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Bank Of America Investment Elevated nitrate concentrations in water supplies used for drinking water threaten residents of both the United States and the People's Republic of China, concludes a new report by the U.S. Geological Survey (USGS).

Long Island has become a hotbed of both contamination and lawsuits relating to the toxic chemical, butyl ether. MTBE was added to gasoline starting in the 1980s to reduce air pollution, but leaks from underground fuel storage tanks have become a huge local pollution problem because MTBE travels much farther and faster in groundwater than conventional gasoline, and is much more costly to clean up. " interest giveaway that I've seen in my 23 years in Washington, " Schumer said at a Plainview news conference.

Investment Opportunity Because of the increased use of fertilizers worldwide since the 1950s, drinking water derived from aquifers in both countries have seen increased levels of nitrate, a plant nutrient regulated by the Safe Drinking Water Act in the U.S. and by the Ministry of Water Resources in China.

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Banc Of America Investment Elevated concentrations of nitrate in water have been known to cause illness in babies, and there is indirect evidence that they can also cause cancer.

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Banking Investment "On average, similar levels of nitrate were found in both countries in areas where heavy agricultural use of nitrate fertilizers is common," said the report's author, Joseph Domagalski, a USGS hydrologist. "However, the highest concentrations were measured in China."

Ken Xie, General Manager and Chief Analyst in IDC China says, "The real estate sector and selected manufacturing industries such as steel, lytic aluminium and concrete, will be most affected by these government regulations. However, as a whole, these industries account for only a small proportion of the total IT spending in China. A slow down in capital investments in these industries is therefore unlikely to cause a decline in IT infrastructure investments.

Investment Solution Strategic China's Ministry of Water Resources and the USGS agreed to study the ground water quality of a heavily used agricultural region in northern Hebei Province, located southeast of the city of Beijing, and to compare the quality of that water with similar areas in the U.S. The areas studied in the U.S. included the Central Valley of California and the Delmarva Peninsula of Maryland, Virginia and Delaware.

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Investment Banking Services "Despite the fact that the agricultural land in China has been farmed for a much longer time relative to land farmed in the U.S., the patterns of nitrate contamination are similar," said Domagalski.

Bank Investment The reason for this similarity includes the increasing use worldwide of nitrogen fertilizer since the 1950s to boost agricultural production. Heavier use of nitrate fertilizer in China, and well construction techniques that allow for easy infiltration of rainwater or irrigation water, account for some of the higher concentrations there.

Alternative Investment Pesticides were not detected in any of the wells sampled in China, surprising the researchers. Although it was assumed that similar types of pesticides would be used in both countries, the lower use of these types of chemicals in China probably accounts for the lack of detections in water, they said.

Online Investment Services The study is available at: http://water.usgs.gov/pubs/pp/pp1647/

Accompany Essential Investment ENS - 2/7/2002

Topic: Water Pollution

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