Those of us who recognize the many grave dangers that fracking poses to our environment and social fabric have often felt that we were in a real David vs. Goliath struggle, but without the benefit of the sling that enabled David to topple the giant. Recent developments indicate that we may have not one,but two Goliaths entering the fray on our side.
Our two unlikely champions are the insurance providers and the mortgage bankers.
Here’s how Nationwide Mutual Insurance put it in an internal memo:
“After months of research and discussion, we have determined that the exposures presented by hydraulic fracturing are too great to ignore. Risks involved with hydraulic fracturing are now prohibited for General Liability, Commercial Auto, Motor Truck Cargo, Auto Physical Damage and Public Auto (insurance) coverage.”
This applies to
….landowners who lease land for shale gas drilling and contractors involved in fracking operations, including those who haul water to and from drill sites; pipe and lumber haulers; and operators of bulldozers, dump trucks and other vehicles used in drill site preparation.
Other insurers are growing increasingly uncomfortable with the difficulty of calculating potential damages from fracking, and, while insurance for gas and oil companies is still available, the cost is rising. Read the rest of this entry »