What is all the Fracking Fuss?
CARL WARREN & COMPANY Connects | CLAIMS MANAGEMENT AND SOLUTIONS | NOVEMBER 2014, Volume V, No. 4.
Fracking has become a dirty word in our culture recently. Fracking lawsuits may be the next big legal "boom". But do you even know what Fracking is? Fear not! We can help.
What is Fracking?
The word "Fracking" refers to a combination of drilling technologies used to extract hydrocarbons from shale rock formations deep within the earth: Horizontal Drilling - where pipe travels horizontally instead of vertically through a rock formation to maximize the area of extraction; and Hydraulic fracturing - using high pressure water or explosives to fracture the shale rock and release the trapped hydrocarbons to the surface.
When Did Fracking Start?
The first "Fracking well" occurred in the 1940s, and enjoyed widespread use in the Texas-based Barnett Shale in the 1980s. However, Fracking recently came under media scrutiny after the controversial Academy-award-winning documentary: Gasland.
Where is Fracking Occurring?
Fracking wells are active in at least thirty states and many countries. The six states with the highest number of Fracking wells are: (1) Texas, (2) Colorado, (3) Pennsylvania, (4) North Dakota, (5) Arkansas, and (6) West Virginia.
What are the Pros and Cons of Fracking?
Proponents of Fracking claim that Fracking provides jobs and a source of domestic, abundant, and clean energy. Opponents claim fracking ruins the environment by causing earthquakes, contaminating groundwater, and being a nuisance to surrounding communities.
What are the Types of Claims Arising from Fracking?
The causes of action being asserted against Fracking are numerous and inventive: alleging strict liability because Fracking is an abnormally dangerous activity; alleging assault because of unwanted physical contact with hazardous gases and polluted water; and alleging subsurface trespass into agriculture from underground injection water.
What is the Aruba Case?
The most important current Fracking case is Parr v. Aruba Petroleum. On April 22, 2014, the Parr family won a $3,000,000 Dallas County jury verdict for their claim of intentional private nuisance. They alleged that Aruba's gas drilling near their forty-acre ranch caused them to have headaches, bloody noses, and other illnesses. This was the first verdict against a well operator for drilling in close proximity to residential areas. The case is currently on appeal. Now many cities are debating whether to allow Fracking within their city limits.
What is the Future of Fracking?
As long as the necessary economic drivers are in place, Fracking operations will increase, and likely so will the regulations and lawsuits.
This article was originally published in Carl Warren & Company CONNECTS: CLAIMS MANAGEMENT AND SOLUTIONS, November 2014, Volume V, No. 4, and can be seen where it was originally published at the link listed.