of hydraulic fracturing. But investors are concerned that this process comes with some very serious risks. As use of this process has increased, a catalogue of harmful environmental and community impacts allegedly linked to fracturing has emerged, with the potential contamination of water resources being a central concern. Amid mounting concerns about fracturing's impact on water, shareholders of major natural gas drillers, led by Green Century Capital Management and the Investor Environmental Health Network, are asking companies and their service suppliers for greater transparency about the business and environmental risks associated with fracturing. Investors and investor advisors including As You Sow, Green Century Capital Management, Miller/Howard Investments, Catholic Healthcare West, First Affirmative Financial Network, the Mercy Investment Program, the New York State Common Retirement Fund, the Shareholder Association for Research and Education, Pax World Management, the Sisters of St. Francis of Philadelphia, the Sustainability Group, and Trillium Asset Management have begun to engage approximately 20 companies, and have filed shareholder resolutions with 12 companies including Cabot Oil and Gas Corporation (COG), Chesapeake Energy (CHK), ExxonMobil (XOM), Hess Corporation (HES), EOG Resources (EOG), and Range Resources (RRC) over these risks. The shareholder proposals ask companies to increase transparency regarding the environmental impact of their operations and encourage companies to mitigate risks by switching to less toxic fracturing fluids and adopting best practices for drilling and managing wastes. Richard Liroff, Executive Director of the Investor Environmental Health Network explains, "High profile water contamination incidents, new litigation, and public protests that include calls for moratoria on natural gas permitting all suggest sizeable and rising business risks to companies and attendant threats to shareholder value; shareholders need assurance that companies are candidly disclosing these risks and are adopting best management practices to minimize them." According to Larisa Ruoff, Director of Shareholder Advocacy for Green Century Capital Management, "It is critical that shareholders of natural gas companies understand and address the business risks associated with this type of gas drilling." She continues, "Companies and regulators must ensure this development is done in a way that protects the environment, especially our drinking water, and mitigates potential financial risks." "Shareholders believe that through the adoption of best practices and policies to phase out the most toxic chemicals used in this process, companies can ensure that they are both protecting the environment and their balance sheets from unnecessary and potentially devastating risks," said Ruoff.
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Putin says Nord Stream poses no environmental risks Helsinki (AFP) Feb 10, 2010 The Nord Stream pipeline being built under the Baltic Sea to transport Russian gas to the European Union will not pose a risk to the environment, Russian Prime Minister Vladimir Putin said Wednesday. "I believe that Nord Stream will be environmentally safe, reliable and a very good source of gas to Europe," Putin said at a Helsinki summit aimed at generating action to save the highly pollute ... read more |
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