Frackers Must Post Bonds To Drill – Doesn’t that mean they are going to do damage

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Yes and the damage they will do is a lot more than 50,000 $$$ they initially put up.

 

Today (Thursday, 11/28/13) is Day 14 of the 49-day Comment Period on Fracking.  On this Thanksgiving Day, we are thankful for your comments to IDNR.
Topic – Inadequate Bonding Requirements for Fracking Companies
  • Click the button: Subpart B:  Registration and Permitting Procedures
  • In the “Section” dropdown box, click:  245.220 Permit Bonds or Other Collateral Securities
  • Submit your comment/s (below)
  • Click “Submit”
Section 245.220 states, “The bond shall be in the amount of $50,000 per permit or a blanket bond of $500,000 for all permits.” (Section 1-65(a) of the Act)
Comment:  Plugging a well alone costs more than $50,000. In the study “Who Pays the Cost of Fracking?: Weak Bonding Rules for Oil and Gas Drilling Leave the Public At Risk”, PennEnvironment Research & Policy Center reported documented instances in which fracking wells have cost $700,000 or more to plug.  What is the motivation for the operator to not simply forfeit the bond when they shut down?  Furthermore, drilling companies typically frack a string of wells and not just one.  If they are cutting corners, using improper well-casings for example, or not sealing them correctly, the violation is likely to occur at each site.  One $500,000 bond for perhaps as many as 100 -150 well sites is as unacceptable as a $50,000 for one well site.
If the purpose of the bond is to protect the state from expenses incurred from an accident or violation, then the bond must be sufficient to cover those occurrences.  It makes no sense to offer a blanket bond—like some bargain basement “buy 2 pairs of socks and get a third pair free”.  Each well should be bonded individually and in the amount necessary to cover real and imagined damages as outlined by the PennEnvironment study.
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