Relates to natural gas development using hydraulic fracturing

Summary of provisions

Section 1 contains the legislative intent of the bill.

Section 2 relates to wastewater treatment facilities, directing the Commissioner of the DEC to, after a public hearing, promulgate regulations establishing a standard of performance for the control of the discharge of pollutants from facilities.

Section 3 defines terms as used, in the Article, including: air pollutant, best management practices, closed loop systems consequences of hazardous discharge, environmental damage, fund, groundwater, groundwater well, hazardous release, hazardous substance, oil and gas facility, oil and gas location, oil and gas operations, operator, pit, potential environmental justice area, release, site, and surface water.

Section 4 relates to local powers, and clarifies the extent to which local law will and will not be superseded by state law. Local jurisdiction is explicitly allowed over roads, real property taxes, enforcement of permits, zoning and ordinances, setback requirements, natural or manmade barriers restricting access to oil and gas facilities, dust/ noise/vibration/light limitations, and hours of operation.

Section 5 broadens the scope of the DEC' s regulatory ability to prevent environmental damage, and adds hydraulic fracturing fluids and drilling fluids to the list of contaminants in ECL. The section prohibits hydraulic fracturing fluids that contain any chemical substance that harms human health.

Section 6 requires the disclosure of the composition of drilling and hydraulic fracturing fluids as a condition of receiving a drilling permit The section also requires the disclosure of the composition of these fluids to healthcare professionals responding to a medical emergency.

This section requires permit holders to notify the department of any changes to the chemical constituents used in drilling and fracturing, and provides for public notification on the DEC's Website.

Section 7 requires oil and gas well owners and operators to notify the DEC, local health department and responding emergency agencies

immediately after the release of any fuel, hazardous chemical or waste generated, stored or used at the facility. Subsequently, the owner or operator shall submit a follow-up notice detailing remediation places and public health implications. The owner or operator will also notify the public. DEC will develop and make public maps of all oil and gas wells in the State, and set up a hotline for reporting oil and gas incidents to the department

Section 8 requires the adoption of best management practices, set by the Commissioner after public hearings every three years, to be a condition of approval for a drilling permit

Section 9 delineates liability, liable parties, limitations of liability, natural resource liability, and financial responsibility. This section also addresses bonding requirements.

Section 10 relates to location and setback requirements.

Section 11 sets exclusion areas, including in and around the New York City watershed, aquifers, critical habitats, and state parks.

Section 12 prohibits waste storage pits and other impoundments.

Section 13 adjusts drilling permit fees and sets up an adjustment mechanism to account for inflation.

Section 14 adds a new article to ECL allowing for citizen suits to enforce laws on pollution; impairment or destruction of environment, to protect the environment

Section 15 requires the Department of Health to a conducted Health Impact Assessment. The Health Impact Assessment will identify measures that minimize adverse impacts on human health.

This section also directs the Department of Health to conduct a comprehensive Health Impact Assessment of oil and natural has operations involving any shale formation which may have an adverse impact on human health. This section also requires a site-specific health impact assessment whenever oil and gas operations may pose negative health impacts upon a potential environmental justice area.

Section 16 adds a new article to ECL regarding air quality monitoring, and the establishment of an air quality testing and monitoring plan, requiring testing of air quality at every stage of oil and gas development and public posting of air monitoring results. No permit shall be issued until 30 days after notice of the final plan is published in the Environmental Notice Bulletin, or if air emissions from the permitted operations violate air quality standards.

Section 17 considers all waste resulting from the exploration, development, extraction, or production of crude oil or natural gas as hazardous waste.

Section 18 relates to water withdrawal and water withdrawal permits. This section also includes a water conservation and efficiency program with the goals of ensuring the improvement of the waters and

natural resources, protecting the ecosystem, retaining the quality of surface and groundwater, and promoting the efficient use of water.

Section 19 requires a report to the Governor and Legislature by the Commissioner of the DEC within two years of the effective date of this section.

Section 20 adds a new title to ECL setting water use standards. Such standards will maintain in stream water flows, protect aquatic life, and designate at risk watersheds.

Section 21 adds a new article to ECL setting water supply permit program fees.

Section 22 sets an immediate effective date; provided that section twenty of this act shall take effect upon the completion of rule-making required in subdivision 2 of section 15-1501 of the environmental conservation law and provided that the commissioner of the department of environmental conservation shall notify the legislative bill drafting commission upon the occurrence of the enactment of rules required subdivision 2 of section 15-1501 of the environmental conservation law in order that the commission may maintain an accurate and timely effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 33 of the legislative law and section 70-b of the public officers law.

Justification

New York is home to rich natural gas reserves. In 2006, there were 6,213 active natural gas wells that generated a state record of 55.3 billion cubic feet of natural gas. The Marcellus formation that extends from the Southern Tier into Ohio, Pennsylvania and West Virginia is estimated to have $1 trillion worth of natural gas, and is largely untapped. The rising price of natural gas has led to an increased demand for, new sources and made formations like the Marcellus even more attractive.

The extraction of these reserves is accompanied by considerable risk to the environment. In order to fully examine this risk, the Assembly Environmental Conservation Committee has held a series of hearings to examine the environmental protections needed in the Department of Environmental Conservation's (DEC) natural gas and oil drilling regulatory structure in order to safeguard natural resources. In the course of these hearings, much expert testimony was presented on necessary steps to ensure the safety of New York's precious water resources.

This legislation draws from the suggestions presented at these public hearings. By making public health and the environment the primary factor in permitting drilling operations, the bill ensures that generations of New Yorkers can continue to enjoy our natural resources.

Legislative history

2011-12: S.2697-A 2009-10: A.11347 (Sweeney)

Fiscal implications

Yet to be determined.

Effective date

This act shall take effect immediately; provided that section twenty of this act shall take effect upon the completion of rule-making required in subdivision 2 of section 15-1501 of the environmental conservation law and provided that the commissioner of the department of environmental conservation shall notify the legislative bill drafting commission upon the occurrence of the enactment of rules required subdivision 2 of section 15-1501 of the environmental conservation law in order that the commission may maintain an accurate and timely effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 33 of the legislative law and section 70-b of the public officers law.