An investment manager organization that leads a coalition of shareholder advocacy groups for social and environmental issues says progress has been made in the third year of its quest to convince natural gas operators to be more forthcoming over how they are managing the risks associated with hydraulic fracturing (fracking).

Richard Liroff, executive director of the Investor Environmental Health Network (IEHN), told NGI that two companies — EOG Resources Inc. and Penn Virginia Corp. — agreed to make additional disclosures on fracking after coalition members (Green Century Capital Management and Miller/Howard Investments, respectively) introduced resolutions to do so. The resolutions have since been withdrawn.

“We don’t always file resolutions,” Liroff said, adding that conversations with investors “frequently end up in increased disclosures and the world is none the wiser that we’ve been talking with the company and they’re responding to what we’ve asked. [But] I’m pleased that so many companies have increased their disclosure in response to our resolutions. I’ve got a lot of confidence that this track record of withdrawing resolutions is going to continue.”

Eight additional operators — Anadarko Petroleum Corp., Chesapeake Energy Corp., Chevron Corp., ExxonMobil Corp., Noble Energy Inc., Range Resources Corp., Stone Energy Corp. and Ultra Petroleum Corp. — received resolutions as early as November. The last was submitted in January.

“EOG has increased its disclosure in many areas,” Larisa Ruoff, director of shareholder advocacy for Green Century, told NGI. “They’ve provided some clarity on many of the steps they’re taking to mitigate the risks and environmental impacts of their fracturing operations.”

Ruoff said those steps include addressing well construction issues, especially wellbore integrity, casing and cementing, minimizing the amount and number of chemicals used in fracking, and minimizing the impact operations have on water quality.

Meanwhile, Liroff said Penn Virginia has made significant changes to its website with regard to disclosures. “They’re saying some really good things about the care that they’re taking to reduce risks from their operations,” he said.

Liroff said conversations were continuing with “most” of the remaining eight operators that received resolutions and said there was a chance that resolutions could ultimately be withdrawn at two companies after they agree to perform additional disclosures. Ruoff declined to predict how many withdrawals may occur but did say it was “highly likely” there would be some.

IEHN and the Interfaith Center on Corporate Responsibility (ICCR) made a similar appeal for transparency last December (see NGI, Dec. 19, 2011). According to IEHN’s website, its members managed more than $41 billion in assets in 2008.

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