I, for one really didn't believe the gas industry reps telling me it was all perfectly safe, nothing to worry about when they tried to lease my land. I find it interesting that those statements seem to contradict what is filed with the Securitites Exchange Commission's form 10-k. in other words it would appear the industry, at least in my area of the state (NEPA - Susquehanna County) is telling the landowners a different story than they are telling the investors in the company.
For instance - Chesapeake's 10-k filing states the following:
Inherent in natural gas transmission and natural gas and electric distribution activities are a variety of hazards and operational risks, such as leaks, ruptures, fires, explosions and mechanical problems. If they are severe enough or if they lead to operational interruptions, they could cause substantial financial losses. In addition, these risks could result in the loss of human life, significant damage to property, environmental damage and impairment of our operations. The location of pipeline, storage, transmission and distribution facilities near populated areas, including residential areas, commercial business centers, industrial sites and other public gathering places, could increase the level of damages resulting from these risks. The occurrence of any of these events could adversely affect our results of operations, cash flows and financial condition.
Read more: http://www.faqs.org/sec-filings/1003...#ixzz1gcDBAU6q
Cabot's 10-k filing with the SEC states:
business involves a variety of operating risks, including blowouts, cratering,
explosions and fires, mechanical problems, uncontrolled flows of oil, natural
gas or well fluids, formations with abnormal pressures, pollution and other
environmental risks, and natural disasters.
I'm wondering if this is a common practice or if they are being more upfront in other areas. Anybody care to chime in with your experiences?