19 December 2013 Joseph Martens, Commissioner New York State Department of Environmental Conservation 625 Broadway Albany, New

York 12233 Dear Commissioner Martens, We, the undersigned organizations, are writing to share new information - from the gas industry itself - that contradicts Norse Energy and the gas industrys claims that the industrial method of shale gas drilling and hydraulic fracturing (fracking) is safe. The bottom line is that the premise of Norse Energy's lawsuit demanding rapid finalization of the SGEIS on drilling and fracking is steeped in hypocrisy. In public remarks on behalf of Norse Energy, attorney Tom West has stated that the company is very certain a pending report would confirm that fracking can be done safely.1 In a recent letter to you, Mr. West also stated that it is "patently improper"2 that the New York Department of Health would evaluate public health impacts of drilling and fracking. His claim fails to recognize that among the more than 66,000 comments filed on the draft SGEIS were significant comments from renowned medical and scientific experts that detailed significant public health concerns. Both of Mr. Wests claims are unfounded and put New Yorkers public health and safety at risk. In addition to being contradicted by a significant and expanding body of scientific evidence demonstrating the harms of fracking, Norse Energy's own annual report and prospectus to investors along with similar annual reports from other gas corporations - acknowledge serious risks of drilling and fracking. In its 2012 Annual Report, Norse Energy notes that, "The Company has no history of drilling horizontal shale wells with high volume hydraulic fracturing. However, the technology is readily available from drilling subcontractors, which the Company can employ."3 Despite its lack of experience with horizontal hydrofracking, Norse Energy acknowledges significant drilling risks in its 2013 Prospectus. As the company states, All phases of the oil and natural gas business present environmental risks and hazards.4 The companys concerns about drilling risks which are echoed by the corporations Norse potentially could employ to complete horizontal high volume hydraulically fractured wells - show that consideration of health impacts and further review are in fact very necessary. These other oil and natural gas companies routinely warn of serious risks in required 10-K disclosure reports that are filed each year with the U.S. Securities and Exchange Commission and that disclose financial conditions to investors. For example, Exxon Mobil Corp.s subsidiary XTO Energy Corp notes hazards and risks inherent in drilling,5 while Range Resources Corp. notes that natural gas, NGLs [natural gas liquids] and oil operations are subject to many risks.6 Such inherent hazards and risks include leaks, spills, explosions, blowouts, environmental damage, property damage, and injury and death.78910 Chesapeake Energy Corp. has also stated that horizontal and deep drilling activities involve greater risk of mechanical problems than vertical and shallow drilling operations.11

A small, representative snapshot from Range Resources acknowledges the following risks:12 pipe or cement failures casing collapses environmental hazards, such as natural gas leaks, oil spills, pipeline ruptures, and discharges of toxic gases unusual or unexpected geological formations loss of drilling fluid circulation pressure or irregularities in formations fires natural disasters surface craterings and explosions uncontrollable flows of oil, natural gas or well fluids

The companies also routinely warn of inadequate insurance to cover drilling harms. XTO Energy Corp., which holds thousands of acres of natural gas leases in New York, states that we are not fully insured against all environmental risks, and no coverage is maintained with respect to any penalty or fine required to be paid by us.13 A significant and growing body of scientific and case studies shows that these risks are real and, in areas where fracking is underway, are already creating injury to drinking water, air quality, and public health. As one example, consider the stated risks of pipe or cement failures and casing collapses that create the potential for contaminated water wells and aquifers. Then look at Pennsylvania where those risks are increasingly becoming reality: leak rates for wells were 6 percent in 2010, 7.1 percent in 2011, and 8.9 percent rate in 2012.14 Given this increasing problem, it is not surprising that Pennsylvania Department of Environmental Protection records show at least 161 cases of water contamination from oil and gas drilling between 2008 and the fall of 2012.15 The industry itself admits it cannot solve the problem of leaking wells that can contaminate drinking water supplies.16 Science increasingly links the gas development process with more spills, blowouts, underground migration of contaminants, elevated levels of radiation, seismic impacts and earthquakes, dangerous air pollution, and negative health impacts.17 Norse Energys claim that drilling operations and facilities are safe is plainly at odds with statements made in its own prospectus, as well as in annual reports by other companies. Its contention that public health inquiry is "improper" - in the face of an overwhelming call for such study by our leading medical and scientific experts and organizations - underscores the industrys disregard for the public interest and wellbeing. Norse Energys lawsuit is nothing more than the latest installment in the gas industrys long line of dishonest propaganda geared toward misleading the public and deflecting attention from the inherent dangers and harms of drilling and fracking. In closing, we request that you add this important information into the public record and take it into consideration as you continue to study and evaluate the risks of drilling and fracking operations to New Yorkers water, air, land and public health and safety. Sincerely,

Citizen Action of New York Karen Scharff, Executive Director EARTHWORKS Nadia Steinzor, Eastern Program Coordinator Environmental Advocates of New York Katherine Nadeau, Policy Director Frack Action Julia Walsh, Campaign Director Food & Water Watch Alex Beauchamp, Northeast Region Director New York Public Interest Research Group Cathleen Breen, Watershed Protection Coordinator Save The Southern Tier Isaac Silberman-Gorn, Co-founder Sierra Club Atlantic Chapter Roger Downs, Conservation Director cc: Governor Andrew Cuomo Department of Health Commissioner Nirav Shah

"Norse Energy to sue NY over fracking report." CNBC News. (December 6, 2013) http://video.cnbc.com/gallery/?video=3000224701. 2 "In Letter, Norse Trustees Make Final SGEIS Demand." State of Politics. (December 2, 2013) http://www.nystateofpolitics.com/2013/12/in-letter-norse-trustees-make-final-sgeis-demand/. 3 Norse Energy Corp., Annual Report. (2012) http://www.norseenergy.com/media/2012_Annual_Report.pdf. 4 Norse Energy Corp. ASA, Prospectus (June 10, 2013) at 30, <http://norseenergycorp.com/media/NECProspectus_2013.pdf> . 5 XTO Energy Corp., Annual Report (Form 10-K) (Feb. 25, 2010) at 25. 6 Range Resources, Corp., Annual Report (Form 10-K) (Feb. 27, 2013) at 26. 7 XTO Energy Corp., Annual Report (Form 10-K) (Feb. 25, 2010) at 25. 8 Range Resources, Corp., Annual Report (Form 10-K) (Feb. 27, 2013) at 26. 9 Noble Energy, Annual Report (Form 10-K) (Feb. 7, 2013) at 41-42. 10 Chesapeake Energy Corp., Annual Report (Form 10-K) (Mar. 1, 2013) at 21. 11 Chesapeake Energy Corp., Annual Report (Form 10-K) (Mar. 1, 2013) at 21. 12 Range Resources, Corp., Annual Report (Form 10-K) (Feb. 27, 2013) at 23. 13 XTO Energy Corp., Annual Report (Form 10-K) (Feb. 25, 2010) at 17. 14 Some Scientific Failings Within High Volume Hydraulic Fracturing Proposed Regulations, Comments and Recommendations, Submitted to the New York State Department of Environmental Conservation by Anthony R. Ingraffea, Dwight C. Baum Professor of Engineering, Cornell University, Jan. 8, 2013. 15 Laura Legere, Sunday Times review of DEP drilling records reveals water damage, murky testing methods, THETIMES-TRIBUNE.COM (May 19, 2013), http://thetimes-tribune.com/news/sunday-times-review-of-depdrilling-records-reveals-water-damage-murky-testing-methods-1.1491547. 16 Claudio Brufatto et al. From Mud to Cement Building Gas Wells, Oilfield Review, Autumn 2003, at 63.
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Sinding, Kate. "New Scientific Evidence on Fracking's Risks Shows Cuomo Should Stand Firm on Moratorium." Natural Resources Defense Council. (November 1, 2013) http://switchboard.nrdc.org/blogs/ksinding/new_scientific_evidence_on_fra.html
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