TABLE OF CONTENT

1.0 INTRODUCTION 1

2.0 THE STAKEHOLDERS THAT WERE AFFECTED BY 2

THE ETHICAL ISSUES

2.1 The Government 2

2.2 The Wildlife 2

2.3 Employees of Questar 2

2.4 Residents living near Pinedale Mesa 3

3.0 QUESTIONS 4

3.1 Question 1 4

3.2 Question 2 6

3.3 Question 3 8

3.4 Question 4 10

3.5 Question 5 12

3.6 Question 6 14

REFERENCES 16

1.0 INTRODUCTION

Pine Mesa in Southern Wyoming has rich natural gas deposits trapped in sandstone.

In the 1990s industry developed techniques to get at such deposits by fracturing the sandstone

to free the gas. In 1998 Questar drilled a successful test well. After an environmental impact

statement was completed the Bureau of Land Management (BLM) approved drilling of up to

900 wells on federal lands on Pinedale Mesa.

There are some benefits. First, natural gas is clean source of energy (much cleaner

than fossil fuels). Second, exploiting this resource helps reduce U.S. dependence on foreign

energy supplies. Third, businesses and people in the Pinedale area benefit from the jobs,

benefits, and tax revenues. Lastly is the state of Wyoming benefits: 60% of the state revenues

come from royalties received from coal, gas, and oil operations".

In May 2004, the U.S. Fish and Wildlife Service undertook a review of the sage

grouse's status to determine whether the grouse should be listed as endangered. In Jan2005,

The U. S. Fish and Wildlife Service has completed its status review of the greater sage-

grouse throughout its range and determined that the species does not warrant protection under

the Endangered Species Act at this time".

Therefore, Bureau of Land Management imposed restrictions to protect grouse by

Questar's roads, wells, and other structures had to be located at least 1/4 mile from grouse

breeding grounds & at least 2 miles from nesting areas and some studies also showed these

protections were insufficient and recommended increasing the 1/4 mile set back to at least 2

miles. Besides also to protect migration routes and wintering grounds of pronghorn and other

species.

By Questar's directional drilling proposal, this would minimize the land occupied by

the wells: instead of separate 2-4 acre "pads" for each well, directional drilling would allow

16 wells per pad. Since directional drilling is more expensive, Questar's agreed to this only on

the condition that it be allowed to drill in the winter. BLM authorized Questar to drill wells at

a single pad from 2002-2007 as part of a study of its effects on wintering & migrating herds".

BLM preliminary report found "no conclusive data to indicate quantifiable adverse effects".

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2.0 THE STAKEHOLDERS THAT WERE AFFECTED BY THE ETHICAL ISSUES

2.1. The Government

The U.S. government supported the drilling activity even though drilling’s impact on

wildlife. It is because 60% of the state budget is based on royalties the state receives from

coal, gas and oil operations. That was unethical on the ground of U.S government because

they prioritized state development rather than nature of wildlife. They think that animal’s life

was not important compared to local economic development.

2.2 The Wildlife

Occasionally elk, mule deer, pronghorn antelope and other wildlife descend from their

habits because of Questar drilled around Pinedale. The dramatic in number was blamed

primarily on the destruction of 50% of their sagebrush nesting and mating grounds in turn

was blamed on expanding acreage being given over to gas drilling and other mining activity.

The Questar Corporation is unethical to damaged wildlife’s nesting and mating grounds in

order to conduct the drilling and mining activity. The company was thinking of profit rather

than balance of the ecological system.

2.3 Employees of Questar

During the drilling operation in Pinedale mesa, Questar hires people and engineers

from different regions all around the country in order to extract the natural gas effectively

while managing the operation optimally. Even though not directly related to the destruction

and harm done to the environment, the employees of Questar were still parties hired by

Questar for the drilling operations are actively involving themselves in destroying the habitat

of the mesa. Even though the commands came from the higher ups, employees of the

company are still acting on command, even though they knew that their actions would harm

the environment and the habitat of the mesa. The employees might even put blame on their

higher ups when things go awry.

However, it is the duty and responsibility for everyone, including the staffs of Questar

to be morally obligated to take good care of the environment. No matter the circumstances

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are, the employees should decline and oppose the idea of destroying the environment in order

to survive. Without considering the harm done to the environment and only took care of

themselves, the employees should therefore seek redemption through halting the operation

through legal means and seek to preserve the mesa and habitat.

2.4 Residents living near Pinedale Mesa

Not only the company or the government was affected by the drilling operations of

Questar, as the residents living near Pinedale mesa were also affected. Various casual

activities such as hiking and fishing became a distant dream as the habitat of the area was

severely affected throughout the years. Throughout the years, the area has changed from an

ecological heaven to a hell hole. The drilling operation has affected the flora and fauna at the

mesa, causing residents who fishes or hunts to survive fail to provide for themselves.

Vegetation and plantation will also be affected, as the ecosystem has been disturbed.

Pollutants such as exhumed gas will affect insects such as bees which pollinates the plants.

Plants growth were also halted when the terrain of the area was altered in order for easier

drilling operation. Roads were built and trees were cut down in order for an easier drilling

operation. The residents living there will also have to suffer from the noise pollution. Even

though not directly affecting their lifestyles, noises of the drills might stress out the residents.

Questar’s quest for fortune and fame will cost the residents of Pinedale mesa their home.

Their lifestyles will not be sustainable anymore.

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3.0 QUESTIONS

3.1 Question 1 - What are the systematic, corporate, and individual issues raised in this

case?

a. Systematic Issues

i. Damage in Pinedale Mesa Landscape ecologically and beauty

Animals such as elk, mule deer, pronghorn antelope, and other wildlife, including the

imperiled greater sage grouse, descend from their habitats at mesa and gingerly pick

their way around and between the wells Questar drilled around Pinedale.

Environmentalists claim that serious negative effects on the wildlife on the mesa as

well as on the beauty of the area.

ii. Decreasing numbers of wildlife species

The dramatic decline in their number was blamed primarily on the destruction of 50

percent of their sagebrush nesting and mating grounds, which in turn was blamed on

livestock grazing, new home construction, fires and the expanding acreage being

given over to gas drilling and other mining activities.

iii. Reducing the need to import energy supplies from abroad

Natural gas is extracted in the United States; its use reduces United States reliance on

foreign energy supplies.

iv. Increasing local economy booming

Business around Pinedale also welcomed the drilling activity, which bought numerous

benefits, including jobs, increased tax revenues, and booming local economy.

b. Corporation Issues

i. The drilling pad is taking a big space in supporting the drilling rig.

Drilling a well typically required clearing and leveling a 2 to 4 acre pad to support the

drilling rig and other equipment.

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ii. New technology cost too much

Questar proposed to invest in a new kind of drilling rig that allow up to 16 wells to be

dug from a single pad, instead of the traditional 1 or 2. The new directional drilling

technology added about RM500,000 to the cost of each well and required investing in

several new drilling rigs.

iii. Lacking the ability to do something due to seasonal activity

BLM requires Questar to cease all drilling operations on the mesa each winter from

November 15 to May 1. In fact, to protect animals the BLM prohibited all persons,

whether on foot or on automobile, from venturing into the area during winter. Being

forced to stop drilling operations during the winter months was extremely frustrating

and costly to Quester. Drilling crews had to be laid off at the beginning of winter, and

new crews had to be hired and retrained every spring. Because of the seasonal

interruption in its drilling schedule, the full development of its oil field was projected

18 years.

c. Individual Issues

a. Jim Sims suggested the “funding scientific studies” that would be designed to show

the sage grouse wasn’t susceptible

According to Sims, “the attempt to categorize the grouse as an endangered species

was spearheaded by” environmental extremists who have converged on the American

West in an effort to stop virtually all economic growth and development.”

b. Keeping the species at Pinedale Mesa out of the “endangered species list”

According to Dru Bower, “endanger species listings are not good for the oil and gas

industry, so anything we can do to prevent a species from being listed in good for

industry”.

d. Ecological Ethics

There are some ethical issues such as Ecological Ethic. Ecological Ethic is a moral duty to

protect the interest of human beings and non- human being. In the sense of Ecological

approach, non-humans have intrinsic value. On the other hand, Environmental rights

approach is the human rights to a livable environment. Finally, the market approach requires

external costs of volatile utility, rights, and justice so they should be internalized.

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3.2 Question 2 - How should wildlife species like grouse or deer be valued, and how

should that value be balanced against the economic interests of a society or of a

company like Questar? What principles or rules would you propose we use to balance

the value of wildlife species against economic interest?

It is very hard to put a value on the ecosystem especially on the wildlife species. It is

unethical to rate or put a value on the living things. When rating of the ecosystem come into

the place, monetary valuation would be best suitable to be used. Monetary valuation measure

the value of ecosystem services to people by estimating the amount people are willing to pay

to preserve or enhance the services. The more cost they willing to pay to conserve the

wildlife species like grouse or deer the higher the value of the monetary value. There is still

much aspect to be reconsidering when we valuing the ecosystem. The balance of ecosystem

would be most important part that we should take note and also we must be taken into major

consideration. Balance of ecosystem life out of control extinction may happen that will lead a

disaster to the human.

For big company like Questar they should have awareness for the effect that the

action they take will lead to. They should obey the law of the nature and take care of every

step they come across. Questar must obey the rules and regulation of BLM restriction

ethically and morally when having the drill job been done in Pinedale Mesa concerning the

impact they could be done. Effort should be done by the company itself. They must wisely

use nature preservation in their management strategy. One of the ways they could do so is to

preserve some fund to help the work of conservation. Protection also must be done on the

resource value and the resource use. There is also needs for keeping their natural habitat safe

and sound. It can protect the population in the forest, keeping the rare one to from extinction

and facilitate them to breed. Ecological ethics also must take into concern when in Questar as

in any activities of they done in the company. Each development by them must be ethical and

must not cause corruption to the nature. Furthermore the development take been done must

be legal and strictly obeying environmental laws and their company policies.

Utilitarianism can be taken into account of the pain cause to the innocent animals.

Pain may be experience by the animal without us noticed. We don’t know the consequences

we had done to the animal as we develop and lodge a new area. When doing this stuff we

must always ask ourselves is all living creatures are being treated as equally? We must take

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justice in consideration also in developing the nature. Animal’s welfare is important. The

sustainability also needs to be reconsidered as we are using the nature resources. The usage of

the natural environment nowadays will keep on for our future generation or just we

consuming all that we need without thinking of them. We must take consideration in all

aspect when doing a management decision.

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3.3 Question 3 - In light of the fast that natural gas reduces the U.S.’s undesirable

dependence on foreign oil and the fact that natural gas produces less greenhouse gases

than coal, oil, and other fuels, should Questar continue its drilling operations? Does the

environment imply that Questar is morally obligated to stop drilling wells on the

Pinedale Mesa? Explain.

Questar is definitely morally obliged to be responsible on the environmental impact

for its drilling operations. No matter how important is the operation in terms of financial and

political, in no sense should Questar be polluting nature while depleting earth’s scarce

resources. Questar has violated the environmental justice, as the external cost of its drilling

operations has to be bared by other parties.

Several parties were harmed when Questar proceed to operate its business through

drilling and mining. One of the problems is the declining number of wildlife species. Due to

the mining and drilling operations, various fauna within the region has decreased

dramatically over the years. Sage grouse, an endangered species which resides at the mesa,

was also affected by the operations. Even though Questar has their wells built far from their

nesting areas, these sensitive birds are still affected by the presence of the company’s mining

operation.

As stated by a local bureau official, the deer numbers within the region has passed a

threshold of 15 percent, which indicates a severe declination of the species over the years.

Mule deer on the mesa has declined by 60 percent compared to the number in 2001. In

addition, the survivability of female mule deer during winters has declined by 15 percent over

the years. Besides, the surface disturbance caused by Questar also adversely affects the

migratory birds. Salmon species, which spawns at the rivers, were also severely affected.

This shows that the damage of Questar to the environment cannot be undone, or requires a

very long time horizon in order to recover the ecosystem.

Another pollutant which seems to affect the ecosystem was the noise and movement

of the trucks for the operation during winter. These pollutants affect the wildlife during

winter and increase their vulnerability to harm. Therefore, BLM has halted Questar’s

operations during winters. Wastes were also released into the environment during the drilling

operations. Operating the machineries such as drills and trucks requires fuel, which upon

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combustion of the duel, will be released into the atmosphere and changes the carbon

footprint. Wastes like carbon monoxide and Nitrogen oxide will affect the environment and

ecosystem of the mesa, causing undesirable disease and weakness amongst the flora and

fauna which resides at the mesa.

In general, the habitat of the area was severely affected. In order to reverse the

situation, various steps were made in order to restore the habitat to its formal glory. However,

damages were done and reversing the damage might be a futile and costly attempt. In order

for the ecosystem to be rebuilt and flourish, the best option was for Questar to stop its

operations and leave the area immediately. This is the morally correct decision for Questar to

do.

However, it is understandable that Questar wished to seek profit through its

operations at the mesa, as the natural gas could be used to generate revenue for the country,

and reducing the amount of imports from other countries. Revenue from this operation could

help providing benefits such as jobs, increased tax revenue, and improves overall local

economy. Drilling for the natural gas also provides a cleaner environmental alternative, as the

substitute fuel such as coal, has detrimental impact on the atmosphere when used for a long

time.

Nevertheless, no matter how much benefit that the drilling operations might be, the

adverse effect of the drilling has caused more harm than good. The environment has suffered

for the sake of mankind. Questar has therefore violated the environmental rights, as not only

human, but the ecosystem and the habitat has the right to live in a livable and natural

environment.

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3.4 Question 4 - What, if anything, should Questar and the other companies be doing

differently?

In my opinion, what Questar or the other companies should be doing differently is to

think the benefits of current and future welfare of wildlife. They can show their support

through ways which will create a win-win situation for all parties involved. As stated in

ecological ethics, despite that this will indeed benefits human beings or not, animals or plants

deserve to be preserved for their own sake. In a real world, people with anthropocentric view

only sees the environmental are valuable to them because it has significant benefits towards

human in their own daily lives. They thought that in the end, it would harm human being.

Thus, it is considered morally wrong to damage environmental because of that mind-set.

Other than that, certain non-utilitarian have claimed apart from bring benefits to human

beings, the life of every animal has their own value. Each animal has certain moral rights,

they have the right to be treated with respect because of the intrinsic value of its life. Humans

have a responsible generally to respect this right, although a human’s right might override an

animal’s right in some special cases.

Questar and the other companies can take part in any sustainable development

programs, instead of continuously fighting back and forth between which matters are more

important, wildlife’s well-being or company benefits. One of the programs that companies

can participate is Habitat Conservation Plan. Endangered Species Act of 1973 (Act) stated

that, recognizing that endangered and threatened species of wildlife and plants "are of

historical, ecological, educational, aesthetic, scientific and recreational value to the Nation

and its people." The Habitat Conservation Plan participants determined it would be more

practical give a more complete picture of the extent of effects, to state the impact of all

federal and non‐federal actions in one analysis and to develop a conservation package that

would sufficiently state all impacts. At the same time, providing additional conservation that

would contribute to the recovery of listed species. The Habitat Conservation Plan is an

innovative approach to enhancing the efficiency and effectiveness of compliance with the

Endangered Species Act in a transparent, consistent and comprehensive manner. Conserving

species before they are in danger of extinction or are likely to become so can also provide

early advantages and prevent the need for listing.

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Companies also can show their support by donating to Bureau of Land Management.

There is a project which supposed to build a fence in the Big Mesa pasture, approximately 10

miles northwest of LaBarge, Wyo. In order to facilitate control of livestock in the Big Mesa

pasture of the North LaBarge Common Allotment, the project suggests constructing roughly

2.6 miles of fence. These projects will allow the animals to stay out from drilling area and

enable them to reach their winter ranges. It would prevent the large herds wither and die off.

Moreover, this project will enable wildlife in the Mesa areas survived and extinction could be

prevented.

In conclusion, Questar and other companies should think more about the benefits that

can be achieved as a whole and not for their own sakes only. Albert Schweitzer states that

“He accepts as being good: to preserve life, to promote life, to raise to its higher value life

which is capable of development; and as being evil: to destroy life, to injure life, to repress

life which is capable of development. This is the absolute, fundamental principle of the

moral.”

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3.5 Question 5 - From an ethical point of view, was alternative (4) the best option among

those from which the BLM choose? Is another alternative better from an ethical point

of view? Explain your answer.

In the ethic point of view, the alternative 4 is not a best solution. If there is no other

option, BLM might consider alternative 4. There are many reasons we need to take into

account. Firstly, the Bureau allowed BLM to winter drilling, directly we are able to see the

effect towards the animals around the area. Many of the animals near that area will have to

change their place of living, route as well as the climate of the place. Animals are not human,

that correct! But, human beings are evolution of animals. So, they are unable to suit the place

that they are heading to.

Once they are unable to suit the climate, they will slowly extinct because the climate,

nesting place, mating place and so on. Furthermore, the place they are heading to do have

other animals at that area too. If these animals meet the meat eater type, they probably are

unable to live long. If they meet the same type, then they still can survive. Even though, the

Bureau prohibits BLM to drill at the mating place, nesting place, where BLM are only

allowed to drill after the core area, it is insufficient to let the animals to live long too. This is

because animals have very sharp senses. Senses of animals are 100 times sharpen then human

being. What we can’t sense, they can. So, even the drilling are after the core area, but the

animals still can sense it indirectly, especially water, air and sound pollution is the major

pollution that will cause these animals to be extinct.

Neither alternative are ethical. It will only harm both human, in terms of return from

the investment whereas animals will face extinction sooner or later. Secondly, in the

advancement world, things changed very rapidly. Human beings tend to be following the

trend. So the same thing goes to the business world. In business world, there are many

unethical issue happens. The business world only concern on how to earn more and more

capital, build more buildings, raise more capital, all is concern on money. Same things goes

to BLM, if they are not a profit organisation, will they take the job? It certainly will not take

the job. Because business worlds only want to make profit, profit and profit. It is seldom

concern on the environment as long as they are able to generate profit from the investment. It

is request by Bureau to establish the funds for the environment issue problem if it is cause by

the drilling.

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How can we be sure that there are no corruptions during the process of establishing

the funds? Does this ethical too? I think every country have the same problems. We are

unable to wipe out this unethical behaviour just that we can prevent it from being happened.

This is because human are greedy and materialistic in the modern society. So, what is ethic

and what is unethical is not their concern because the one who doing the drilling is not the

upper level, it is the workers who do the drilling. And of course, the upper levels sure have

ethical because they are the one who order not the doer.

So, there are many view of point. But there are no best for the both worlds. In my

opinion, the Bureau should have planned for the animals earlier where the animals should

head to, is it the suitable climate for them. They should plan it carefully where there will be

no environment issues for the animals. Both BLM and Bureau should think as if they are

these animals instead of the human minds set. This is because animals they don’t have the

mind set of human beings. Then after that BLM can starts the work without any hesitation.

So, BLM can earn their return yet the animals are able to live without causing the animals to

be extinction. At the same time, BLM can accountable to their investor and the Bureau too.

Actually there are no right or wrong, just the matter of ethical and unethical behaviour. It

depends on how BLM and Bureau looks on these issues and in what view point.

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3.6 Question 6 - Should the loss of species produced by the drilling operations of

Questar be considered a problem of pollution or a problem of conversation? Can the

loss of species by evaluated as an “external cost”? Explain.

In my opinion, the loss of species in this case is both a problem of pollution and also a

problem of conversation.

First, we discuss the loss of species is cause of the problem of pollution. From the

case, we can see that the operation of Gas Drilling Company is becoming source of pollution

in term of land pollution, air pollution and also water pollution. The example for the land

pollution is by drilling the land it may cause damaged of the wildlife habitat. As we know,

wildlife may be live in anywhere or anyplace. So, by drilling the land it will seriously damage

the habitat of the wildlife. Besides that, the operational vehicle or truck traffic is a need for

human for their job. By that, when the vehicle move into the wildlife habitat, it will also

disturbing the life of the wildlife. In addition, the operational vehicle or truck traffic is a kind

of a heavy vehicle, so it will also damage the wildlife habitat or the environment over there.

The second pollution is air pollution. Normally the air pollution is come from the

operation of drilling rig and others. The gas is much like the air that contains variety of the

pure gases. The gas also can be considered as the toxic gases. Toxic can be defined as a gas

that containing or being poisonous material especially when capable of causing death or

serious debilitation. So, it may bring very harmful towards the wildlife indirectly through the

air.

The next pollution is water pollution. The water pollution can cause by drilling

sediments. While the human are drilling, some of the toxic will combine with the water or it

will dive into the water. If the wildlife drinks the water that contains toxic, it may also cause

them sick, feeling unwell or even dead. It also happened indirectly harmful towards the

wildlife.

Next, here we discuss the problem of conversation. I think the government should be

stricter towards the rules. The government should strict towards the usage of land that used.

Since the land also mean to the grouse bird, deer and others wildlife species. The land also as

the habitat towards the wildlife, so government should be limited the usage of the land. So, it

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can be balance between the human being and the wildlife. Beside, also can make sure the

wildlife species does not decrease.

In my opinion, based on this case, loss of species can be evaluated as external cost in

this case. This is because as we know the some of the wildlife that only left some little

amount around the world. Some of the wildlife is we still even never see, so we need to try

the best to protect them. The loss of species also consider as special cost because people need

to take a good care of them, provide a good habitat and also environment. So it can just be the

external cost in this case.

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REFERENCES

BLM Pinedale Opens Scoping for Big Mesa Project. (2015). Pinedale, WY. Retrieved 1 May

2015, from http://www.blm.gov/wy/st/en/info/news_room/2015/april/08pfo-mesa.html

Habitat Conservation Plan-Overview. (2013). USA. Retrieved 1 May 2015, from

http://www.fws.gov/endangered/what-we-do/hcp-overview.html

Habitat Conservation Plan. (2013). Merrilville, Indiana. Retrieved 1 May 2015, from

https://www.nisource.com/sustainability/environment/habitat-conservation-plan

Quester, “The Pinedale Anticline: A Short of Responsible Development of a Major Natural

Gas Resource,” proposal available on Questar web site.

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