senate Bill S3137A

Authorizes counties to lease county land for natural gas exploration, development and production for 5 years or as long as gas is produced

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 09 / Feb / 2011
    • REFERRED TO LOCAL GOVERNMENT
  • 05 / Apr / 2011
    • COMMITTEE DISCHARGED AND COMMITTED TO ENVIRONMENTAL CONSERVATION
  • 12 / Apr / 2011
    • 1ST REPORT CAL.343
  • 13 / Apr / 2011
    • 2ND REPORT CAL.
  • 02 / May / 2011
    • ADVANCED TO THIRD READING
  • 04 / May / 2011
    • AMENDED ON THIRD READING 3137A
  • 24 / Jun / 2011
    • COMMITTED TO RULES
  • 04 / Jan / 2012
    • REFERRED TO ENVIRONMENTAL CONSERVATION

Summary

Authorizes counties to lease county land for natural gas exploration, development and production for five years or as long as gas is produced in paying quantities.

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Bill Details

See Assembly Version of this Bill:
A7300A
Versions:
S3137
S3137A
Legislative Cycle:
2011-2012
Current Committee:
Senate Environmental Conservation
Law Section:
County Law
Laws Affected:
Amd §215, County L
Versions Introduced in 2009-2010 Legislative Cycle:
S6325, A9727

Sponsor Memo

BILL NUMBER:S3137A

TITLE OF BILL:
An act
to amend the county law, in relation to leases for the exploration and
drilling for and extraction of natural gas and liquefied natural gas

PURPOSE:
The purpose of this bill is to allow non-charter counties to enter
into leases for a period exceeding 5 years in order to put them in
the same position as charter counties.

SUMMARY OF PROVISIONS:
§ 1 proposes to amend County Law §215 by adding a new subdivision to
allow a board of supervisors or other county legislative body to
lease, upon such terms and conditions the board or body shall
determine, county land for the purposes of exploration, development
and production of natural gas and liquefied natural gas, for not more
than five years and, if gas is produced the lease shall continue
until the production is no longer being produced in paying quantities.

§2 Sets the effective date of the act as immediately.

JUSTIFICATION:
Currently, §215 of County Law restricts the lease term counties may
enter into to a period not to exceed five years. At the same time
2(b) of County Law allows charter counties to adopt Local Law, by
amending their charter to allow the County to enter into a lease term
they see fit. This legislation aims to give non-charter counties and
charter counties the same opportunities when drilling for natural gas
in New York State.

Under the current system, the length of leases and rate in the natural
gas industry are determined by the market. Non-charter counties are
severely handicapped in their negotiations with natural gas companies
because of the five year limitation placed on them by § 215 of County
Law. As a result, counties fear that they will simply be integrated
under compulsory integration and lose control of county-owned lands.

The proposal to allow for a primary term not exceeding a five year
term for exploration and the commencement of drilling, which either
lapses if drilling fails to commence, or extends the lease until
drilling terminates is consistent with the practice employed by the
New York State Department of Environmental Conservation, when the
State of New York contracts with a private company to produce natural
gas.

LEGISLATIVE HISTORY:
2010: S.6325 - Referred to Local Government

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.


view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 3137--A
    Cal. No. 343

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 9, 2011
                               ___________

Introduced  by  Sens. LIBOUS, MAZIARZ -- read twice and ordered printed,
  and when printed to be committed to the Committee on Local  Government
  --  committee  discharged  and said bill committed to the Committee on
  Environmental Conservation -- reported favorably from said  committee,
  ordered  to  first  and  second  report,  ordered  to a third reading,
  amended and ordered reprinted, retaining its place  in  the  order  of
  third reading

AN  ACT  to amend the county law, in relation to leases for the explora-
  tion and drilling for and extraction  of  natural  gas  and  liquefied
  natural gas

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

  Section 1. Section 215 of the county law is amended by  adding  a  new
subdivision 4-a to read as follows:
  4-A.  NOTWITHSTANDING THE PROVISIONS OF SUBDIVISIONS THREE AND FOUR OF
THIS SECTION, A BOARD OF SUPERVISORS OR OTHER  COUNTY  LEGISLATIVE  BODY
MAY  LEASE,  UPON  SUCH  TERMS AND CONDITIONS AS THE BOARD OR BODY SHALL
DETERMINE, COUNTY LAND FOR THE PURPOSES OF THE EXPLORATION,  DEVELOPMENT
AND  PRODUCTION  OF NATURAL GAS AND LIQUEFIED NATURAL GAS, AS SUCH TERMS
ARE DEFINED IN SECTION 23-1705 OF THE  ENVIRONMENTAL  CONSERVATION  LAW,
FOR  NOT  MORE THAN FIVE YEARS AND, IF ANY SUCH GAS IS PRODUCED UPON THE
COUNTY LAND PRIOR TO THE EXPIRATION OF SUCH FIVE YEAR LEASE,  THE  LEASE
SHALL BE EXTENDED FOR AS LONG AS NATURAL GAS OR LIQUEFIED NATURAL GAS IS
PRODUCED IN PAYING QUANTITIES.
  S 2. This act shall take effect immediately.



 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07300-02-1

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