S T A T E   O F   N E W   Y O R K
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                                  10292

                          I N  A S S E M B L Y

                             March 16, 2010
                               ___________

Introduced  by  M.  of  A.  SWEENEY, BRENNAN, LIFTON, JAFFEE, ZEBROWSKI,
  KAVANAGH, ESPAILLAT, TITONE,  CYMBROWITZ,  JOHN,  MAGNARELLI,  REILLY,
  SPANO,  PAULIN, CASTRO, N. RIVERA, P. RIVERA, ROSENTHAL, HYER-SPENCER,
  MAISEL, PERRY, ORTIZ, COOK, WEISENBERG, SCHIMEL, FIELDS -- Multi-Spon-
  sored by -- M. of  A.  DESTITO,  GOTTFRIED,  MAGEE,  MARKEY,  McENENY,
  THIELE  --  read  once  and referred to the Committee on Environmental
  Conservation

AN ACT to amend the  environmental  conservation  law,  in  relation  to
  permits to drill oil and gas wells

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

  Section 1. Subdivision 13 of  section  23-0101  of  the  environmental
conservation  law,  as  amended  by  chapter 846 of the laws of 1981, is
amended to read as follows:
  13. "Plug and abandon" means the plugging,  replugging  if  necessary,
and  abandonment  of  a  well bore including the placing of all bridges,
plugs, and fluids therein and the restoration  and  reclamation  of  the
surface  in the immediate vicinity [to a reasonable condition consistent
with the adjacent terrain] IN A MANNER CONSISTENT WITH  THE  RECLAMATION
PROVISIONS  OF  THE  APPROVED  DRILLING  USE  PLAN SUBMITTED PURSUANT TO
SUBDIVISION FOUR OF SECTION 23-0501 OF THIS ARTICLE.
  S 2. Subdivision 8 of section 23-0305 of the  environmental  conserva-
tion law is amended by adding a new paragraph l to read as follows:
  L.  EXCEPT AS TO PRODUCTION OF GAS FROM LANDS UNDER THE WATERS OF LAKE
ERIE, IN ORDER TO SATISFY THE FINANCIAL SECURITY REQUIREMENTS FOR  WHICH
THE  DEPARTMENT EITHER SHALL HAVE ISSUED OR SHALL ISSUE PERMITS TO DRILL
SUCH WELLS OR, ON OR AFTER JANUARY FIRST,  TWO  THOUSAND  ELEVEN,  SHALL
HAVE ISSUED ACKNOWLEDGMENTS OF NOTICES OF INTENTION TO DRILL SUCH WELLS,
WITHOUT  IN  ANY  WAY  AFFECTING ANY OBLIGATIONS TO PLUG SUCH WELLS, THE
OPERATOR SHALL PROVIDE A BOND OR OTHER FINANCIAL SECURITY ACCEPTABLE  TO
THE DEPARTMENT IN THE FOLLOWING AMOUNT:
  (1)  FOR  WELLS  LESS  THAN TWO THOUSAND FIVE HUNDRED FEET IN DEPTH, A
MINIMUM OF FIVE THOUSAND FIVE HUNDRED DOLLARS PER WELL;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD16165-02-0
              

A. 10292                            2

  (2) FOR WELLS BETWEEN TWO THOUSAND FIVE HUNDRED FEET AND SIX  THOUSAND
FEET IN DEPTH, TEN THOUSAND FIVE HUNDRED DOLLARS PER WELL;
  (3)  FOR  WELLS  GREATER THAN SIX THOUSAND FEET IN DEPTH AND FOR WHICH
HYDRAULIC FRACTURING FLUID SHALL BE USED,  THE  OPERATOR  SHALL  PROVIDE
ADDITIONAL  FINANCIAL  SECURITY  OF  TWO HUNDRED FIFTY THOUSAND DOLLARS,
PROVIDED HOWEVER THE DEPARTMENT MAY REQUIRE AN ADDITIONAL BOND OR FINAN-
CIAL SECURITY IN AN AMOUNT SUFFICIENT  TO  COVER  POTENTIAL  REMEDIATION
COSTS  ASSOCIATED  WITH CONTAMINATION OF THE ENVIRONMENT, INCLUDING, BUT
NOT LIMITED TO, SOIL AND WATER AND PUBLIC  AND  PRIVATE  DRINKING  WATER
SUPPLIES.
  S  3. Section 23-0501 of the environmental conservation law is amended
by adding a new subdivision 4 to read as follows:
  4. A. EVERY PERSON WHO APPLIES FOR A PERMIT TO DRILL  AN  OIL  OR  GAS
WELL  OR DEEPEN OR PLUG BACK A WELL TO A DIFFERENT POOL AFTER THE EFFEC-
TIVE DATE OF THIS SUBDIVISION SHALL  SUBMIT  AN  APPROVED  DRILLING  USE
PLAN.
  B.  ALL DRILLING ACTIVITIES ON THE AFFECTED LAND SHALL BE CONDUCTED IN
ACCORDANCE WITH AN APPROVED DRILLING USE PLAN.
  C. THE APPROVED DRILLING USE PLAN SHALL INCLUDE EXPECTED WATER  USAGE,
INCLUDING  POTENTIAL  PEAK  WATER WITHDRAWALS AND TOTAL PROJECTED ASSIM-
ILATION CAPACITY AT THE HEIGHT OF PRODUCTION, POTENTIAL WATER  CONSERVA-
TION MEASURES, TRUCK TRIPS, FLUID STORAGE AND DISPOSAL MEASURES, INCLUD-
ING  A  SIGNED  CONTRACT  WITH A DISPOSAL FACILITY, STEPS TO BE TAKEN TO
MINIMIZE DIESEL POLLUTION FROM TRUCKS AND  EQUIPMENT,  EXPECTED  VENTING
ACTIVITIES,  SITE  SPECIFIC  BIOLOGICAL  AND WATER QUALITY DATA, CUTTING
DISPOSAL PLANS AND ACTIONS TO BE TAKEN TO MITIGATE NOISE.
  D. THE APPROVED DRILLING USE PLAN SHALL ALSO CONSIST OF A  RECLAMATION
PLAN  CONSISTING  OF  A  GRAPHIC AND WRITTEN DESCRIPTION OF THE PROPOSED
RECLAMATION AND AT A MINIMUM, MEASURES TO MITIGATE THE IMPACTS TO EXIST-
ING HABITAT, INCLUDING THE PREVENTION OF  HABITAT  FRAGMENTATION,  IDEN-
TIFICATION  OF  INVASIVE  PLANT  SPECIES  PRESENT AT THE SITE AS WELL AS
PLANS FOR THE REMOVAL OF SUCH INVASIVE PLANT SPECIES.
  E. THE GRAPHIC DESCRIPTION SHALL INCLUDE MAPS AND CROSS SECTIONS WHICH
ILLUSTRATE THE FINAL PHYSICAL STATE OF THE RECLAIMED LAND.
  F. THE WRITTEN DESCRIPTION SHALL INCLUDE A SCHEDULE  AND  DESCRIPTION.
THE  RECLAMATION  OF  ALL AFFECTED LAND SHALL BE COMPLETED IN ACCORDANCE
WITH THE SCHEDULE CONTAINED IN THE APPROVED DRILLING USE PLAN PERTAINING
THERETO. THE  SCHEDULE,  WHERE  POSSIBLE,  SHALL  PROVIDE  FOR  ORDERLY,
CONTINUING RECLAMATION CONCURRENT WITH DRILLING.
  G. THE PERMIT HOLDER SHALL SUBMIT TO THE DEPARTMENT A NOTICE OF TERMI-
NATION OF DRILLING NO LATER THAN THIRTY DAYS AFTER SUCH TERMINATION.
  S  4.  This  act shall take effect on the ninetieth day after it shall
have become a law.