Why the Water
Industry is
Promoting Shale
Gas Development
,VVXH%ULHI'HFHPEHU
S
OHSLNHZKL]LSVWTLU[JYLH[LZHWV[LU[PHST\S[PIPSSPVUKVSSHYTHYRL[MVY^H[LYZ\WWS`
and treatment services,1[OLWYVZWLJ[VM^OPJOJV\SKILLUJV\YHNPUNZVTLSHYNL
investor-owned water utilities to support shale gas and downplay its water risks. Certain
water companies suggest that with regulation, shale gas drilling poses no real threat
[V^H[LYX\HSP[`;OLJVTWHUPLZ»ÄUHUJPHSPU[LYLZ[PU[OLZOHSLTHYRL[OV^L]LYJHZ[Z
KV\I[VU[OLYLSPHIPSP[`VM[OH[HZZLZZTLU[-VY[OLWYP]H[L^H[LYPUK\Z[Y`ZOHSLNHZ
KL]LSVWTLU[WYLZLU[ZHUVWWVY[\UP[`ILJH\ZLVM·UV[KLZWP[L·P[Z^H[LYWYVISLTZ
Gas drillers use a water-intensive process called hydraulic
fracturing, or fracking, to extract natural gas from shale.
The process injects millions of gallons of water, mixed with
sand and chemicals, under high pressure to crack the rock
formation to release natural gas. Much of that water returns
to the surface, along with water from underground, con[HTPUH[LK^P[OMYHJRPUNÅ\PKZHUKV[OLYWVZZPIS`YHKPVHJ[P]LZ\IZ[HUJLZ2 Private water players can make money on
IV[OLUKZI`ZLSSPUN^H[LY[VKYPSSLYZHUK[OLU[YLH[PUN[OL
wastewater.
KYPSSPUNHYLHZVM7LUUZ`S]HUPHHJJVYKPUN[V*,61LMM:[LYIH
He added, “We’re continuing to expand service in the Marcellus Shale region where we have 29 points of interconnection, serving 12 different drilling companies.”4
During 2011, Aqua America and American Water were at
the forefront of the private water utility industry’s push to
exploit fracking’s water needs.
(X\H(TLYPJH[OLZLJVUKSHYNLZ[W\ISPJS`[YHKLK<:
water utility,5 was perhaps more aggressive in that arena.
In July 2011 when SmartMoney asked what was on the
company’s radar, CEO Nick DeBenedictis replied, “We’re
SVVRPUNH[WYVIHIS`[OLIPNNLZ[[OPUN[VOHWWLU[V7LUUZ`Svania in the past 30 years, which is the natural gas in the
Marcellus Shale.”60UH:LW[LTILYSL[[LY+L)LULKPJ[PZ
told stockholders, “We are currently pursuing the growth
VWWVY[\UP[PLZWYV]PKLKI`[OLZOHSLKYPSSPUNPUK\Z[Y`LZWLcially in Pennsylvania’s Marcellus Shale, and focusing on
[OLºJSLHU^H[LY»HZWLJ[ZVM[OLKYPSSPUNI\ZPULZZ¹7
(TLYPJHU>H[LY[OLSHYNLZ[W\ISPJS`[YHKLK^H[LYHUK
sewer utility in the country,3 had “strategic positioning”in
Through several multimillion-dollar deals that year, the
company sought to focus its operations and strengthen its
-VVK>H[LY>H[JO7:[5>:\P[L>HZOPUN[VU+*^^^MVVKHUK^H[LY^H[JOVYN
position in three states with active shale plays: Pennsylvania, Ohio and Texas.8 Although Pennsylvania was a pilot
MVYP[ZI\ZPULZZTVKLS[OLJVTWHU`WSHUULK[VL_WSVYL
applying it in Texas,9 as well as Ohio. DeBenedictis told
the Marion Star that the shale market opportunity in Ohio
was the “icing on the cake” of the company’s planned $120
million purchase of water and sewer systems in the state,
adding, “When drilling starts in earnest in Ohio, I think we
^HU[[VILWVZP[PVULK[VILHZ\WWSPLY¹10
W\ISPJPaLK[OLYLZ\S[ZVM¸HM\SSIH[[LY`VM[LZ[Z¹[OH[¸JVUÄYTLK¹[OH[4HYJLSS\Z:OHSLKYPSSPUN^HZ[L^H[LYOHKUV[
affected the company’s drinking water.20 The company did
not actually assess water quality risks of drilling wastewater
I\[WYV]PKLKHZUHWZOV[VMJLY[HPUZ\YMHJL^H[LYJVUKP[PVUZ0[[LZ[LK^H[LYHSVUNZL]LYHSYP]LYZI\[KPKUV[ZWLJPM`
^OL[OLYZHTWSLZ^LYL[HRLUULHY·VYL]LUKV^UZ[YLHT
VM·[YLH[TLU[WSHU[Z[OH[^LYLYLJLP]PUNKYPSSPUN^HZ[L^Hter at the time.216]LY[OLWYL]PV\Z`LHYHU\TILYVMSHYNL
gas drillers had sought to avoid sending their wastewater to
sewage plants,22HUK[OLU\TILYVMWSHU[ZHJJLW[PUNKYPSSPUN
wastewater fell from 27 to 15.23)
Shilling for the Shale Gas Industry
Aqua America was a vocal supporter of the development
and regulation of shale gas drilling, particularly in Pennsyl]HUPH0[^HZHUHZZVJPH[LTLTILYVM[OL4HYJLSS\Z:OHSL
*VHSP[PVU·HNYV\W[OH[HK]VJH[LZVUILOHSMVM[OLKYPSSing industry11·HUKJVZWVUZVYLKHUPUK\Z[Y`JVUMLYLUJL
called Shale Gas Insight 2011.12 Aqua America executives
OH]LHSZVZWVRLUPUMH]VYVMZOHSLNHZKYPSSPUNILMVYL[OL
Pennsylvania House Democratic Policy Committee and the
Pennsylvania Marcellus Shale Advisory Commission.13
Nonetheless, some shale gas proponents seized on the
company’s results, inappropriately overstating and generalPaPUN[OLTPUHUH[[LTW[[VKPZJYLKP[]HSPKJVUJLYUZHIV\[
MYHJRPUN»ZWV[LU[PHS[VJVU[HTPUH[L^H[LYZ\WWSPLZ-VY
example, the Marcellus Shale Coalition used the results to
attack a widely cited New York Times investigation,24 which
among other things, found that some sewage plants were
UV[HKLX\H[LS`[YLH[PUNKYPSSPUN^HZ[L^H[LYILMVYLKPZJOHYNing it to surface waters.25 During his opening remarks at a
JVUNYLZZPVUHSOLHYPUNHIV\[UH[\YHSNHZKL]LSVWTLU[HUK
[OLLU]PYVUTLU[9LW;PT4\YWO`97(·^OVZL
LSLJ[PVUJHTWHPNUOHZYLJLP]LKTVYLJVU[YPI\[PVUZ[VKH[L
from the oil and gas industry than from any other industry26·YLMLYYLK[V[OLYLZ\S[ZHZOLYHPSLKHNHPUZ[[OL<:
Environmental Protection Agency for inspecting sewage
plants that treated drilling wastewater.27 America’s Natural
Gas Alliance used the results in a statement denouncing an
American Rivers report,28 which found that the SusquehanUH9P]LY^HZ[OLJV\U[Y`»ZTVZ[LUKHUNLYLKYP]LYILJH\ZL
of natural gas extraction;29 Pennsylvania American Water
did not test water from the Susquehanna River.30
“In short, we want to support the efforts to grow an indus[Y`[OH[WYV]PKLZ[YLTLUKV\ZLJVUVTPJILULÄ[Z[V7LUUsylvania and critical energy resources for our country,”
DeBenedictis said in his prepared statement to the Pennsylvania Marcellus Shale Advisory Commission, adding that
[OLJVTWHU`^HU[LKP[[VIL¸KVULYPNO[¹·[OH[P[^HZ
regulated.14
American Water’s Pennsylvania arm also tacitly endorsed
the shale gas industry and implied that regulation was sufÄJPLU[[VWYV[LJ[^H[LYZ\WWSPLZ15 “As an industry we know
[OH[4HYJLSS\Z:OHSLPZHZPNUPÄJHU[LJVUVTPJVWWVY[\UP[`
for the Commonwealth,” Kathy Pape, head of Pennsylvania
(TLYPJHU>H[LY[VSKZ[H[LSLNPZSH[VYZPU4HYJO¸I\[
[OH[LJVUVTPJVWWVY[\UP[`OHZ[VILIHSHUJLKHIV\[^OH[
TH`ILULNH[P]LPTWHJ[Z¹:OLJSHYPÄLK¸>L»YLUV[ZH`PUN[OH[H[[OPZWVPU[PU[PTL[OLYLHYLULNH[P]LPTWHJ[ZI\[
^L^HU[[VILZ\YL[OH[[OLB+LWHY[TLU[VM,U]PYVUTLU[HS
Protection] staff is there to enforce the regulations that are
in place.”16
The Margins on Contamination
Regulation is often not enough to prevent fracking from
JVU[HTPUH[PUN^H[LYZ\WWSPLZ-VYPU]LZ[VYV^ULK^H[LY
utilities, this is not necessarily unfortunate; in fact, it can
HJ[\HSS`ILÄUHUJPHSS`YL^HYKPUN>H[LYJVU[HTPUH[PVUJHU
necessitate and justify costly treatment plant upgrades that
IVVZ[JVYWVYH[LYL[\YUZ)LJH\ZLVMOV^[OL`HYLYLN\SH[LK
PU]LZ[VYV^ULK^H[LY\[PSP[PLZPUJYLHZL[OLPYWYVÄ[ZI`PU]LZ[PUNPUPUMYHZ[Y\J[\YLHUKI`YHPZPUNYH[LZ31
Downplaying Risks
+LZWP[LJSHPTPUN[VZOHYL[OLW\ISPJ»Z¸KLLWHUKQ\Z[PÄHISL
LU]PYVUTLU[HSJVUJLYUZ¹HIV\[ZOHSLNHZKL]LSVWTLU[17
Aqua America’s DeBenedictis criticized newspaper coverHNLHIV\[NYV\UK^H[LYJVU[HTPUH[PVUULHYKYPSSPUNZP[LZ
and downplayed health risks of potential contaminants.18
/LJSHPTLK¸>LILSPL]L[OH[[OLYLPZSV^WV[LU[PHSMVY
adverse impacts on our water supplies from Marcellus
:OHSLKYPSSPUNHJ[P]P[`PUSHYNLWHY[K\L[VB[OL7LUUZ`S]HUPH
Department of Environmental Protection’s] effective regulations coupled with enforcement.”19
Water contamination can also create new customers for
^H[LYJVTWHUPLZ(Z+L)LULKPJ[PZUV[LK[OL¸YLHZVUHISL¹
treatment methods for removing methane from drinking
^H[LYJV\SKIL¸KPMÄJ\S[¹MVYZTHSSWYP]H[L^LSSZ32 When
fracking pollutes water sources, households and small
water systems that cannot afford to treat their water have to
ÄUKHUV[OLY^H[LYZ\WWS`;OLPYVUS`HS[LYUH[P]LTH`IL[V
JVUULJ[[VH^H[LYZ`Z[LTV^ULKI`HWYP]H[L\[PSP[`-VYL_ample, after natural gas drilling contaminated groundwater
wells in Dimock, Pa., the state agreed to fund a $12 million
Pennsylvania American Water has tacitly expressed a
ZPTPSHYILSPLMHIV\[[OLZHML[`VMKYPSSPUN^HZ[L^H[LY0[
2
project to connect 18 homes in the community to Pennsylvania American Water’s water system.33(ZVM+LJLTILY
[OLWYVQLJ[HWWLHYLK[VILZ[HSSLK
JVTWHU`HUKPU]LZ[LKTPSSPVU[VI\PSKHUKVWLYH[LHU
18-mile pipeline to supply fresh water to Marcellus Shale
gas producers, including Range Resources Corporation.43
Hydraulic fracturing requires a “tremendous amount of
water,” in the words of Aqua America’s DeBenedictis.34 In
<:UH[\YHSNHZMYHJRPUNVWLYH[PVUZ\ZLKHULZ[PTH[LKIPSSPVUNHSSVUZVM^H[LYZLL[HISL
According to DeBenedictis, water sales to drillers are unYLN\SH[LKZVP[PZTVYLWYVÄ[HISL[VZLSS^H[LY[VNHZKYPSSLYZ
than to regular customers like households.44 He expected
[OLJVTWHU`»Z4HYJLSS\ZHJ[P]P[`[VIVVZ[ZHSLZI`
percent to 0.4 percent,45^OPJO^V\SKILTPSSPVU[V
TPSSPVUH`LHYIHZLKVUP[ZVWLYH[PUNYL]LU\LZ46
Aqua America
American Water
In 2011, DeBenedictis predicted that water usage in the
Marcellus Shale would grow “geometrically” in a year or
two.35 To capitalize on this market, Aqua America develVWLKI\SR^H[LYZ[H[PVUZUL_[[VOPNO^H`Z^OLYL[Y\JRZ
can collect water for gas drillers.36 As of 2011, it had eight
site locations: six in Pennsylvania, one in New York and
one in Ohio.37
+\YPUN[OLÄYZ[OHSMVM(TLYPJHU>H[LYZVSK
million gallons of water to a dozen gas-drilling companies,
making $702,000 in revenue.470[ZVSK^H[LYH[ KPZ[YPI\tion points,48 mostly through pipeline extensions from its
water systems.49 The company gave gas drillers a major
discount on the price of water. On average, drillers paid 45
percent less than residential customers per 1,000 gallons of
^H[LYZLL[HISLVUWHNL
DeBenedictis emphasized frequently that the stations
OLSWLKYLK\JL[Y\JR[YHMÄJVUZTHSS[V^UYVHKZ38 which he
JHSSLKH¸NYLH[W\ISPJZLY]PJL¹39I\[[OPZLMMLJ[PMHU`[OPUN
is incidental or at least secondary to the company’s priTHY`VIQLJ[P]L(X\H(TLYPJHWSHJLK[OLZ[H[PVUZVMMTHQVY
OPNO^H`Z[VHWWLHS[VKYPSSLYZI`J\[[PUN[OLPY[YHUZWVY[Htion costs.40¸>L»]LKLZPNULK[OLI\SRZ[H[PVUZJVTWSL[LS`
around the needs of the Marcellus Shale industry including
technology to track who is taking water and how much they
HYL[HRPUN¹+L)LULKPJ[PZZHPKPUHJVYWVYH[LIYVJO\YL41
Pennsylvania American Water’s natural gas drilling company customers included ALTA Operating Company, LLC;
*HIV[6PS.HZ*VYWVYH[PVU"*HYYPaV6PS.HZ0UJ,6.
Resources, Inc. and Rex Energy Corporation.50
-YHJRPUNWYVK\JLZIPSSPVUZVMNHSSVUZVMJVU[HTPUH[LK
wastewater each year.51-VYLHJOMYHJRHIV\[TPSSPVU
gallons of contaminated water returns to the surface and
T\Z[IL[YLH[LK52 Although projections vary,53 one industry
-PSSPUNZ[H[PVUZHYLUV[[OLVUS`^H`[OH[[OLJVTWHU`
planned to tap the shale water market.420U:LW[LTILY
2011, Aqua America partnered with an energy services
Estimated Annual Water Use of Natural Gas Hydraulic Fracturing in the United States
Water Use Per
Well (gallons) A
Wells Per Total Water Use
Year B
(gallons per year) C
Barnett
Shale
Fayetteville
Shale
Haynesville
Shale
Marcellus
Shale
Average
New Fractured Gas Wells
(Drilling and Fracturing)
2,700,000
3,060,000
3,700,000
3,880,000
3,335,000
11,400
38,019,000,000
Re-Fractured Existing
Gas Wells (Fracturing)
2,300,000
2,900,000
2,700,000
3,800,000
2,925,000
14,000
40,950,000,000
Total New and
Existing Gas Wells
78,969,000,000
Sources:
A
U.S. Department of Energy. “Modern Shale Gas Development in the United States: A Primer.” April 2009 at 64.
B
U.S. Environmental Protection Agency. “Addressing Air Emissions from the Oil and Natural Gas Industry: Overview of EPA’s Proposed
New Source Performance Standards and National Emission Standards for Hazardous Air Pollutants.” July 28, 2011 at 4.
C
Total water use = average water use/well * wells /year
3
analyst predicted that the total market for treating the shale
NHZ^HZ[L^H[LY^V\SKSPRLS`L_JLLKIPSSPVUV]LY[OL
next 40 to 50 years.54 This has caught the attention of many
water companies. According to an article in the Wall Street
Journal, “The growing volume of dirty water produced in
shale-gas drilling has triggered a gold rush among watertreatment companies.”55
[OH[[OLYLZ[PSS^HZU»[Z\MÄJPLU[KLTHUKMVY[OL[YLH[TLU[
WYVJLZZHKKPUN¸)\[^L^PSSILYLHK`^OLU[OLKLTHUKPZ
there.”64 That demand will come from the expansion of the
shale gas drilling and strict regulation of its wastewater.
)LJH\ZLVM[OLÄUHUJPHS[PLZIL[^LLU[OLWYP]H[L^H[LY
\[PSP[`HUKNHZKYPSSPUNPUK\Z[YPLZW\ISPJVMÄJPHSZZOV\SK
IL^HY`VMYLS`PUNVUWYP]H[L^H[LYJVTWHUPLZ[VHZZLZZ
O`KYH\SPJMYHJ[\YPUN»ZLMMLJ[ZVU^H[LYZ\WWSPLZ<UYLN\SH[LK
sales of water from investor-owned utilities to gas drillers
HSZVTLYP[W\ISPJZJY\[PU`
“GE is involved, Veolia is involved, Siemens is involved,” an
undisclosed water treatment company executive told Global
Water IntelligenceH^H[LYPUK\Z[Y`W\ISPJH[PVU HIV\[[OL
produced water market in the Marcellus Shale. “Most of
the people who are major players in the water industry are
focused on that market.”56
;OLUH[PVU»ZSHYNLZ[^H[LY\[PSP[`JVYWVYH[PVUZOH]LÄUHUJPHS
PU[LYLZ[Z[OH[IPHZ[OLTPUMH]VYVMZOHSLNHZKL]LSVWTLU[
Their endorsement of a regulated shale gas industry should
UV[IL[HRLUHZL]PKLUJL[OH[MYHJRPUNPZZHMLVY[OH[YLN\SH[PVUZHYLZ\MÄJPLU[[VWYV[LJ[^H[LYZ\WWSPLZ;OYV\NO[OL
sale of water or treatment services to gas drillers, water
JVTWHUPLZILULÄ[MYVT[OLNYV^[OHUKYLN\SH[PVUVMZOHSL
gas drilling.
Regulations Driving the Treatment Market
Some water companies support strong regulations for the
disposal and treatment of drilling wastewater,57 perhaps
WHY[S`ILJH\ZLZ[YPJ[YLN\SH[PVUZ^V\SKJYLH[LHTHYRL[
VWWVY[\UP[`MVY[OLPY[YLH[TLU[I\ZPULZZLZ58 Both Aqua
America and American Water stated support of drilling
regulations that they claimed would protect water quality.59
;OL`IV[OHSZV^HU[LK[VZLSS^HZ[L^H[LY[YLH[TLU[ZLY]PJLZ
to gas drillers.
Despite the claims of some water corporations, regulation
is not enough to protect water supplies from the dangers of
O`KYH\SPJMYHJ[\YPUN-YHJRPUNPZL_LTW[MYVTRL`MLKLYHS
0U(\N\Z[(TLYPJHU>H[LY*,61LMM:[LYIHZHPK[OH[
water protections,65 and often-overwhelmed state regula[OLJVTWHU`PZ¸]LY`KLÄUP[LS`SVVRPUNHUK^VYRPUNPU[OL
tors primarily oversee the practice.66 Both state and federal
^HZ[L^H[LY[YLH[TLU[HYLH¹I\[KLJSPULK[VKPZJSVZL^OH[
YLN\SH[VYZOH]LHWVVY[YHJRYLJVYKVMWYV[LJ[PUN[OLW\ISPJ
[OLJVTWHU`»Z¸ZWLJPÄJPUP[PH[P]LZ¹^LYL600[ZLLTLK[VIL
67
^HP[PUNVUYLN\SH[PVUZZV[OH[Y\SLZ^V\SKIL¸ZL[PUZ[VUL¹ from the impacts of fracking. ,]LUPM[OLSH^ZVU[OLIVVRZ
^LYLZ[YLUN[OLULKMYHJRPUNWVZLZ[VVZL]LYLHYPZR[VW\Iin the words of one corporate executive.61 Similarly, Aqua
America investigated treatment options for drilling wastewa- lic and environmental health.
*VUNYLZZZ[H[LSLNPZSH[VYZHUKSVJHSNV]LYUTLU[HSIVKPLZ
[LYPUJS\KPUNHTVIPSL[YLH[TLU[\UP[623PHIPSP[`JVUJLYUZ
ZOV\SKIHUZOHSLNHZMYHJRPUN
stalled its progress,63 and in May 2011 DeBenedictis said
The Gas Driller Discount: Comparison of Pennsylvania American Water’s Water
Sales to Gas Drillers and Residential Customers
Customer Class
Period
Volume Sold
(in gallons)
Revenues
Average Charge
(Revenues/Volume)
($ per 1,000 gallons)
Gas Drillers A
First half 2011
115,300,000
$702,000
$6.09
Residential Customers B
Full year 2010
29,237,005,000
$325,273,489
$11.13
Difference
$5.04
Driller discount
(% less for drillers)
45%
Sources:
A
American Water. “Institution Investor Meetings.” August 2011 at 41.
B
Pennsylvania American Water Company. “Operating Revenues.” Data requirements for the Pennsylvania Public Utility Commission.
(Docket Number R-2011-2232243). April 29, 2011 at Vol. 6 FR.II.1.
4
1
6
10
13
14
15
16
17
18
19
21
23
26
27
28
Pickrell, Emily. “Water follows the shale trail.” Global Water Intelligence. Vol. 11,
Iss. 1. January 2010 at 25.
<:+LWHY[TLU[VM,ULYN`¸4VKLYU:OHSL.HZ+L]LSVWTLU[PU[OL<UP[LK:[H[LZ!
A Primer.” April 2009 at ES- 4, 64, 66 and 70.
(TLYPJHU>H[LY>VYRZ*VTWHU`0UJ<::LJ\YP[PLZHUK,_JOHUNL*VTTPZZPVU
-VYT2-LIY\HY`H[
:[LYIH1LMM¸8(TLYPJHU>H[LY>VYRZ*V0UJ,HYUPUNZ*VUMLYLUJL*HSS¶
-PUHS¹FD (Fair Disclosure) Wire. August 4, 2011 at 3.
(X\H(TLYPJH0UJ¸:\Z[HPUHIPSP[`9LWVY[¹4H`H[
Prior, Anna. “CEO Interview: Aqua America.” The Wall Street Journal’s SmartMoney.
July 12, 2011.
+L)LULKPJ[PZ5PJOVSHZ(X\H(TLYPJH0UJ¸3L[[LY[VZOHYLOVSKLYZ¹:LW[LTILY
2011 at 1.
(X\H(TLYPJH0UJ7YLZZYLSLHZL¸3HYNLZ[WYP]H[L<:^H[LY\[PSP[PLZ[VL_JOHUNL
Z\IZPKPHYPLZLHJOUV^SHYNLZ[PU]LZ[VYV^ULK^H[LY\[PSP[`PUYLZWLJ[P]LZ[H[LZ¹1\S`
"2L`7L[LY¸(X\H(TLYPJH(TLYPJHU>H[LY[YHKLZL_WSHPULKI`(X\H
CEO.” Philadelphia Business Journal. July 28, 2011; Aqua America, Inc. (Press release). “Aqua America reports record earnings for second quarter.” August 2, 2011.
+L)LULKPJ[PZ5PJOVSHZ¸80(X\H(TLYPJH0UJ,HYUPUNZ*VUMLYLUJL*HSS¶
-PUHS¹FD (Fair Disclosure) Wire. May 6, 2011 at 6.
Jarvis, John. “Aqua America, American Water to swap.” The Marion Star. July 12,
2011.
4HYJLSS\Z:OHSL*VHSP[PVU)YVJO\YL¸@V\Y4LTILYZOPW¹(\N\Z[H[HUK
:OHSL.HZ0UZPNO[*VUMLYLUJL:WVUZVYZ(]HPSHISLH[http://shalegasinsight.
com/sponsorship/sponsors(JJLZZLK:LW[LTILY6UÄSL^P[O-VVK
Water Watch; Marcellus Shale Coalition. “Inaugural shale gas insight conference
OPNOSPNO[ZUH[PVUHSZLJ\YP[`LJVUVTPJLU]PYVUTLU[HSILULÄ[ZVMUH[\YHSNHZ¹
:LW[LTILY
DeBenedictis, Nicholas. Aqua America, Inc. Presentation to the Pennsylvania Marcellus Shale Advisory Commission. May 20, 2011 at 3 and 9; Luitweiler, Preston.
Aqua America, Inc. Testimony on Marcellus Shale. House Democratic Policy Committee Hearing. House of Representatives. Commonwealth of Pennsylvania. June 9,
2011.
DeBenedictis, May 20, 2011 at 3.
Pape, Kathy. Pennsylvania American Water. Testimony on Water and Wastewater
Industries. Consumer Affairs Committee. House of Representatives. Commonwealth
of Pennsylvania. March 2, 2011 at 16 to 17; Pennsylvania American Water. “Pennsylvania American Water position on Marcellus Shale drilling.” 2011.
Pape at 16.
DeBenedictis, May 20, 2011 at 2.
Ibid. at 3 to 5.
Ibid. at 5.
7LUUZ`S]HUPH(TLYPJHU>H[LY7YLZZYLSLHZL¸5VKL[LJ[HISLSL]LSZVMYHKPVSVNPJHS
contaminants or volatile organic compounds found at Pennsylvania American Water intakes along Allegheny, Clarion and Monongahela Rivers and Two Lick Creek.”
May 16, 2011.
Ibid.
3L]`4HYJ¸7H^H[LY\[PSP[`KVLZU»[ÄUKKYPSSPUNWVSS\[PVU¹Associated Press. May
16, 2011.
Hopey, Don and Sean D. Hamill. “PA: Marcellus wastewater shouldn’t go to treatment plants.” Pittsburgh Post-Gazette. April 19, 2011.
4HYJLSS\Z:OHSL*VHSP[PVU¸5L^[LZ[ZJVUÄYT4HYJLSS\ZKL]LSVWTLU[UV[PTWHJ[ing Pa. waterways.” May 18, 2011.
<YIPUH0HU¸9LN\SH[PVUSH_HZNHZ^LSSZ»[HPU[LK^H[LYOP[ZYP]LYZ¹The New York
Times. -LIY\HY`
Open Secrets. Congressional Elections: Pennsylvania District 18 Race: 2012 Cycle.
(JJLZZLK:LW[LTILY
Murphy, Tim. “The Congressional Natural Gas Caucus convenes a hearing on ‘natuYHSNHZKL]LSVWTLU[HUK[OLLU]PYVUTLU[!HZ[H[LYLN\SH[VY»ZWLYZWLJ[P]L»¶-PUHS¹
FD (Fair Disclosure) Wire. June 2, 2011.
America’s Natural Gas Alliance. (Press release). “ANGA statement on the recent
American Rivers report.” May 18, 2011; Petersen, Laura. “Rivers: Energy sector
[OYLH[ZOPNOSPNO[LKPUSH[LZ[ºLUKHUNLYLK»SPZ[¹,U]PYVUTLU[HUK,ULYN`7\ISPZOPUN»Z
Land Letter. Vol. 10, Iss. 9. May 19, 2011.
29 American Rivers. “America’s Most Endangered Rivers.” May 2011 at 3.
30 Pennsylvania American Water, May 16, 2011.
(]LYJO/HY]L`HUK3LSHUK31VOUZVU¸)LOH]PVYVM[OL-PYT<UKLY9LN\SH[VY`
Constraint.” The American Economic Review. =VS0ZZ+LJLTILY H[
1053 to 1055 and 1059; American Water. “Institution Investor Meetings.” August
2011 at 13, 34 to 36.
32 DeBenedictis, May 20, 2011 at 3.
/\NOLZ4H[[¸(TPKKYPSSPUNÄNO[+PTVJRNL[ZW\ISPJ^H[LY¹The Times Leader.
6J[VILY":RYHWP[Z,SPaHIL[O¸+YPSSPUNJVTWHUPLZL`LZP[LZULHY^H[LY
sources.” Citizens Voice. May 3, 2010.
34 DeBenedictis, May 6, 2011 at 5.
35 Ibid. at 7.
36 DeBenedictis, May 20, 2011 at 8.
37 Aqua America. (Brochure). “Aqua Resources makes splash in water supply for
Marcellus shale developers.” 2011.
38 DeBenedictis, May 20, 2011 at 8.
39 DeBenedictis, May 6, 2011 at 3.
40 Aqua America, (Brochure), 2011; DeBenedictis, May 6, 2011 at 5.
41 Aqua America, (Brochure), 2011.
42 DeBenedictis, May 6, 2011 at 6.
43 Penn Virginia Resource Partners, L.P. (Press release). “Aqua America and PVR
Partners announce joint venture private water pipeline in the Marcellus Shale.”
:LW[LTILY
44 DeBenedictis, May 6, 2011 at 7.
45 Ibid, at 7.
(X\H(TLYPJH0UJ<::LJ\YP[PLZHUK,_JOHUNL*VTTPZZPVU-VYT2-LIY\ary 25, 2011 at 5.
47 American Water. “Institution Investor Meetings.” August 2011 at 41.
48 Ibid. at 41.
:[LYIHH[
50 Susquehanna River Basin Commission. “Approved Water Sources for Natural Gas
Development.” March 30, 2011.
¸-VV[Z[LWZ[V[OLZOHSL¹American Water Intelligence. =VS0ZZ6J[VILY
at 10.
52 Chernova, Yuliya. “In fracking’s wake.” The Wall Street Journal. :LW[LTILY
.SVIHS>H[LY0U[LSSPNLUJL¸7YVK\JLK>H[LY4HYRL[!6WWVY[\UP[PLZPU[OLVPSZOHSL
and gas sectors in North America.” March 17, 2011 at 137 to 138; Arnold, Mark.
8\HU[HPJ*VYWVYH[PVU7YLZLU[H[PVUH[Global Water Intelligence’s American Water
:\TTP[>HZOPUN[VU+*5V]LTILYH[
54 Pickrell at 25.
55 Chernova.
.SVIHS>H[LY0U[LSSPNLUJLH[
+L)LULKPJ[PZ4H`H["7LUUZ`S]HUPH(TLYPJHU>H[LY(SLY[UV[PÄJH[PVU¸)YVTPKL(SLY[<WKH[L¹(WYPS"7HWLH[
58 “Waste not, want not in the Marcellus Shale.” Global Water Intelligence. Vol. 11,
0ZZ-LIY\HY`H["¸-V\U[HPU8\HPSWSHUZP[Z4HYJLSS\Z:OHSLJVUX\LZ[¹
American Water Intelligence. Vol. 2, Iss. 1. January 2011 at 11.
59 DeBenedictis, May 20, 2011 at 6; Pennsylvania American Water, April 20, 2011;
Pape at 16.
:[LYIHH[
61 Vallejo, Edward. “American Water Works Co Inc at Philadelphia Securities Associa[PVUPUMVYTH[PVUS\UJOLVUTLL[PUN¶ÄUHS¹FD (Fair Disclosure) Wire. April 6,
2011 at 7.
62 DeBenedictis, May 6, 2011 at 6.
+L)LULKPJ[PZ5PJOVSHZ¸(X\H(TLYPJHH[.HILSSP*VTWHU`0UJ)LZ[0KLHZ
*VUMLYLUJL¶-PUHS¹FD (Fair Disclosure) Wire.+LJLTILYH[
64 DeBenedictis, May 6, 2011 at 6.
<YIPUH0HU¸7YLZZ\YLSPTP[ZLMMVY[Z[VWVSPJLKYPSSPUNMVYNHZ¹The New York Times.
March 3, 2011; “Lax rules for the natural gas industry.” The New York Times. March
3, 2011.
1LY]PZ9PJR¸.HZKYPSSPUNM\LSZHIVVT¶HUKOLHS[OJVUJLYUZ¹USA Today. DecemILY
<YIPUH March 3, 2011.
Food & Water Watch ^VYRZ[VLUZ\YL[OLMVVK^H[LYHUKÄZO^LJVUZ\TLPZZHMLHJJLZZPISL
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*VW`YPNO[+LJLTILYI`-VVK>H[LY>H[JO All rights reserved. ;OPZPZZ\LIYPLMJHUIL]PL^LKVYKV^USVHKLKH[^^^MVVKHUK^H[LY^H[JOVYN