Establishes the natural gas exploration and extraction liability act of 2010

Title of bill

An act to amend the environmental conservation law, in relation to the natural gas exploration and extraction liability act of 2010

Summary of provisions

Section 1 entitles the act as the "Natural gas exploration and extraction liability act of 2010."

Section 2 states the legislative findings.

Section 3 amends Article 23 of the Environmental Conservation law by adding a new title called "Natural Gas Exploration and Extraction Liability." Specifically:

* Section 23-2901 contains definitions

* Section 23-2903 - Extends strict liability for natural gas exploration, drilling, extraction through high volume hydraulic fracturing and the transportation of hydrofracking chemicals and waste products.

* Section 23-2905 - Extends joint and several liability for all persons found liable for damages resulting from the same incident, event, natural gas operation, exploration or extraction or transportation activity.

* Section 23-2907- Standing of Municipal Corporations

* Section 23-2909 Elements of Damages; Treble Damages

* Section 23-2911 Attorney Fees

Section 4 contains the Effective Date.

Justification

Although individuals, businesses and municipalities can, under existing law, recover damages from drillers and landowners who have allowed drilling on their property, plaintiffs must prove that negligent conduct caused the damage. This bill will allow recovery once a causal connection between the drilling and related activity and the damage has been proven. This "strict liability" is found throughout the law, most relevantly in the Navigation Law regarding damages that result from petroleum spills.

Additionally, to remove any doubt that municipalities have standing to pursue claims for damages resulting from the exploration, drilling and extraction of natural gas, including high volume hydraulic fracturing, ("hydro fracturing" or "fracking") Section 23-2904 explicitly establishes such standing.

Numerous hazards have been associated with this type of industrial activity. Chemicals used in fracking may be toxic, cause life-threatening illnesses, including cancer, and may be non-biodegradable and difficult or impossible to remove once they enter the natural environment.

Construction of large well pads (up to five acres), the use of millions of gallons of water and large numbers of trucks delivering fracking chemicals, water, and other equipment to the site can lead to excessive noise, air pollution, deterioration of roads and bridges, contaminated groundwater, including private and public water supplies, vibrating of surrounding structures, fires, explosions and, in some cases, earth- quakes. Open pits of Chemically-laced water, laden with salt, heavy metals and radioactive elements have been known to kill wildlife and farm animals that have mistakenly drunk from them, and upon evaporation, contribute to air pollution. Leaks and spills of fracking chemicals from the trucks and waste pits have also been reported, causing contamination of surface waters. There is a possibility that the fracking chemicals that remain underground may migrate or seep through fractures in the underground formations, cracks in the well-bore casing, and through abandoned wells to pollute groundwater.

Any of these hazards could result in irreparable and costly damage to a landowner's drinking water, home or livelihood in agriculture or tourism, as well as to roads and bridges maintained by municipalities.

Legislative history

None.

Fiscal implications

None to the state.

Effective date

Ninetieth day after it becomes law.