Friday, July 13, 2012
National Insurance Company Says it Won't Cover Damage From Fracking
National Casualty Company, part of the Nationwide Mutual Insurance Company, says it will not cover damage related to hydraulic fracturing, or fracking, for natural gas and oil. Nationwide spokeswoman Nancy Smeltzer said Thursday that the company's personal and commercial insurance policies "were not designed to cover any kind of fracking risk.'' Health and environmental groups claim fracking poses numerous risks, including potential drinking water contamination. The process injects millions of gallons of chemically treated water into a well to fracture shale thousands of feet underground and release trapped gas or oil. The industry and state regulators says it's safe if done properly. Columbus, Ohio-based Nationwide says risks involved in fracking operations "are too great to ignore'' and apply to policies of commercial contractors and landowners who lease property to gas companies.