Texas House Energy Resources chairman Jim Keffer, referring to his fellow state legislators, said to the commissioners that day "...I can guarantee you there was a collective sigh of relief when the preliminary report came out several weeks ago on the findings of your staff." The EPA thought it had found a "smoking gun." Instead, "they have fallen on their face."
But this hydrogeological whodunit was far from over.
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Mark Graham
A Texas Railroad commissioner called for the firing of EPA Regional Administrator Al Armendariz.
Jay Barker
Alisa Rich cruises backroads, armed with a camcorder, looking for oil-field leaks and spills.
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Lipsky did not respond to repeated messages left for comment. His wife, Shyla, referred all press inquiries to their attorney, Al Stewart, who also declined to comment. But based on court filings and interviews, it's clear that Lipsky once led a peripatetic existence before settling down in his dream home on the banks of the Brazos.
After graduating from high school in Wisconsin, he took off to Vail, Colorado. A year later, he enrolled at a branch of the University of Wisconsin, followed by a small technical college, where he studied paper chemistry and criminal justice. After about a year, he got a job selling insurance for Prudential and moved to Pennsylvania in 1993. For the next six years, he bounced from state to state selling insurance and tending bar. In 1999, he moved to Euless, near Dallas, and began selling mortgage programs that allowed people to split their monthly payments. A year later, he moved to Eagle Mountain Lake, and finally to Weatherford, where he settled down with his wife.
His company, Lipsky & Associates, was processing more than $1 billion a year in electronic mortgage payments for J.P. Morgan Chase, according to its Web site — doing well enough to allow him to purchase a house and some seven and a half acres in the gated enclave Silverado-on-the-Brazos.
He bought more land along a wide Brazos inlet and built, according to appraisal records, an 1,800-square-foot cabin and boat dock. Because there were no municipal water lines, in 2005 Lipsky had a well drilled into the Trinity Aquifer. According to the driller's report, the well pumped good, clean water. In 2008, he sold his first Silverado home and moved his family into the cabin, replatting and joining portions of the old property into nearly 15 acres of riverfront real estate.
Then Lipsky began construction of his dream home. He purportedly spent millions over the course of several years in construction and property improvements, even installing a state-of-the-art water filtration system to disperse the rotten-egg scent of sulfur typical for this portion of the aquifer.
In September 2009, the Lipskys moved into their new home.
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On August 17, 2010, surrounded by Rich, fire marshal Scott and two representatives of the Railroad Commission, Lipsky held a green water hose aloft. "You can see it. Look at the gas. See it? Look at the trees," he said, as Rich caught the scene on tape. "C'mon, fire department! Light it!"
After the last time, Scott demurred. Even without a flame, the onlookers could see a rippling stream of gas shimmering in the air. "The longer that runs, the worse that gets," he said.
"Well," one of the commission reps began, "the column of water is dropping." The pump, he explained, was working harder as the well depleted itself, drawing more gas.
"If you leave [the gas vent on the wellhead] open, your pump will work better," said the other.
"It will work better?" Lipsky replied, incredulous. "It's been open this whole time, but I'll leave it open. That seems kinda dangerous, doesn't it?"
"Could be," the commission rep conceded. "Could be."
As Rich would later recall, she didn't need to get close to the hose to know that the air around them was suffused with gas. "The whole place smell(ed)," she said. "I had to walk away, the gas was so strong."
(Later on, Rich's technician, who is also her son, was overcome by gas fumes as he sampled water from the top of Lipsky's 5,000-gallon tank.)
"I'm not kidding," Lipsky said, appraising the stream of gas. "Look at that!"
"I just think the gas is getting out one way or the other," the commission rep offered.
"Well, it does," Lipsky replied, and closed the gas vent. Before their eyes, fluid around the wellhead, coupling and bolts began bubbling furiously as gas pressure built up inside.
He reopened the gas vent and placed his palm over the hose nozzle, feeling the gas forced out.
"I understand if you drill a well and hit gas, but I drilled this well five years ago and now it has gas," he said. "Something happened to cause this."
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On June 20, 2011, the Lipskys sued the developer of Silverado-on-the-Brazos and Range Resources in a Parker County district court for contaminating their well. To prove it — and to counter the experts who swayed the Railroad Commission that spring — Steve Lipsky hired petroleum engineer and former commission hearing examiner Buddy Richter.
Richter had his work cut out for him. Range — a company with $9 billion in outstanding shares and some 500,000 leased acres across the country — had almost unlimited resources. Among the experts Range brought before the Railroad Commission were petroleum geochemists trained at Harvard and the Massachusetts Institute of Technology; Halliburton directors of technology and microseismology; and a go-to hydrogeologist who contracts for municipal water districts.