CHARLTON TOWNSHIP, Mich. — Michigan environmental regulators and the oil and gas industry hope to fend off a political brawl over a method of extracting natural gas that has stirred furious debate around the nation.
Hydraulic fracturing, or "fracking," involves pumping huge volumes of water laced with chemicals and sand at high pressure into wells that can extend a mile or more underground. The process opens fissures in shale deposits, releasing trapped gas so it can be pumped to the surface.
Energy companies have used the technology in Michigan since the 1960s. State regulators and industry representatives say it's environmentally sound, but critics say it can pollute surface and ground water while threatening air and soil quality.
The debate has been muted in Michigan compared to states such as Pennsylvania, New York and Texas, where it has sparked lawsuits, rowdy town-hall meetings and neighborhood feuds. But things could get noisier if the Collingwood shale formation, which stretches across much of Michigan's northern Lower Peninsula, proves as rich as the industry hopes. Companies leased $188 million worth of state-owned drilling rights in the area during the past year.
Just a few exploratory wells have been drilled into the formation thus far and none have been gushers, says Hal Fitch, director of the Michigan Department of Environmental Quality's Office of Geological Survey. But the industry says better things could be in store and is trying to line up allies for what could become a lengthy political and legal tussle.
"There's a lot of misinformation out there," said Mike Haines, legislative committee chairman for the Michigan Oil and Gas Association. "We're confident that if we get the truth out, sensible policy will prevail."
The association's educational affiliate has produced and distributed brochures that describe fracking as "a safe, proven and essential process." The association sponsored a recent fracking demonstration in Otsego County's rural Charlton Township near Gaylord. Among the spectators were U.S. Rep. Dan Benishek, a freshman Republican whose district takes in part of the Collingwood shale area; DEQ Director Dan Wyant; and Fitch.
Two tanker trucks and other equipment were on hand to mix about 16,000 gallons of water with sand and 50 gallons of chemical additives that would produce a gel-like substance. It would be hurtled about 1,200 feet below the surface, fracturing the rock and yielding about 20 years' worth of new gas from one of 11,000 Antrim shale wells that have been productive over the years. Antrim shale is a northern Michigan formation that's considerably shallower than the Collingwood.
Supervisors monitored the process by computer from a nearby trailer as the trucks roared to life. Within minutes, the demonstration was aborted because of concern pressure on the targeted area would spread too far.
Still, industry officials said the operation was worthwhile because it illustrated the care companies take to ensure fracking works as planned.
"We understand what the rules are and we follow them," said Frank Mortl, MOGA's president and CEO.
Environmentalists aren't convinced. They have called for a moratorium on fracking in Michigan until laws and rules can be imposed to make the process safer and more accountable to the public.
"Our state is literally defined by water," said Susan Harley, Michigan policy director for the advocacy group Clean Water Action. "We have a unique responsibility to have the strongest possible protections in place — regulations that lead the nation."
Opponents say if there's a major run on the Collingwood formation, it would require more fresh water than Antrim wells. Collingwood shale lies 5,000 to 9,500 feet deep, while the deepest Antrim wells are 2,200 feet down. Also, while traditional wells go straight down, companies have begun drilling horizontal branches thousands of feet long that reach greater volumes of gas but need considerably more water and chemicals.
In other states, critics have claimed fracking fluids tainted with toxins such as formaldehyde and acids have migrated into groundwater. Fitch says that can't happen in Michigan because the shale containing natural gas is far below the water table.
Other concerns range from wildlife habitat fragmentation from drilling in sensitive areas to pollution from disposal of fracking fluids that return to the surface after use, Harley said. Her group also is unhappy because some chemicals used in fracking are considered trade secrets, although others are publicly disclosed.
Regulations set by the DEQ in May require gas well operators to document where they plan to get fresh water, using a computer screening device to make sure neither surface waters nor wells are harmed. Companies also are required to disclose more data about fracking operations and chemicals than before. Environmentalists say those were good first steps but didn't go far enough.
How big a controversy fracking becomes in Michigan may depend largely on the productivity of the Collingwood formation.
Encouraging results from a Missaukee County test well touched off a frenzied lease auction last year. But exploratory drilling since then has yielded little, Fitch said. Fewer than two dozen permits have been granted to drill in the Collingwood shale.
"It's still just kind of speculative," he said. "We don't know whether they'll find the technological secret to get higher production that will make it as promising as they'd hoped."
Slumping natural gas prices are another deterrent, said Doug Hock, spokesman for Encana Corp., a Canadian company that has drilled two Collingwood wells and is working on three others. Gas is selling for just more than $4 per cubic thousand feet, down more than $1 from a year ago.
"We're certain that there's a good resource in Michigan, and we hope it will become a viable play," Hock said. "But there are no guarantees. It's called exploration for a reason."
Michigan's oil and gas industry hopes to avoid a political fight over a method of extracting natural gas called hydraulic fracturing, or "fracking."
The practice has sparked lawsuits in some states and turned neighbors against each other.
The debate has been relatively quiet in Michigan. But that could change as companies explore a deep underground formation called Collingwood shale that stretches across the northern Lower Peninsula.
A few exploratory wells have been drilled and haven't turned up much. But companies have leased about $188 million worth of drilling rights in the area.
Fracking involves pumping water and chemicals underground to fracture rock and release trapped gas.
Supporters say it's safe, and critics say it can pollute ground and surface water.