Relates to oil and gas drilling in Allegany state park

Summary of specific provisions

The bill adds a new section 13.31 to the Parks, Recreation and Historic Preservation Law to regulate oil and gas drilling in Allegany State Park.

Subdivision one sets forth legislative findings and declaration.

Subdivision two requires a surface access permit to be issued by the Office of Parks, Recreation and Historic Preservation, in order to extract privately owned oil or gas from beneath state-owned surface lands in Allegany State Park, and requires that each application for such a permit include at a minimum: proof of ownership or legal control of the drilling rights; a map of proposed well locations; a description of proposed exploration and production activities; identification of sources of water to be used; a description of associated disturbance of the land surface; a description of transportation methods for the extracted resources; a description of reclamation steps to be taken; baseline environmental sampling results; an inventory of the affected natural resources; and a description of affected historic, archeological and cultural resources.

Subdivision three sets forth required conditions for each such permit, which include: limitation of number of wells and amount of cleared area associated with each well site to minimize the impact on park resources; a prohibition on disposal of wastes in the park and storage in open pits; restrictions on road construction; authority to restrict the timing of drilling and associated activities and use of public roads; establishment and maintenance of funds to reimburse the Office for the costs of a full-time on-site monitor and of consultants to conduct environmental sampling and inspection and monitoring of environmental impacts; corrective action at the permittee's expense where needed to eliminate adverse environmental impacts; financial security sufficient to restore natural conditions after the conclusion of extraction activities; and any additional conditions the Office deems necessary to avoid or minimize impacts on park resources and to protect park visitors and employees.

Subdivision four provides that the requirements of this section shall be in addition to any other legal requirements for the exercise of

drilling rights, including but not limited to those in Article 23 of the Environmental Conservation Law.

Subdivision five provides that the Office will serve as lead agency for SEQRA review for any action connected with oil or gas exploration or extraction in Allegany State Park, which review shall include an evaluation of all potential impacts of such activity in terms of consistency with the Office's statutory mission.

Subdivision six provides for enforcement of permit requirements by permit revocation and in an action for injunction and civil penalties of up to $10,000 per day.

Subdivision seven provides the office with compensation of lost revenue in the event of a spill or release of oil or gas produced or transported in the park.

Section two of the bill provides an immediate effective date.

Existing law

Section 3.09(8) of the Parks, Recreation and Historic Preservation Law authorizes the Office to promulgate rules and regulations for the performance of its duties, and 6 NYCRR Part 372 provides for the issuance of permits by the Office for the conduct of various activities on state parkland, including commercial activities.

Article 23 of the Environmental Conservation Law requires a permit, and sets forth technical requirements, for each gas and oil well located anywhere in the state.

Justification

There is a unique situation in Allegany State Park whereby ownership of subsurface oil and gas resources under portions of the Park was severed and retained in private ownership, prior to the acquisition and creation of the Park in the early 20th century. The Office has received preliminary inquiries from oil and gas companies asserting they have acquired ownership or leases of privately-held oil subsurface resources and proposing to commence oil and gas drilling. This bill creates a comprehensive framework for the Office's review and permitting of private oil and gas extraction to ensure that if such activities are conducted, adverse impacts to the Park's natural, scenic, and recreational resources will be minimized or avoided.

Prior legislative history

2010 - PASSED SENATE

Fiscal implications

None.

Effective date

Immediately.