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Long-Tail Liabilities-

Long-Tail Radiation Liability in Hydraulic Fracturing:

Historically, certain new technologies have entailed certain risks which were unidentified at their inception. The list is long but includes asbestos use for insulation, lead as an anti-knock compound in gasoline and as a component of paints, MTBE, PVC and many others.

In general had these risks been known or acted upon palliative or prophylactic actions could have been taken on earlier to reduce both human suffering and scorched earth legal battles familiar to us all.

In addition, there is now acknowledgement that unanticipated events -so called Black Swans- do occur with some frequency despite the lack of predictability. Examples include the Fukushima Nuclear disaster and the recent floods in the Binghamton (NY) area in which the Marcellus shale is present.

The Long-Tail risk addressed by LamniPipe and Lamni-Proppants is that of radiation which exists within the shale matrix and will, despite all efforts, reach the surface in varying amounts.

Once at the surface it may increase worker exposure, leak from containment vessels or pipes, leak from waste trucks onto highways, pollute streams or aquifers on a continuous or intermittent basis and just play havoc with the safety issues that concern everyone in the industry.

When coupled with the occasional Black Swan Event such as the Fukushima tsunami or the Binghamton Floods of 2011, one can appreciate that these are non-quantifiable but existing risks. The smart approach is to deal with them now, rather then later.

By using relatively inexpensive measures to keep radionuclides buried at known depths within the shale or lower pipe string, the likelihood of the negative consequences cited above can be minimized to the benefit of the industry and the consumer.

While it may take some time for Radiation Sequestering Technology to be mandated in all cases, those engaged in drilling, insuring and financing Hydraulic Fracturing projects should consider the likelihood that LamniPipe and Lamni-Proppants will be considered a Presumptive Remedy.