Relates to the regulation of the drilling of natural gas resources

Specific provisions

Section 1 of the bill sets out the legislative intent.

Section 2 adds a new Title 29 to Article 23 of the environmental conser- vation law entitled "Regulation of Natural Gas Drilling." It prohibits the drilling for natural gas within the NYC watershed or anywhere within 5 miles of its boundaries. It further prohibits drilling within the Delaware River watershed or anywhere that is a recharge area of a sole source aquifere. Where gas drilling is allowed it is to be done in such a way as to protect drinking water. If there shall be contamination of water wells, there is a presumption that the natural gas driller is responsible unless they can show by clear and convincing evidence that they are not the contaminator. Any spills or prohibited discharges by the driller which might take place must be reported to DEC, which must have a procedure in place for taking such reports and ordering remedial action" Any driller that knowingly covers up a prohibited discharge shall be guilty of a class A misdemeanor". A driller that knowingly discharges hydraulic fracturing compounds into surface waters shall be guilty of a class E felony.

All components of hydraulic fracturing fluids must be disclosed to the DEC in the application for a permit to drill a well and must file amendments to its permit and receive permission to make changes in those components. The bill sets procedures for taking care of emergency and non-emergency health situations related to the use of the hydraulic fracturing compounds, The DEC has the power to prohibit the use of certain chemicals. Storage of these fluids and the waste from drilling must be treated as hazardous waste.

Protection of the environment by the drillers extends to mitigation of all damage that may be caused to air, wetlands, stream corridors and endangered species habitat. DEC has the authority to impose fees to compensate local governments for costs or impacts imposed by the drillers or their activities.

No well permit may be granted for more than 10 years. Any permitted action which is not commended with five years shall be deemed null and void.

Natural gas drillers are responsible for costs of any environmental damage which occurs in the process of drilling for natural gas. DEC may require financial security to ensure landowners are protected from any contingent liability. Should the site be designated as a brownfield site, the driller shall be considered to be the party in the chain of responsibility. Any water withdrawals greater than 5000

gal/day or more than one percent of stream flow shall require a permit. No permit shall be issued if applicant has failed to meet environmental or financial obligations under a previous permit or has financial liabilities to the state, a local government, or a private landowner.

The bill sets out certain requirements for DEC to include in the permit- ting process.

The comptroller shall annually audit all royalty payments and shall have the authority to require appropriate fiscal reporting and record keeping by producers and government.

DEC must establish an impartial technical advisory committee, supported by permit fees, to review and issues guidelines on best practices. This committee shall include representatives from the environmental community, the public health community, the gas drilling industry and others that the department deems appropriate.

Justification

The natural gas industry has reason to believe that there are enormous natural gas reserves deep underground in the Marcellus Shale Formation. They are working diligently to sign leases with landowners across the southern tier of New York State to allow drilling for this valuable resource to take place. This makes it imperative that the water, as well as the land and air resources in this region be protected from contamination by overzealous operators.

This bill is designed to protect the areas that are immediately adjacent to drinking water supplies by making them off limits to drilling. Furthermore, the bill puts in place many protections for the natural resources of our state and places the burden of any mistakes made by the drilling industry clearly on their shoulders to clean up and pay the consequences. The bill directs the DEC to include numerous protections in the permitting process and requires the permit fees to cover the costs of oversight by the department along with any remediation that may become necessary due to the companies' actions.

Prior legislative history

2009: S.6244 (Duane), Died in Rules; A.8748 (Brennan), Died in Environmental Conservation 2010: S.6244 (Duane), Died in Environmental Conservation; A.8748 (Brennan), Died in Environmental Conservation

Fiscal implications

TO STATE AND LOCAL GOVERNMENT:

Effective date

120 days after enactment. Any rules or regulations necessary to be adopted or repealed shall take place immediately.