On November 29, the New York Assembly passed A1143B/S08129B which had previously passed the Senate.  Governor Paterson is reported to be prepared to sign the bill, although the New York Times blog reports that industry groups are still pushing for a veto.  The bill, if signed, would impose a moratorium on new permits for natural gas wells that use hydraulic fracturing until May 15, 2011. 

 
Reports are that New York is allied with Pennsylvania in trying to break the logjam on natural gas well regulations at the Delaware River Basin Commission.  That suggests some division in the New York approach.  Some believe that the moratorium until May 15 is just political posturing because it will not really mean much.  Note that no permits can be granted in New York until NYSDEC finalizes its Revised Generic Environmental Impact Statement  With a gubernatorial transition upcoming, May is not likely to be much further out than the GEIS, so this action may be more cosmetic than important.
 
The text of the bill follows.
 


       AN ACT to suspend hydraulic fracturing; and providing for the repeal  of
         such provisions upon the expiration thereof

         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

    1    Section 1. There is hereby established a suspension of the issuance of
    2  new permits for the drilling of a well which utilizes  the  practice  of
    3  hydraulic  fracturing  for the purpose of stimulating natural gas or oil
    4  in low permeability natural gas reservoirs, such as  the  Marcellus  and
    5  Utica shale formations.
    6    The  purpose  of  such suspension shall be to afford the state and its
    7  residents the opportunity to continue the review  and  analysis  of  the
    8  effects  of hydraulic fracturing on water and air quality, environmental
    9  safety and public health.
   10    For the purposes of this section, "hydraulic  fracturing"  shall  mean
   11  the  fracturing  of rock by fluid for the purpose of stimulating natural
   12  gas or oil for any purpose.
   13    This section shall not apply to permits issued prior to the  effective
   14  date  of this act which utilize hydraulic fracturing that are subject to
   15  renewal.
   16    S 2. This act shall take effect immediately, and shall expire  and  be
   17  deemed repealed on May 15, 2011.

 

 
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Photo of David Mandelbaum David Mandelbaum

David G. Mandelbaum represents clients facing problems under environmental laws. He regularly represents clients in lawsuits and also has helped clients achieve satisfactory outcomes through regulatory negotiation or private transactions. A Fellow of the American College of Environmental Lawyers, David teaches Superfund, and…

David G. Mandelbaum represents clients facing problems under environmental laws. He regularly represents clients in lawsuits and also has helped clients achieve satisfactory outcomes through regulatory negotiation or private transactions. A Fellow of the American College of Environmental Lawyers, David teaches Superfund, and Oil and Gas Law in rotation at the Temple University Beasley School of Law as well as an environmental litigation course at Suffolk (Boston) Law School.

Since United States v. Atlas Minerals, the first multi-generator Superfund contribution case to go to trial in 1993, Mr. Mandelbaum has been engaged in matters involving allocation of costs among responsible parties, especially under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA).  He has tried large cases and resolved others as lead counsel.  He has written, spoken, and taught extensively on the subject.  More recently he also has been engaged to assist lead counsel from this firm and others:

  • to develop cost allocation methodologies;
  • to craft expert testimony in support of a favored methodology (given a definition of “fairness,” why one methodology better tracks it than another);
  • to develop efficient case management approaches; and to assist private allocation as part of the neutral team.

Concentrations

  • Air, water and waste regulation
  • Superfund and contamination
  • Climate change
  • Oil and gas development
  • Water rights