Shareholders Demand Companies Eliminate Environmental Risk From Fracking

Hydraulic fracturing is a way to drill for natural gas, commonly known as fracking, which poses threats to the water supply of communities near drilling operations. New York State Comptroller Thomas NiNapoli said in May, “Oil and gas firms are being too vague about how they will manage the environmental challenges resulting from fracking,” said New York State Comptroller Thomas DiNapoli. DiNapoli’s office filed a shareholder resolution with Cabot Oil & Gas asking them to prepare a report about environmental risks and come up with a plan to reduce or eliminate them. The shareholder resolution was withdrawn in response to commitments from Cabot Oil & Gas.

Investors filed a total of nine shareholder resolutions, including the one with Cabot, with U.S. companies on fracking, practices. Three of the other resolutions were withdrawn in response to corporate commitments. Like the resolution with Cabot, the resolutions asked for the respective companies to prepare a report about the environmental risks posed by fracking, and prepare a plan to eliminate them. The three other resolutions were filed with Anadarko Petroleum Corporation, El Paso Corporation and Southwestern Energy.

“The strength of this year’s proxy season shows unwavering investor concern about how companies are managing the environmental risks of fossil fuel sourcing and the ongoing shift to a clean, low-carbon global economy,” said Mindy S. Lubber, president of Ceres, which coordinates the shareholder resolutions along with the Interfaith Center on Corporate Responsibility (ICCR). “Investors want stronger assurances companies are effectively navigating these key market trends.”

“Hydraulic fracturing can potentially poison local water supplies, pollute the air and leave us with a waste management nightmare,” said Thomas P. DiNapoli, New York State Comptroller, who filed resolutions with Carrizo and Cabot as trustee of the $140.6 billion New York State Common Retirement Fund. “Shareholders and the public need to be assured that companies fully appreciate the regulatory, legal, environmental and reputational risks at stake. Natural gas is a crucial part of the nation’s energy supply, but it has to be extracted the right way.”

[Photo credits] User: ProgressOhio


KrassiAWAY B.
Krasimira B6 years ago

Agree with Lisa B.: Fracking is the next environmental disaster waiting to happen.

Lilithe Magdalene

The onlyproblem with these forms is that we mostly leave our opinions them leave the discussion, and folks like Margaret don't get the info unless they ask to be informed everythime a new person comments.

Natasha L.
Natasha L6 years ago

Margaret S must be a shill for the Hydrofracking companies. She is trying to turn the conversation towards an environmental debate rather than the public health debate because she knows that many people who are worried about public health don't believe in climate change, and may then change their minds about fracking. Nice try Margaret, but I see through you.

While I understand where that abbreviation came from, I think it's very telling that it is the BSG way of swearing!

Natasha L.
Natasha L6 years ago

When they publish those plans publicly and are openly acting upon them and are passing independent government audits of their practices, I *might* believe that they are committed to reducing (not eliminating) the risk.

Until then, they are all poisoners.

Bridget M.
Past Member 6 years ago

Margaret S. I'm wondering if you've been watching that slimy piece of propaganda that's been floating around TV that speaks glowingly about the brilliant minds who have figured out how to extract nice clean natural gas from beneath the ground in the good ole U.S. of A. so that we don't have to worry about our energy problems for decades to come. Are you really so naive that you take things at face value and spin your own conspiracy theories without doing a bit of research? It sounds like there is a chorus circling around you.

Doug G.
Doug G6 years ago

Too bad more shareholders haven't been more vocal over the years. Perhaps this country would not be in the predicament it is in, if they had been more assertive and less greedy in the past.

Gloria H.
Gloria H6 years ago

Good for them. At least someone has a sense of doing the right thing.

Julie Dawson
Julie D6 years ago

Water is such a precious resource, we cannot afford to waste or contaminate a single drop of it. Fracking uses a lot of water and then contaminates a lot more with hideously toxic poisons. It should not be allowed anywhere in the world Water is far more necessary to sustain life than gas is.

Dana W.
Dana W6 years ago

I own stock in companies in the oil and gas industry but I don't want them to prosper at the expense of the environment. I used to own BP stock before the oil well disaster and look at the mess we still have in the Gulf region.

Lisa B.
Elizabeth B6 years ago

Fracking is the next environmental disaster waiting to happen.