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Anadarko Petroleum Hydraulic Fracturing 2011

WHEREAS:  Onshore  “unconventional”  natural  gas  production  often  requires hydraulic  fracturing,  which  typically  injects  a  mix  of  millions  of  gallons  of  water, thousands  of  gallons of chemicals, and particles deep underground to create fractures through which gas can flow for collection.    According to the American Petroleum  Institute,  “up  to  80  percent  of  natural  gas  wells  drilled  in  the  next decade will require hydraulic fracturing.”
The  potential  impacts  of  those  fracturing  operations  stem  from  activities  above and  below  the  earth’s  surface  -- including  actions  that  are  necessarily  part  of the  life  cycle  of  fracturing  and  extraction, such as assuring the integrity of well construction, and moving, storing, and disposing of significant quantities of water and toxic chemicals.
High  profile  contamination  incidents,  especially  in  Pennsylvania,  have  fueled public  controversy.  Pennsylvania’s  Times-Shamrock  Newspapers  report  “many of  the  largest  operators  in  the  Marcellus  Shale  have  been  issued  violations  for spills  that  reached  waterways,  leaking  pits  that  harmed  drinking  water,  or  failed pipes that drained into farmers' fields, killing shrubs and trees."
Anadarko has substantial investments in the Marcellus Shale, where it expects to drill more than 4,500 wells in future years.
Public  officials  in  Pittsburgh,  Philadelphia  and  New  York  City  have  called  for delays  or  bans  on  fracturing. Pennsylvania, West  Virginia,  Colorado,  Wyoming and  New  York  State  all  tightened  or  are  considering  tightening  regulations  and permitting  requirements,  though  state  regulations  remain  uneven.  The  federal Environmental  Protection  Agency  is  studying the  potential  adverse  impact  that hydraulic may have on water quality and public health
A multisectoral assessment for investors, “Water Disclosure 2010 Global Report,” noted the existence of reputational risks from water management for the oil and gas sector.
Proponents  believe  these  potential  environmental  impacts  and  increasing regulatory  scrutiny  could  pose  threats  to Anadarko’s  license  to  operate  and enhance  vulnerability  to  litigation.  Proponents  believe  our  company  is  not providing sufficient  information  on  key  business  risks  associated  with  hydraulic fracturing  operations.   Proponents  believe  Anadarko should  protect  its  long-term  financial  interests  by  taking  measures  beyond  the existing, inconsistent regulatory requirements  to  reduce  environmental  hazards  and  associated business risks.
THEREFORE, BE IT RESOLVED:  Shareholders  request  that  the  Board  of Directors  prepare  a  report by  October  2011,  at reasonable cost and omitting confidential  information  such  as  proprietary  or  legally  prejudicial  data, summarizing:   1)   Known  and  potential environmental  impacts  of  Anadarko’s fracturing  operations;   and,   2)  Policy  options  for  our  company to  adopt, above and beyond regulatory  requirements  and  our  company’s  existing  efforts, to  reduce  or  eliminate  hazards to air, water, and soil quality from fracturing operations.
Supporting Statement:  Proponents  believe  policies  explored  should  include, for  example,  additional  efforts  to  reduce toxicity of fracturing chemicals,  recycle waste  water,  monitor  water  quality  prior  to  drilling,  cement  bond  logging,  and other  structural  or  procedural  strategies  to  reduce environmental hazards and financial risks.  “Potential” includes occurrences that are reasonably foreseeable and worst case scenarios. “Impacts of fracturing operations” encompass the life cycle of activities related to fracturing and associated gas extraction.