SAN FRANCISCO, CA -- On the eve of a major energy investment conference in San Francisco, a dozen institutional investors representing over $15 billion in assets today raised concerns about growing problems with the natural gas industry's environmental impacts in the Rocky Mountain states.

In a letter to the Independent Petroleum Association of America (IPAA), which represents gas producers, the investors and financial advisors called on the industry to adopt a set of best practices in the development of coalbed methane (CBM), a form of natural gas (to obtain a copy of the letter, contact one of the above contacts). The proposed practices are designed to protect local communities and long-term shareholder value.

Many of the investors hold shares of natural gas firms, "in recognition of the reduced emissions from combustion of natural gas compared to combustion of other fossil fuels," the letter states. However, the investors warn that the "rush to develop coalbed methane as a new energy source in the United States raises significant environmental and social concerns."

As an example, the investors cite data from the U.S. Bureau of Land Management that shows that current plans for coalbed methane extraction in Wyoming's Powder River Basin will result in the pumping and discharge of 700 million gallons of potentially contaminated groundwater per day, posing threats to both underground aquifers and local streams and rivers.

Steve Lippman, Senior Social Research Analyst with Boston-based Trillium Asset Management Corporation, said, "We feel that the best practices we've outlined represent a win-win situation for both the gas industry and the people who live in areas impacted by coalbed methane development."

"As investors, we believe that potential environmental liabilities and cleanup costs should be addressed early on in the process to reduce long-term financial risks, and we've proposed best practices to do that," says Lily Donge, Social Research Analyst at the Calvert Group, Ltd.

The letter to IPAA, which is convening the San Francisco investment conference, asks IPAA companies to adopt industry-wide strategies to:

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