The Fracking Scam revealed

Posted: March 1, 2012 in Uncategorized
Excerpt from this article:

Fracking, it turns out, is about producing cheap energy the same way the mortgage crisis was about helping realize the dreams of middle-class homeowners. For Chesapeake, the primary profit in fracking comes not from selling the gas itself, but from buying and flipping the land that contains the gas. The company is now the largest leaseholder in the United States, owning the drilling rights to some 15 million acres – an area more than twice the size of Maryland. McClendon has financed this land grab with junk bonds and complex partnerships and future production deals, creating a highly leveraged, deeply indebted company that has more in common with Enron than ExxonMobil. As McClendon put it in a conference call with Wall Street analysts a few years ago, “I can assure you that buying leases for x and selling them for 5x or 10x is a lot more profitable than trying to produce gas at $5 or $6 per million cubic feet.”
Sources inside Berry Petroleum have disclosed that there was internal opposition to buying mineral rights under the community of Gardendale, TX because of the added difficulty and endangerment of trying to turn a quiet, country area into an industrial oil and gas complex.

Speculation: could this be an elaborate scam by Berry to “flip” Gardendale? Some lives have already be “flipped” upside down. To date, this community has lost 2 doctors, a lawyer, a veterinarian, a high tech professional, a skilled mechanic, and the list will grow as the exodus continues. The damage to Gardendale by Berry Petroleum is devastating and irrevocable. History will surely bear this out.


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