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Fact Sheet November 2011
WATER
S
h al e gas d evel o p m en t c r eat es a p o t en t i al m u l t i b i l l i o n - d o l l ar m ar k et f o r w at er su p p l y an d
t r eat m en t ser v i c es,
1
t h e p r o sp ec t o f w h i ch c o u l d b e en c o u ragi n g so m e l ar ge i nvest o r- ow n ed
w at er u t i l i t i es t o su p p o r t sh al e gas an d d ow n p l ay i t s w at er r i sk s. Cer t ai n w at er c o m p an i es su ggest
t h at w i t h r egu l at i o n , sh al e gas d r i l l i n g p o ses n o r eal t h r eat t o w at er q u al i t y. Th e c o m p an i es
nuncu nterest n the shue murket, hovever, custs doubt on the reubty o thut ussessment.
Fo r t h e p r i vat e w at er i n d u st r y, sh al e gas d evel o p m en t p r esen t s an o p p o r t u n i t y b ec au se o f n o t
d esp i t e i t s w at er p r o b l em s.
G as d r i l l er s u se a w at er- i n t en si ve p r o c ess c al l ed hy d rau l i c
f rac t u r i n g, o r f rack i n g, t o ex t rac t n at u ral gas f r o m sh al e.
Th e p r o c ess i n j ec t s m i l l i o n s o f gal l o n s o f w at er, m i x ed w i t h
san d an d ch em i c al s, u n d er h i gh p r essu r e t o c rack t h e r o ck
f o r m at i o n t o r el ease n at u ral gas. M u ch o f t h at w at er r et u r n s
t o t h e su r f ac e, al o n g w i t h w at er f r o m u n d er gr o u n d , c o n -
tumnuted vth ruckng uds und other, possby rudouc-
t i ve, su b st an c es.
2
Pr i vat e w at er p l ayer s c an m ak e m o n ey o n
b o t h en d s by sel l i n g w at er t o d r i l l er s an d t h en t r eat i n g t h e
w ast ew at er.
A Targeted Approach
D u r i n g 2 0 1 1 , A q u a A m er i c a an d A m er i c an W at er w er e at
t h e f o r ef r o n t o f t h e p r i vat e w at er u t i l i t y i n d u st r y s p u sh t o
ex p l o i t f rack i n gs w at er n eed s.
A m er i c an W at er, t h e l ar gest p u b l i c l y t rad ed w at er an d
sew er u t i l i t y i n t h e c o u n t r y,
3
h ad st rat egi c p o si t i o n i n g i n
d r i l l i n g ar eas o f Pen n sy l van i a, ac c o r d i n g t o CEO Jef f
St er b a. H e ad d ed , W er e c o n t i n u i n g t o ex p an d ser v i c e
i n t h e M arc el l u s Sh al e r egi o n w h er e w e h ave 2 9 p o i n t s o f
i n t erc o n n ec t i o n , ser v i n g 1 2 d i f f er en t d r i l l i n g c o m p an i es.
4

A q u a A m er i c a, t h e sec o n d l ar gest p u b l i c l y t rad ed U . S.
w at er u t i l i t y,
5
w as p er h ap s m o r e aggr essi ve i n t h at ar en a.
I n Ju l y 2 0 1 1 w h en Sm ar t M o n ey ask ed w h at w as o n t h e
c o m p any s rad ar, CEO N i ck D eBen ed i c t i s r ep l i ed , W er e
l o o k i n g at p r o b ab l y t h e b i ggest t h i n g t o h ap p en t o
Pen n sy l van i a i n t h e p ast 3 0 year s, w h i ch i s t h e n at u ral
gas i n t h e M arc el l u s Sh al e.
6
I n a Sep t em b er 2 0 1 1 l et t er,
D eBen ed i c t i s t o l d st o ck h o l d er s, W e ar e c u r r en t l y
p u r su i n g t h e gr ow t h o p p o r t u n i t i es p r ov i d ed by t h e sh al e
d r i l l i n g i n d u st r y, esp ec i al l y i n Pen n sy l van i as M arc el l u s
Sh al e, an d f o c u si n g o n t h e c l ean w at er asp ec t s o f t h e
d r i l l i n g b u si n ess.
7

Th r o u gh several m u l t i m i l l i o n - d o l l ar d eal s t h at year, t h e
c o m p any so u gh t t o f o c u s i t s o p erat i o n s an d st r en gt h en
i t s p o si t i o n i n t h r ee st at es w i t h ac t i ve sh al e p l ay s: Pen n sy l -
van i a, O h i o an d Tex as.
8
A l t h o u gh Pen n sy l van i a w as a
p i l o t f o r i t s b u si n ess m o d el , t h e c o m p any p l an n ed t o
ex p l o r e ap p l y i n g i t i n Tex as,
9
as w el l as O h i o . D eBen ed i c -
t i s t o l d t h e M ar i o n St ar t h at t h e sh al e m ar k et o p p o r t u n i t y
i n O h i o w as t h e i c i n g o n t h e c ak e o f t h e c o m p any s
p l an n ed $ 1 2 0 m i l l i o n p u rch ase o f w at er an d sew er
sy st em s i n t h e st at e, ad d i n g, W h en d r i l l i n g st ar t s i n ear-
n est i n O h i o , I t h i n k w e w an t t o b e p o si t i o n ed t o b e
a su p p l i er.
1 0

Shilling for the Shale Gas I ndustry
A q u a A m er i c a w as a vo c al su p p o r t er o f t h e d evel o p m en t
an d r egu l at i o n o f sh al e gas d r i l l i n g, p ar t i c u l ar l y i n
Pen n sy l van i a. I t w as an asso c i at e m em b er o f t h e M arc el l u s
Sh al e Co al i t i o n a gr o u p t h at advo c at es o n b eh al f o f
t h e d r i l l i n g i n d u st r y
1 1
an d c o sp o n so r ed an i n d u st r y
c o n f er en c e c al l ed Sh al e G as I n si gh t 2 0 1 1 .
1 2
A q u a A m er i c a
ex ec u t i ves h ave al so sp o k en i n f avo r o f sh al e gas d r i l l i n g
b ef o r e t h e Pen n sy l van i a H o u se D em o c rat i c Po l i cy
Co m m i t t ee an d t h e Pen n sy l van i a M arc el l u s Sh al e A dv i so r y
Co m m i ssi o n .
1 3

I n sh o r t , w e w an t t o su p p o r t t h e ef f o r t s t o gr ow an i n d u s-
try thut provdes tremendous economc benets to lenn-
sy l van i a an d c r i t i c al en er gy r eso u rc es f o r o u r c o u n t r y,
D eBen ed i c t i s sai d i n h i s p r ep ar ed st at em en t t o t h e Pen n sy l -
van i a M arc el l u s Sh al e A dv i so r y Co m m i ssi o n , ad d i n g t h at
t h e c o m p any w an t ed i t t o b e d o n e r i gh t t h at i t w as
r egu l at ed .
1 4

A m er i c an W at er s Pen n sy l van i a ar m al so t ac i t l y en d o r sed
t h e sh al e gas i n d u st r y an d i m p l i ed t h at r egu l at i o n w as su f -
cent to protect vuter suppes.
1 5
A s an i n d u st r y w e k n ow
thut Murceus Shue s u sgncunt economc opportunty
f o r t h e Co m m o n w eal t h , Kat hy Pap e, h ead o f Pen n sy l van i a
A m er i c an W at er, t o l d st at e l egi sl at o r s i n M arch 2 0 1 1 , b u t
t h at ec o n o m i c o p p o r t u n i t y h as t o b e b al an c ed ab o u t w h at
muy be negutve mpucts. She cured, \e're not suyng
t h at at t h i s p o i n t i n t i m e t h er e ar e n egat i ve i m p ac t s, b u t
w e w an t t o b e su r e t h at t h e [ D ep ar t m en t o f Env i r o n m en t al
Pr o t ec t i o n ] st af f i s t h er e t o en f o rc e t h e r egu l at i o n s t h at ar e
i n p l ac e.
1 6

D ownplaying Risks
D esp i t e c l ai m i n g t o sh ar e t h e p u b l i c s d eep an d
ustube envronmentu concerns ubout shue gus
d evel o p m en t ,
1 7
A q u a A m er i c as D eBen ed i c t i s c r i t i c i z ed
n ew sp ap er c overage ab o u t gr o u n dw at er c o n t am i n at i o n
n ear d r i l l i n g si t es an d d ow n p l ayed h eal t h r i sk s o f p o t en t i al
c o n t am i n an t s.
1 8
H e c l ai m ed , W e b el i eve t h at t h er e i s l ow
p o t en t i al f o r adver se i m p ac t s o n o u r w at er su p p l i es f r o m
M arc el l u s Sh al e d r i l l i n g ac t i v i t y i n l ar ge p ar t d u e t o [ t h e
Pen n sy l van i a D ep ar t m en t o f Env i r o n m en t al Pr o t ec t i o n s]
ef f ec t i ve r egu l at i o n s c o u p l ed w i t h en f o rc em en t .
1 9

Pen n sy l van i a A m er i c an W at er h as t ac i t l y ex p r essed a si m i -
l ar b el i ef ab o u t t h e saf et y o f d r i l l i n g w ast ew at er. I t p u b l i -
czed the resuts o u u buttery o tests thut conrmed
t h at M arc el l u s Sh al e d r i l l i n g w ast ew at er h ad n o t af f ec t ed
t h e c o m p any s d r i n k i n g w at er.
2 0
Th e c o m p any d i d n o t
ac t u al l y assess w at er q u al i t y r i sk s o f d r i l l i n g w ast ew at er
b u t p r ov i d ed a sn ap sh o t o f c er t ai n su r f ac e w at er c o n d i -
t i o n s. I t t est ed w at er al o n g several r i ver s b u t d i d n o t sp ec i f y
w h et h er sam p l es w er e t ak en n ear o r even d ow n st r eam
o f t r eat m en t p l an t s t h at w er e r ec ei v i n g d r i l l i n g w ast ew a-
t er at t h e t i m e.
2 1
(O ver t h e p r ev i o u s year, a n u m b er o f l ar ge
gas d r i l l er s h ad so u gh t t o avo i d sen d i n g t h ei r w ast ew at er t o
sew age p l an t s,
2 2
an d t h e n u m b er o f p l an t s ac c ep t i n g d r i l l -
i n g w ast ew at er f el l f r o m 2 7 t o 1 5 .
2 3
)
N o n et h el ess, so m e sh al e gas p r o p o n en t s sei z ed o n t h e
c o m p any s r esu l t s, i n ap p r o p r i at el y over st at i n g an d gen -
eral i z i n g t h em i n an at t em p t t o d i sc r ed i t val i d c o n c er n s
ab o u t f rack i n gs p o t en t i al t o c o n t am i n at e w at er su p p l i es.
Fo r ex am p l e, t h e M arc el l u s Sh al e Co al i t i o n u sed t h e
r esu l t s t o at t ack a w i d el y c i t ed N ew Yo r k Ti m es i nvest i ga-
t i o n ,
2 4
w h i ch am o n g o t h er t h i n gs, f o u n d t h at so m e sew age
p l an t s w er e n o t ad eq u at el y t r eat i n g d r i l l i n g w ast ew at er
b ef o r e d i sch ar gi n g i t t o su r f ac e w at er s.
2 5
D u r i n g h i s o p en -
i n g r em ar k s at a c o n gr essi o n al h ear i n g ab o u t n at u ral gas
d evel o p m en t an d t h e env i r o n m en t , Rep . Ti m M u r p hy (R-
PA ) w h o se 2 0 1 2 el ec t i o n c am p ai gn h as r ec ei ved m o r e
c o n t r i b u t i o n s t o d at e f r o m t h e o i l an d gas i n d u st r y t h an
f r o m any o t h er i n d u st r y
2 6
r ef er r ed t o t h e r esu l t s as h e
rai l ed agai n st t h e U . S. Env i r o n m en t al Pr o t ec t i o n A gen cy
f o r i n sp ec t i n g sew age p l an t s t h at t r eat ed d r i l l i n g w ast e-
w at er.
2 7
A m er i c as N at u ral G as A l l i an c e u sed t h e r esu l t s
i n a st at em en t d en o u n c i n g an A m er i c an Ri ver s r ep o r t ,
2 8

w h i ch f o u n d t h at t h e Su sq u eh an n a Ri ver w as t h e c o u n t r y s
m o st en d an ger ed r i ver b ec au se o f n at u ral gas ex t rac t i o n ;
2 9

Pen n sy l van i a A m er i c an W at er d i d n o t t est w at er f r o m t h e
Su sq u eh an n a Ri ver.
3 0

The M argins on Contamination
Regu l at i o n i s o f t en n o t en o u gh t o p r even t f rack i n g f r o m
c o n t am i n at i n g w at er su p p l i es. Fo r i nvest o r- ow n ed w at er
u t i l i t i es, t h i s i s n o t n ec essar i l y u n f o r t u n at e; i n f ac t , i t c an
uctuuy be nuncuy revurdng. \uter contumnuton
c an n ec essi t at e an d j u st i f y c o st l y t r eat m en t p l an t u p grad es
t h at b o o st c o r p o rat e r et u r n s. Bec au se o f h ow t h ey ar e
r egu l at ed , i nvest o r- ow n ed w at er u t i l i t i es i n c r ease t h ei r
prots by nvestng n nrustructure und by rusng rutes.
3 1

W at er c o n t am i n at i o n c an al so c r eat e n ew c u st o m er s f o r
w at er c o m p an i es. A s D eBen ed i c t i s n o t ed , t h e r easo n ab l e
t r eat m en t m et h o d s f o r r em ov i n g m et h an e f r o m d r i n k i n g
vuter coud be dcut or smu prvute ves.
3 2
W h en
f rack i n g p o l l u t es w at er so u rc es, h o u seh o l d s an d sm al l
w at er sy st em s t h at c an n o t af f o r d t o t r eat t h ei r w at er h ave
to nd unother vuter suppy. 1her ony uternutve muy be
t o c o n n ec t t o a w at er sy st em ow n ed by a p r i vat e u t i l i t y. Fo r
ex am p l e, af t er n at u ral gas d r i l l i n g c o n t am i n at ed gr o u n d -
w at er w el l s i n D i m o ck , Pa. , t h e st at e f u n d ed a $ 1 2 m i l l i o n
p r o j ec t t o c o n n ec t 1 8 h o m es i n t h e c o m m u n i t y t o Pen n sy l -
van i a A m er i c an W at er s w at er sy st em .
3 3

Se|||ng Water to Gas Dr|||ers
H y d rau l i c f rac t u r i n g r eq u i r es a t r em en d o u s am o u n t o f
w at er, i n t h e w o r d s o f A q u a A m er i c as D eBen ed i c t i s.
3 4
I n
2 0 1 1 , U . S. n at u ral gas f rack i n g o p erat i o n s u sed an est i -
m at ed 8 0 b i l l i o n gal l o n s o f w at er (see t ab l e).
Aqua America
I n 2 0 1 1 , D eBen ed i c t i s p r ed i c t ed t h at w at er u sage i n t h e
M arc el l u s Sh al e w o u l d gr ow geo m et r i c al l y i n a year
o r t w o .
3 5
To c ap i t al i z e o n t h i s m ar k et , A q u a A m er i c a
d evel o p ed b u l k w at er st at i o n s n ex t t o h i gh w ay s w h er e
t r u ck s c an c o l l ec t w at er f o r gas d r i l l er s.
3 6
A s o f 2 0 1 1 , i t h ad
ei gh t si t e l o c at i o n s: si x i n Pen n sy l van i a, o n e i n N ew Yo r k
an d o n e i n O h i o .
3 7
D eBen ed i c t i s em p h asi z ed f r eq u en t l y t h at t h e st at i o n s
heped reduce truck truc on smu-tovn rouds,
3 8
w h i ch
h e c al l ed a gr eat p u b l i c ser v i c e,
3 9
b u t t h i s ef f ec t , i f any -
t h i n g, i s i n c i d en t al o r at l east sec o n d ar y t o t h e c o m p any s
p r i m ar y o b j ec t i ve. A q u a A m er i c a p l ac ed t h e st at i o n s
o f f m aj o r h i gh w ay s t o ap p eal t o d r i l l er s by c u t t i n g t h ei r
t ran sp o r t at i o n c o st s.
4 0
W e ve d esi gn ed t h e b u l k st at i o n s
c o m p l et el y ar o u n d t h e n eed s o f t h e M arc el l u s Sh al e
i n d u st r y i n c l u d i n g t ech n o l o gy t o t rack w h o i s t ak i n g w at er
an d h ow m u ch t h ey ar e t ak i n g, D eBen ed i c t i s sai d i n a
c o r p o rat e b r o ch u r e.
4 1
Fi l l i n g st at i o n s ar e n o t t h e o n l y w ay t h at t h e c o m p any
p l an n ed t o t ap t h e sh al e w at er m ar k et .
4 2
I n Sep t em b er
2 0 1 1 , A q u a A m er i c a p ar t n er ed w i t h an en er gy ser v i c es
c o m p any an d i nvest ed $ 1 2 m i l l i o n t o b u i l d an d o p erat e an
1 8 - m i l e p i p el i n e t o su p p l y f r esh w at er t o M arc el l u s Sh al e
gas p r o d u c er s, i n c l u d i n g Ran ge Reso u rc es Co r p o rat i o n .
4 3

A c c o r d i n g t o D eBen ed i c t i s, w at er sal es t o d r i l l er s ar e
unreguuted, so t s more protube to se vuter to gus
d r i l l er s t h an t o r egu l ar c u st o m er s l i k e h o u seh o l d s.
4 4
H e ex -
p ec t ed t h e c o m p any s M arc el l u s ac t i v i t y t o b o o st sal es by
0 . 3 p erc en t t o 0 . 4 p erc en t ,
4 5
w h i ch w o u l d b e $ 2 m i l l i o n t o
$ 3 m i l l i o n a year, b ased o n i t s 2 0 1 0 o p erat i n g r even u es.
4 6

American Water
Durng the rst hu o 20ll, Amercun \uter sod ll5
m i l l i o n gal l o n s o f w at er t o a d o z en gas- d r i l l i n g c o m p an i es,
m ak i n g $ 7 0 2 , 0 0 0 i n r even u e.
4 7
I t so l d w at er at 2 9
d i st r i b u t i o n p o i n t s,
4 8
m o st l y t h r o u gh p i p el i n e ex t en si o n s
f r o m i t s w at er sy st em s.
4 9
Th e c o m p any gave gas d r i l l er s a
m aj o r d i sc o u n t o n t h e p r i c e o f w at er. O n average, d r i l l er s
p ai d 4 5 p erc en t l ess t h an r esi d en t i al c u st o m er s p er 1 , 0 0 0
gal l o n s o f w at er (see t ab l e n ex t p age).
Pen n sy l van i a A m er i c an W at er s n at u ral gas d r i l l i n g c o m -
p any c u st o m er s i n c l u d ed A LTA O p erat i n g Co m p any, LLC;
Cab o t O i l & G as Co r p o rat i o n ; Car r i z o O i l & G as, I n c . ,
EO G Reso u rc es, I n c . an d Rex En er gy Co r p o rat i o n .
5 0
The "Go|d Rush" to
Treat Dr||||ng Wastewater
Frack i n g p r o d u c es b i l l i o n s o f gal l o n s o f c o n t am i n at ed
w ast ew at er each year.
5 1
Fo r each f rack , ab o u t 1 m i l l i o n
Est|mated Annua| Water Use of Natura| Gas Hydrau||c Fractur|ng |n the Un|ted States
Water Use Per We||s Per Tota| Water Use
We|| (ga||ons|
A
Year
B
(ga||ons per year|
C
Barnett Fayetteville Haynesville Marcellus Average
Shale Shale Shale Shale
New Fractured Gas Wells
(Drilling and Fracturingj 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 (Fracturingj 2,300,000 2,900,000 2,700,000 3,800,000 2,925,000 14,000 40,950,000,000
Tota| New and
Ex|st|ng Gas We||s 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 lndustry: 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
gal l o n s o f c o n t am i n at ed w at er r et u r n s t o t h e su r f ac e an d
m u st b e t r eat ed .
5 2
A l t h o u gh p r o j ec t i o n s var y,
5 3
o n e i n d u st r y
an al y st p r ed i c t ed t h at t h e t o t al m ar k et f o r t r eat i n g t h e sh al e
gas w ast ew at er w o u l d l i k el y ex c eed $ 1 0 0 b i l l i o n over t h e
n ex t 4 0 t o 5 0 year s.
5 4
Th i s h as c au gh t t h e at t en t i o n o f m any
w at er c o m p an i es. A c c o r d i n g t o an ar t i c l e i n t h e Wal l St r eet
Jo u r n al , Th e gr ow i n g vo l u m e o f d i r t y w at er p r o d u c ed i n
sh al e- gas d r i l l i n g h as t r i gger ed a go l d r u sh am o n g w at er-
t r eat m en t c o m p an i es.
5 5
G E i s i nvo l ved , Veo l i a i s i nvo l ved , Si em en s i s i nvo l ved ,
an u n d i sc l o sed w at er t r eat m en t c o m p any ex ec u t i ve t o l d
G l o b al Wat er I n t el l i gen c e, a w at er i n d u st r y p u b l i c at i o n ,
ab o u t t h e p r o d u c ed w at er m ar k et i n t h e M arc el l u s Sh al e.
M o st o f t h e p eo p l e w h o ar e m aj o r p l ayer s i n t h e w at er
i n d u st r y ar e f o c u sed o n t h at m ar k et .
5 6
Regulations D riving the Treatment M arket
So m e w at er c o m p an i es su p p o r t st r o n g r egu l at i o n s f o r t h e
d i sp o sal an d t r eat m en t o f d r i l l i n g w ast ew at er,
5 7
p er h ap s
p ar t l y b ec au se st r i c t r egu l at i o n s w o u l d c r eat e a m ar k et
o p p o r t u n i t y f o r t h ei r t r eat m en t b u si n esses.
5 8
Bo t h A q u a
A m er i c a an d A m er i c an W at er st at ed su p p o r t o f d r i l l i n g
r egu l at i o n s t h at t h ey c l ai m ed w o u l d p r o t ec t w at er q u al i t y.
5 9

Th ey b o t h al so w an t ed t o sel l w ast ew at er t r eat m en t
ser v i c es t o gas d r i l l er s.
I n Au gu st 2 0 1 1 , A m er i c an W at er CEO Jef f St er b a sai d t h at
the compuny s very dentey ookng und vorkng n the
w ast ew at er t r eat m en t ar ea, b u t d ec l i n ed t o d i sc l o se w h at
the compuny's specc ntutves vere.
6 0
I t seem ed t o
b e w ai t i n g o n r egu l at i o n s, so t h at r u l es w o u l d b e set i n
st o n e, i n t h e w o r d s o f o n e c o r p o rat e ex ec u t i ve.
6 1
Si m i l ar l y,
A q u a A m er i c a i nvest i gat ed t r eat m en t o p t i o n s f o r d r i l l i n g
w ast ew at er, i n c l u d i n g a m o b i l e t r eat m en t u n i t .
6 2
Li ab i l i t y
c o n c er n s st al l ed i t s p r o gr ess,
6 3
an d i n M ay 2 0 1 1 D eBen e-
dcts sud thut there st vusn't sucent demund or the
t r eat m en t p r o c ess, ad d i n g, Bu t w e w i l l b e r eady w h en
t h e d em an d i s t h er e.
6 4
Th at d em an d w i l l c o m e f r o m t h e
ex p an si o n o f t h e sh al e gas d r i l l i n g an d st r i c t r egu l at i o n o f
i t s w ast ew at er.
Ban Frack|ng for Natura| Gas
ecuuse o the nuncu tes betveen the prvute vuter
utty und gus drng ndustres, pubc ocus shoud
b e w ar y o f r el y i n g o n p r i vat e w at er c o m p an i es t o assess hy-
d rau l i c f rac t u r i n gs ef f ec t s o n w at er su p p l i es. U n r egu l at ed
sal es o f w at er f r o m i nvest o r- ow n ed u t i l i t i es t o gas d r i l l er s
al so m er i t p u b l i c sc r u t i ny.
1he nuton's urgest vuter utty corporutons huve nun-
c i al i n t er est s t h at b i as t h em i n f avo r o f sh al e gas d evel o p -
m en t . Th ei r en d o r sem en t o f a r egu l at ed sh al e gas i n d u st r y
sh o u l d n o t b e t ak en as ev i d en c e t h at f rack i n g i s saf e o r t h at
reguutons ure sucent to protect vuter suppes. 1hrough
t h e sal e o f w at er o r t r eat m en t ser v i c es t o gas d r i l l er s, w at er
compunes benet rom the grovth und reguuton o shue
gas d r i l l i n g.
D esp i t e t h e c l ai m s o f so m e w at er c o r p o rat i o n s, r egu l at i o n
i s n o t en o u gh t o p r o t ec t w at er su p p l i es f r o m t h e d an ger s o f
hy d rau l i c f rac t u r i n g. Frack i n g i s ex em p t f r o m k ey f ed eral
w at er p r o t ec t i o n s,
6 5
an d o f t en - over w h el m ed st at e r egu l a-
t o r s p r i m ar i l y over see t h e p rac t i c e.
6 6
Bo t h st at e an d f ed eral
r egu l at o r s h ave a p o o r t rack r ec o r d o f p r o t ec t i n g t h e p u b l i c
f r o m t h e i m p ac t s o f f rack i n g.
6 7
Even i f t h e l aw s o n t h e
b o o k s w er e st r en gt h en ed , f rack i n g p o ses t o o sever e a r i sk
t o p u b l i c an d env i r o n m en t al h eal t h .
Co n gr ess, st at e l egi sl at o r s an d l o c al gover n m en t al b o d i es
sh o u l d b an sh al e gas f rack i n g.
The Gas Dr|||er D|scount: Compar|son of Pennsy|van|a Amer|can Water's Water
Sa|es to Gas Dr|||ers and Res|dent|a| Customers
Customer C|ass Per|od Vo|ume So|d Revenues Average Charge
(in gallonsj (Revenues/Vo|ume|
($ per 1,000 gallonsj
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 drillersj 45%
Sources:
A
American Water. lnstitution lnvestor Meetings." August 2011 at 41.
B
Pennsylvania American Water Company. Operating Revenues." Data requirements for the Pennsylvania Public Utility Commission.
(Docket Number R-2011-2232243j. April 29, 2011 at vol. 6 FR.ll.1.
For more information:
web: w w w. f o o d an dw at er w at ch . o r g
email: i n f o @f w w at ch . o r g
phone: (202) 683-2500 (DC) - (4l5) 293-9900 (CA)
Copyright November 2011 Food & Water Watch
Endnotes
1 Pi ck r el l , Em i l y. W at er f o l l ow s t h e sh al e t rai l . G l o b al Wat er I n t el -
l i gen c e. Vo l . 1 1 , I ss. 1 . Jan u ar y 2 0 1 0 at 2 5 .
2 U . S. D ep ar t m en t o f En er gy. M o d er n Sh al e G as D evel o p m en t i n t h e
U n i t ed St at es: A Pr i m er. A p r i l 2 0 0 9 at ES- 4 , 6 4 , 6 6 an d 7 0 .
3 A m er i c an W at er W o r k s Co m p any, I n c . U . S. Sec u r i t i es an d Ex ch an ge
Co m m i ssi o n . Fo r m 1 0 - K. Feb r u ar y 2 5 , 2 0 1 1 at 3 .
4 St er b a, Jef f . Q 2 2 0 1 1 A m er i c an W at er W o r k s Co I n c Ear n i n gs
Co n f er en c e Cal l Fi n al . FD ( Fai r D i sc l o su r e) W i r e. Au gu st 4 ,
2 0 1 1 at 3 .
5 A q u a A m er i c a, I n c . 2 0 1 1 Su st ai n ab i l i t y Rep o r t . M ay 2 0 1 1 at 2 .
6 Pr i o r, A n n a. CEO I n t er v i ew : A q u a A m er i c a. Th e Wal l St r eet Jo u r-
n al s Sm ar t M o n ey. Ju l y 1 2 , 2 0 1 1 .
7 D eBen ed i c t i s, N i ch o l as. A q u a A m er i c a, I n c . Let t er t o sh ar eh o l d er s.
Sep t em b er 2 0 1 1 at 1 .
8 A q u a A m er i c a, I n c . (Pr ess r el ease). Lar gest p r i vat e U . S. w at er u t i l i -
t i es t o ex ch an ge su b si d i ar i es, each n ow l ar gest i nvest o r- ow n ed w at er
u t i l i t y i n r esp ec t i ve st at es. Ju l y 1 1 , 2 0 1 1 ; Key, Pet er. A q u a A m er i c a,
A m er i c an W at er t rad es ex p l ai n ed by A q u a CEO . Ph i l ad el p h i a
Bu si n ess Jo u r n al . Ju l y 2 8 , 2 0 1 1 ; A q u a A m er i c a, I n c . (Pr ess r el ease).
A q u a A m er i c a r ep o r t s r ec o r d ear n i n gs f o r sec o n d q u ar t er. Au gu st
2 , 2 0 1 1 .
9 D eBen ed i c t i s, N i ch o l as. Q I 2 0 1 1 A q u a A m er i c a I n c Ear n i n gs Co n -
f er en c e Cal l Fi n al . FD ( Fai r D i sc l o su r e) Wi r e. M ay 6 , 2 0 1 1 at 6 .
1 0 Jar v i s, Jo h n . A q u a A m er i c a, A m er i c an W at er t o sw ap . Th e M ar i o n
St ar. Ju l y 1 2 , 2 0 1 1 .
1 1 M arc el l u s Sh al e Co al i t i o n . (Br o ch u r e). Yo u r M em b er sh i p . Au gu st
2 0 1 1 at 1 an d 2 .
1 2 Sh al e G as I n si gh t 2 0 1 1 Co n f er en c e. Sp o n so r s. Avai l ab l e at h t t p : / /
sh al egasi n si gh t . c o m / sp o n so r sh i p / sp o n so r s. A c c essed Sep t em b er 2 1 ,
20ll. Cn e vth lood & \uter \utch, Murceus Shue Couton.
I n au gu ral sh al e gas i n si gh t c o n f er en c e h i gh l i gh t s n at i o n al sec u r i t y,
economc, envronmentu benets o nuturu gus. September l2,
2 0 1 1 .
1 3 D eBen ed i c t i s, N i ch o l as. A q u a A m er i c a, I n c . Pr esen t at i o n t o t h e
Pen n sy l van i a M arc el l u s Sh al e A dv i so r y Co m m i ssi o n . M ay 2 0 , 2 0 1 1
at 3 an d 9 ; Lu i t w ei l er, Pr est o n . A q u a A m er i c a, I n c . Test i m o ny o n
M arc el l u s Sh al e. H o u se D em o c rat i c Po l i cy Co m m i t t ee H ear i n g.
H o u se o f Rep r esen t at i ves. Co m m o n w eal t h o f Pen n sy l van i a. Ju n e 9 ,
2 0 1 1 .
1 4 D eBen ed i c t i s, M ay 2 0 , 2 0 1 1 at 3 .
1 5 Pap e, Kat hy. Pen n sy l van i a A m er i c an W at er. Test i m o ny o n W at er an d
W ast ew at er I n d u st r i es. Co n su m er A f f ai r s Co m m i t t ee. H o u se o f Rep -
r esen t at i ves. Co m m o n w eal t h o f Pen n sy l van i a. M arch 2 , 2 0 1 1 at 1 6
t o 1 7 ; Pen n sy l van i a A m er i c an W at er. Pen n sy l van i a A m er i c an W at er
p o si t i o n o n M arc el l u s Sh al e d r i l l i n g. 2 0 1 1 .
1 6 Pap e at 1 6 .
1 7 D eBen ed i c t i s, M ay 2 0 , 2 0 1 1 at 2 .
1 8 I b i d . at 3 t o 5 .
1 9 I b i d . at 5 .
2 0 Pen n sy l van i a A m er i c an W at er. (Pr ess r el ease). N o d et ec t ab l e l evel s
o f rad i o l o gi c al c o n t am i n an t s o r vo l at i l e o r gan i c c o m p o u n d s f o u n d at
Pen n sy l van i a A m er i c an W at er i n t ak es al o n g A l l egh eny, Cl ar i o n an d
M o n o n gah el a Ri ver s an d Tw o Li ck Cr eek . M ay 1 6 , 2 0 1 1 .
2 1 I b i d .
22 Levy, Murc. lu. vuter utty doesn't nd drng pouton. A sso c i -
at ed Pr ess. M ay 1 6 , 2 0 1 1 .
2 3 H o p ey, D o n an d Sean D . H am i l l . PA : M arc el l u s w ast ew at er
sh o u l d n t go t o t r eat m en t p l an t s. Pi t t sb u r gh Po st -G az et t e. A p r i l 1 9 ,
2 0 1 1 .
24 Murceus Shue Couton. Nev tests conrm Murceus deveop-
m en t n o t i m p ac t i n g Pa. w at er w ay s. M ay 1 8 , 2 0 1 1 .
2 5 U r b i n a, I an . Regu l at i o n l ax as gas w el l s t ai n t ed w at er h i t s r i ver s.
Th e N ew Yo r k Ti m es. Feb r u ar y 2 6 , 2 0 1 1 .
2 6 O p en Sec r et s. Co n gr essi o n al El ec t i o n s: Pen n sy l van i a D i st r i c t 1 8
Rac e: 2 0 1 2 Cy c l e. A c c essed Sep t em b er 2 0 1 1 .
2 7 M u r p hy, Ti m . Th e Co n gr essi o n al N at u ral G as Cau c u s c o nven es a
h ear i n g o n n at u ral gas d evel o p m en t an d t h e env i r o n m en t : a st at e
r egu l at o r s p er sp ec t i ve. Fi n al . FD ( Fai r D i sc l o su r e) Wi r e. Ju n e 2 ,
2 0 1 1 .
2 8 A m er i c as N at u ral G as A l l i an c e. (Pr ess r el ease). A N G A st at em en t o n
t h e r ec en t A m er i c an Ri ver s r ep o r t . M ay 1 8 , 2 0 1 1 ; Pet er sen , Lau ra.
Ri ver s: En er gy sec t o r t h r eat s h i gh l i gh t ed i n l at est en d an ger ed l i st .
Env i r o n m en t an d En er gy Pu b l i sh i n gs Lan d Let t er. Vo l . 1 0 , I ss. 9 . M ay
1 9 , 2 0 1 1 .
2 9 A m er i c an Ri ver s. A m er i c as M o st En d an ger ed Ri ver s. M ay 2 0 1 1 at
3 .
3 0 Pen n sy l van i a A m er i c an W at er, M ay 1 6 , 2 0 1 1 .
3 1 Averch , H ar vey an d Lel an d L. Jo h n so n . Beh av i o r o f t h e Fi r m U n d er
Regu l at o r y Co n st rai n t . Th e A m er i c an Ec o n o m i c Rev i ew. Vo l . 5 2 ,
I ss. 5 . D ec em b er 1 9 6 2 at 1 0 5 3 t o 1 0 5 5 an d 1 0 5 9 ; A m er i c an W at er.
I n st i t u t i o n I nvest o r M eet i n gs. Au gu st 2 0 1 1 at 1 3 , 3 4 t o 3 6 .
3 2 D eBen ed i c t i s, M ay 2 0 , 2 0 1 1 at 3 .
33 Hughes, Mutt. Amd drng ght, Dmock gets pubc vuter. Th e
Ti m es Lead er . O c t o b er 1 , 2 0 1 0 ; Sk rap i t s, El i z ab et h . D r i l l i n g c o m p a-
n i es eye si t es n ear w at er so u rc es. Ci t i z en s Vo i c e. M ay 3 , 2 0 1 0 .
3 4 D eBen ed i c t i s, M ay 6 , 2 0 1 1 at 5 .
3 5 I b i d . at 7 .
3 6 D eBen ed i c t i s, M ay 2 0 , 2 0 1 1 at 8 .
3 7 A q u a A m er i c a. (Br o ch u r e). A q u a Reso u rc es m ak es sp l ash i n w at er
su p p l y f o r M arc el l u s sh al e d evel o p er s. 2 0 1 1 .
3 8 D eBen ed i c t i s, M ay 2 0 , 2 0 1 1 at 8 .
3 9 D eBen ed i c t i s, M ay 6 , 2 0 1 1 at 3 .
4 0 A q u a A m er i c a, (Br o ch u r e), 2 0 1 1 ; D eBen ed i c t i s, M ay 6 , 2 0 1 1 at 5 .
4 1 A q u a A m er i c a, (Br o ch u r e), 2 0 1 1 .
4 2 D eBen ed i c t i s, M ay 6 , 2 0 1 1 at 6 .
4 3 Pen n Vi r gi n i a Reso u rc e Par t n er s, L. P. (Pr ess r el ease). A q u a A m er i c a
an d PV R Par t n er s an n o u n c e j o i n t ven t u r e p r i vat e w at er p i p el i n e i n
t h e M arc el l u s Sh al e. Sep t em b er 2 0 , 2 0 1 1 .
4 4 D eBen ed i c t i s, M ay 6 , 2 0 1 1 at 7 .
4 5 I b i d , at 7 .
4 6 A q u a A m er i c a, I n c . U . S. Sec u r i t i es an d Ex ch an ge Co m m i ssi o n . Fo r m
1 0 - K. Feb r u ar y 2 5 , 2 0 1 1 at 5 .
4 7 A m er i c an W at er. I n st i t u t i o n I nvest o r M eet i n gs. Au gu st 2 0 1 1 at 4 1 .
4 8 I b i d . at 4 1 .
4 9 St er b a at 3 .
5 0 Su sq u eh an n a Ri ver Basi n Co m m i ssi o n . A p p r oved W at er So u rc es f o r
N at u ral G as D evel o p m en t . M arch 3 0 , 2 0 1 1 .
5 1 Fo o t st ep s t o t h e sh al e. A m er i c an Wat er I n t el l i gen c e. Vo l . 1 , I ss. 1 .
O c t o b er 2 0 1 0 at 1 0 .
5 2 Ch er n ova, Yu l i ya. I n f rack i n gs w ak e. Th e Wal l St r eet Jo u r n al . Sep -
t em b er 1 2 , 2 0 1 1 .
5 3 G l o b al W at er I n t el l i gen c e. Pr o d u c ed W at er M ar k et : O p p o r t u n i t i es
i n t h e o i l , sh al e an d gas sec t o r s i n N o r t h A m er i c a. M arch 1 7 , 2 0 1 1
at 1 3 7 t o 1 3 8 ; A r n o l d , M ar k . Q u an t ai c Co r p o rat i o n . Pr esen t at i o n at
G l o b al Wat er I n t el l i gen c es A m er i c an W at er Su m m i t 2 0 1 0 , W ash i n g-
t o n , D . C. , N ovem b er 3 , 2 0 1 0 at 3 .
5 4 Pi ck r el l at 2 5 .
5 5 Ch er n ova.
5 6 G l o b al W at er I n t el l i gen c e at 1 0 0 .
5 7 D eBen ed i c t i s, M ay 2 0 , 2 0 1 1 at 6 ; Pen n sy l van i a A m er i c an W at er.
(Aert notcuton). romde Aert Lpdute. Apr 20, 20ll, lupe ut
1 6 .
5 8 W ast e n o t , w an t n o t i n t h e M arc el l u s Sh al e. G l o b al Wat er I n t el -
l i gen c e. Vo l . 1 1 , I ss. 2 . Feb r u ar y 2 0 1 0 at 2 4 ; Fo u n t ai n Q u ai l p l an s
i t s M arc el l u s Sh al e c o n q u est . A m er i c an Wat er I n t el l i gen c e. Vo l . 2 ,
I ss. 1 . Jan u ar y 2 0 1 1 at 1 1 .
5 9 D eBen ed i c t i s, M ay 2 0 , 2 0 1 1 at 6 ; Pen n sy l van i a A m er i c an W at er,
A p r i l 2 0 , 2 0 1 1 ; Pap e at 1 6 .
6 0 St er b a at 1 2 .
6 1 Val l ej o , Edw ar d . A m er i c an W at er W o r k s Co I n c at Ph i l ad el p h i a Se-
curtes Assocuton normuton uncheon meetng nu. FD ( Fai r
D i sc l o su r e) Wi r e. A p r i l 6 , 2 0 1 1 at 7 .
6 2 D eBen ed i c t i s, M ay 6 , 2 0 1 1 at 6 .
6 3 D eBen ed i c t i s, N i ch o l as. A q u a A m er i c a at G ab el l i & Co m p any, I n c
Best I d eas Co n f er en c e Fi n al . FD ( Fai r D i sc l o su r e) Wi r e. D ec em b er
2 , 2 0 1 0 at 7 .
6 4 D eBen ed i c t i s, M ay 6 , 2 0 1 1 at 6 .
6 5 U r b i n a, I an . Pr essu r e l i m i t s ef f o r t s t o p o l i c e d r i l l i n g f o r gas. Th e
N ew Yo r k Ti m es. M arch 3 , 2 0 1 1 ; Lax r u l es f o r t h e n at u ral gas i n d u s-
t r y. Th e N ew Yo r k Ti m es. M arch 3 , 2 0 1 1 .
6 6 Jer v i s, Ri ck . G as d r i l l i n g f u el s a b o o m an d h eal t h c o n c er n s. U SA
To d ay. D ec em b er 1 4 , 2 0 1 0 .
6 7 U r b i n a, M arch 3 , 2 0 1 1 .