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Senate Bill S6269

2009-2010 Legislative Session

Requires permit holders engaging in the drilling, casing, operation, plugging, and replugging of gas wells to post a bond

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Environmental Conservation Committee

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2009-S6269 (ACTIVE) - Details

Current Committee:
Senate Environmental Conservation
Law Section:
Environmental Conservation Law
Laws Affected:
Amd ยง23-0305, En Con L

2009-S6269 (ACTIVE) - Summary

Requires permit holders engaging in the drilling, casing, operation, plugging, and replugging of gas wells to post a bond which will allow for the construction or reconstruction of any water supply deemed proximate to any permitted work.

2009-S6269 (ACTIVE) - Sponsor Memo

2009-S6269 (ACTIVE) - Bill Text download pdf 

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

                                  6269

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                            November 5, 2009
                               ___________

Introduced  by  Sen. BONACIC -- read twice and ordered printed, and when
  printed to be committed to the Committee on Rules

AN ACT to amend the  environmental  conservation  law,  in  relation  to
  requiring  permit holders engaging in the drilling, casing, operation,
  plugging, and replugging of gas wells to post a bond

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

  Section  1.  Subdivision  8  of  section  23-0305 of the environmental
conservation law is amended by adding a  new  paragraph  1  to  read  as
follows:
  1.  REQUIRE  THAT  ANY  PERMIT  HOLDER  OR  SURETY OF SUCH HOLDER, WHO
ENGAGES IN THE DRILLING, CASING, OPERATION, PLUGGING AND  REPLUGGING  OF
GAS  WELLS,  POST  A  BOND WITH THE COMPTROLLER OF THE STATE OF NEW YORK
WHICH WILL ALLOW FOR THE REPAIR OR REPLACEMENT OF ANY WATER  SUPPLY  THE
COMMISSIONER  DEEMS PROXIMATE ENOUGH TO ANY PERMITTED WORK. IN THE EVENT
THE COMMISSIONER DETERMINES THE WELL USED BY  ANY  RESIDENTIAL  DWELLING
MAY  NOT  BE  RE-DRILLED  OR  OTHERWISE DRILLED OR CONSTRUCTED OR RECON-
STRUCTED DUE TO LOT SIZE OR OTHER LOT RELATED REASON,  THE  COMMISSIONER
MAY  INCREASE  THE  SIZE  OF THE BOND TO AN AMOUNT WHICH COMPENSATES THE
PROPERTY OWNER FOR THE FAIR MARKET VALUE OF THE PROPERTY WHERE THE  WELL
IS  SITUATED.  THE  BOND,  IF NEEDING TO BE CALLED UPON, SHALL BE CALLED
UPON BY THE BENEFICIARY WITH SUCH NOTICE AS THE COMMISSIONER,  BY  REGU-
LATION,  MAY  REQUIRE. PAYMENT ON ANY BOND SHALL BE MADE, IF AT ALL, NOT
EARLIER THAN THIRTY DAYS AFTER NOTICE  TO  THE  PERMITTED  ENTITY  WHICH
POSTED  THE BOND HAS BEEN GIVEN.  PRIOR TO ANY OR ALL OF THE PROCEEDS OF
SUCH BOND BEING PAID, THE PERMIT HOLDER WHO POSTED SUCH BOND MAY CONTEST
PAYMENT OF THE BOND IN AN ACTION BROUGHT IN A COURT OF COMPETENT  JURIS-
DICTION.  THE COMMISSIONER SHALL ALSO PRESCRIBE, BY REGULATION, AN ARBI-
TRATION  SYSTEM  WHICH  SHALL BE AT NO COST TO ANY LANDOWNER WHO, IN THE
VIEW OF THE ARBITRATOR, SUBSTANTIALLY PREVAILS  IN  HIS  OR  HER  CLAIMS
AGAINST  A BOND. THE COSTS OF SUCH ARBITRATION SHALL BE PAYABLE FROM THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14971-02-9

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