Hi folks,
I am just throwing this out there, because I don't see many discussions of this sort about the whole "does hydraulic fracturing contaminate water supplies?" quandry. These thoughts were stimulated by reading the article that starts "Fracking practice for natural gas" under the HS news sidebar. I know there are (presumably) good studies showing it is basically not a problem, at least where the studies were done. But there is a fairly continual whine coming from the NE of the US, and it is true, I believe, that 1) the shale is shallower there, 2) there is a history of natural contamination of groundwater with hydrocarbons in the area. Therefore, one might conceivably conclude that there may be places up there where the hydrocarbon sources and water sources do comingle to some extent, and it is possible that fracking could impact the water supply. Perhaps the major objections will be overcome with methods where there is less in the way of toxic materials in the frac fluid, but in general folks are probably not going to be wild about hydrocarbons in their water unless you also give them a good separation method... At any rate, it could be perfectly safe to go after the HS with wild enthusiasm, due to the depth and geology, while more caution would be required in some other plays. It seems to me that the "net impact" of this is twofold: 1) yes, the total shale resource across the US either drops or costs more to develop due to additional measures being required, but 2) the value of areas like the HS increases, because these problems don't exist. I am reasonably objective on this; I have some HS holdings, but I own a lot more land near the Fayetteville Shale, which I believe is a pretty darn shallow formation... Anyway, just a thought - the answer to this question could well be "depends on where you are", I would think.
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GoHaynesvilleShale.com (GHS) was launched in 2008 during a pivotal moment in the energy industry, when the Haynesville Shale formation—a massive natural gas reserve lying beneath parts of northwest Louisiana, east Texas, and southwest Arkansas—was beginning to attract national attention. The website was the brainchild of Keith Mauck, a landowner and entrepreneur who recognized a pressing need: landowners in the region had little access to…
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