Green groups find success fighting shale oil boom

WASHINGTON, Dec 28 (Reuters): A resurgent green movement is launching a multi-pronged counter-attack against the shale oil and gas boom in the United States that could slow, though ultimately not stop, development. Building upon their unexpected success in the battle against the Keystone XL pipeline, a renewed onslaught from environmentalists is putting the shale industry on the defensive while adding to costs, limiting expansion and potentially scuttling major projects. "I think it's the totality of what's going on all at once, that's the biggest concern," said Barclay Nicholson, a lawyer for the Washington-based Fulbright & Jaworski law firm, which has represented companies involved in shale development. With new oversight pending from federal and state authorities and lawsuits, Nicholson said critics of shale development have a plethora of avenues to fight back. Environmentalists, alarmed at what they see as unchecked industrialisation of rural areas, say they are working to secure more regulation of the rapidly growing shale industry to protect fragile areas from damaging practices. Piece meal approach: After legislation aimed at addressing climate change failed to make it into law last year, green groups have been forced to take a more piece meal approach to energy policy. That strategy worked well against TransCanada's proposed Canada-to-Texas Keystone XL pipeline, which environmentalists successfully turned into a potent symbol of the threat of carbon-intensive oil sands crude. In November, the Obama administration delayed the project, once described as a "no brainer" by Canada's Prime Minister Stephen Harper, after a wave of protests erupted in Washington and on the campaign trail. The decision was like a shot of adrenalin for the green movement and groups are planning more creative and high profile efforts to fight a range of energy projects. Republicans in Congress maneuvered to keep Keystone alive by including a provision in tax legislation that would force the White House to make decision on the project within 60 days. But green groups have vowed to fight on and the administration has already said it cannot approve the project because of the time needed to study new routes. "For the moment we're stuck fighting one pipeline, one gas well at a time," said Bill McKibben, who rose to prominence with his staging of huge protests against Keystone and is now using his influence to attack the fracking bonanza. Fracking in the spotlight: Oil and gas companies are using advanced drilling techniques to unlock vast stores of shale fuel across the country, which is bringing legions of rigs, trucks and workers to areas unused to such activity. The companies employ the controversial "fracking" drilling process that involves fracturing rock formations by shooting vast and often secret cocktails of water and chemicals deep underground to free a trove of hydrocarbons. The oil and gas industry argues that the fracking technique has been used safely for years and advances in the practice have set off a revolution that is creating jobs and boosting US energy security. But, environmentalists warn against downplaying their concerns about fracking. "I'm not sure that they really want a Keystone XL fight on their hands, because the public is strong and they're not going to back down on this issue," said Deb Nardone, director of the Sierra Club's natural gas reform campaign, which formally launched this year. Worries about shale output have already prompted the Environmental Protection Agency and the Interior Department to begin crafting new regulations that address issues such as wastewater disposal and disclosure of chemicals. Green Groups have made headway with their appeals in New York, where authorities have imposed a temporary moratorium Continued to Page 20