Dan Rather Reports

Episode Number: 513

Episode Title: Fracking Gas

Description: Is natural gas the answer to America's energy problems? A revolutionary process called "fracking" has opened up a world of possibilities for this county's energy future.

Transcript:

TONIGHT -- THE BIG STRIKE. NATURAL GAS AND THE TECHNOLOGY THAT HAS FOUND THE MOTHER LODE OF ENERGY RIGHT UNDER THE UNITED STATES. IF YOU'RE CONCERNED ABOUT POLLUTION, IF YOU'RE CONCERNED ABOUT CO2 EMISSIONS, IF YOU'RE CONCERNED THAT THIS COUNTRY IMPORTS TWO THIRDS OF ITS OIL, THEN AT THE END OF THE DAY, YOU HAVE TO SAY, "I NEED AN ALTERNATIVE." AND THE ONLY SCALABLE ANSWER TO THAT IS NATURAL GAS. BUT THE GOVERNMENT AND ENVIRONMENTALISTS ARE CONCERNED THAT DRILLING FOR GAS MAY POISON DRINKING WATER. AT THE TIME THEY DRILLED 'EM, THE WATER TURNED BLACK AND IT'S STILL BLACK. IT NEVER CLEARED UP AND THAT'S BEEN 5-6 YEARS AGO.

PLUS, IS IT WORKMAN'S COMP? A NEW MANEUVER TO CLAIM CONCUSSIONS IN THE NFL ARE INJURIES ON THE JOB -- AS ONE WOMAN CRUSADES FOR HER FAILING HUSBAND. I'VE GROWN TO ACCEPT THAT THIS ISN'T RALPH ANYMORE, YOU KNOW? MY RALPH IS GONE. WE'LL BRING YOU THE NEWS, TONIGHT ON DAN RATHER REPORTS.

GOOD EVENING, FROM NEW YORK. IT'S BEING CALLED A REVOLUTION IN THE PRODUCTION OF AMERICAN ENERGY. THE UNITED STATES IS ON THE VERGE OF ONE OF THE LARGEST DOMESTIC DRILLING BOOMS IN RECENT HISTORY. BUT NOT JUST FOR OIL, ALSO FOR NATURAL GAS. TECHNOLOGICAL ADVANCES IN DRILLING FOR GAS ARE ALLOWING THE UNITED STATES ACCESS TO VAST, PREVIOUSLY UNREACHABLE RESERVES FOUND DEEP UNDERGROUND. RESERVES, WHICH THE INDUSTRY SAYS COULD SUPPLY THE UNITED STATES FOR 100 YEARS. IT'S CALLED HYDRAULIC FRACTURING OR FRACKING FOR SHORT. GROUPS SUCH AS THE SIERRA CLUB AND THE ENVIRONMENTAL DEFENSE FUND, HAVE ALL BACKED NATURAL GAS AS A SO CALLED, BRIDGE FUEL TO HELP THE UNITED STATES MOVE AWAY FROM COAL AND OIL AND TOWARD RENEWABLE ENERGY, LIKE WIND AND SOLAR. BUT OTHER ENVIRONMENTAL GROUPS, AND THE OBAMA ADMINISTRATION, ARE RAISING QUESTIONS ABOUT HOW THIS PROCESS MIGHT ENDANGER DRINKING WATER SUPPLIES. BUT FIRST, WHAT IS FRACKING, AND HOW DOES IT WORK? THERE ARE MANY COMPANIES THAT HAVE A LOT RIDING ON THIS NEW TECHNOLOGY, BUT NONE MORE THAN CHESAPEAKE ENERGY AND THE MAN WHO RUNS IT...AN OKLAHOMAN WHO WAS BORN WITH OIL IN HIS BLOOD BUT NOW PROMOTES WHAT HE SAYS IS A GREENER, CLEANER FUEL. WE NOW HAVE A LOW-CARBON, AFFORDABLE ABUNDANT PATHWAY AWAY FROM DIRTY COAL AND FROM DANGEROUS OIL, OKAY? AUBREY MCCLENDON IS SELLING A NEW VISION FOR AMERICA'S ENERGY FUTURE. HE MAY SOUND LIKE AN ENVIRONMENTAL ACTIVIST, BUT HIS JOB IS AS A BILLIONAIRE GAS MAN, AS IN NATURAL GAS. HE'S THE CEO OF CHESAPEAKE ENERGY, THE SECOND LARGEST PRODUCER OF NATURAL GAS IN THE UNITED STATES WE HAVE A NUMBER OF EMPLOYEE ISSUES TO TALK ABOUT HERE. BUT MCCLENDON IS A 21ST CENTURY ENERGY EXECUTIVE - AS COMFORTABLE TALKING ABOUT CO2 AS HE IS ABOUT BTU'S. IF YOU'RE CONCERNED ABOUT POLLUTION. IF YOU'RE CONCERNED ABOUT CO2 EMISSIONS. IF YOU'RE CONCERNED THAT THIS COUNTRY IMPORTS TWO-THIRDS OF ITS OIL, AND A LOTTA THAT OIL COMES FROM PLACES IN THE WORLD THAT HAVE PEOPLE THAT DON'T AGREE WITH OUR WAY OF LIFE, THEN AT THE END OF THE DAY, YOU HAVE TO SAY, I NEED AN ALTERNATIVE TO A WORSE ENVIRONMENT, AND I NEED AN ALTERNATIVE TO IMPORTED OIL. AND THE ONLY SCALABLE ANSWER TO THAT IS NATURAL GAS. AND THAT'S IN THE UNITED STATES. AND WHEN IT COMES TO BELIEVING THAT THE UNITED STATES COULD BE A LEADER IN NATURAL GAS, MCCLENDON IS CONSIDERED SOMETHING OF A VISIONARY. HE COMES FROM A LONG LINE OF OILMEN WITH DEEP ROOTS IN THE RED SOIL OF OKLAHOMA. HIS GREAT UNCLE WAS A GOVERNOR AND A U.S. SENATOR AND FOUNDED THE KERR MCGEE OIL AND GAS COMPANY. PLEASE WELCOME, AUBREY MCCLENDON.

BUT MCCLENDON WAS DETERMINED TO STRIKE OUT ON HIS OWN AND CO-FOUNDED CHESAPEAKE ENERGY, BUYING UP GAS LEASES 21 YEARS AGO WITH A 50,000 DOLLAR INVESTMENT AND TEN EMPLOYEES. BECAUSE NATURAL GAS RESERVES, WE BELIEVE, ARE DISTRIBUTED BROADLY ACROSS THE -- THE GLOBE. HE BET THAT NEW TECHNOLOGY AND GOOD OLD-FASHIONED AMERICAN INNOVATION COULD TAP GAS RESERVES MOST PEOPLE IGNORED. AND IT'S A BET THAT HAS PAID OFF HANDSOMELY. CHESAPEAKE ENERGY'S NOW WORTH CLOSE TO 30 BILLION DOLLARS AND MCCLENDON HAS BUILT A MASSIVE CORPORATE HEADQUARTERS THAT COVERS 50 ACRES OF PRAIRIE IN OKLAHOMA CITY. WE'RE AN AMERICAN SUCCESS STORY. WE HAVE HAD SOME UPS AND DOWN, NO DOUBT ABOUT IT. BUT WE HAVE BEEN AT THE FOREFRONT OF THIS CHARGE THAT OUR NATURAL GAS INDUSTRY, INDEPENDENT NATURAL GAS INDUSTRY, HAS LED IN TERMS OF REINVENTING THE PROCESS BY WHICH WE FIND AND PRODUCE NATURAL GAS, AND THEREFORE, ENERGY IN OUR COUNTRY. AND THEY ARE NOT ALONE. OKLAHOMA CITY IS WALL STREET FOR A NEW GENERATION OF AMERICAN NATURAL GAS COMPANIES. AND THE ENERGY INDUSTRY HAS HELPED THIS ONE-TIME COW TOWN KEEP UNEMPLOYMENT LOW, AND POWER THROUGH THE WORST ECONOMY SINCE THE GREAT DEPRESSION. MCCLENDON PASSIONATELY BELIEVES NATURAL GAS IS THE ANSWER TO AMERICA'S FUTURE ENERGY NEEDS, AND NOT JUST FOR HEATING HOMES OR GENERATING ELECTRICITY. SO WHAT DO YOU HAVE OUT HERE? WELL, I THINK WE HAVE A CHEVY TAHOE HERE. WHEN YOU COME HERE AND LISTEN TO THE SALES PITCH, YOU GET THE SENSE THAT ANYTHING IS POSSIBLE. TAKE THE GOOD OLD FASHIONED AMERICAN AUTOMOBILE. AND THIS RUNS ON COMPRESSED NATURAL GAS? RIGHT, SO NATURAL GAS HAS TO BE COMPRESSED TO PUT ENOUGH POWER IN A FUEL TANK TO -- TO MAKE IT GO A REASONABLE DISTANCE. WE WANT YOU TO KNOW IT'S CLEAN, IT'S AFFORDABLE, ABUNDANT AND AMERICAN, NOW IF YOU DON'T MIND BENDING OVER JUST A LITTLE BIT WITH ME. THAT IS THE STEEL THAT PROTECTS THE COMPRESSED NATURAL GAS TANK. CURRENTLY, THE HONDA CIVIC GX IS THE ONLY CAR MANUFACTURED IN THE U.S. THAT RUNS ON NATURAL GAS. WHERE DO YOU PUT THE GAS IN? I'LL SHOW YOU. BUT MOST CARS CAN BE CONVERTED, AND MCCLENDON ENVISIONS A FUTURE IN WHICH WE'RE AS LIKELY TO DRIVE TO A STATION TO FUEL UP SOLELY ON NATURAL GAS AS TO TAP INTO OUR OWN HOME HEATING SUPPLY. TODAY YOU CAN ACTUALLY GO OUT AND BUY A HOME APPLIANCE THAT'S UL CERTIFIED. YOU CAN PUT IT IN YOUR GARAGE, AND YOU CAN FILL UP AT NIGHT. I ONLY PAY A DOLLAR A GALLON FOR MY FUEL. CAN YOU ENVISION A TIME IN MY LIFETIME, LET'S SAY THE NEXT 5 OR 10 YEARS, I SHOULD BE SO LUCKY...BUT OVER THE NEXT 5, 10 YEARS, CAN YOU IMAGINE YOU'LL HAVE COMPRESSED NATURAL GAS STATIONS? ABSOLUTELY. AND THE GOOD NEWS IS, IT'S ONLY ABOUT A 20-30 BILLION DOLLAR PROBLEM. AND I USED TO THINK A COUPLE YEARS AGO THAT THAT WAS A LOT OF MONEY, BUT THE WAY OUR GOVERNMENT THROWS IT AROUND TODAY IT'S CHUMP CHANGE AND FOR CHUMP CHANGE, AGAIN, YOU CAN CHANGE THE COURSE OF HISTORY IN THIS COUNTRY FOR THE BETTER. WELL, LET'S TAKE A RIDE. OKAY, LET'S DO IT.

WE ARE BEING POWERED RIGHT NOW BY NATURAL GAS, MADE IN THE U.S. CLEAN, AFFORDABLE, ABUNDANT, AND IN MY OPINION THE FUTURE OF THIS COUNTRY. ACCORDING TO MCCLENDON, NATURAL GAS IS KEY TO AMERICA'S ENERGY SECURITY. NOT ONLY DOES IT BURN CLEANER THAN COAL AND OIL, IT CAN ALSO BE PRODUCED RIGHT HERE AT HOME. COMPARED WITH SAUDI ARABIA OR IRAN AND THEIR OIL, HOW MUCH NATURAL GAS DO WE HAVE? WE HAVE DISCOVERED IN THE UNITED STATES TWICE AS MUCH ENERGY EQUIVALENT POWER MEASURED IN BTUS AS SAUDI ARABIA HAS IN OIL. SO, SAUDI ARABIA CLAIMS TO HAVE 250 BILLION BARRELS OF OIL RESERVES. THERE'S SOME DEBATE ABOUT THAT. WE BELIEVE WE DISCOVERED TWICE THAT EQUIVALENCY IN THE U.S. IN NATURAL GAS. WELL, YOU'RE NOT TELLING ME, OR ARE YOU, THAT THE UNITED STATES, WHEN IT COMES TO NATURAL GAS, IS THE SAUDI ARABIA OF NATURAL GAS? I'M NOT TELLING YOU THAT. I'M TELLING YOU WE'RE TWICE THE SAUDI ARABIA OF NATURAL GAS. JUST A FEW YEARS AGO, THE NATURAL GAS RESERVES WERE THOUGHT TO BE IN PERMANENT DECLINE. BUT THIS PAST DECEMBER, THE UNITED STATES SURPASSED RUSSIA TO BECOME THE NUMBER ONE PRODUCER OF GAS IN THE WORLD. WHAT CHANGED ALL THAT WAS A COMMON GREY ROCK, SHALE. SHALE IS THE MOST ABUNDANT ROCK ON PLANET OF THE SEDIMENTARY TYPES OF ROCKS. WAY MORE ABUNDANT THAN SANDSTONE AND LIMESTONES WHICH ARE THE TRADITIONAL OIL AND GAS RESERVOIRS. THINK OF SHALES AS THE KITCHEN OF THE OIL AND GAS INDUSTRY. IT'S WHERE IT'S MADE. AND THEN OVER TIME THE OIL AND GAS GETS EXPELLED FROM THIS ORGANIC, RICH SHALE AND THEN IT GETS TRAPPED IN CONVENTIONAL FAULTS AND SEALS AND AREAS LIKE THAT AND THAT'S WHAT THE INDUSTRY'S BEEN TRYING TO FIND FOR THE PAST 100 YEARS. IS TO LOOK FOR IT'S-- WHERE IT'S BEEN EXPELLED. NOW WE GO TO THE SOURCE. ALL THE SHALE GAS PLAYS IN THE UNITED STATES. THAT SOURCE IS NOT HARD TO FIND. SARA BANASZAK IS WITH THE AMERICAN PETROLEUM INSTITUTE. AN ORGANIZATION FOCUSED ON OIL IN THE 20TH CENTURY, IS NOW TALKING ABOUT NATURAL GAS AS AMERICA'S NEW ENERGY FRONTIER. AND THE TEXAS LOUISANA BORDER THAT WE TALKED ABOUT... THERE ARE 26 MAJOR SHALE FORMATIONS, OR PLAYS AS THEY ARE CALLED, SPREAD ACROSS THE UNITED STATES. UNTIL JUST A FEW YEARS AGO, MOST OF THE WORLD'S NATURAL GAS SUPPLY CAME FROM SANDSTONE AND LIMESTONE, WHILE SHALE WAS THOUGHT TO BE TOO DIFFICULT AND TOO EXPENSIVE TO PRODUCE. IF YOU GO BACK JUST A HANDFUL OF YEARS, WHAT YOU SEE IS WE WERE IN A PERIOD OF RELATIVELY FLAT PRODUCTION, RISING IMPORTS, AND OUR RESERVES HAS FALLEN PRECIPITOUSLY IN THE '80S AND WERE JUST HOLDING FLAT IN THE '90S. WELL, I READ FROM TIME TO TIME ABOUT THE PHRASE WE'RE IN MIDDLE OF A "SHALE GALE." WHAT DOES THAT MEAN? I THINK PEOPLE ARE HAVE BEEN SURPRISED BY HOW THE PRODUCTION OF NATURAL GAS FROM THIS KIND OF FORMATION HAS REALLY TAKEN OFF. AND IT'S HAD AN IMPACT ON THE UNITED STATES. WHAT SHALE GAS HAS DONE-- IS CONTRIBUTED HEAVILY TO KIND OF A RENAISSANCE IN GAS PRODUCTION IN THIS COUNTRY. WE HAVE-- TURNED PRODUCTION UPWARD, AND IMPORTS ARE DOWN. AND THIS IS VERY IMPORTANT, PARTICULARLY AT A TIME LIKE THIS BECAUSE THESE ARE REAL JOBS, REAL ECONOMIC ACTIVITY IN THIS COUNTRY-- REAL REVENUES FOR GOVERNMENT BY PRODUCING THESE RESOURCES HERE IN THE UNITED STATES. WELL, TOO STRONG OR NOT TO SAY WE'RE IN A PERIOD OF REVOLUTION WHEN IT COMES TO SHALE GAS? I THINK IT'S A REVOLUTION. IT NEEDS TO BE UNDERSTOOD IN CONTEXT, BUT ABSOLUTELY, IT IS A REVOLUTION. BUT THE REAL REVOLUTION IS IN THE TECHNOLOGY THAT IS NOW ALLOWING US TO ACCESS THESE VAST RESERVES FOUND IN SHALE ROCK.

IN FACT, GEOLOGISTS HAVE ALWAYS KNOWN THERE WAS GAS IN SHALE, WHICH CAN SIT MORE THAN A MILE OR TWO UNDERGROUND... THE PROBLEM WAS HOW TO GET AT IT. ON THIS PARTICULAR WELL THE TD OR TOTAL DEPTH IS GOING TO BE ABOUT 12,500 FEET. DAVE LEOPOLD MANAGES GAS WELLS ON THE BARNETT SHALE IN FORT WORTH, TEXAS FOR CHESAPEAKE ENERGY. WE HAVE DRILLED DOWN ABOUT 7000 FEET, AND THEN WE ARE DRILLING HORIZONTALLY. WE'RE AT ABOUT 4500 FEET RIGHT NOW, SO ABOUT ANOTHER 1000 FEET TO GO, SO CLOSE TO A MILE BEFORE WE ARE DONE.

THE BREAKTHROUGH CAME BY FINDING A WAY TO COMBINE TWO COMMON DRILLING TECHNIQUES. HORIZONTAL DRILLING, AND HYDRAULIC FRACTURING, OR FRACKING AS THE INDUSTRY CALLS IT. THIS IS HOW IT WORKS. FIRST, THE WELL IS DRILLED VERTICALLY. AND THEN, THE DRILL IS TURNED SIDEWAYS AND CONTINUES TO DRILL, HORIZONTALLY, FOR A MILE OR MORE. WE DON'T TURN 90 DEGREES RIGHT AWAY. IT'S A GRADUAL TURN. AND SO OVER ABOUT 500 FEET WE GO FROM VERTICAL TO HORIZONTAL. A STEELCASING IS THEN INSERTED IN THE HOLE...AND CEMENTED IN PLACE. NEXT, ELECTRICAL CHARGES ARE SENT DOWN...AND DETONATED TO CREATE SMALL HOLES IN THE CASING IN PREPARATION FOR THE WELL TO BE FRACKED. FRACKING A WELL INVOLVES INJECTING MILLIONS OF GALLONS OF WATER, MIXED WITH SAND AND CHEMICALS INTO THE GROUND. THEY PUMP THE SLURRY INTO THE WELL BORE AT EXTREMELY HIGH PRESSURE, FORCING THE ROCK TO CRACK OR FRACTURE, TO ALLOW PATHWAYS FOR THE GAS TO FLOW OUT. AND BY CRACKING OPEN THE SHALE, THEY HAVE ALSO OPENED A NEW FRONTIER FOR ENERGY. TO APPLY THE OLD TECHNOLOGY OF HYDRAULIC FRACTURING TO THE NEW TECHNOLOGY OF HORIZONTAL DRILLING AND APPLY THOSE TECHNOLOGIES TO SHALE. AND THAT KIND OF TRIPLE PLAY OF NEW APPROACHES HAS GIVEN US THE CHANCE TO CHANGE EVERYTHING THAT WE KNOW ABOUT THE ENERGY BUSINESS IN THE U.S. TODAY AS WELL AS THE WORLD.

THE CHANGE HAS BEEN DRAMATIC. THERE IS SO MUCH GAS FOUND IN SHALE THAT ONE RECENT INDUSTRY STUDY DETERMINED THERE IS ENOUGH TO SUPPLY THE UNITED STATES FOR A CENTURY. THE CHALLENGE NOW BECOMES KNOWING THE BEST LOCATIONS TO DRILL. A FEW YEARS AGO, CHESAPEAKE BUILT THEIR OWN RESEARCH CENTER AND FILLED IT WITH SCIENTISTS MCCLENDON HAND PICKED. THEY NOW SPEND 300 MILLION DOLLARS A YEAR SOLELY TO STUDY SHALE.

WHERE ARE WE? THIS IS THE HEART OF THE RESERVOIR TECHNOLOGY CENTER. THIS IS WHERE WE RECEIVE CORE. CORES COME IN THESE ALUMINUM BARRELS. THIS ONE PARTICULARLY CAME FROM 8600 FT. SO THESE COME FROM THE SUBSURFACE. CORES ARE TAKEN FROM VARIOUS DEPTHS IN THE DRILLING PROCESS, MAKING THE CENTER A VIRTUAL LIBRARY OF SHALE, WITH 30,000 FEET OF SAMPLES FROM AROUND THE COUNTRY. EVERY TWO FEET OF ROCK IS METICULOUSLY BAR CODED, LABELED, AND ANALYZED TO DETEMINE WHICH HAS THE MOST GAS. WELL, LET ME SHOW YOU A COUPLE OF SOME WORLD-CLASS GAS SHALE. DON HARVILLE MANAGES THE CENTER AND RICK SAVOR IS CHESAPEAKE'S CHIEF PETROPHYSICIST. YOU CAN SEE THAT IT'S BLACK COLORED, IT'S ORGANIC RICH, IT'S COMPETENT, IT'S- BRITTLE ENOUGH TO FRACTURE. YOU KNOW, MOST-- A LOT OF SHALE THAT YOU PICK UP WOULD JUST FALL APART IN YOUR HAND. AND YOU CAN SEE HOW COMPETENT THAT IS. OH, IT'S PRETTY HEAVY, YEAH. GENERALLY, THE DARKER THE COLOR OF THE ROCK, THE BETTER QUALITY. BUT BEING SUCH A DENSE ROCK, THE PROCESS OF DETERMINING IT'S TRUE VALUE AND ULTIMATELY WHERE TO PLACE A WELL REQUIRES ADVANCED RESEARCH, AND WEEKS OF ANALYSIS. FOR MUCH OF THE 20TH CENTURY, YOU HAD PEOPLE WHO WENT OUT, TRAINED ENGINEERS, JUST MIGHT GO OUT AND LOOK AT THE ROLL OF THE LAND AND SAY, "GIVE ME A HOLE HERE, BOYS." YEAH. THEY DIDN'T HAVE THE ABILITY TO SEE BELOW THE SURFACE. THEY DID NOT. SO WITH THIS TECHNIQUE THAT I WAS TALKING ABOUT, YOU JUST PENETRATE A OIL GAS RESERVOIR, JUST CHISELING THE ROCK, UNTIL IT CAME TO SOMETHING THAT WAS PERMEABLE AND THEN ALL OF A SUDDEN IT BLEW UP.

AND BLOW IT DID. NITRO GLYCERIN, THE MOST POWERFUL KNOWN COMMERCIAL EXPLOSIVE IN THE WORLD. OIL COMPANIES PUNCHED HOLES WHEREVER THEY THOUGHT THIS MIGHT HAPPEN.

A GUSHER, PRODUCING THOUSANDS OF BARRELS A DAY... NATURAL GAS ALSO CAME SPEWING OUT OF THE WELLS, BUT IT WAS A BYPRODUCT THAT WAS OF SO LITTLE VALUE THAT IT WAS OFTEN BURNED OFF IN THE FIELD. WHAT A DIFFERENCE TECHNOLOGY MAKES. USING 3-D SEISMIC TECHNOLOGY GEOPHYSICISTS CAN LOOK THOUSANDS OF FEET BELOW THE SURFACE AND PINPOINT EXACTLY WHERE THE NATURAL GAS IS EMBEDDED...SHOWN IN THE BRIGHT COLORS ON THIS MAP...AND THEN PRECISELY DRILL FOR WHAT THEY CALL, THE SWEET SPOT. WE LEAD IN THE TECHNOLOGY, THE NEW TECHNOLOGY OF THE HORIZONTAL DRILLING. THAT'S CORRECT. OTHERS CATCHING UP? OR NOT SO FAST? WELL, OTHERS ARE TRYING. THIS WAS BROUGHT TO YOU BY A COUPLE OF DOZEN AMERICAN GAS COMPANY. AND WE'RE FOCUSED ON AMERICA. NOW, THE WORLD HAS TAKEN NOTICE. OUR COMPANY HAS SOLD AN INTEREST IN OUR SHALE PLACE TO STAT OIL A NORWEGIAN COMPANY, B.P., A BRITISH COMPANY, TO TOTAL, A FRENCH COMPANY. AND SO, THESE BIG EUROPEAN AND-- AND ASIAN AND-- AND RUSSIAN-- PLAYERS HAVE ALL TAKEN NOTE OF THIS, AND ARE PROWLING THE UNITED STATES LOOKING TO BUY AN INTEREST IN PROPERTIES OR AN INTEREST IN COMPANIES TO LEARN HOW TO TAKE OUR EXPERTISE AROUND THE WORLD. THE NORWEGIAN ENERGY COMPANY, STATOIL, HAS 10 GEOLOGISTS AND ENGINEERS WORKING ALONG SIDE CHESAPEAKE ENERGY EMPLOYEES, IN OKLAHOMA CITY.

THEY LEARN TO EVALUATE SHALE AND TO LOCATE AND EXTRACT THE GAS. YOU CAN'T REALLY SEE THE OIL IN HERE UNLESS YOU PUT THE METHALYNE CHLORIDE IS LIKE A SOLVENT, AND SO IT DRAWS THE HYDRO CARBINE UP. UNTIL VERY RECENTLY, MANY INTERNATIONAL ENERGY COMPANIES DIDN'T EVEN BOTHER TO COLLECT DATA ABOUT SHALE BECAUSE IT WAS WIDELY CONSIDERED TO BE A TRASH ROCK. DRILLING COMPANIES, FROM AMERICA AND AROUND THE WORLD, ARE ALREADY LEASING LARGE AREAS OF LAND IN EUROPE AND LOOKING AT FIELDS IN ASIA AND AFRICA FOR EXPLORATION. EXPAND FOR ME A LITTLE BIT HOW IN YOUR JUDGMENT THAT THIS NEW TECHNIQUE WELL, NOT NEW TECHNIQUE, THE NEW USES THAT THE TECHNIQUE CAN CHANGE GLOBAL POLITICS. THERE'S AN UNNATURAL-- CONCENTRATION OF POWER TODAY IN THE OPEC COUNTRIES AS A RESULT OF THE OIL RESERVES THAT THEY HAVE. AND SO, I VIEW THAT THE WORLD NEEDS TO DECLARE ITSELF ON A PATH TO FREE ITSELF FROM THE POLITICAL AND ECONOMIC DOMINANCE THAT OPEC HAS OVER THE WORLD. AND HOW DO YOU DO THAT? WELL, YOU CAN BUILD SOME WINDMILLS. YOU CAN PUT SOME SOLAR PANELS UP. BUT AT THE END OF THE DAY, THAT'S NOT SCALABLE. YOU CAN BURN A LOTTA COAL, BUT THAT DEFEATS THE DECARBONIZATION. THE ONLY THING THAT'S CLEAN, AFFORDABLE, SCALABLE AND IS GEOGRAPHICALLY DISTRIBUTED IS NATURAL GAS. WELL, YOU MENTIONED OPEC WHICH WE'RE ALL CONCERNED ABOUT AND HAVE BEEN FOR A VERY LONG TIME, BUT TAKE RUSSIA, FOR EXAMPLE. THEY CUT OFF OR DRASTICALLY REDUCED NATURAL GAS GOING INTO EUROPE-- AS A MEANS OF ACHIEVING POLITICAL OBJECTIVES. HOW DOES IT FIT INTO THE EUROPE/RUSSIA EQUATION? IT FITS VERY NICELY INTO ALLOWING THE EUROPEANS TO LOOK TO THE RUSSIANS AND SAY NEVER AGAIN. IN 20O6 AND IN JANUARY, LAST YEAR, RUSSIA SHUT OFF NATURAL GAS SUPPLIES SHIPPED THROUGH THE UKRAINE IN A DISPUTE BETWEEN THE 2 COUNTRIES THAT CAUSED WIDESPREAD ENERGY SHORTAGES IN MORE THAN A DOZEN COUNTRIES IN EUROPE. WE THINK THERE ARE ABUNDANT SHALE GAS RESERVES IN EUROPE. AND THERE ARE MANY COMPANIES TODAY THAT ARE FOCUSED ON DEVELOPING THOSE. UNLOCKING NEW GAS RESERVES REQUIRES LARGE INVESTMENTS. ACCORDING TO ONE ESTIMATE, IN THE LAST 3 YEARS ALONE THE INDUSTRY HAS SPENT $100 BILLION DOLLARS ON EXPLORATION. IRONICALLY, CONTINUED DEVELOPMENT MAY DEPEND ON WHAT THE GIANTS OF THE OIL INDUSTRY DO WITH THEIR ENORMOUS, FINANCIAL RESERVES. YOU'VE HEARD IT HUNDREDS OF TIMES, LISTEN, BIG OIL IS IN THE BUSINESS OF OIL. THEY'RE NOT GONNA LET US GO TO NATURAL GAS. THEY SQUEEZE OF ANYTHING'S COMPETITION BECAUSE THAT'S JUST IN THEIR NATURE. IT'S NOT THAT THEY'RE EVIL PEOPLE, BUT OIL IS THEIR BUSINESS, AND THEY'RE GONNA SQUEEZE OFF NATURAL GAS THE BEST THEY CAN THE WAY THEY DID ELECTRIC AUTOMOBILES, AND SO FORTH GOES THE ARGUMENT. WHAT DO YOU THINK OF THAT? I DON'T THINK THAT ARGUMENT HOLDS WATER. ACCESS TO RESERVES OF FUTURE OIL BARRELS IS TODAY MORE DIFFICULT THAN PROBABLY AT ANY OTHER TIME IN THE HISTORY OF THE ENERGY BUSINESS. AND SO, AS A CONSEQUENCE, THESE MAJOR INTERNATIONAL OIL COMPANIES ARE ALL TRANSITIONING AWAY FROM OIL TO NATURAL GAS. ARE THEY REALLY DOING THAT? OR IS JUST THE APPEARANCE OF DOING THAT? NO, THEY ARE ACTUALLY DOING' IT, ALWAYS FOLLOW THE CASH. AND WHAT YOU'LL SEE IS EXXON JUST SPENT 40 BILLION DOLLARS TO GO BUY THE SECOND LARGEST PRODUCER OF NATURAL GAS IN THE U.S., XTO ENERGY IN FT. WORTH TEXAS. EVERY BIG COMPANY IN THE WORLD TODAY IS MAKING A TRANSITION TO NATURAL GAS. WHY? IT'S BECAUSE IT'S MORE ABUNDANT, AND BECAUSE IT'S CLEANER AND IT'S CHEAPER. WHY WOULDN'T THEY? SOMEDAY, YOU'LL BE REFERRING TO THOSE GUYS AS BIG GAS, NOT BIG OIL. AUBREY MC CLENDON. NOW, COMING UP NEXT, BIG IMPLICATIONS FOR NATURAL GAS...FROM A SMALL TOWN IN WYOMING WHERE SOME PEOPLE BELIEVE WELL WATER PUMPED NEAR FRACKING SITES HAS MADE THEM SICK...THAT STORY IS NEXT.

MISS AN EDITION OF DAN RATHER REPORTS? OR JUST WANT TO SEE ONE AGAIN? WE ARE NOW AVAILABLE ON ITUNES. SO CHECK US OUT.

THEY SAY PAVILLION, WYOMING HAS A POPULATION OF 165 PEOPLE. LOOKING AT THE WIDE OPEN SPACES, YOU MIGHT THINK THAT'S A LITTLE OPTIMISTIC. MOTHER NATURE HAS PAINTED A BEAUTIFUL LANDSCAPE IN THIS PART OF THE STATE. AT AN ELEVATION OF MORE THAN 5400 FEET, PAVILLION IS SURROUNDED BY THE OWL CREEK AND WIND RIVER MOUNTAIN RANGES. BUT IT'S NOT WHAT'S ON THE SURFACE, IT'S WHAT'S UNDERGROUND THAT MAKES PAVILLION MORE THAN A WIDE SPOT IN THE ROAD. THIS PART OF WYOMING SITS ON LARGE RESERVES OF NATURAL GAS. SOME OF THE LARGEST IN THE COUNTRY. AND, LIKE MANY OTHER STATES, WYOMING HAS A LAW CALLED "SPLIT ESTATE". MEANING THAT LAND OWNERS MAY OWN WHAT'S ON THE SURFACE...BUT THE MINERAL RIGHTS BELOW GROUND CAN BELONG TO SOMEONE ELSE. SO YOU WILL SEE, SCATTERED THROUGHOUT THE COMMUNITY, PRODUCTION TANKS, PIPES, AND GAS WELLS, NESTLED PRECARIOUSLY CLOSE TO HOMES.

COME ON COWS.

COME ON COWS. JEFF LOCKER AND HIS WIFE RHONDA HAVE LIVED AND FARMED HERE FOR MORE THAN 20 YEARS. WE WERE LOOKING FOR FARM GROUND AND IT HAD EXCELLENT WATER, DRINKING WATER. WYOMING'S SORT OF A DESERT STATE. AND, TO HAVE GOOD WATER IS REALLY AN ASSET AND VALUABLE TO A PIECE OF PROPERTY. BUT SEVERAL YEARS AGO, THE LOCKERS STOPPED DRINKING THE WELL WATER ON THEIR FARM AFTER 2 GAS WELLS WERE DRILLED WITHIN 500 FEET OF THEIR HOME. AT THE TIME THEY DRILLED 'EM THE WATER TURNED BLACK AND IT'S STILL BLACK. IT NEVER CLEARED UP. AND THAT'S BEEN FIVE, SIX YEARS AGO. SO THE LOCKER'S ALERTED EN-CAN-A, THE ENERGY COMPANY THAT OWNS THE GAS WELLS. THE COMPANY GAVE THE LOCKERS $20,000 FOR A NEW FILTER SYSTEM HOPING THAT WOULD SOLVE IT. THIS FILTER WHEN WE PUT IT IN IS PURE WHITE. THIS CANISTER IS CLEAR. IN ABOUT THREE DAYS OF CHANGING THE FILTER IT TURNS PURE BLACK. YOU CAN SEE THE BLACK FILM INSIDE THERE. STILL, THEY WERE OPTIMISTIC THE FILTER WOULD HELP. I WAS JUST SO EXCITED TO HAVE GOOD WATER IN THE HOUSE WHERE YOU JUST GO TO THE SINK AND GET A GLASS OF WATER. BUT WITHIN 6 MONTHS OF REGULARLY DRINKING THE FILTERED WATER, RHONDA STARTED TO HAVE NEUROLOGICAL PROBLEMS, BONE PAIN, AND SEIZURES. WHEN I BECAME SO ILL, THE BONE PAIN WAS VERY EXTREME IN MY LEGS AND THEN, IN MY TAILBONE. AND AS THE WEEKS WENT BY, IT STARTED TO LIKE IT WAS CRAWLING UP MY SPINE. AND EVENTUALLY, YOU KNOW, IT WENT THROUGHOUT THE WHOLE BODY. AND THINGS HAVE PROGRESSED FROM THERE OF BECOMING MORE ILL. THE SEIZURES THAT HAVE COME ON, THE MIGRAINES, THE CONTINUAL FEELING IS AS IF YOU HAVE THE FLU. THE LOCKERS BLAME RHONDA'S HEALTH PROBLEMS ON THE CHEMICALS USED IN HYDRAULIC FRACTURING, OR "FRACKING". IT REQUIRES MILLIONS OF GALLONS OF WATER PUMPED INTO A WELL BORE, ALONG WITH A COMBINATION OF SAND AND CHEMICALS. IT'S THE CHEMICALS THAT THEY ARE MOST WORRIED ABOUT. AND THE LOCKERS ARE NOT ALONE. OTHER FAMILIES IN THE AREA HAD SIMILAR COMPLAINTS. THERE'S BEEN TALK OF UNUSUAL ILLNESSES...EVEN YOUNG ANIMALS DYING FROM NEUROLOGICAL DISORDERS...AND FOLKS HERE ARE POINTING THE FINGER AT THE GAS COMPANY. IT DOESN'T TAKE LONG TO GO THRU 35-40 GALLONS OF WATER...IT'S EITHER THIS OR DRINK WATER WITH TOXIC CHEMICALS IN IT. AND YOU DON'T REALIZE HOW PRECIOUS IT IS UNTIL YOU HAVE TO START DOING THIS. JOHN FENTON, LIKE HIS NEIGHBORS, THE LOCKERS, MUST HAUL HIS FAMILY'S DRINKING WATER FROM TOWN, 40 MILES AWAY.

I WOULD HAUL IT IN BIGGER JUGS BUT, I'M NOT ALWAYS HERE AND I DON'T WANT MY WIFE TO HAVE TO CARRY A 60 POUND JUG OF WATER. SO THIS IS THE MOST PRACTICAL WAY RIGHT NOW IF THERE IS ANYTHING PRACTICAL ABOUT IT. THE FENTONS HAVE SEVERAL GAS WELLS ON THEIR FARM, ONE OF THEM JUST 350 FEET OFF THEIR FRONT PORCH. THE STATE DOESN'T REALLY MAKE THEM DO ANYTHING. THEY ARE SELF REGULATING. I HAVE YET TO SEE AN INSPECTOR OUT HERE. BLM, OIL AND GAS CONSERVATION COMMISSION. YOU DON'T SEE THEM. THEY'RE LEFT ON THEIR OWN. AFTER THE GAS WELL NEAR THEIR HOME WAS DRILLED, THE FENTON'S YOUNGEST SON, JOHNNY, 3 YEARS OLD AT THE TIME, STARTED HAVING SEIZURES.

COME ON BOYS!

THEY SAY THEY ARE CONCERNED THEIR WELL WATER COULD BE A CAUSE.

SO FENTON AND HIS NEIGHBORS JOINED FORCES AND PLEADED WITH THE GOVERNMENT TO STEP IN. THEIR FIRST STOP WAS THE U.S. ENVIRONMENTAL PROTECTION AGENCY. LUKE CHAVEZ IS A SCIENTIST WITH THE DENVER OFFICE OF THE E-P-A. WHEN YOU GET SEVERAL PEOPLE WHO SAY WELL OUR WATER HAS BEEN CLEAN FOR THE PAST 30 YEARS AND THEN 4, 5 YEARS AGO, YES THEY ARE ALL SAYING THAT THEIR WATER HAS SOME YOU KNOW CRAZY ODORS OR SMELLS OR YOU KNOW THE VISUAL TO THE WATER IS NOT SOMETHING THAT LOOKS GOOD TO DRINK. AND WHERE THEY ARE LOCATED. SO JUST VARIOUS THINGS LIKE THAT THAT YOU GO WELL YOU KNOW MAYBE WE NEED TO AT LEAST GO COLLECT SOME SCIENCE AND SOME DATE AND TRY TO FIND OUT WHAT MIGHT BE HAPPENING IN THEIR WATER. BUT THE SCIENTISTS WITH THE EPA HAD A PROBLEM. EVEN THOUGH THE AGENCY IS MANDATED BY THE SAFE DRINKING WATER ACT TO MONITOR THE QUALITY OF THE DRINKING WATER ACROSS UNITED STATES, THE EPA HAS BEEN RESTRICTED FROM TESTING WATER NEAR OIL AND GAS FRACKING SITES. THAT'S BECAUSE THE OIL AND GAS INDUSTRY HAD SOME HELP FROM CONGRESS AND THE BUSH ADMINISTRATION. IN THE SUMMER OF 2005, CONGRESS PASSED AND PRESIDENT BUSH SIGNED THE ENERGY POLICY ACT. IN THE BILL WAS A PROVISION THAT EXCLUDES OIL AND GAS COMPANIES FROM THE DRINKING WATER REGULATION. IT'S THE ONLY INDUSTRY TO HAVE SUCH AN EXCLUSION. BUT THE DENVER OFFICE OF THE EPA FOUND A WAY TO USE THE SUPERFUND PROGRAM TO TEST SEVERAL OF THE WATER WELLS IN THE PAVILLION AREA. WE ARE PROBABLY 500 FEET FROM MY DOMESTIC WATER SUPPLY. AND PRELIMINARY TESTING FOUND SOME OF THE WELLS, INCLUDING THE LOCKERS, TO HAVE WHAT THEY CALL CONTAMINANTS OF CONCERN.

WHEN THE EPA TESTED THE FENTON'S WELL THEY FOUND TWO CONTAMINANTS IN THEIR DRINKING WATER. THESE COMPOUNDS OF CONCERN ARE THINGS THAT AREN'T NATURALLY OCCURRING IN THE WATER. SO, IT'S NOT LIKE ARSENIC OR SOME OF THOSE OTHER THINGS THAT CAN BE BAD FOR YOU, BUT CAN BE FOUND NATURALLY. THESE ARE THINGS THAT ARE INTRODUCED THROUGH HUMAN ACTIVITY. WE DON'T KNOW WHAT THAT IS YET. BUT THE ONLY THING THAT WE'VE SEEN OUT HERE IS THE OIL AND GAS PRODUCTION AND EXPLORATION. DIDN'T SHOW ANY PESTICIDES OR HERBICIDES OR FERTILIZERS. THESE ARE INDUSTRIAL CHEMICALS. JUST A SHORT DRIVE FROM THE FENTON AND LOCKER FARMS, THE EPA ALSO TESTED THE WELL WATER OF LOUIS MEEKS AND FOUND 4 CONTAMINANTS OF CONCERN. YEAH, LOOK AT. WOULDN'T YOU LIKE TO HAVE SOMETHING LIKE THAT IN YOUR YARD?

LOUIS FILLED A TUB TO SHOW US WHAT HIS WELL WATER LOOKED LIKE. THE MORE WATER THAT COMES, THE WORSE THE SMELL GETS.

THE WATER HAD AN OILY SHEEN TO IT AND A DISTINCT ODOR. SMELLS LIKE GAS TO ME, YOU KNOW?

SEE THOSE PARTICLES SUSPENDED IN THERE? WHAT WOULD THAT BE? YOU DON'T SEE THAT IN WATER. LOUIS ALSO BELIEVES THAT THE FRACKING OF GAS WELLS ON HIS PROPERTY IS TO BLAME.

THE EPA TESTED A TOTAL OF 39 WATER WELLS IN THE PAVILLION AREA AND FOUND THAT MORE THAN A QUARTER HAD TRACES OF TOXINS. WHERE THE CHEMICALS CAME FROM OFFICIALLY IS NOT KNOWN, BUT SCIENTISTS SAY THE NATURAL GAS WELLS COULD BE A POSSIBLE CAUSE. IF SCIENTISTS CAN DIRECTLY TIE THE TOXINS IN THE WATER TO THE GAS DRILLING ... MAKE A DIRECT CONNECTION,... THE IMPLICATIONS COULD BE ENORMOUS FOR GAS DRILLING INDUSTRY. OVER THE LAST FEW YEARS, SEVERAL REPORTS OF CONTAMINATION ACROSS THE COUNTRY HAVE INCREASED CONCERNS ABOUT THE ENVIRONMENTAL EFFECTS OF DRILLING AND THAT FRACKING CHEMICALS MAY BE GETTING INTO THE WATER SUPPLY. THIS WELL IS LIKE THOUSANDS OF WELLS ALL ACROSS OHIO, AND IN BAINBRIDGE, OHIO AN IMPROPERLY DRILLED WELL CONTAMINATED GROUNDWATER, AND BLEW ONE HOME OFF IT'S FOUNDATION. IT LIFTED UP AND CAME BACK DOWN. YOUR HOUSE? OUR HOUSE. IN DIMOCK, PENNSYLVANIA, A CREEK WAS POLLUTED BY FRACKING FLUIDS, KILLING FISH, AND A METHANE LEAK CONTAMINATED SEVERAL WATER WELLS. FEARS OF SIMILAR INCIDENTS HAVE CAUSED STRONG OPPOSITION TO DRILLING ACROSS THE COUNTRY. NEW YORK CITY HAS THE WORLD'S LARGEST UNFILTERED WATER SUPPLY.

THIS CANNOT BE ALLOWED TO HAPPEN HERE. CRITICS OF DRILLING IN NEW YORK STATE STARTED THE "KILL THE DRILL" CAMPAIGN, AFTER THE STATE ALLOWED DRILLING IN THE MARCELLUS SHALE FORMATION, ONE OF THE NATION'S LARGEST GAS BASINS, LOCATED NEAR NEW YORK CITY'S DRINKING WATER SUPPLY. WE CAN'T DRINK NATURAL GAS. JOIN THE KILL THE DRILL CAMPAIGN. THAT IS THE MOST ALARMING ENVIRONMENTAL NEWS I HAVE HEARD IN A LONG TIME. CONCERN THAT AN ACCIDENTAL LEAK COULD CONTAMINATE NEW YORK CITY'S DRINKING WATER, THE NEW YORK CITY COUNCIL PASSED A RESOLUTION THAT CALLED FOR A BAN ON GAS DRILLING IN THE CITY'S WATERSHED AREAS. JAMES GENNARO IS A MEMBER OF THE NEW YORK CITY COUNCIL AND SPONSORED THE RESOLUTION. IT'S JUST NOT THE KIND OF ACTIVITY FOR A PRISTINE, UNFILTERED WATER SUPPLY THAT SUPPLIES THE DRINKING WATER NEEDS OF NINE TO TEN MILLION PEOPLE. IT'S JUST NOT THE PLACE TO DO IT. IT'S A WATER SUPPLY. UNDER PRESSURE FROM THE CITY COUNCIL AND ENVIRONMENTAL CRITICS, CHESAPEAKE ENERGY CORPORATION, WHICH OWNS A LARGE PORTION OF THE DRILLING RIGHTS IN THE AREA, HAS BACKED OFF FROM DRILLING NEAR NEW YORK CITY'S WATER SUPPLY. AND THAT BRINGS US BACK TO CHESAPEAKE ENERGY C-E-O, AUBREY MCCLENDON. WE THINK THAT DRILLING IN WATERSHEDS IS SAFE AND ACCEPTABLE, AND REMEMBER, EVERY ACRE IN AMERICA IS INSIDE A WATERSHED. SO, WE DIDN'T WANT TO-- PUT OURSELVES IN A POSITION OF SAYING SOMEHOW DRILLING IN A WATERSHED-- IS UNSAFE. THAT'S NOT TRUE. BUT WE UNDERSTAND THAT THE COMBINATION OF THE LACK OF QUALITY OF MARCELLUS UNDERLYING THE NEW YORK CITY WATERSHED, AND THE NATURAL CONCERNS THAT PEOPLE HAVE DOWNSTREAM OF THAT WATERSHED IS SUCH THAT IT WAS AN EASY DECISION FOR US TO MAKE TO NOT TRY AND DEVELOP THOSE LEASES. BUT OPPONENTS OF DRILLING STILL ARGUE, A PROMISE NOT TO DRILL COULD BE REVERSED, AND OTHER COMPANIES WITH LEASES MAY STILL BE WILLING TO DRILL. AND IN DECEMBER, THE U.S. ENVIRONMENTAL PROTECTION AGENCY WEIGHED IN, TELLING NEW YORK STATE, "A GREATER EMPHASIS NEEDS TO BE PLACED ON THE POTENTIAL HEALTH IMPACTS THAT MAY BE ASSOCIATED WITH GAS DRILLING AND HYDROFRACTURING." THE STAKES ARE HIGH. GAS DRILLING FEES, PAID BY ENERGY COMPANIES TO THE STATE, WOULD BRING DESPERATELY NEEDED REVENUE TO A CASH STRAPPED NEW YORK. IT'S MY UNDERSTANDING; CORRECT ME IF I'M WRONG, THAT GOVERNOR PATTERSON, PRESENT GOVERNOR, THINKS DRILLING IS A GOOD IDEA. HE ABSOLUTELY DOES. WE'RE GOING TO GET SOME STATE REVENUE FROM THIS DRILLING." YES. AND THE STATE, LET'S FACE IT, IS ALMOST BROKE, AND IF NOT BROKE. NOT AN UNUSUAL CIRCUMSTANCE IN THESE TIMES FOR ANY STATE. SO LET'S PULL BACK. WHAT WE CALL IN TELEVISION A WIDE SHOT. WOULDN'T IT HELP TO DRILL? IT CERTAINLY, WOULD HELP NEW YORK STATE, THEIR FISCAL PICTURE, IF WE WERE TO PROCEED. I DON'T THINK WE SHOULD LET OUR, ECONOMIC DESPERATION GET TO THE POINT WHERE WE'RE SACRIFICING THE CITY'S AND THE STATE'S MOST PRECIOUS AND NON REPLACEABLE NATURAL ASSET WHICH IS NEW YORK CITY'S DRINKING WATER SUPPLY. WHICH IS THE JEWEL OF NEW YORK CITY AND NEW YORK STATE. THE GAS INDUSTRY INSISTS FRACKING IS A SAFE TECHNOLOGY. HYDRAULIC FRACTURING'S BEEN AROUND FOR ABOUT 60 YEARS. IT'S BEEN USED WELL OVER A MILLION TIMES. LEE FULLER IS A LOBBYIST AND A VICE PRESIDENT WITH THE INDEPENDENT PETROLEUM ASSOCIATION OF AMERICA. ON THE WHOLE, IF YOU LOOK AT THE HISTORY OF HYDRAULIC FRACTURING, IT'S BEEN A VERY, VERY SOUNDLY REGULATED AND ENVIRONMENTALLY CAREFULLY CONTROLLED TECHNOLOGY. BUT SOME IN CONGRESS AREN'T CONVINCED. COLORADO REPRESENTATIVE DIANA DEGETTE HAS CO-SPONSORED LEGISLATION TO REGULATE HYDRAULIC FRACTURING UNDER THE EPA'S SAFE DRINKING WATER ACT. THE STATES REGULATE THE FRACKING TECHNIQUE ITSELF. BUT THEY DON'T NECESSARILY REGULATE WHAT'S GOING INTO THE GROUND WATER IN THOSE STATES. AND THE OTHER PROBLEM IS THAT OF COURSE THE REASON WE HAVE THIS NATIONAL SAFE DRINKING WATER ACT IS GROUND WATER CAN MIGRATE FROM STATE TO STATE. SO YOU MIGHT HAVE A TABLE BETWEEN COLORADO AND UTAH, OR COLORADO AND WYOMING. THAT'S WHY YOU HAVE TO HAVE A NATIONAL STANDARD. THE LEGISLATION WOULD REQUIRE THE ENERGY COMPANIES TO DISCLOSE WHAT CHEMICALS ARE USED IN THE FRACKING PROCESS. ALL THOSE CHEMICALS ARE IN VERY, VERY SMALL CONCENTRATIONS. THEY ARE KEPT WITHIN THE WELL BORE. THEY'RE NOT RELEASED INTO THE ENVIRONMENT. THIS MATERIAL IS AVAILABLE-- BUT THERE'S A CERTAIN PORTION OF THE MIXTURE THAT IS AN INTELLECTUAL PROPERTY RIGHT, AND IT'S A PROPERTY RIGHT FOR THE COMPANIES THAT PROVIDE THOSE CHEMICALS. THEY SPENT A LOT OF MONEY DEVELOPING THE SPECIFIC MIXTURES, AND THE MIXTURES CHANGE DEPENDING UPON WHERE THEY'RE USING IT. THEY DON'T WANNA REVEAL THAT INFORMATION. IT'S A COMPETITIVE BUSINESS ISSUE. I'M SYMPATHETIC TO THAT. AND IN MY BILL I-- I HAVE A PROVISION THAT SAYS THEY WILL NOT HAVE TO DISCLOSE TRADE SECRETS. BUT IF WE HAVE HARMFUL CHEMICALS THAT ARE BEING ADDED TO THAT FRACKING FLUID, EVEN IN SMALL AMOUNTS, AND IF THEY'RE CONTAMINATING THE GROUND WATER, THAT'S A PROBLEM. AND WE NEED TO DEAL WITH IT. IF THERE'S NOTHING HARMFUL IN THE FRACKING FLUID THEN THE INDUSTRY HAS NOTHING TO WORRY ABOUT. AND I OFTEN SAY I DON'T KNOW WHY THEY'RE PROTESTING SO MUCH IF THERE'S REALLY NOTHING WRONG WITH THIS FRACKING FLUID. THE OIL AND GAS INDUSTRY IS AGAINST FEDERAL REGULATION AND SAYS THERE IS NO PROOF OF CONTAMINATION OF DRINKING WATER FROM FRACKING. BUT SOME PUBLIC HEALTH OFFICIALS SAY THAT IS BECAUSE, UP TO THIS POINT, THERE HAS BEEN NO FORMAL SCIENTIFIC STUDY TO DOCUMENT IF EXPOSURE TO FRACKING FLUIDS COULD MAKE PEOPLE SICK.

DOCTOR DANIEL TEITLEBAUM IS A TOXICOLOGIST WITH THE COLORADO SCHOOL OF PUBLIC HEALTH. WE HAVE SEEN COMPLAINTS. A LOT OF COMPLAINTS. BUT THE PROBLEM WE HAVE IS THERE IS NO ORGANIZED PROGRAM TO COLLECT THE CASES TO ORGANIZE THEM. TO PUT THE DATA TOGETHER AND TO TRY TO UNDERSTAND THAT WHETHER IN FACT THERE IS ILLNESS DIRECTLY DUE TO THE EXPOSURE . DR. TEITELBAUM HAS STUDIED CHEMICALS USED IN THE OIL AND GAS INDUSTRY FOR 40 YEARS. AND HAS SERVED AS A CONSULTANT FOR THE E-P-A. WE DON'T KNOW A GREAT DEAL ABOUT THE PROPRIETARY MATERIALS, BUT WE DO KNOW SOME THINGS. WE KNOW THAT IN THE PAST THEY'VE USED DIESEL FUELS. WE KNOW THAT IN THE PAST THEY'VE USED VARIOUS KINDS OF ARSENICALS. WE KNOW THEY'VE USED BORATES. ALL OF THESE ARE TOXIC MATERIALS. THEY ARE TOXIC TO THE CENTRAL NERVOUS SYSTEM. THEY ARE TOXIC TO THE LIVER. THEY ARE TOXIC TO THE SKIN. THEY CAUSE RESPIRATORY PROBLEMS. BUT WE CAN'T SAY THAT A PARTICULAR MATERIAL IS LIKELY TO CAUSE A PARTICULAR OUTCOME BECAUSE WE DON'T KNOW WHAT IS IN THE MATERIAL THAT IS BEING USED. WE KNOW A FAIR AMOUNT ABOUT WHAT'S UP THE WELL, BUT WE DON'T KNOW WHAT IS GOING DOWN.

BUT BACK ON THEIR WYOMING RANCHES, THE FENTON'S AND THEIR NEIGHBORS SAY TRYING TO MAKING THEIR CASE TO ENCANA -- THE ENERGY COMPANY THAT OWNS THE WELLS, HAS BEEN OVERWHELMING. YOU KNOW, WE GO TO A LITTLE TOWN MEETING IN HERE, WHERE THERE MIGHT BE 50 OR 60 RESIDENCES, AND HERE COMES ENCANA. AND THEY GOT A HALF A DOZEN ATTORNEYS THAT SIT DOWN WITH 'EM. WELL, HELL. WE CAN'T EVEN AFFORD AN ATTORNEY, YOU KNOW? WE'VE GOT AN-- NEW EXPENSE NOW, OF HAULING OUR DRINKING WATER THAT'S GONNA COST US PROBABLY $150, 200 BUCKS A MONTH, JUST TO HAUL THE DAMN WATER HERE SO WE CAN DRINK. ENCANA TURNED DOWN A REQUEST TO BE INTERVIEWED FOR OUR STORY, BUT SENT US THIS STATEMENT.

ACROSS THE COUNTRY, SOME 35,000 WELLS ARE BEING FRACKED EACH YEAR. A NUMBER THAT IS EXPECTED TO RISE IN THE COMING MONTHS. AND DESPITE OIL AND GAS INDUSTRY ASSURANCES THAT THE PROCESS IS HARMLESS, CRITICS SAY THE PROPOSED FEDERAL REGULATION IS LONG OVERDUE. CONGRESSWOMAN DIANA DEGETTE. I THINK THIS IS AN INDUSTRY THAT IN THE-- LATE 1990S AND THE EARLY PART OF THIS CENTURY GOT USED TO PRETTY MUCH DOING WHATEVER IT WANTED TO DO. AND I DON'T THINK THAT THEY LIKE BEING REGULATED. THEY DON'T WANT ADDITIONAL REGULATIONS. AND A LOT OF THE FOLKS THAT I TALKED TO SAY, "WELL, WE SAY THERE'S NOTHING WRONG. SO THEREFORE YOU SHOULDN'T REGULATE US. AND-- AND OF COURSE THAT'S NOT HOW IT WORKS.

BECAUSE OF THE PROBLEM WITH THEIR WATER, THE LOCKERS HAVE CONSIDERED SELLING THEIR FARM, BUT COULD NOT LEAVE THEIR HOME OF MORE THAN 20 YEARS. THE ONLY WAY WE COULD PROBABLY SELL IT IS IF WE SEPARATED THE HOUSE OFF AND ABANDONED IT, AND SOLD THE FARM GROUND. TO SOMEONE WHO IS ESTABLISHED IN FARMING AND WANTING TO BUY THE GROUND, IT'S AN EXCELLENT FARM. IT PRODUCES BEAUTIFUL ALFALFA AND WELL, WE COULDN'T SELL IT.

RHONDA LOCKER IS CURRENTLY DIAGNOSED WITH AN UNSPECIFIC NEUROLOGICAL DISEASE. ONCE SHE HAS THE FINAL EPA RESULTS OF THEIR WELL WATER, RHONDA CAN GO BACK TO HER DOCTORS FOR MORE TESTING. AND EVEN THE TESTS THAT THEY RUN ON RHONDA, THE TOXICOLOGY TESTS, THEY SORTA NEED TO KNOW WHAT THEY'RE LOOKING FOR. THEY COULD SEE THERE'S A PROBLEM. BUT THEY JUST CAN'T FIND WHAT IT IS. SO, RIGHT NOW, ALL THEY CAN DO IS-- IS TREAT THE SYMPTOMS AND TRY TO MAKE ME WHAT THEY SAY, IS COMFORTABLE AS POSSIBLE.

YOU KNOW, NATURAL GAS, I THINK, IS GONNA PROBABLY BE THE NEXT BUFFER BETWEEN THE COAL AND THE AND THE SO-CALLED DIRTY FUELS AND THE CLEAN FUELS, WIND ENERGY. AND I THINK NATURAL GAS IS PROBABLY GONNA BE THAT BUFFER. I'M NOT AGAINST NATURAL GAS PRODUCTION. BUT I THINK THE TECHNOLOGY AND THE RESOURCES ARE THERE THAT-- THAT THEY NEED TO THEY NEED TO LOOK AT WHAT'S HAPPENING WITH THESE FRACKING FLUIDS AND DRILLING FLUIDS.

JEFF LOCKER IN BEAUTIFUL PAVILLION WYOMING. NOW, HERE ARE SOME IMPORTANT FOOTNOTES TO THIS STORY. FIRST, THE FINAL RESULTS FROM THE PAVILLION WELLS WILL BE RELEASED IN MAY. BUT THE ENVIRONMENTAL PROTECTION AGENCY HAS MUCH BIGGER PLANS FOR STUDYING HYDRAULIC FRACKING. THE AGENCY ANNOUNCED IN MARCH A NATIONWIDE STUDY THAT WILL LOOK THE HEALTH AND ENVIRONMENTAL EFFECTS OF HYDRAULIC FRACTURING THE GAS INDUSTRY IS OBJECTING TO THE BREADTH OF THE STUDY, WHICH COULD ULTIMATELY LEAD TO REGULATION AND A POSSIBLE REPEAL OF THE INDUSTRY'S EXEMPTION FROM THE SAFE WATER DRINKING ACT.

UP NEXT HERE, FOOTBALL, CONCUSSIONS, AND NOW THE COURT. SO STAY WITH US.

FINALLY TONIGHT, WE RETURN TO A NEW AND POTENTIALLY GAME-CHANGING DEVELOPMENT IN A STORY WE'VE BEEN REPORTING FOR WELL OVER A YEAR - THE DANGERS OF REPEATED CONCUSSIONS, PARTICULARLY IN SPORTS LIKE FOOTBALL. WE HAVE LOOKED AT THE FIERCE SCIENTIFIC DEBATE ABOUT WHETHER THESE CONCUSSIONS CAN CAUSE DEMENTIA LATER IN LIFE. WELL SOON THAT DEBATE WILL MOVE FROM MEDICAL LABS AND HOSPITALS TO A COURTROOM IN CALIFORNIA, THANKS TO ONE MAN... AND THE WOMAN WHO LOVES HIM.

YOU GOTTA TIP IT UP A LITTLE MORE. OK. GOT IT? LET'S GET THIS. SEEING HIM TODAY, YOU WOULD NEVER GUESS THAT RALPH WENZEL USED TO BE A STAR FOOTBALL PLAYER. YEAH? HELLO. HOW ARE YOU? WE FIRST MET 67 YEAR OLD WENZEL A LITTLE OVER A YEAR AGO. HE WAS ALREADY A FAR DIFFERENT MAN FROM THE ONE HIS WIFE ELEANOR PERFETTO FIRST MET. OOH, YOUR HAND IS COLD! RALPH IS THE LAID-BACK CALIFORNIA DUDE. YOU KNOW, NOTHING BOTHERED HIM, GO WITH THE FLOW-- ALWAYS RELAXED, ALWAYS HAPPY AND WE HAD A LOT OF COMMON INTERESTS. WE BOTH LOVED FOOD AND COOKING AND WINE AND WE LOVED TO TRAVEL. WENZEL PLAYED SEVEN NFL SEASONS FROM THE LATE 1960'S TO THE EARLY 70'S. HE AND ELEANOR WERE LOOKING FORWARD TO GROWING OLD TOGETHER, BUT THEY STARTED TO NOTICE PROBLEMS. LOSING THINGS, YOU KNOW, I CAN'T EVEN TELL YOU HOW MANY TIMES HE LOST HIS CHECKBOOK. AND SO HE STOPPED-- HE STOPPED HAVING A CHECKBOOK. WORRIED, ELEANOR TOOK HIM TO A NEUROLOGIST WHO ASKED IF WENZEL EVER HAD A CONCUSSION AS A PLAYER. AND RALPH'S RESPONSE TO, "HAVE YOU EVER HAD A CONCUSSION?" WAS, "MORE THAN I COULD COUNT." AND HE SAID, "WELL, YOU-- YOU WERE EVER OUT-- LIKE, OUT COLD?" AND HE SAID, "OH, YES." HE SAID, "I-- I DO REMEMBER-- AT LEAST ONE TIME WHEN I WAS KNOCKED OUT. I WAS OUT FOR A LITTLE WHILE, CAME TO, GOT BACK IN THE GAME AND CONTINUED TO PLAY AND WAS RUNNING IN THE WRONG DIRECTION ON THE FIELD." AND THAT WAS WHEN HE WAS TAKEN OFF THE FIELD BECAUSE HE WAS THAT DISORIENTED. DOCTORS TOLD ELEANOR THEY BELIEVED A LIFETIME OF HITS TO THE HEAD LED TO THE WAY RALPH IS NOW. NUMBER 62. WHO WAS NUMBER 62? YOU WERE NUMBER 62. THAT'S YOU. RALPH ISN'T REALLY ABLE TO SPEAK IN SENTENCES ANYMORE. I MEAN, HE-- HE VERBALIZES AND SOUND COMES OUT, BUT IT'S KIND OF NONSENSE WORDS. EVERY ONCE IN AWHILE YOU CATCH A WORD THAT-- THAT ACTUALLY IS A WORD. BUT MOST OF THE TIME IT'S VERY DIFFICULT.

I CAME TO CALIFORNIA AND I BROUGHT WITH ME TWO PEOPLE. I DON'T KNOW. I DON'T REMEMBER A TIME WHEN I DID THAT. WHAT DID WE DO THERE?

YOU'RE LEFT JUST SMILING AND NODDING AND YOU RESPOND TO HIS GESTURES. AND -- AND IF HE STARTS LAUGHING, THEN YOU START LAUGHING. I DON'T KNOW. I DON'T KNOW ANY AUNT GAIL. I ONLY KNOW THE GAIL THAT WORKS HERE. COULD IT BE THE GAIL THAT WORKS HERE? WITH RALPH UNABLE TO SPEAK FOR HIMSELF PERFETTO HAS HAD TO BE HIS VOICE. AND ON APRIL FIFTH, SHE FILED A SIMPLE FIVE-PAGE GOVERNMENT FORM THAT COULD FOREVER CHANGE THE RELATIONSHIP THE NFL HAS WITH ITS PLAYERS. IT'S A WORKMAN'S COMPENSATION CLAIM FILED IN CALIFORNIA WHERE THERE'S A PROVISION IN STATE LAW THAT CONSIDERS SUCH CLAIMS VERY BROADLY. WENZEL'S CLAIM LISTS HIS OCCUPATION AS "FOOTBALL PLAYER." HIS EMPLOYER IS LISTED AS THE "SAN DIEGO CHARGERS," WHERE HE PLAYED FOR A COUPLE YEARS IN THE EARLY SEVENTIES. THE BODY PARTS INJURED: HEAD... BRAIN... PSYCHE. AND UNDER CALIFORNIA LAW, YOU'RE ELIGIBLE FOR WORKMAN'S COMP, EVEN IF YOU ONLY WORK A DAY IN THE STATE, SO ANYONE WHO PLAYED FOR EVEN A VISITING TEAM COULD FOLLOW WENZEL'S LEAD. THERE ISN'T ANY AMOUNT OF MONEY THAT'S GOING TO MAKE RALPH WELL. THERE-- THERE'S NO AMOUNT OF MONEY THAT WILL DO THAT. THAT'S NOT REALLY WHAT I'M LOOKING FOR. I'M TRYING TO MAKE THEM UNDERSTAND THAT THIS IS A VERY LENGTHY PROCESS. AND WIVES AND FAMILIES ARE GOING THROUGH VERY DIFFICULT TIMES. I'VE TALKED TO WIVES WHO DON'T WANT ANYONE TO KNOW THIS IS HAPPENING TO THEIR HUSBAND. THEY STILL FEEL LIKE IT'S-- AN EMBARRASSMENT FOR THEM. AND SO THEY'RE NOT GETTING THE SUPPORT THAT THEY MIGHT NEED. THEY'RE NOT GETTING THE HELP THAT THEY MIGHT NEED. AND SO I THINK THAT THAT'S A PLACE WHERE THE LEAGUE COULD BE HELPING MORE. IT'S NOT HANDING OUT CASH TO PEOPLE. IT'S HELPING THEM GET THROUGH TEN OR MORE YEARS OF REALLY DIFFICULT TIMES AND HELPING THEM GET THROUGH IT AND UNDERSTAND IT. THAT'S YOU. RIGHT? IN THE MIDDLE OF A GAME. THERE YOU ARE OVER THERE IN THAT ONE TOO. YOU'RE IN THAT PICTURE. AND WHO MADE THIS BOX HERE? YOU AND TINA DID THAT TOGETHER? YEAH. THAT'S FROM YOUR WALKS RIGHT? THAT'S FROM ALL THE THINGS YOU PICK UP ON YOUR WALKS WALKS. WHEN YOU GO FOR A WALK AND YOU PICK UP LITTLE -- LITTLE TREASURES? YEAH. YEAH. YOU PICK UP LITTLE TREASURES AND THAT'S YOUR BOX THAT YOU GUYS MADE. YOU KNOW, I MEAN, I DON'T THINK THAT EVERY WIFE THAT'S IN MY SITUATION SHOULD HAVE TO LEARN EVERYTHING THAT I LEARNED FROM SCRATCH. YOU DIDN'T WANT AN APPLE OR AN ORANGE INSTEAD OF THE RICE KRISPIE TREAT? IT COULD BE YEARS UNTIL WENZEL'S CLAIMS ARE DECIDED. BUT THE CASE PROMISES TO BRING THE SCIENCE OF BRAIN INJURIES INTO COURT AND THE RESULT COULD BE A LEGAL PRECEDENT THAT WOULD POTENTIALLY OPEN THE FLOODGATES FOR MILLIONS OF DOLLARS IN PAYOUTS FROM THE NFL TO PLAYERS WITH SIMILAR CLAIMS. RALPH ISN'T THE RALPH THAT I MARRIED. HE'S NOT THE RALPH THAT PEOPLE KNEW. AND, YOU KNOW, HE'S-- HE'S-- THERE ARE STILL DAYS WHEN YOU SEE HIS SWEET PERSONALITY, BUT THERE'S SOME DAYS WHEN HE'S THROWING A TABLE ACROSS THE ROOM. AND THAT'S NOT SOMETHING RALPH WOULD'VE EVER DONE. YOU KNOW, THAT'S JUST NOT HIS PERSONALITY. SO, I'VE GROWN TO ACCEPT THAT THIS ISN'T RALPH ANYMORE. YOU KNOW, MY RALPH IS GONE. YOU KNOW, SO THAT'S JUST LIKE ANYONE ELSE WHO LOSES A LOVED ONE. YOU-- IT'S VERY PAINFUL WHEN IT HAPPENS. AND YOU GO THROUGH THAT LOSS. BUT, YOU COME OUT OF THE OTHER END OF IT EVENTUALLY.

ELEANOR PERFETTO SAYS THAT IN THE DAYS SINCE SHE FILED THE WORKER'S COMPENSATION CLAIM, SHE HAS HEARD FROM SEVERAL WIVES WANTING TO KNOW MORE ABOUT THE SIGNS AND SYMPTOMS OF DEMENTIA. SHE LISTENS TO THEIR QUESTIONS AND FEARS, KNOWING WHAT IT'S LIKE TO SUSPECT THAT SOMETHING IS WRONG, THAT A BELOVED HUSBAND'S HEROICS ON THE GRIDIRON MIGHT HAVE EXACTED A HEAVY TOLL.

AND THAT'S OUR PROGRAM FOR TONIGHT. FROM NEW YORK, FOR HDNET, DAN RATHER REPORTING. GOOD NIGHT.