By Brittany Grove
Sun Staff Writer
bgrove@evesun.com
OXFORD – Oxford resident and disabled veteran James Lobdell lost more than $20,000 of investment money after the bankruptcy and liquidation of the Norse Energy Corporation, USA – a now defunct natural gas-and-oil company. The money lost was to be Lobdell's nest egg for the future.
Norse Energy went bankrupt as a result of the company's fracking production being put on hold by a New York State environmental impact review of high-volume hydraulic fracturing. The company was also forced to liquidate its assets after failing to find responsible bidders to auction off some of their assets.
Governor Cuomo and two of his commissioners – Dr. Nirav Shah of the NYS Department of Health and Dr. Joseph Martens of the NYS Department of Environmental Conservation – have been working on an environmental impact statement for five and a half years now, with no end in sight.
“The review was just supposed to be a supplement to the original environmental review drafted by the NYS DEC in 1992. The DEC already does a good job of regulating fracking,” said Steven Palmatier, Chenango County's natural gas consultant.
Tom West, Managing Partner of The West Law Firm, PLLC in Albany, is representing Norse Energy's bankruptcy trustee in a lawsuit against Governor Cuomo and his commissioners for failing to finalize the long overdue Supplemental Generic Environmental Impact Statement.
“The lawsuit is saying Governor Cuomo and Dr. Shah are not fulfilling their legal obligations. The governor doesn't want to see natural gas development in New York; it's a political move on his part. Dr. Shah, as part of the Department of Health, really should have no say. The DEC should be in charge of fracking,” said Palmatier.
West said Lobdell, who joined the litigation, is one of many investors that were affected by the bankruptcy and liquidation of Norse Energy. According to West, investors have lost more than 100 million dollars as a result of the delay.
He also said New York ranks dead last in the country and 119th in the world as a suitable place for investment in the oil and gas industry, which is a direct result of its inability to finalize its standards for fracking.
Palmatier describes the process of high-volume hydro-fracking as horizontally injecting water, chemicals and sand into layers of rock formations underground to fracture rock and release natural gas into wells.
Palmatier said hydrofracking has been practiced for decades and is used all over the country. He also said it is a more efficient and productive form of fracking, which makes it more economically lucrative for communities.
“There is less physical disturbance, fewer roadways, fewer pipelines, fewer acres of land disturbed and you get a much higher volume of natural gas produced,” explained Palmatier.
West said the governor and his commissioners are causing harm to citizens of New York by delaying high-volume hydraulic fracking in the state. He also said they are squandering away what might be the “most significant economic opportunity in the history in New York.”
Palmatier said the concerns with high-volume hydraulic fracking is it uses more water than other forms of fracking, and the chemicals pumped into the ground risking water contamination. He does not think the chemicals are anything to be “too worried about,” and thinks mistakes can be avoided.
“Every industrial process has its own inherent risks. And all industrial processes can be regulated to eliminate the risks they pose. The DEC knows what its doing,” said Palmatier. “But I am not a lawyer. The courts will decide.”
The case will return to court on January 24, 2014, in the Albany County Supreme Court, where a judge will hear arguments and decide whether a jury trial is required.