TY - JOUR
T1 - The role of ownership in environmental performance
T2 - Evidence from coalbed methane development
AU - Fitzgerald, Timothy
PY - 2013/12
Y1 - 2013/12
N2 - One way coalbed methane production differs from traditional oil and gas extraction is in the large quantities of produced water. This water must be disposed of for production to occur. Surface discharge has proven to be a low-cost alternative; regulations are in place to protect surface water quality. This paper investigates the effects of alternative ownership regimes on regulatory compliance. A unique dataset linking coalbed methane wells in Wyoming to water disposal permit violations is used to explore differences in environmental performance across severed and unified minerals. Empirical analysis of these data suggest that ownership does impact environmental compliance behavior. Most violations occur on split estate. Federal split estate wells have more severe violations, though not necessarily more of them. Federal unified wells performed best, with fewer and less serious violations. Wells on private land have more, though not necessarily more severe, violations. These results suggest some room for policy proposals accounting for alternative ownership regimes.
AB - One way coalbed methane production differs from traditional oil and gas extraction is in the large quantities of produced water. This water must be disposed of for production to occur. Surface discharge has proven to be a low-cost alternative; regulations are in place to protect surface water quality. This paper investigates the effects of alternative ownership regimes on regulatory compliance. A unique dataset linking coalbed methane wells in Wyoming to water disposal permit violations is used to explore differences in environmental performance across severed and unified minerals. Empirical analysis of these data suggest that ownership does impact environmental compliance behavior. Most violations occur on split estate. Federal split estate wells have more severe violations, though not necessarily more of them. Federal unified wells performed best, with fewer and less serious violations. Wells on private land have more, though not necessarily more severe, violations. These results suggest some room for policy proposals accounting for alternative ownership regimes.
KW - Coalbed methane
KW - Environmental compliance
KW - Produced water
KW - Split estate
UR - http://www.scopus.com/inward/record.url?scp=84889827479&partnerID=8YFLogxK
U2 - 10.1007/s00267-013-0178-6
DO - 10.1007/s00267-013-0178-6
M3 - Article
C2 - 24104729
AN - SCOPUS:84889827479
SN - 0364-152X
VL - 52
SP - 1503
EP - 1517
JO - Environmental Management
JF - Environmental Management
IS - 6
ER -