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BUSINESS ETHICS CASE ASSIGNMENT

Gas or Grouse?

Imanda Mulia Rahman 361168

1. The systemic, corporate and individual issues raised in this case are as follows:
SYSTEMIC ETHICAL ISSUES
There are three matters that should be taken into consideration. The first one is
economic system, because first it gives employment opportunity, tax and
royalty government to government, as well as reduces the need to import
energy supplies from overseas. The second is political-social-legal system; it
reduces USs reliance on foreign energy supplies, so it increases international
political bargaining position. The third in environmental system; the major issue
here is about the declining numbers of wildlife, especially sage grouse, because
of gas drilling and basically any production activities.
CORPORATE ETHICAL ISSUES
Operationally, drilling pad does take a big space to support drilling rig in which it
brings impact to wildlife habitat. Financially, there is a lacking of ability to do
activities due to seasonal activity; high cost needed for drilling activity in winter
months. Lastly, it is a field that needs to keep up to date to new technology, and
costs too much.
INDIVIDUAL ETHICAL ISSUES
Jim Sims, the negotiator for Questar, suggested funding scientific studies that
would be designed to show that sage grouse wasnt endangered. Dru Brower,
the vice president of the petroleum association in Wyoming, kept the species at
Pinedale Mesa out of the endangered species list. And for residents in Pinedale
Mesa, they still welcome gas companies because they bring them jobs
opportunity, which means bringing revenue, and also boost local economy.
2. By legalizing environmental laws and company policies in maintaining the natural
range of the wildlife, which should be allowed to develop on their own with as little
interference from human as possible. It could protect the existed population and
also prevent extinction to happen.
3. Bureau of Land Management has already imposed several restrictions on Questars
operations on the mesa to protect the wildlife species living on the mesa especially
sage grouse. The restrictions are as follows:
Roads, wells and other structure had to be located a quarter mile or more
from grouse breeding ground and at least 2 miles from nesting area during
breeding system
No drilling activity during winter
So, ethically Questar Operation should obey the BLM conditions for their drilling
activities. Because on the other hand, to fulfill the energy demand of the US,
Questar Corporation could not just break off the drilling activities.
4. Questar Corporation should be doing differently towards the drilling pads. They also
should have high deliberation for the demand in winter because based on BLM
restrictions they are not permitted to do any drilling activities during winter.
5. Yes, I think alternative (4) is the best option among all from which the BLM chose.
Because in alternative (4), it is stated clearly into the details of how should the
drilling activities be located and permitted to operate. And one of the good point
that no other options has is it requires the companies to make annual review of
wildlife impacts which makes it easy to check, monitor and control. It also requires
the companies to establish a fund to monitor wildlife and to pay for the cost of
mitigating any impacts on wildlife that monitoring detected.
6. In my opinion, the loss of species produced by drilling operations by Questar is
considered both as a problem of pollution and a problem of conservation. Because
the drilling operations is the main source of pollution in terms of land pollution
which is occupying and damaging wildlife habitat. But at the same time, the other
problem is about the usage of the land which naturally is the habitat for wildlife
species such as sage grouse, mule deer, pronghorn antelope, and so on.
The loss of species can be regarded as external cost in this case. So it must be
internalized to company cost

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