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Broadway
User Rank
Platinum
Re: Insured ?
Broadway   11/28/2011 1:24:47 PM
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The overall liability of fracking is too much for some commercial insurance companies to bear. They won't sell operators any coverage. Other insurers, of course, are jumping on the business (cautiously they say).

Street Smart
User Rank
Platinum
Re: Insured ?
Street Smart   11/28/2011 11:30:33 AM
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I agree @Broadway.  In California, earthquake insurance is definitely a rider that has to be purchased separately from standard homeowner coverage.  And it's extremely expensive and not a given that one will qualify.

It's hard to imagine how a fracking operation could begin to carry liability insurance against the massive damage it might cause.  We had some blasting done in our neighborhood recently, and the demolition company really wasn't even covered to any great degree for major seismic damage had any occurred.

Broadway
User Rank
Platinum
Re: Insured ?
Broadway   11/27/2011 5:11:21 PM
NO RATINGS
I've done some research into insurance for fracking, and my best guess is that the operators would NOT have insurance, unless they specifically bought coverage for third-party liability for quakes. Generally, for first-party property insurance, quake is a special coverage that needs to be bought separate from standard property insurance. The same would hold for liability insurance.

mInvestor
User Rank
Iron
Re: Insured ?
mInvestor   11/27/2011 2:33:17 PM
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You are right, these two are really thought provoking pieces. Thanks goes to Sherri. And thank you for coming up this detailed list for fliud. I have a question, is fracking done on lnad only, or it has been applied in ocean? If it's done in ocean, is there any difference, like fluid used?

Again, this is an informative article. I didn't understand what those enironmental protesters shouting for. Now I start to get the idea. I am not sure if this fracking will destroy our environment, but it's a thing we shall pay attention.

 

 

tokyogai
User Rank
Platinum
Re: Insured ?
tokyogai   11/27/2011 1:06:31 PM
NO RATINGS
Really good list. It takes the mystery out of it.

Noreen Seebacher
User Rank
Blogger
Re: Insured ?
Noreen Seebacher   11/26/2011 12:08:58 PM
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Maybe more than you want to know...

99.5% water and sand

• 80.5% water • 19.0% proppant

• plus 0.5% chemicals

(What kind of chemicals? See below for more details…)

• Fresh Water – 80.5%

• Proppant – 19.0%

– Allows the fractures to remain open so the oil and gas can escape

Common use: Drinking water filtration, play ground sand

• Acids - 0.12%

– Help dissolve minerals and initiate fractures in rock (pre-fracture)

Common use: Swimming pool cleaner

• Petroleum distillates – 0.088%

– Dissolve polymers and minimize friction

Make-up remover, laxatives, and candy

• Isopropanol – 0.081%

– Increases the viscosity of the fracture fluid

Glass cleaner, antiperspirant, and hair color

• Potassium chloride – 0.06%

– Creates a brine carrier fluid

Low-sodium table salt substitute

• Guar gum – 0.056%

– Thickens the water to suspend the sand

Thickener used in cosmetics, baked goods, ice cream, toothpaste, sauces, and salad dressing

• Ethylene glycol – 0.043%

– Prevents scale deposits in the pipe

Automotive antifreeze, household cleansers, deicing, and caulk

• Sodium or potassium carbonate – 0.011%

– Improves the effectiveness of other components, such as cross-linkers

 Washing soda, detergents, soap, water softeners, glass and ceramics

• Sodium Chloride – 0.01%

– Delays break down of the gel polymer chains

Table Salt

• Polyacrylamide – 0.009%

– Minimizes friction between fluid and pipe

Water treatment, soil conditioner

• Ammonium bisulfite – 0.008%

– Removes oxygen from the water to protect the pipe from corrosion

Cosmetics, food and beverage processing, water treatment

• Borate salts – 0.007%

– Maintain fluid viscosity as temperature increases

Used in laundry detergents, hand soaps and cosmetics

• Citric Acid – 0.004%

– Prevents precipitation of metal oxides

Food additive; food and beverages; lemon juice

• N, n-Dimethyl formamide – 0.002%

– Prevents the corrosion of the pipe

Used in pharmaceuticals, acrylic fibers and plastics

• Glutaraldehyde – 0.001%

– Eliminates bacteria in the water

Disinfectant; Sterilizer for medical and dental equipment

 

Dex
User Rank
Iron
Re: Insured ?
Dex   11/26/2011 12:06:57 PM
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Anyone know what's in frac fluid?

Tenacious
User Rank
Platinum
Re: Insured ?
Tenacious   11/25/2011 5:15:24 PM
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It will be especially interesting in North Dakota, a place that I seem to recall as being relatively immune to earthquakes.

AskAsa
User Rank
Platinum
Re: Insured ?
AskAsa   11/25/2011 5:10:01 PM
NO RATINGS
Yes, I'm intrigued. I'm going to be watching this over the coming months to see how it all shakes out

Noreen Seebacher
User Rank
Blogger
Re: Insured ?
Noreen Seebacher   11/25/2011 5:08:33 PM
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Interesting and thought provoking stuff Sherri

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