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  <item rdf:about="http://www.ceres.org/press/press-clips/as-oil-and-gas-drilling-competes-for-water-one-new-mexico-county-says-no">
    <title>As Oil and Gas Drilling Competes for Water, One New Mexico County Says No</title>
    <link>http://www.ceres.org/press/press-clips/as-oil-and-gas-drilling-competes-for-water-one-new-mexico-county-says-no</link>
    <description>In drought-plagued New Mexico, water is gold. And this week, Mora County in the northern part of the state took a firm stand to protect its precious liquid:  it banned all oil and gas extraction from county lands.</description>
    <content:encoded xmlns:content="http://purl.org/rss/1.0/modules/content/"><![CDATA[<p>In drought-plagued New Mexico, water is gold.</p>
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<p>And this week, Mora County in the northern part of the state took a  firm stand to protect its precious liquid: it banned all oil and gas  extraction from county lands. It is believed to be the first county in  the nation to take such action.</p>
<p>Big oil companies, notably Shell, had <a href="http://www.youtube.com/watch?v=jUd-ukmeKFk">reportedly already leased</a> more than 100,000 acres of land in Mora.</p>
<p>But the county’s new ordinance calls for a state constitutional  amendment that puts community rights above corporate property rights.</p>
<p>Of concern in Mora, and increasingly throughout the country, is the  potential harm to water sources from oil and gas drilling, including a  practice known as <a href="http://ngm.nationalgeographic.com/2013/03/bakken-shale-oil/fracking-animation-video">hydraulic fracturing, or fracking</a>.  The process entails injecting a mixture of water, sand and chemicals at  high pressure deep underground so as to break up rocks and release the  oil and gas they hold.</p>
<p>Because many wells cut through water-bearing formations called  aquifers, fracking risks contaminating drinking water supplies with  hazardous chemicals. Yet fracking is exempt from compliance with the  federal Safe Drinking Water Act.</p>
<p>Besides the threat of water contamination, fracking also competes for  local water supplies. A single well can require more than 5 million  gallons of water.</p>
<p>Across the United States, 47 percent of hydraulically fractured oil  and gas wells are being developed in highly water-stressed regions,  according to a <a href="http://www.ceres.org/press/press-releases/new-study-hydraulic-fracturing-faces-growing-competition-for-water-supplies-in-water-stressed-regions">report</a> released this week by <a href="http://www.ceres.org/">Ceres</a>, a Boston-based non-profit organization that educates investors about corporate environmental risks.</p>
<p>Colorado and Texas, two states where fracking operations have  expanded rapidly, exhibited the highest degree of water risk, according  to the Ceres report. In Colorado, 92 percent of shale gas and oil wells  were in “extremely high” water stress regions, defined as areas in  which cities, industries and farms are already using 80 percent or more  of available water.</p>
<p>In Texas, 51 percent of wells were in “high or extremely high” water  stress regions. In some Texas counties, water use for fracking  accounted for more than one-fifth of total water use.</p>
<p>The Ceres study used well data available at FracFocus.org and water  stress maps developed by the Aqueduct Project at the World Resources  Institute.</p>
<p>While the hydraulic fracturing industry has made some progress toward  use of recycled and saline water, which could reduce competition for  scarce freshwater supplies, these sources are still a minor component of  the overall industry’s water demand. And even with use of alternative  water sources, the risks of groundwater contamination from the chemicals  used in fracking remain.</p>
<p>With hydraulically fractured gas and oil production projected to  double in the coming years, the bottom line, according to Ceres, is that  “competition and conflicts over water should be a growing concern for  companies, policymakers and investors.”</p>
<p>But Mora County’s decision – to keep more climate-altering fossil  fuels in the ground so as to preserve and safeguard local water supplies  for its people – draws a more precautionary line in the sand. It’s a  line other counties may want to draw, too – because without adequate  supplies of safe drinking water, no region’s future is bright.</p>
<p><i>Sandra Postel is director of the Global Water Policy Project and  Freshwater Fellow of the National Geographic Society. She is the author  of several acclaimed books, including the award-winning Last Oasis, a  Pew Scholar in Conservation and the Environment, and one of the  “Scientific American 50.” She is co-creator of </i><a href="http://environment.nationalgeographic.com/environment/freshwater/change-the-course/">Change the Course</a><i>, the national freshwater restoration campaign being piloted in the Colorado River Basin.</i></p>
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    <dc:publisher>No publisher</dc:publisher>
    <dc:creator>Megan Doherty</dc:creator>
    <dc:rights></dc:rights>
    <dc:date>2013-05-09T13:11:19Z</dc:date>
    <dc:type>Press Clip</dc:type>
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  <item rdf:about="http://www.ceres.org/press/press-clips/spread-of-hydrofracking-could-strain-water-resources-in-west-study-finds">
    <title> Spread of Hydrofracking Could Strain Water Resources in West, Study Finds</title>
    <link>http://www.ceres.org/press/press-clips/spread-of-hydrofracking-could-strain-water-resources-in-west-study-finds</link>
    <description>The rapid expansion of hydraulic fracturing to retrieve once-inaccessible reservoirs of oil and gas could put pressure on already-stressed water resources from the suburbs of Fort Worth to western Colorado.</description>
    <content:encoded xmlns:content="http://purl.org/rss/1.0/modules/content/"><![CDATA[<p>The rapid expansion of hydraulic fracturing to retrieve once-inaccessible reservoirs of <a class="meta-classifier" href="http://topics.nytimes.com/top/news/business/energy-environment/oil-petroleum-and-gasoline/index.html?inline=nyt-classifier" title="More articles about oil.">oil</a> and gas could put pressure on already-stressed water resources from the  suburbs of Fort Worth to western Colorado, according to a new report  from a nonprofit group that advises investors about companies’  environmental risks.</p>
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<p>“Given projected sharp increases” in the production of oil and gas by  the technique commonly known as fracking, the report from the group <a href="../../">Ceres</a> said, “and the intense nature of local water demands, competition and  conflicts over water should be a growing concern for companies, policy  makers and investors.”</p>
<p>The overall amount of water used for fracking, even in states like  Colorado and Texas that have been through severe droughts in recent  years, is still small: in many cases 1 percent or even as little as a  tenth of 1 percent of overall consumption, far less than agricultural or  municipal uses.</p>
<p>But those figures mask more significant local effects, the report’s author, <a href="../../about-us/who-we-are/ceres-staff/monika-freyman">Monika Freyman</a>,  said in an interview. “You have to look at a county-by-county scale to  capture the intense and short-term impact on water supplies,” she said.</p>
<p>“The whole drilling and fracking process is a well-orchestrated,  moment-by-moment process” requiring that one million to five million  gallons of water are available for a brief period, she added. “They need  an intense amount of water for a few days, and that’s it.”</p>
<p>One of the options that oil and gas drillers have is recycling the water  that comes back out of wells, which is called “produced water.” But the  water injected into wells is laced with a proprietary mixture of  chemicals and sand, and the water returning from thousands of feet below  the surface can also contain natural pollutants or even radioactivity.  Recycled water must therefore be treated, which can be expensive.</p>
<p>An earlier <a href="http://www.twdb.state.tx.us/waterplanning/rwp/planningdocu/2016/doc/current_docs/project_docs/201209FinalReport__O&amp;GWaterUse.pdf">report</a> done by engineers at the University of Texas, Austin, showed that 8,800  acre-feet — nearly 2.9 billion gallons — were used for fracking in 2011  in <a href="http://www.tarrantcounty.com/egov/site/default.asp">Tarrant County</a> in North Texas, where Fort Worth is located and which has gone to the Supreme Court to get access to Oklahoma’s water.</p>
<p>And in the Eagle Ford <a href="https://www.google.com/search?q=Eagle+Ford+shale+formation&amp;client=firefox-a&amp;hs=TJd&amp;rls=org.mozilla:en-US:official&amp;tbm=isch&amp;tbo=u&amp;source=univ&amp;sa=X&amp;ei=c2CBUcuBA9bK4APf_YHADg&amp;ved=0CF4QsAQ&amp;biw=977&amp;bih=386#imgrc=OYPY0JDO_syOUM%3A%3BdygjFRxxR0AODM%3Bhttps%253A%252F%252Fimages.angelpub.com%252F2011%252F40%252F10793%252Feagle-ford-map-large.png%3Bhttp%253A%252F%252Fwww.energyandcapital.com%252Farticles%252Fthe-eagle-ford-shale-formation%252F1820%3B898%3B695">shale formation</a> in South Texas, particularly in Webb County, some researchers estimate  that the amount of water used for fracking represents as much as  one-third of the area’s annual groundwater recharge, the amount of  surface water that percolates back to the underground aquifer supplying  the region.</p>
<p>But the Ceres report notes that drillers in the Eagle Ford formation are  also expanding their use of brackish, undrinkable water in place of  fresh water.</p>
<p>While the local effects in Texas have been sufficient to spur the state’s <a href="http://www.rrc.state.tx.us/">Railroad Commission</a>,  which regulates the oil and gas industry there, to encourage recycling  by loosening rules governing that process, it is Colorado that faces the  most widespread potential conflicts between fracking and other water  uses, according to Ceres’s new report.</p>
<p>Kenneth H. Carlson, an engineering professor at Colorado State  University, saw little difference between drillers buying needed water  and cities buying water from farmers. “It’s a private commodity that  people can do with what they want,” he said. “We’re not going to go  thirsty. We’re just going to have to pay more.”</p>]]></content:encoded>
    <dc:publisher>No publisher</dc:publisher>
    <dc:creator>Megan Doherty</dc:creator>
    <dc:rights></dc:rights>
    <dc:date>2013-05-08T18:50:00Z</dc:date>
    <dc:type>Press Clip</dc:type>
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  <item rdf:about="http://www.ceres.org/press/press-releases/new-study-hydraulic-fracturing-faces-growing-competition-for-water-supplies-in-water-stressed-regions">
    <title>New Study: Hydraulic Fracturing Faces Growing Competition for Water Supplies in Water-Stressed Regions</title>
    <link>http://www.ceres.org/press/press-releases/new-study-hydraulic-fracturing-faces-growing-competition-for-water-supplies-in-water-stressed-regions</link>
    <description>A new Ceres research paper on water use in hydraulic fracturing operations shows that a significant portion of this activity is happening in water stressed regions of the United States, most prominently Texas and Colorado, which are both in the midst of prolonged drought conditions.</description>
    <content:encoded xmlns:content="http://purl.org/rss/1.0/modules/content/"><![CDATA[<p><a class="external-link" href="../../shalemap"><img src="http://www.ceres.org/images/FrackingMap.jpg/image_preview" alt="Fracking Map" class="image-right" /></a></p>
<p>A new Ceres research paper on water use in hydraulic fracturing operations shows that a significant portion of this activity is happening in water stressed regions of the United States, most prominently Texas and Colorado, which are both in the midst of prolonged drought conditions. It concludes that industry efforts underway, such as expanded use of recycled water and non-freshwater resources, need to be scaled up along with better water management planning if shale energy production is to grow as projected.</p>
<p>The report, announced today, is based on well drilling and water use data from FracFocus.org and<a href="http://www.ceres.org/issues/water/hydraulic-fracturing-water-stress" class="internal-link"> water stress indicator maps</a> developed by the World Resources Institute (WRI). The research shows that nearly 47 percent of the wells were developed in water basins with high or extremely high water stress. The research was based on FracFocus data collected on 25,450 wells in operation from January 2011 through September 2012.</p>
<p>“These findings highlight emerging tensions in many U.S. regions between growing hydraulic fracturing activity and localized water supply needs,” said Ceres president Mindy Lubber, in announcing the report, <i><a href="../../resources/reports/hydraulic-fracturing-water-stress-growing-competitive-pressures-for-water/view">Hydraulic Fracturing &amp; Water Stress: Growing Competitive Pressures for Water</a></i>, at Ceres’ annual conference in San Francisco.</p>
<p>FracFocus.org was launched in 2011 as a voluntary national hydraulic fracturing chemical registry. The database provides the location and date that each oil and gas well was developed and the chemical additives and total volume of water injected down each well.</p>
<p>WRI’s water stress indicator maps are part of a recently launched Aqueduct Water Risk Atlas, which provides a comprehensive, high-resolution picture of water-related risks worldwide. The baseline water stress indicator maps show the level of competition for water in different U.S. regions by measuring total annual water withdrawals against the percentage of water that is available.  Extremely high water stress means over 80 percent of available water is already being allocated for municipal, industrial and agricultural uses.</p>
<p>By linking the two datasets together through matching latitude and longitude coordinates, the report provides valuable insights about the extent and distribution of well production activity in regions with water competition challenges.</p>
<p>Colorado and Texas showed the highest  exposure to water stress. In Colorado, 92 percent of the wells were in extremely high water stress regions. In Texas, which accounts for nearly half of the total wells analyzed, 51 percent of the wells were in high or extremely high water stress regions. In some Texas counties, water use for hydraulic fracturing accounted for more than 20 percent of the region’s total water use. In Pennsylvania, 70 percent of the wells were in medium to high water stress water basins and only 2 percent were in high water stress basins.</p>
<p>“Given projected sharp increases in shale oil and gas production in the coming years, competition over water should be a growing concern to energy companies, policymakers and investors,” the report concludes, noting a projected doubling of oil and gas fracturing production in the coming years. “Shale energy development cannot grow without water, but in order to do so the industry’s water needs and impacts need to be better understood, measured and managed.”</p>
<p>As the report outlines, the industry has made progress in boosting the use of recycled water and other alternative water sources for fracturing wells. Operators are starting to use non-freshwater alternatives such as wastewater, saline water, seawater and acid-mine drainage. “Overall water recycling and the use of non-freshwater sources must increase considerably to have a significant impact,” the report says.</p>
<p>The report includes key recommendations for companies and regulators, among those:</p>
<ul>
<li>Comprehensive mandatory disclosure by companies of how much freshwater, non-freshwater and recycled water they are using region by region as well as how much water is returning to the surface and where it is ending up.</li>
<li>Requirements for companies to set quantifiable water use targets, including recycling and non-freshwater use targets.</li>
<li>Ensure that both companies and local regulators are conducting sufficient water management planning.</li>
<li>Ensure that companies have a local stakeholder engagement process in place on water issues.</li>
</ul>
<p><br />Other investor focused initiatives, such as the Interfaith Center for Corporate Responsibility and the <a class="external-link" href="http://www.iehn.org/publications.reports.frackguidance.php">Investor Environmental Health Network's Extracting the Facts</a> (see their goal 6) have been pushing for better water sourcing disclosure along with other engagement recommendations on mitigating environmental and community impacts.</p>
<ul>
</ul>
<p> </p>
<p>Today’s report is part of a larger, more comprehensive study Ceres is undertaking to analyze water risks across the entire hydraulic fracturing lifecycle – from water sourcing to final treatment and disposal of wastewater – across different regional basins in North America. The research is aimed primarily at investors who have financial stakes in operators and support services in these regions.</p>
<p><b>About Ceres</b></p>
<p><b>Ceres </b>is an advocate for sustainability leadership. Ceres mobilizes a powerful coalition of investors, companies and public interest groups to accelerate and expand the adoption of sustainable business practices and solutions to build a healthy global economy. Ceres also directs the Investor Network on Climate Risk (INCR), a network of 100 institutional investors with collective assets totaling more than $11 trillion. For more information, visit <a href="../../">http://www.ceres.org</a></p>]]></content:encoded>
    <dc:publisher>No publisher</dc:publisher>
    <dc:creator>Megan Doherty</dc:creator>
    <dc:rights></dc:rights>
    <dc:date>2013-05-02T03:55:00Z</dc:date>
    <dc:type>Press Release</dc:type>
  </item>


  <item rdf:about="http://www.ceres.org/press/blog-posts/mixing-oil-and-water-scenes-from-the-texas-oil-boom-pt.-1">
    <title>Mixing Oil and Water: Scenes From the Texas Oil Boom, Pt. 1</title>
    <link>http://www.ceres.org/press/blog-posts/mixing-oil-and-water-scenes-from-the-texas-oil-boom-pt.-1</link>
    <description>Advances in drilling technologies, most prominently hydraulic fracturing, have unlocked shale oil and gas resources previously thought unrecoverable and quite literally changed the American landscape.</description>
    <content:encoded xmlns:content="http://purl.org/rss/1.0/modules/content/"><![CDATA[<p><i>This post is the first in a two-part series from </i><a href="../../about-us/who-we-are/ceres-staff/monika-freyman"><i>Monika Freyman</i></a><i>, Manager in Ceres’ water program on hydraulic fracturing, water supplies and energy development. <a class="external-link" href="mixing-oil-and-water-scenes-from-the-texas-oil-boom-pt.-2">Read part two here</a>.<br /></i></p>
<p><i>This blog is also featured on <a class="external-link" href="http://newswatch.nationalgeographic.com/2013/02/21/mixing-oil-and-water-scenes-from-the-texas-oil-boom/">www.nationalgeographic.com</a></i></p>
<p>Boarding a puddle jumper in Dallas, I picked up a copy of <i>USA Today</i> and opened to the headline <a href="http://www.usatoday.com/story/news/nation/2012/11/26/personal-income-2011-oil-gas-boom/1728123/">“Wealth Rises in the USA’s Heartland”</a>. It was a fitting start to my trip to Midland, Texas. As it turns out, my final destination had reported the second highest per capita income in the nation. Only the bankers of Stamford, Connecticut were making more money than the average Midlander in 2011.</p>
<p>If you have been following the energy sector as closely as I have, you might have guessed the cause: oil. The U.S. is in the midst of an energy boom, with the International Energy Agency predicting that the U.S. will be almost <a href="http://www.reuters.com/article/2012/11/12/us-iea-oil-report-idUSBRE8AB0IQ20121112">self-sufficient in energy by 2035</a>. The country’s resurgence in oil and gas production is largely attributed to advances in drilling technologies, most prominently hydraulic fracturing, which has <a href="http://www.ft.com/intl/cms/s/0/8c2bcdf2-2c9f-11e2-9211-00144feabdc0.html#axzz2IL8hpXCH">unlocked shale oil and gas resources previously thought unrecoverable</a>.</p>
<p>Over the past several months, my colleague <a href="../../about-us/who-we-are/ceres-staff/ryan-salmon">Ryan Salmon</a> and I have been researching the effect of hydraulic fracturing on water resources. Our goal is to assess the potential risks associated with this industrial process and inform investors in Ceres’ <a href="../../incr">Investor Network on Climate Risk</a> on the water risks and issues they may face in specific regions, across the many stages of the water lifecycle. I was on my way to see this phenomenon firsthand in Midland, a city of roughly 100,000 inhabitants that sits in the middle of the Permian Basin in Western Texas.</p>
<p>Hydraulic fracturing has quite literally changed the American landscape. As the airplane descended, I could see dozens of well pads dotting the horizon (see photo). The airport walls were lined with advertisements for drilling gloves, pipe lubricants and other specialty products. I would not have been surprised to see a rig in the middle of the runway.</p>
<p>At dinner that night, I struck up a conversation with a waitress named Anna. She told me how the Midland community had changed during the latest rush. Hotels are full, food prices are rising and specialized labor is hard to come by. Hiring a contractor can take up to a year, as demand for skill labor has skyrocketed along with the boomtown economy.</p>
<p>While she agreed that oil had been a boon to many local businesses, Anna told me that sudden wealth had left the community divided. Those with family members working in the industry feel the boom is a blessing; those that do not feel otherwise as they face the burden of local inflation with no income upside. Others are feeling the pressure in their rents. A house on Anna’s block that used to rent for $600/month two years ago now rents for $1,600. Midland had been through boom times before, she reminded me. The key is to remember that a bust always follows.</p>
<p>For the moment at least, Midland is flush. By my estimates, an owner of one section of land (640 acres) can make between $500,000 to $2,500,000 on just the lease of the land to oil drillers <i>before</i> taking into account any additional income from royalties once the oil starts to flow. This bonanza can be divisive in this region, as ownership of the subsurface minerals sometimes rests in one set of hands, while the ownership of the land rests in another. In that case, a mineral rights-owner reaps a significant financial benefit, while the surface owner has none.</p>
<p>Though Midland has quickly realized the value of its land, the community’s approach to valuing and managing its already scarce water supplies has lagged behind the boom. Hydraulic fracturing is a water-intensive practice, and citizens and local businesses are now competing with the oil industry for increasingly scarce freshwater supplies.</p>
<p>I grew up in region with many similarities to Midland—southern Alberta—, which is equally flat as a pancake and also prone to drought-like conditions. Unlike Midland, southern Alberta can source some of its water from the nearby Rocky Mountains and seasonal snowpack. Midland, on the other hand, relies heavily on groundwater, increasingly so after all but one of its surface reservoirs <a href="http://www.texastribune.org/2011/04/22/drought-plagued-midland-texas-is-running-out-of/">dried up during the drought of 2011</a>.</p>
<p>The precipitous decline of the city’s water supply didn’t seem to be the result of the thirst of a growing population—everyone seemed to drink bottled water, due to some issues with the taste. But the resulting <a href="http://www.finanzen.net/nachricht/anleihen/Midland-City-of-TX-Water-Sewer-Enterprise-Moody-s-downgrades-to-Aa3-from-Aa2-the-revenue-rating-on-the-City-of-Midland-TX-Water-and-Sewer-System-s-1-2-million-senior-lien-revenue-bonds-2031963">credit downgrade of the town’s water authority</a> clearly illustrates the need for better water management. Midland is far from the only town affected by this phenomenon, and is the topic of a recent <a href="../press-releases/new-report-growing-water-scarcity-presents-major-challenges">Ceres white paper on credit trends in the water sector</a>.</p>
<p>These water-related tensions fueled by the town’s economic lifeblood—the oil and gas industry—are likely to define the coming years in Midland. In my next post, Ryan and I will describe our experience on-site at a hydraulic fracturing operation, where all of these issues intersect.</p>]]></content:encoded>
    <dc:publisher>No publisher</dc:publisher>
    <dc:creator>Monika Freyman</dc:creator>
    <dc:rights></dc:rights>
    
      <dc:subject>expert</dc:subject>
    
    <dc:date>2013-02-13T15:40:00Z</dc:date>
    <dc:type>Blog Entry</dc:type>
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