BHP faces shale gas lawsuit

[miningmx.com] — BHP Billiton faces class action from US landowners who claim the company’s shale gas business is creating a toxic soup, Australian media reported on Wednesday.

The lawsuits were filed a week ago in the US District Court in Little Rock and the Faulkner County Circuit Court in Conway, Arkansas.

“Arkansas landowners accuse BHP’s Houston-based petroleum division’s recently acquired $4.75bn Fayetteville shale gas business, along with three other gas producers, of reckless and irresponsible disregard for their safety by allegedly allowing noxious emissions to contaminate water, air and soil, causing earthquakes, poisoning their water sources and polluting the soil and air,” said Australia’s International Business Times.

BHP Billiton acquired Fayetteville shale gas business from Chesapeake Energy with effect from the end of March.

Fayetteville produces 400 million cubic feet of gas a day and is expected to still be producing in 40 years.

This acquisition is BHP Billiton’s first move into shale gas and the group has said it plans to spend up to $1bn a year to increase production.

The Sydney Morning Herald said the pending class suit came amid growing environmental concerns surrounding the emerging A$50bn Queensland and New South Wales coal seam gas industry.

Shale gas and coal seam gas operations use hydraulic fracturing to liberate the gas.