11 Mar 2014
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Lawsuits Filed Against Oil Companies in Bakken for Gas Flares
posted by Unknown @ 11:57 0 Comments
In an interview with NBC News, Ryan Salmon, manager of Ceres oil and gas program, said “Investors want companies to have a more aggressive reaction to flaring and disclose clear steps to fix the problem.
Companies tend to burn the lesser grade of oil instead of
using more sufficient pipelines. It is estimated that $100 million per month of
flare gas is wasted in North Dakota
alone. Because of this many land owners
who have leased their land believe they are losing money.
In a statement by one of the law firms representing the land
owners, “The Lawsuits seek to force operators to comply with state law and pay
royalties to mineral owners on the value of flared gas, and by so doing create
a compelling economic incentive for producers to reduce and eliminate the
wasteful practice of flaring.”
Not only is there the fear of not getting paid what is due,
there are health concerns regarding the release of chemicals into the air.
While it is not as harmful as the release of natural gas, it still releases
carbon dioxide that affects the climate.
In an interview with the Bismark Tribune, Mark Wald, owner
of Blaise Energy, said, “Everybody
sees the flare and it’s an obvious source of frustration. You ask yourself,
‘how can we capture that energy?’ There’s got to be another way.”
The Solution
There have been discussions on ways to reduce the amount of
gas being flared. Energy companies like Hess
Corp. and Alliance Pipeline
have started building pipelines to connect with wells. There are also plans to
create at management team to control flaring.
North Dakota
Petroleum Council Chairman, Terry Kovacevich, said, “We recognize that natural
gas is an efficient, clean and valuable resource, and that’s why the industry
has invested more than $6 billion in new pipelines, processing plants and other
infrastructure to move it from the wellhead to the marketplace.”
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