Private Water Companies Join Forces With Fracking Interests by Sarah Pavlus, the Colorado Independent, April 23, 2012
The water companies – American Water and Aqua America – are leading drinking water suppliers in Pennsylvania, where drilling is booming. They also sell water to gas companies — which use a drilling technique that requires massive amounts of water — and have expressed interest in treating drilling wastewater, a potentially lucrative opportunity. These investor-owned, publicly traded water utility companies are also dues-paying “associate members” of the gas industry’s powerful Marcellus Shale Coalition, a fact confirmed by coalition spokesman Travis Windle, who says associate members pay $15,000 annually in dues. “Our associate members are really the backbone of the industry,” adds Windle. Both water companies serve millions of people across the country – Aqua America operates in11 states and American Water in more than 30. Neither company is currently in Colorado. … In the meantime, the water companies are selling water to the drillers while calling for fracking to be done in an environmentally responsible manner. In a presentation to investors last month, American Water stated that it is “realizing additional revenues from water sales to drilling companies while remaining vigilant in protecting our water sources.” In the presentation, the company noted it “sold 250.4 million gallons of water to gas drillers from January through December of 2011, producing $1.6 million in revenues.”
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Aqua America is aggressively positioning itself to take advantage of what CEO Nick DeBenedictis has described to investors as a “water-energy nexus that could have a positive impact on the future of our company.” In recent years, the company has made sizeable acquisitions in Texas and Ohio – states that, like Pennsylvania, are home to large shale gas plays – and is also building a pipeline in Pennsylvania to supply water to drillers. … Recently, however, that pipeline has come under fire from local anti-drilling activists because the project will displace dozens of residents from a mobile home park. Like American Water, Aqua America is not currently in the drilling wastewater treatment business, but may expand into that market in the future.
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“If American Water and Aqua America wanted to ensure that their water supplies were protected, they would support a national ban on hydraulic fracturing for shale gas,”
Private Water Companies Join Forces With Fracking Interests
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