Investors Challenge Nine Oil and Gas Companies on Hydraulic Fracturing Practices
Shareholders file resolutions with Cabot Oil & Gas, ExxonMobil, Chevron, and other energy companies to spur more responsible “fracking” practices
(3BLMedia/theCSRfeed) Boston, MA - January 21, 2011 - Leading U.S. investors today announced they have filed shareholder resolutions with nine oil and gas companies, pressing them to disclose their plans for managing water pollution, litigation and regulatory risks that are increasingly associated with ever-expanding natural gas hydraulic fracturing operations (also known as “fracking”) in the United States.Resolutions were filed with many of the natural gas industry’s significant players, including ExxonMobil, Chevron, Ultra Petroleum, El Paso, Cabot Oil & Gas, Southwestern Energy, Energen and Anadarko and Carrizo Oil & Gas. "Oil and gas firms are being too vague about how they will manage the environmental challenges resulting from fracking," said New York State Comptroller Thomas DiNapoli, whose office filed a resolution with Cabot Oil & Gas asking for a specific plan to reduce or eliminate the hazards. "The risks associated with unconventional shale gas extraction have the potential to negatively impact shareholder value. I urge companies working in this field to share their risk mitigation and management strategies with investors and the public." The shareholder proposals ask companies to disclose their policies and strategies for reducing environmental and financial risks from chemicals use, water impacts and a host of other issues. The resolutions also request adoption of best management practices, such as:
Recycling and reusing waste waters;
Reducing the volumes and toxicity of chemicals;
Disclosing the chemicals used in fracturing operations; and
Asssuring the integrity of well cementing through pressure testing and other methods.