Natural Gas Spill Cleanup Fund

Section 1. Article 23 of the environmental conservation law is amended by adding a new title 29 to read as follows:

TITLE 29

NATURAL GAS PRODUCTION CONTAMINATION RESPONSE

AND COMPENSATION PROGRAM Part 1. General Provisions.

2. Natural gas production contamination cleanup and decontam-

ination.

3. Liability; third party compensation.

4. Miscellaneous.

PART 1

GENERAL PROVISIONS Section 23-2901. Legislative intent.

23-2902. Purposes.

23-2903. Definitions. § 23-2901. Legislative intent.

The legislature finds and declares that New York's lands and waters constitute a unique and delicately balanced resource; that the protection and preservation of these lands and waters promotes the

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD06662-01-7

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health, safety and welfare of the people of this state; that the state is the trustee, for the benefit of its citizens, of all natural resources within its jurisdiction; and that contamination from incidents or accidents that result from natural gas production pose a threat to the economy and environment of this state. The legislature intends by the passage of this title to exercise the powers of this state to provide strict liability for damage sustained within this state as a result of contamination caused by natural gas production, require prompt cleanup and decontamination of any affected real or personal property, and establish a fund for the payment of remediation costs of contamination and timely and adequate compensation to any persons damaged by such contamination. § 23-2902. Purposes.

It is the purpose of this title to ensure a clean environment and healthy economy for the state by providing for the remediation of any contamination associated with natural gas production which may result in damage to lands, waters or natural resources of the state by authorizing the department of environmental conservation to respond quickly to such contamination and effect prompt cleanup and decontamination of such contamination, giving first priority to protecting public health and minimizing environmental damage, and by providing for strict liability for damage sustained within the state as a result of such contamination. § 23-2903. Definitions.

For the purposes of this title, unless the context clearly indicates otherwise, the following terms shall have the following meanings:

1. "Administrator" means the chief executive, within the department of audit and control, of the New York natural gas production contamination damage recovery and remediation fund established in section ninety-two-t of the state finance law;

2. "Claim" means, for purposes of part three of this title, any claim of the fund or any claim by an injured person who is not responsible for the contamination seeking compensation for cleanup and decontamination costs incurred or damages sustained as a result of contamination that results from natural gas production;

3. "Cleanup and decontamination" means activities undertaken to permanently eliminate, remove, abate, control or monitor health and/or environmental hazards or potential hazards in connection with natural gas production;

4. "Cleanup and decontamination costs" means all costs associated with the cleanup and decontamination of contamination including relocation costs pursuant to section 23-2907 of this title incurred by the state or its political subdivisions or their agents or any person with approval of the department;

5. "Contamination" means any damage to any property or the environment, including, but not limited to, a public or private water supply, any threat to public health, or any hazardous condition that prevents the use of property or that requires relocation of people or property to prevent harm resulting from natural gas production, or the release of any substance used in or associated with processes related to natural gas production, including, but not limited to, the development of natural gas wells; activities associated with drilling, stimulating, completing, or operating a natural gas well; activities associated with the construction or operation of facilities for the collection and/or processing of natural gas or for the transmission of natural gas from gas wells to consumers of natural gas; and the transportation of materials associated with a natural gas well site or natural gas production;

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6. "Environment" means any water including, but not limited to, a stream, pond, lake, river, water course, aquifer, wetland or reservoir, any land including, but not limited to, a land surface or subsurface, air, fish, wildlife, biota and all other natural resources;

7. "Fund" means the New York natural gas production contamination damage recovery and remediation fund established by section ninety-two-t of the state finance law;

8. "Natural gas production" or "gas production" means all activities associated with the exploration and production of natural gas, including, but not limited to, (a) development of natural gas wells; (b) activities associated with drilling, stimulating, completing, or operating a natural gas well; (c) activities associated with the construction or operation of facilities for the collection and transmission of natural gas from gas wells to consumers of natural gas; and (d) the transportation of materials associated with a natural gas well site or natural gas production whether or not such gas is re-injected into the subsurface of the earth, from a geological formation and the transportation of such natural gas to another location;

9. "Owner" or "operator" means with respect to natural gas production any person owning or operating by lease, contract or other form of agreement any natural gas production sites, facilities, equipment, or development rights; with respect to abandoned or derelict sites, facilities, equipment, or development rights, the person who owned or operated such sites, facilities, equipment or development rights immediately prior to such abandonment, or the owner, or operator at the time of contamination;

10. "Person" means public or private corporations, companies, associations, societies, firms, partnerships, joint stock companies, individuals, the United States, the state of New York and any of its political subdivisions or agents.

PART 2

NATURAL GAS PRODUCTION CONTAMINATION

CLEANUP AND DECONTAMINATION Section 23-2904. Contamination caused by natural gas production; prohi-

bition.

23-2905. Cleanup and decontamination of contamination caused by

natural gas production.

23-2906. Notification by persons responsible for contamination.

23-2907. Cleanup and decontamination of prohibited contam-

inations.

23-2908. Emergency natural gas production contamination control

network and emergency natural gas production contam-

ination relocation network.

23-2909. Right to enter and inspect.

23-2910. Registry of reports of contamination. § 23-2904. Contamination caused by natural gas production; prohibition.

Contamination of the environment caused by natural gas production is prohibited. § 23-2905. Cleanup and decontamination of contamination caused by

natural gas production.

1. The commissioner shall promulgate regulations governing the cleanup and decontamination of any contamination resulting from natural gas production.

2. No person shall supervise, aid or participate in any cleanup or decontamination method which is inconsistent with any rule or regulation promulgated pursuant to this section.

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§ 23-2906. Notification by persons responsible for contamination.

Any person responsible for causing contamination shall immediately notify the department pursuant to rules and regulations established by the department, but in no case later than two hours after the contamination. Failure to so notify shall make such person liable pursuant to the penalty provisions of section 23-2932 of this title. § 23-2907. Cleanup and decontamination of prohibited contaminations.

1. Any person causing contamination prohibited by section 23-2904 of this part shall immediately undertake to contain such contamination. Notwithstanding the above requirement, the department, pursuant to regulations promulgated for such purpose, may undertake the decontamination of such contamination and may retain agents and contractors who shall operate under the direction of such department for such purpose.

2. (a) Upon the occurrence of contamination resulting from natural gas production, pursuant to regulations promulgated for such purpose, the department shall respond promptly and proceed to cleanup and remove the contamination in accordance with environmental priorities or may, at its discretion, direct the person responsible for such contamination to promptly cleanup and remove the contamination. The department shall be responsible for cleanup and decontamination or, as the case may be, for retaining agents and contractors who shall operate under the direction of that department for such purposes. Implementation of cleanup and decontamination procedures of each contamination shall be conducted in accordance with environmental priorities and procedures established by the department.

(b) Section eight of the court of claims act or any other provision of law to the contrary notwithstanding, the state shall be immune from liability and action with respect to any act or omission done in the discharge of the department's responsibility pursuant to this title; provided, however, that this subdivision shall not limit any liability which may otherwise exist for unlawful, willful or malicious acts or omissions on the part of the state, state agencies, or their officers, employees or agents or for contamination in violation of section 23-2904 of this part.

3. Any unexplained contamination caused by natural gas production within state jurisdiction or contamination caused by natural gas production occurring beyond state jurisdiction that for any reason penetrates within state jurisdiction shall be removed by or under the direction of the department. Except for those expenses incurred by the party causing such contamination, any expenses incurred in the decontamination of contamination shall be paid promptly from the New York natural gas production contamination damage recovery and remediation fund pursuant to section ninety-two-t of the state finance law and any reimbursements due such fund shall be collected in accordance with the provisions of such section.

4. Cleanup and decontamination of contamination and actions to minimize damage from such contamination shall be, to the greatest extent possible, permanent remedies to the contamination, in accordance with applicable federal and state environmental laws, rules and regulations.

5. The department, in consultation with the state comptroller and the attorney general, shall develop a standard contract form to be used when contracting services for the cleanup and decontamination of a contamination.

6. Whenever the department acts to remove contamination or contracts to secure prospective decontamination services, the department is authorized to draw upon the money available in the fund, paid out on the

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audit and warrant of the comptroller. Such moneys shall be used to pay promptly for all cleanup and decontamination costs incurred by the department. Whenever the department acts to remove contamination or contracts to secure prospective decontamination services to address contamination that is associated with an owner or operator, it shall first draw on the bond or other financial security required by paragraph (c) of subdivision three of section 23-2915 of this title paid out on the audit and warrant of the comptroller. If such bond or financial security is insufficient to fully discharge cleanup and decontamination costs, the department is authorized to draw on money available in the fund, paid out on the audit and warrant of the state comptroller.