Gloucester Fishermen’s Association
February 25, 1998
The Honorable Edward M. Kennedy
United States Senate
Washington, DC 20515
Dear Senator Kennedy:
The Gloucester Fishermen’s Wives
Association has, for decades, prided itself in helping to protect our
ocean environment and the fishermen’s way of life in all New
England fishing communities. In the past, we have successfully
opposed drilling for oil and gas offshore on the Georges Bank,
lobbied for a ban on ocean dumping, and worked diligently with local,
state, and federal officials and many private organizations to
protect our ocean resources for the good of our nation.
Additionally, we have been instrumental in establishing a
comprehensive medical insurance program, the Fishing Partnership
Health Plan, that currently covers nearly 1000 fishermen and their
families.
Now, the Gloucester fishing community
faces perhaps its greatest challenge. A small, Texas-based, oil and
gas company, Tatham Offshore, has proposed to build the world’s
longest undersea gas pipeline. This 1500-mile long pipeline which
will purportedly bring natural gas from Canada’s Grand Banks to
Seabrook, New Hampshire cuts directly across some of the richest
fishing grounds on the East Coast across the Gulf of Maine and
Jeffreys Ledge). As of May 1, 1998, 1200 square miles of prime
fishing grounds in the Gulf of Maine including Jeffreys Ledge will be
closed to fishing for three years. In addition larger rolling
closures lasting two months each will close all Gulf of Maine inshore
fishing grounds where the pipeline will be present. Although the
company claims it’s $3 billion project will have little adverse
impact on the fisherman and environment of New England, the facts
tell a very different story. Common sense and the history of
accidents and environmental failures in the petroleum industry says
that even a 500 mile pipeline (Phase I is scheduled for completion in
November 1999) which is pressurized to 3000 psi and stands 4 feet
above the seafloor represents a major threat to the region.
Gloucester Fishermen & Wives
February 25, 1998 – Page 2
The following package of materials
summarizes the project and details our case against the offshore
pipeline. Most of the documents and research are sourced either from
the gas industry’s own documents or from government agencies. These
materials illustrate the three fundamental reasons why we oppose this
pipeline project.
Our first concerns are the inherent
risks and safety issues involved in permitting a gas project of this
magnitude to go forward in such a critical area. The statistics
provided the by the US Government’s own Office of Pipeline Safety
show a total of 891 gas pipeline incidents by transmission operators
over a recent 10 year period resulting in 37 fatalities, 170 injuries
and more than $180 million in damage. Furthermore, more than half of
these incidents appear to have been the result of corrosion problems
or defects. The accompanying case histories show that contrary to
the company’s assertions, gas leaks can and do lead to catastrophic
explosions and fires.
Moreover, our extensive research has
unearthed a significant risk of a major earthquake occurring along
the route which could result in a catastrophic failure of the
pipeline. As the maps show, one of the highest risk areas is located
near the proposed route and only 50 miles offshore Gloucester. This
startling revelation is supported not only by the historical records
of major quakes going back 350 years, but by the recent tremors in
the same vicinity which were reported in the local newspapers. This
earthquake record alone should preclude any consideration of
industrial developments in this region of the Gulf of Maine.
Our second concern is the very shaky
financial position of the proposed operator.
Examination of Tatham Offshore’s own
quarterly reports show that the company is deeply in debt and losing
money. On July 21, 1997, the company declared that it would take a
write down of approximately, $42 million to reflect its
production-related problems. Since then, it has announced that the
company is in danger of being de-listed on the NASDAQ National
Market. After incurring losses for 3 of the last 4 years last October
it failed to maintain a $1 per share value for 10 consecutive days.
With net assets less than $4 million, the company, nevertheless,
claims to have invested nearly $5 million in pre-development costs
for the offshore pipeline proposal and plans to spend another $5
million by the spring of 1998.
The parent Company, Deeptech Int’l
Inc., is also in poor financial condition. Deeptech’s net income
for the three months ended September 30, 1997 totaled $2.4 million.
According to one stock analyst it lost $18 million in the previous 12
months. This company, too, is burdened with debt. Deeptech’s
quarterly report states, “In the future, the Company anticipates
that it will need significant additional funds from outside sources
to fund its debt obligations which mature in 1998 and beyond.”
This is not the kind of company that could be expected to operate and
maintain a multi-billion dollar pipeline in a safe and responsible
manner. Nor, does it have the resources to cope with the liabilities
and financial consequences if a major problem develops.
Gloucester Fishermen & Wives
February 25, 1998 – Page 3
Finally, we are deeply concerned about
the potential adverse impacts such a development could have on the
fish habitats which we consider essential for the survival and
recovery of the New England fishery. Unlike Canada, the proposed
route does not avoid rock outcrops, steep slopes and significant
fishing areas. Contrary to Canadian practices, the pipeline will not
be trenched or buried and according to the company’s own brochure,
“no valves or other protruding features to catch nets and no
exclusion zone is required.” In the absence of any control
valves near a leak, it could take many hours to shut off the flow.
During major leak or rupture, methane gas and other contaminants
would bubble up to the surface causing a significant environmental
and safety hazard.
If this project is completed, it will
add impetus to the oil company frenzy which is presently taking place
on the Grand Banks of Canada. These, partially subsidized oil and
gas operations have already overrun centuries-old Canadian fishing
grounds, and have encroached upon their most sensitive marine and
wildlife sanctuaries. We cannot make the same mistake
For all of these reasons, the offshore
gas pipeline should never be approved. The Gloucester Fishermen’s
Wives Association and its allies will oppose the construction of this
pipeline with every means at our disposal. We desperately need your
support and assurance that such an ill-conceived plan will never make
it off the drawing board.
Sincerely,
Angela Sanfilippo,
President Gaetano G. Brancaleone, President
Gloucester Fishermen's Wives
Assn. Gloucester Fishermen's Assn.
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