If We Are Setting Record Oil Production Levels – Why are prices so fracking high

I get this question all the time. The argument is always the trade off argument. We get jobs and cheap fossil fuels but  the environment is degraded. And boy and how. Destroyed is more like it but we do not even get the results that the fracking industry promised. Did I mention it is cold outside?

http://www.startribune.com/business/241382091.html

Record high prices for propane, natural gas in some markets as cold snap saps fuel supplies

  • Article by: JONATHAN FAHEY , Associated Press
  • Updated: January 21, 2014 – 6:12 PM

NEW YORK — A second fierce blast of winter weather is sapping fuel supplies in many regions and sending prices for propane and natural gas to record highs.

Higher natural gas prices are also leading to sharply higher wholesale electricity prices as power utilities snap up gas at almost any price to run power plants to meet higher-than-normal winter demand.

Propane users will get pinched the most. Those who find themselves suddenly needing to fill their tanks could be paying $100 to $200 more per fill up than a month ago. Homeowners who use natural gas and electricity will see higher heating bills because they’ll use more fuel. But prices won’t rise dramatically because utilities only buy a small portion of the fuel at the elevated prices.

A swirling storm with the potential for more than a foot of snow clobbered the mid-Atlantic and the urban Northeast on Tuesday. The snowstorm will be followed by bitter cold as arctic air from Canada streams in, causing homeowners to crank up the thermostat.

Record high prices for propane, natural gas in some markets as cold snap saps fuel supplies

  • Article by: JONATHAN FAHEY , Associated Press
  • Updated: January 21, 2014 – 6:12 PM

NEW YORK — A second fierce blast of winter weather is sapping fuel supplies in many regions and sending prices for propane and natural gas to record highs.

Higher natural gas prices are also leading to sharply higher wholesale electricity prices as power utilities snap up gas at almost any price to run power plants to meet higher-than-normal winter demand.

Propane users will get pinched the most. Those who find themselves suddenly needing to fill their tanks could be paying $100 to $200 more per fill up than a month ago. Homeowners who use natural gas and electricity will see higher heating bills because they’ll use more fuel. But prices won’t rise dramatically because utilities only buy a small portion of the fuel at the elevated prices.

A swirling storm with the potential for more than a foot of snow clobbered the mid-Atlantic and the urban Northeast on Tuesday. The snowstorm will be followed by bitter cold as arctic air from Canada streams in, causing homeowners to crank up the thermostat.

Michael McCafferty, a propane expert at Platts, an energy information provider, said the wholesale spot price of propane rose 70 percent between Friday and Tuesday to a record $2.45 per gallon. Both the size of the jump and the price itself he called “unprecedented.”

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Overpopulation Is A Problem Now – It will be disasterous in the future

But do not ask this guy. He thinks it all is in Paul Ehrlichs head. I believe it to be real and that It started sometime around the year 2000. Furthermore this whole artificial fight is capitalism’s attack on a concept that would be its death knelll.  The “no growth” concept that it predicts would end capitalism as we know it, and that is why a Chicago economist attacked it. The problem of making predictions (as Ehrlich did) is that if they don’t come true then the nah sayer can come back and say, “see I told you so”.  It is also so first world centered, nor does it take into account the wars created by our trying to squeeze more people into a tighter spaces. The best estimate is 5 million people have died of starvation from global warming alone. But it isn’t happening here so it “ain’t happening”…in a dumb ass sort of way…

 

http://www.weeklystandard.com/articles/remember-future_774768.html#

Remember the Future?

The population bomb was ticking, and apocalypse was next in line .??.??.

Jan 27, 2014, Vol. 19, No. 19 • By PATRICK ALLITT

(excerpted from below the 4rth paragraph)

Julian Simon, meanwhile, became a professor of business at the University of Illinois. In the late ’60s, he, too, worried about overpopulation; but a closer look at the issue led to a change of heart. He discovered that population growth and economic growth usually went together and that there was no evidence of food shortages. The chronic problem of American agriculture, in fact, was overproduction. Population was rising because fewer children were dying and life expectancy kept increasing. That was good news, surely. Quite apart from a decline in agonizing bereavements, said Simon, children once doomed but now destined to survive might go on to be the next Einstein or Beethoven.

Simon also believed in the free market, whose long-term effect was to make products and raw materials not costlier and rarer but cheaper and more abundant. Occasional shortages stimulated increases in efficiency, the invention of better techniques, and the use of new materials.

Irritated that Paul Ehrlich was making a fortune with his apocalyptic prophecies while he, Julian Simon, labored in obscurity, Simon issued a challenge in 1980: Let Ehrlich choose any five commodities and then watch their prices either rise or fall over the next decade. If the prices rose, Ehrlich would seem to be right about shortages; if the prices declined, Simon would seem to be right that things were becoming more plentiful. Ehrlich accepted the challenge and the two men agreed on $1,000 worth of five metals: copper, chromium, tungsten, nickel, and tin. They agreed that, 10 years later, the loser would mail a check to the winner for the difference above or below $1,000.

The Chronicle of Higher Education called it “the scholarly wager of the decade,” and Ehrlich had some cause to feel confident. In the two recent oil crises of 1973 and 1979, gasoline prices had risen sharply while drivers fumed about shortages and long lines at the pump. Copper was in short supply and costlier every year. President Carter had donned a chunky sweater in the White House and ordered federal thermostats turned down to a chilly 65. Believing Ehrlich’s claim that the age of austerity was here to stay, the president had also commissioned the Global 2000 report, whose prognosis for the future was even grimmer than that of The Limits to Growth.

 

 

 

 

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There Are No Criminal Charges For The Frackers – So all they have to do is pay money

No Frackers will go to jail if they violate WHAT LAWS? IDNR might as well give away the state of Illinois to being totally trashed. Where will the Fracking start? In our State Parks?

Day 49   1/2/13

Topic:  Fines penalties, suspensions and revocations

For regulations to work, levied fines must exceed the financial benefit a company gains by violating the rules. None of the rulemaking sanctions meet this criterion. This results in the other 150 pages of rules being essentially meaningless because they will be ignored.   The draft rule sanctions place the Hydraulic Fracturing Regulatory Act (HFRA)  on the road to failure before the first permit is issued.

Examples:

  1. Section 1-100(b) of the law specifies misdemeanor and felony criminal charges for a number of violations of the law.  Yet there are NO criminal charges in the rules
  2. In Section 1-60(a)1-6 of the law, there are six (6) grounds for suspension or revocation of a permit.  These are re-listed with a 7th in section 245.1100 of the rules.  But the very next  section of the Rules–245.1110–reduces the grounds for an immediate permit suspension to one: “an emergency condition posing a significant hazard to the public health, aquatic life, wildlife or the environment.” This is the most stringent requirement of the seven grounds listed in section 245.1100.  Why bother to list seven possible grounds for permit suspension or revocation in section 245.1100 if you then require the Department to identify the most stringent criteria for an immediate suspension.
  3. Section 1-60(b) of the law requires a much lower standard of proof to suspend, revoke or deny a permit than the rules (245.1110).  Under the law, the Department need only serve notice of its action (to suspend, revoke or deny), including a statement of the reasons for the action.
  4. In the law, if a well operator’s permit has been suspended, the burden of proof is on well operator to prove that the identified problem is “no significant threat to public health, aquatic life, wildlife, or the environment” [Section 1-60(d)].  In the rules, this phrase becomes something IDNR must prove before ordering a permit suspension [Rule Section 245.1100(b)3A].
  5. Sections 1-100 and 1-101 of the law have some stiff penalties that accrue on a daily basis until the reason for the fine is corrected.  These fines can go as high as $50,000 per violation and up to $10,000 per day.  These are replaced by fines so trivial ($50-$2500) that it will cost the IDNR more to impose and collect a fine than the dollar value of the fine itself.

Revisions Needed:  Return to the standards of the law with regard to fines, penalties and revocations.

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Frackers Steal Land Right Out From Under The Owners Nose – Illinois will be owned by the Frackers

Everyone needs to move to Iowa.

 

Happy New Year!

Day 48,  1/1/2014

Topic:  Rules Deprive Property Owners of Their Property Rights Without Notice and Without Compensation  

Comment:

The rules unconstitutionally deprive many property owners of their property without notice and without compensation–thus, without due process of law.

Under Illinois law, a person who owns the full bundle of rights in land owns the surface and all that is below it.  So, when a landowner owns the full bundle of rights in the land, any drilling on, under, or without the landowner’s consent is an illegal trespass and an unconstitutional taking.  Similarly, any access to the surface without the landowner’s consent is a trespass.

The proposed rules would allow a trespass and a deprivation of property without due process of law, more specifically as follows:

  1. The rules not require a permit applicant to show that it has obtained the consent of the owners of the surface on which the vertical well will be drilled.
  2. The rules do not require a permit applicant to show that it has obtained the consent of the owners of the subsurface property through which the horizontal leg of the well will be drilled, nor even require notice to those property owners.
  3. In Section 245.110, DNR’s proposed rules redefine real property rights in a manner inconsistent with current law.  Specifically, the proposed rules would create an entirely new definition–“real property surface interest”–that is inconsistent with Illinois law in at least two respects.  First, even when mineral rights are severed, the surface owner does not typically relinquish all rights in the subsurface.  Second, the new definition narrows the intent of the law because the law uses the term “owner of real property” while the DNR’s new definition excludes any property owner who owns the surface along with the subsurface and also excludes any property owner who owns the surface along with a controlling interest in the subsurface.

Revisions Required:

  1. Delete the definition of “real property surface interest” in Section 245.110.
  2. Revise Section 245.210(A)(16)(A) & (B), on permit-application requirements, to require that the applicant show that it has obtained the consent of all the owners of real property on which, under which, or through which the vertical and horizontal wells are to be drilled.
  3. Revise Section 245.250(a)(1)(A), on public-notice requirements for permit applications, to require that permit applicants personally notify all owners of real property on which, under which, or through which the vertical and horizontal wells are  to be drilled.

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Frackers Must Pay For Our Lawyers – In our dreams

This probably will not happen, but it can’t hurt to ask.

Here we are at Day 47 (12/31/2013) of the IDNR Comment Period as we close out 2013.   We anticipate hand-delivering 20,000 hard-copy comments to IDNR on either Thursday or Friday afternoon of this week–just trying to firm up the date and time.  We will have a date and time locked in by tomorrow. Thank you, all of you, who have participated in writing comments.  We couldn’t have done this without you.

Today’s Topic: Recouping Attorney Fees

  • Go to: http://www.dnr.illinois.gov/OilandGas/Pages/OnlineCommentSubmittalForm.aspx
  • Click the button:  Subpart C: Permit Decisions (245.300-245.360)
  • In the “Section” dropdown box, click:  245.310 Permit Denial
  • Submit your comment/s (below)
  • Click “Submit”

Comment:

DNR’s rules should include a provision that would authorize the recovery of attorney fees for those who successfully challenge a permit application.

The Statutes:

Section 1-102(c) of the Hydraulic Fracturing Regulatory Act (225 ILCS 752/1-102(c)) allows a circuit court to award attorney fees where a person successfully sues to enforce compliance with the Act:

   “(c) The court, in issuing any final order in any action brought under this Section, may award costs of litigation (including attorney and expert witness fees) to any party, on the basis of the importance of the proceeding and the participation of the parties to the efficient and effective enforcement of this Act.”

Also, section 10-55(c) of the Illinois Administrative Procedure Act (5 ILCS 100/10-55(c)) allows a circuit court to award attorney fees to a party who successfully challenges a DNR rule in court:

   “(c) In any case in which a party has any administrative rule invalidated by a court for any reason, including but not limited to the agency’s exceeding its statutory authority or the agency’s failure to follow statutory procedures in the adoption of the rule, the court shall award the party bringing the action the reasonable expenses of the litigation, including reasonable attorney’s fees.”

The Rules:

But DNR’s proposed rules do not allow for an award of attorney fees for an interested person who hires an attorney and successfully challenges a permit application.  Given the typical situation–a vast disparity in financial resources between the typical industry applicant, on the one hand, and an adversely affected individual landowner or other interested person on the other, the ability to hire and pay for an attorney will be essential to ensuring a fair hearing on a contested permit application.

Needed Revision:

Section 245.310 should be revised to include a provision for the reimbursement of attorney fees to a person who successfully challenges a permit application.

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Fracker Trash Illinois And Run – The will file bankruptcy before they remediate

Just take a look at all the gaping holes the other extraction industry have left in Illinois. Their are parts of Illinois that look like the 10,000 lakes area in Minnesota that used to be valuable farmland. This will be no different.

Day 46  12/30/13

Topic:  Topsoil Replacement Requirements

Comment:

Sections 1-70(b)2 and 1-95(c) of the Hydraulic Fracturing Regulatory Act state that stripped topsoil is to be replaced with similar soil and the site returned to its pre-drilling condition.

Section 1-95(c) of the Act specifically states: “The operator shall restore any lands used by the operator other than the well site and production facility to a condition as closely approximating the pre-drilling conditions that existed before the land was disturbed for any stage of site preparation activities, drilling, and high volume horizontal hydraulic fracturing operations.”

When drilling is anticipated to be completed in less than a year, Section 245.410(d) of the Rules stipulates that the topsoil is to stockpiled and stabilized to prevent erosion.  However, “In the event it is anticipated that the final reclamation shall take place in excess of one year from drilling the well, the topsoil may be disposed of in any lawful manner provided the permittee reclaims the site with topsoil of similar characteristics of the topsoil removed.”

What is missing, and needed, in this section of the Rules is the stipulation that the replacement topsoil will be not only similar in characteristics of the topsoil removed, but also match the removed topsoil in VOLUME.   In fact, there is no place in the rules that requires measurement of the topsoil removed or measurement of the replacement topsoil.  Without such a requirement, it would be easy for an unscrupulous operator to replace the topsoil with smaller quantities than were originally removed.

Revisions Needed:  When final reclamation is anticipated to exceed one year and topsoil is removed from the site, Section 245.410(d) must require measuring the volume of the removed topsoil and stipulate that the replacement topsoil will match both the quality AND quantity of the removed topsoil.

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Fracking In Illinois Will Not Be Safe If They Have Their Way

Pollution with be rampant.
Day 45   12/29/13
Topic:  General Fluid Storage
Comment:
This section lacks the specificity needed to insure that fracking will be conducted in a manner that will protect the public health and safety and prevent pollution or diminution of any water source. (Statute 1-53(4))
  • “Compatible” (245.825(a)(2), (c)(1)).  The regulations should clarify what is “compatible” for purposes of provisions that tanks and “piping, conveyances, …must be constructed of materials compatible with the composition of the fracking fluid….” Specifically, theDepartment should clarify that “compatible” includes being resistant to corrosion, erosion, swelling, or degradation that may result from such contact.
  • Corrosion inspection (245.825(a)(5)). The Department should define what is meant by the requirement that above-ground tanks be “routinely” inspected for corrosion, i.e., specify a time interval.
  • Secondary containment (245.825(b)). The Department should require that secondary containment be designed and constructed in accordance with good engineering practices, including: (a) Using coated or lined materials that are chemically compatible with the environment and the substances to be contained; (b) Providing adequate freeboard; (c) Protecting containment from heavy vehicle or equipment traffic.
Illinois People’s Action.
510 E. Washington St. Suite 309
Bloomington, IL 61701
United States
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Frackers Hate Maps – The less the public knows the better

If you can find them you can engage in direct action.

 

Day 44   12/28/13

Topic: Directional Drilling Plan

Comment:

This comment addresses inadequacies in two sections:  Sections (245.210(a)(4)) Directional Drilling Plan and Section (245.210(a)(7)) Scaled plat maps, diagrams, or cross sections,

These sections do not explicitly require that the applicant provide a map that depicts the exact location of the wellbore, i.e., draws it on the map from beginning to end. This information is critical to specific notice and standing, which reference persons within 750 feet of the wellbore.

Revisions Needed:  Require a map depicting the exact location of the wellbore.

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Illinois Frackers Want To Make You Sick – They do not want to make you better

Call you Doctor and have him send in his comments.

 

Day 43   12/27/13

Topic: Trade Secret Disclosure to Health Professionals

Comment:

The proposed language concerning disclosure of trade secret-protected information to health professionals is neither consistent with the statute nor protective of the public.

Right to Know.  Section 1-77(l) of the Act is clear that information shall be provided, as needed, to health professionals who demonstrate a need for it.  Yet, section 245.730 of the Rules diminishes the language of the Act, stating only that the Department “may” provide information to health professionals who demonstrate a need for it.

Limitation to “normal business hours.” Subsection 245.730(b)(1) of the Rules states, in the event of an emergency, that a health professional may call the Department during “normal business hours.” For an emergency that occurs after hours, the Rules suggest calling the trade secret holder. This is inadequate. The Department should provide a 24-hour hotline for emergency calls pursuant to this section.

“Trade Secret Holder.” Subsection 245.730(b)(2) of the Rules allows a health professional to seek the necessary information from a “trade secret holder,” but there is no means provided for the health professional to know who the trade secret holder is, or what phone number to use to reach it. Furthermore, this provision is found nowhere in the statute, seemingly adding another unnecessary burden on the health professional.

Lack of a time limit for the Department’s response. The Department should abide by the same 3-hour time limit for a response that applies to trade secret holders pursuant to 245.730(b)(2).

Disclosure of names receiving trade secret information.  Subsection 245.730(e) of the rules requires that health providers report to the trade secret holder the names of persons to whom the protected information was disclosed.  This requirement is found nowhere in the statute. It is inappropriate to burden health professionals with such an obligation in the absence of statutory authorization to do so.

Revisions Needed:  Rewrite the section to comply with the strongest interpretation of 1-77 of the Statute including 24-hour accessibility.  Do not require that health providers report names of persons to whom protected information was disclosed as this was not required in the statute.

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Day 41 For Fracking Comments – Man I am getting tuckered out

But these are important technical comments. So get to it.

Day 41, 12/25/13  Merry Christmas!  Yes, we’re hoping you’ll take just a minute from your festivities to comment on the fact that IDNR violated it’s own rules with regard to the 5 hearings it held around the state. 
Topic – DEFICIENT NOTICE FOR PUBLIC HEARINGS
This comment is in response to the paragraphs of the published notices setting the dates for the public hearings on the Proposed Amendments to the Rules under the Oil and Gas Act and on the Proposed Rules under the Hydraulic Fracturing Regulatory Act.  37 Illinois Register 18081, 18081-82 (November 15, 2013); 37 Illinois Register 18097, 18099 (November 15, 2013); 37 Illinois Register 19746 (December 6, 2013); 37 Illinois Register 19747 (December 6, 2013).
Comment:
DNR did not provide the required public notice for any of the public hearings, because in each case the notice for the hearing was not published in the Illinois Register at least 20 days before the hearing.  Although the Illinois Administrative Procedure Act allows DNR to hold a public hearing, in response to a request for a hearing, less than 20 days after public notice in the Illinois Register if the notice of hearing is published in the notice of proposed rulemaking (5 ILCS 100/5-40), DNR has chosen by rule to require a minimum of 20 days’ notice.  DNR’s adopted rule for scheduling public hearings states as follows:
“The Hearing Officer shall set a time and place for hearing and shall give notice as follows, at least 20 days prior to the date of the hearing;
a) to the proponent, by mail;
b) to members of the general public, by means of a general news release and notice in the Illinois Register.”  2 Ill. Admin. Code 825.140.
The first notice of public hearings–for Chicago and Ina–was published in the Illinois Register on November 15, 2013.  But the Chicago hearing took place on November 26, 2013, and the Ina hearing took place on December 3, 2013.  Each of those hearings was held on less than 20 days’ notice.
The second notice of public hearings–for Effingham, Decatur, and Carbondale–was published in the Illinois Register on December 6, 2013.  But the Effingham hearing took place on December 16, 2013, the Decatur hearing took place on December 17, 2013, and the Carbondale hearing took place on December 19, 2013.  Each of those hearings was held on less than 20 days’ notice.
Thus, DNR’s public hearings were held in violation of its own administrative rules.  These violations deprived the citizens of a  meaningful opportunity to be heard.
The remedy for this violation is either additional hearings in these areas, each with the required minimum 20 days’ notice, or alternatively, a new First Notice with the opportunity for new public hearings and a new public comment period.
Illinois People’s Action
510 E. Washington St. Suite 309
BloomingtonIL 61701
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