Tuesday, November 29, 2011

Company Backs out of $45 Million Deal to Buy Troubled Wyoming Gas Field

by Abrahm Lustgarten
ProPublica, Nov. 29, 2011

Image: Getty Images
A deal to sell a controversial central Wyoming natural gas field has fallen apart amidst allegations that drilling there has caused water pollution [1].

Texas-based Legacy Resources backed out of a $45 million [2] deal to buy the field near Pavillion, Wyom., from EnCana last week, soon after the Environmental Protection Agency said it had detected cancer-causing benzene at 50 times the level safe for humans and other carcinogenic pollutants during its latest round of sampling.

The cancelled sale could signal difficulty for companies trying to turn over aging gas fields if there are environmental or health concerns related to their operations.

“Although Encana retained responsibility for any outcome resulting from the ongoing groundwater investigation undertaken by EPA, due to the continued attention surrounding the investigation, and uncertainty regarding further development, Legacy is not prepared to go forward with the transaction,” said EnCana spokesman Doug Hock, in an email to ProPublica.

Legacy Resources did not respond to a call requesting comment.

Legacy Resources announced it had agreed to buy EnCana’s Pavillion-area wells [3], which produce an estimated 13 million cubic feet of gas a day, on Nov. 1. At the time, the company also said it planned to drill new wells in Pavillion to tap the 45 billion cubic feet of gas it believes lies underground.

Continue reading...

No comments:

Post a Comment

WTFrack.org is a medium for concerned citizens to express their opinions in regards to 'Fracking.' We are Representatives of Democracy. We are Fractivists. We are you.