senate Bill S2697A

2011-2012 Legislative Session

Relates to natural gas development using hydraulic fracturing

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

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Senate Actions - UPPERCASE
Jan 17, 2012 print number 2697a
amend (t) and recommit to environmental conservation
Jan 04, 2012 referred to environmental conservation
Jan 28, 2011 referred to environmental conservation

Bill Amendments

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S2697 - Bill Details

Current Committee:
Law Section:
Environmental Conservation Law
Laws Affected:
Amd En Con L, generally
Versions Introduced in 2009-2010 Legislative Session:
A11347

S2697 - Bill Texts

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Relates to natural gas development using hydraulic fracturing; enacts provisions to ensure natural gas development practices will be sustainable and safe.

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BILL NUMBER:S2697

TITLE OF BILL:
An act
to amend the environmental conservation law, in relation to natural gas
development using hydraulic fracturing and to repeal certain provisions
of such law relating thereto

PURPOSE OR GENERAL IDEA OF THE BILL:
The purpose of this legislation
is to provide for greater regulation of oil and natural gas operations.

SUMMARY OF PROVISIONS:
Section one contains the legislative intent of the bill.

Section two relates to wastewater treatment facilities, directing the
Commissioner of the DEC to, after a public hearing, promulgate
regulations establishing a standard of performance for the control of
the discharge of pollutants from facilities.

Section three defines terms as used, in the Article, including: air
pollutant, best management practices, closed loop systems
consequences of hazardous discharge, environmental damage, fund,
groundwater, groundwater well, hazardous release, hazardous
substance, oil and gas facility, oil and gas location, oil and gas
operations, operator, pit, potential environmental justice area,
release, site, and surface water.

Section four relates to local powers, and clarifies the extent to
which local law will and will not be superseded by state law. Local
jurisdiction is explicitly allowed over roads, real property taxes,
enforcement of permits, zoning and ordinances, setback requirements,
natural or man
made barriers restricting access to oil and gas facilities,
dust/noise/vibration/light limitations, and hours of operation.

Section five broadens the scope of the DEC's regulatory ability to
prevent environmental damage, and adds hydraulic fracturing fluids
and drilling fluids to the list of contaminants in ECL.

The section prohibits hydraulic fracturing fluids that contain any
chemical substance that harms human health.

Section six requires the disclosure of the composition of drilling and
hydraulic fracturing fluids as a condition of receiving a drilling
permit. The section also requires the disclosure of the composition
of these fluids to healthcare professionals responding to a medical
emergency.

This section requires permit holders to notify the department of any
changes to the chemical constituents used in drilling and fracturing,
and provides for public notification on the DEC's Website.

Section seven requires oil and gas well owners and operators to notify
the DEC, local health department and responding emergency agencies
immediately after the release of any fuel, hazardous chemical or


waste generated, stored or used at the facility. Subsequently, the
owner or operator shall submit a follow-up notice detailing
remediation places and public health implications. The owner or
operator will also notify the public.

DEC will develop and make public maps of all oil and gas wells in the
State, and set up a hotline for reporting oil and gas incidents to
the department.

Section eight requires the adoption of best management practices, set
by the Commissioner after public hearings every three years, to be a
condition of approval for a drilling permit.

Section nine delineates liability, liable parties, limitations of
liability, natural resource liability, and financial responsibility.
This section also addresses bonding requirements.

Section ten relates to location and setback requirements.

Section 11 sets exclusion areas, including in and around the New York
City watershed, aquifers, critical habitats, and state parks.

Section 12 prohibits waste storage pits and other impoundments.

Section 13 adjusts drilling permit fees and sets up an adjustment
mechanism to account for inflation.

Section 14 adds a new article to ECL allowing for citizen suits to
enforce laws on pollution; impairment or destruction of environment,
to protect the environment.

Section 15 requires the Department of Health to a conducted Health
Impact Assessment. The Health Impact Assessment will identify
measures that minimize adverse impacts on human health.

This section also directs the Department of Health to conduct a
comprehensive Health Impact Assessment of oil and natural has
operations involving any shale formation which may have an adverse
impact on human health. This section also requires a site-specific
health impact
assessment whenever oil and gas operations may pose negative health
impacts upon a potential environmental justice area.

Section 16 adds a new article to ECL regarding air quality monitoring,
and the establishment of an air quality testing and monitoring plan,
requiring testing of air quality at every stage of oil and gas
development and public posting of air monitoring results. No permit
shall be issued until 30 days after notice of the final plan is
published in the Environmental Notice Bulletin, or if air emissions
from the permitted operations violate air quality standards.

Section 17 considers all waste resulting from the exploration,
development, extraction, or production of crude oil or natural gas as
hazardous waste.

Section 18 relates to water withdrawal and water withdrawal permits.
This section also includes a water conservation and efficiency


program with the goals of ensuring the improvement of the waters and
natural resources, protecting the ecosystem, retaining the quality of
surface and groundwater, and promoting the efficient use of water.

Section 19 defines certain terms used in ECL, including: compact basin
commission, interbasin diversion, person, potable, public water
supply system, threshold volume, environmentally sound and
economically feasible water conservation measures, water withdrawal
system, and withdrawal or withdrawal of water.

Section 20 relates to water supply permits. The section allows the
issuance of a water withdrawal permit only if the proposed permitted
activity results in no significant individual or cumulative adverse
impact to the quantity or quality of the waters and water dependent
natural resources.

Section 21 requires that any interbasin diversions of water in excess
of one million gallons per day be registered with the Department, and
prohibits such diversion if it imperils water quantity. of source
subregional drainage basin.

Section 22 further relates to water supply and public water systems.

Section 23 relates to water withdrawal systems. Requires the
construction of any new or withdrawal system to be supervised by
Professional Engineer.

Section 24 requires a report to the Governor and Legislature by the
Commissioner of the DEC within two years of the effective date of
this section.

Section 25 repeals title 33 of article 15 of the ECL relating to water
withdrawal reporting. This is replaced by provisions of this bill in
ECL.

Section 26 adds a new title to ECL setting water use standards. Such
standards will maintain in-stream water flows, protect aquatic life,
and designate at risk watersheds.

Section 27 increases penalties for violations of ECL.

Section 28 adds a new article to ECL setting water supply permit
program fees.

Section 29 contains the effective date.

JUSTIFICATION:
New York is home to rich natural gas reserves. In 2006, there were
6,213 active natural gas wells that generated a state record of 55.3
billion cubic feet of natural gas. The Marcellus formation that
extends from the Southern Tier into Ohio, Pennsylvania and West
Virginia is estimated to have $1 trillion worth of natural gas, and
is largely untapped. The rising price of natural gas has led to an
increased demand for, new sources and made formations like the
Marcellus even more attractive.


The extraction of these reserves is accompanied by considerable risk
to the environment. In order to fully examine this risk, the Assembly
Environmental Conservation Committee has held a series of hearings to
examine the environmental protections needed in the Department of
Environmental Conservation's (DEC) natural gas and oil drilling
regulatory structure in order to safeguard natural resources. In the
course of these hearings, much expert testimony was presented on
necessary steps to ensure the safety of New York's precious water
resources.

This legislation draws from the suggestions presented at these public
hearings. By making public health and the environment the primary
factor in permitting drilling operations, the bill ensures that
generations of New Yorkers can continue to enjoy our natural resources.

LEGISLATIVE HISTORY:
2010: A.11347 (Sweeney) Assembly Environmental Conservation

FISCAL IMPLICATIONS:
Yet to be determined.

EFFECTIVE DATE:
This act shall take effect immediately, provided,
however, that section twenty-five of this act shall take effect upon
the completion of rule-making required in subdivision three of
section 15-1501 of the Environmental Conservation Law and provided
that the Commission of the Department of Environmental Conservation
shall notify the Legislative Bill Drafting Commission upon the
occurrence of the enactment of the rules required under subdivision
three of section 15-0501 of the Environmental Conservation Law in
order that the Commission may maintain an accurate and timely
effective date base of the official text of the laws of the State of
New York in furtherance of effectuating the provisions of section 44
of the legislative law and section 70-b of the Public Officers Law.

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

                                  2697

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 28, 2011
                               ___________

Introduced  by  Sen.  AVELLA -- read twice and ordered printed, and when
  printed to be committed to the Committee on Environmental Conservation

AN ACT to amend the  environmental  conservation  law,  in  relation  to
  natural  gas  development  using  hydraulic  fracturing  and to repeal
  certain provisions of such law relating thereto

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

  Section  1.  Legislative  declarations and purpose. 1. The legislature
recognizes that the expansion of natural gas development in the state of
New York using hydraulic fracturing poses unique threats to human health
and to the environment. The  legislature  further  recognizes  that  New
York's current laws are inadequate to protect against these threats.
  2.  As  natural gas development expands, it is the highest priority of
this state to protect human health as well as to ensure  the  safety  of
irreplaceable  natural  assets  such  as safe drinking water, clean air,
wildlife, and the aesthetic beauty of the state.
  3. Hydraulic fracturing utilizes components that are often toxic, that
are non-biodegradable, and that are virtually impossible to remove  once
they  enter  the  natural environment. Many of these hazardous chemicals
are known carcinogens  and  others  can  cause  other  life  threatening
illnesses.  Drinking  water  contamination from hydraulic fracturing can
lead to exposure to endocrine disrupting agents and to  other  chemicals
that  can  cause  kidney,  liver,  heart,  blood, brain damage and other
hazardous health effects.
  4. Hydraulic fracturing operations withdraw  millions  of  gallons  of
water  from  the  ground  and  surface  waters of the state, which are a
precious, finite and invaluable resource, upon which there is likely  to
be  an  ever-increasing  demand for present, new and competing uses. The
withdrawal of ground and surface waters of the state should be regulated
in a manner that benefits the people of the state and is compatible with

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02942-01-1

S. 2697                             2

long-range water resource planning and with managing such waters in  the
public trust for the benefit of all New Yorkers.
  5.  Hydraulic  fracturing operations result in wastewater that returns
to the surface laden with salt, heavy metals, other chemicals and radio-
active elements. In other states, this wastewater  is  often  stored  in
open  pits  until transported for ultimate disposal. Chemicals evaporate
from these open pits, contributing to air pollution. Leaks and spills of
chemicals from the trucks and waste  pits  may  cause  contamination  of
surface  waters. Fracturing fluid left underground could migrate or seep
through  fractures  in  underground  formations,  cracks  in   well-bore
casings,  through  abandoned wells, or otherwise to pollute groundwater.
Given the increased prevalence of natural gas  drilling  in  the  state,
these  negative  effects  may  increase  if  the  process of natural gas
extraction is not carefully and thoughtfully regulated.
  6. One of the chief environmental and  infrastructure  assets  of  the
state  of New York is its drinking water systems, which play a fundamen-
tal role in the economic productivity and public health  of  the  state.
The  policy  of  the  state  with respect to the management of shale gas
extraction must be one of zero drinking water risk.
  7. Furthermore, natural gas exploration  must  be  carried  out  in  a
manner that is sensitive to the ecological richness and aesthetic beauty
of  the  state.  Widespread,  uncontrolled natural gas development using
hydraulic fracturing will diminish or destroy the natural beauty of  the
land  and disrupt the natural habitat of wildlife. The legislature finds
that natural gas development must  be  carried  out  to  minimize  these
effects to the maximum extent possible.
  8.  Natural  gas  extraction can impose both monetary and non-monetary
costs on municipalities and cause property damage  or  otherwise  reduce
the  property  value  of private land owners. It is the intention of the
legislature that all persons who undertake natural  gas  development  in
the  state  of  New York take full responsibility for their actions, and
act consistent with local concerns.
  9. Although natural gas development provides the promise  of  economic
benefit  for the state of New York, the state must ensure that the bene-
fits outweigh the costs. It is the policy of the state that natural  gas
development  practices  will be sustainable, respectful, and safe.  This
act is intended to ensure that goal is met.
  S 2. The environmental conservation law is amended  by  adding  a  new
section 17-0709 to read as follows:
S 17-0709. WASTEWATER TREATMENT FACILITIES.
  NOTWITHSTANDING  ANYTHING  TO  THE  CONTRARY  CONTAINED IN SUBDIVISION
TWENTY-ONE OF SECTION 17-0105 OF THIS ARTICLE, THE  COMMISSIONER  SHALL,
AFTER  HOLDING  A PUBLIC HEARING WITH DUE NOTICE, PROMULGATE REGULATIONS
ESTABLISHING A STANDARD OF PERFORMANCE FOR THE CONTROL OF THE  DISCHARGE
OF  POLLUTANTS  FROM  FACILITIES  WHICH  TREAT WASTEWATER FROM HYDRAULIC
FRACTURING OPERATIONS. THIS STANDARD OF PERFORMANCE  SHALL  REFLECT  THE
GREATEST  DEGREE OF EFFLUENT REDUCTION WHICH THE COMMISSIONER DETERMINES
TO BE ACHIEVABLE THROUGH APPLICATION OF THE BEST AVAILABLE  DEMONSTRATED
CONTROL TECHNOLOGY, PROCESSES, OPERATING METHODS, OR OTHER ALTERNATIVES,
INCLUDING,  WHERE  PRACTICABLE,  A  STANDARD  PERMITTING NO DISCHARGE OF
POLLUTANTS. THIS STANDARD OF PERFORMANCE SHALL REMAIN  IN  EFFECT  UNTIL
SUCH  TIME  THAT THE FEDERAL GOVERNMENT DETERMINES THAT A GREATER DEGREE
OF EFFLUENT LIMITATION IS ACHIEVABLE BY THIS CATEGORY OF FACILITIES,  AT
WHICH  TIME  THIS  STANDARD  OF  PERFORMANCE SHALL BE SUPERSEDED BY SUCH
FEDERAL STANDARD.

S. 2697                             3

  S 3. Section 23-0101 of the environmental conservation law, as amended
by chapter 846 of the laws of 1981 and subdivision 1 as amended by chap-
ter 891 of the laws of 1984, is amended to read as follows:
S 23-0101. Definitions.
  As used in this article, unless the context otherwise requires:
  1.  "AIR POLLUTANT" MEANS VOLATILE ORGANIC COMPOUNDS (VOCS) AS DEFINED
AT 40 CFR 51.100(S), HAZARDOUS AIR POLLUTANTS (HAPS) AS  DEFINED  AT  42
USC  S  7412(B)  AND  40  CFR 63, NITROGEN OXIDES (NOX), CARBON MONOXIDE
(CO), METHANE (CH4), ETHANE (C2H6), PARTICULATE MATTER (PM10 AND PM2.5),
OZONE (O3), LEAD (PB), SULFUR DIOXIDE (SO2) AND OTHER  AIR  CONTAMINANTS
AS MAY BE IDENTIFIED BY THE DEPARTMENT.
  2.  "BEST MANAGEMENT PRACTICES (BMPS)" ARE PRACTICES THAT ARE DESIGNED
TO PREVENT OR REDUCE IMPACTS CAUSED BY OIL AND GAS  OPERATIONS  TO  AIR,
WATER, SOIL, OR BIOLOGICAL RESOURCES, AND TO MINIMIZE ADVERSE IMPACTS TO
PUBLIC  HEALTH,  SAFETY AND WELFARE, INCLUDING THE ENVIRONMENT AND WILD-
LIFE RESOURCES.
  3. "Buffer zone" means all  that  area  outside  and  surrounding  the
underground  gas  storage  reservoir  which  the  department approves as
appropriate to protect the integrity of the reservoir, no part of  which
shall  be  more  than  thirty-five hundred linear feet from the boundary
thereof.
  [2.] 4. "Cavity" means an open or partially open space  left  after  a
salt has been solution mined.
  5.  "CLOSED-LOOP SYSTEM" MEANS A SYSTEM FOR HANDLING OIL OR GAS EXPLO-
RATION, STIMULATION, OR PRODUCTION WASTES, INCLUDING BUT NOT LIMITED  TO
DRILLING  FLUIDS  AND  CUTTINGS, HYDRAULIC FRACTURING FLOWBACK, PRODUCED
WATER, AND RESIDUAL SLUDGES OR BRINES, WITHOUT THE NEED FOR PITS.
  [3.] 6. "Commissioner" means the commissioner of environmental conser-
vation.
  7. "CONSEQUENCES OF ANY HAZARDOUS DISCHARGE" AS USED IN  THIS  SECTION
MEANS ANY DETRIMENTAL EFFECT TO THE HEALTH, SAFETY, WELFARE, OR AESTHET-
IC  ENJOYMENT  OF  ANY  CITIZEN,  RESIDENT, OR VISITOR IN THE STATE BY A
HAZARDOUS DISCHARGE.
  [4.] 8. "Department" means the department of  environmental  conserva-
tion.
  9. "ENVIRONMENTAL DAMAGE" AS USED IN THIS SECTION MEANS DAMAGE TO:
  A. ANY WATERS OF THE STATE;
  B. ANY LAND SURFACE OR SUBSURFACE STRATA OF THE STATE;
  C. ANY AMBIENT AIR WITHIN THE STATE; OR,
  D.  THE  WILDLIFE OR ECOLOGICAL SYSTEMS IN THE LAND, AIR, OR WATERS OF
THE STATE.
  [5.] 10. "Fund" means the oil and gas [fund as established in  section
eighty-three-a of the state finance law] ACCOUNT ESTABLISHED UNDER CHAP-
TER FIFTY-EIGHT OF THE LAWS OF NINETEEN HUNDRED EIGHTY-TWO.
  [6.]  11.  "Field"  means  the  general  area underlaid by one or more
pools.
  [7.] 12. "Gas" means all natural, manufactured, mixed,  and  byproduct
gas, and all other hydrocarbons not defined as oil in this section.
  13.  "GROUNDWATER"  MEANS WATER IN A SATURATED ZONE OR STRATUM BENEATH
THE SURFACE OF LAND OR WATER.
  14. "GROUNDWATER WELL" MEANS ANY WELL DESIGNED OR USED  FOR  THE  SOLE
PURPOSE OF OBTAINING GROUNDWATER.
  15. "HAZARDOUS RELEASE" AS USED IN THIS SECTION MEANS THE RELEASE OF A
HAZARDOUS SUBSTANCE.

S. 2697                             4

  16.  "HAZARDOUS  SUBSTANCE"  MEANS SUBSTANCES WHICH MEET THE FOLLOWING
CRITERIA, INCLUDING BUT NOT LIMITED TO THOSE LISTED  IN  N.Y.C.R.R.    S
597.2:
  A.  BECAUSE OF THEIR QUANTITY, CONCENTRATION, OR PHYSICAL, CHEMICAL OR
INFECTIOUS CHARACTERISTICS CAUSE PHYSICAL INJURY OR ILLNESS WHEN IMPROP-
ERLY TREATED, STORED, TRANSPORTED, DISPOSED OF, OR OTHERWISE MANAGED;
  B. POSE A PRESENT OR POTENTIAL HAZARD TO THE ENVIRONMENT WHEN  IMPROP-
ERLY TREATED, STORED, TRANSPORTED, DISPOSED OF, OR OTHERWISE MANAGED;
  C.  BECAUSE  OF  THEIR  TOXICITY  OR  CONCENTRATION  WITHIN BIOLOGICAL
CHAINS, PRESENT A DEMONSTRATED THREAT TO  BIOLOGICAL  LIFE  CYCLES  WHEN
RELEASED INTO THE ENVIRONMENT;
  D.  HAVE  AN  ORAL LD (RAT) TOXICITY OF LESS THAN FIFTY MILLIGRAMS PER
KILOGRAM; OR HAVE AN INHALATION LC  (RAT)  TOXICITY  OF  LESS  THAN  TWO
MILLIGRAMS PER LITER; OR HAVE A DERMAL LD (RABBIT) TOXICITY OF LESS THAN
TWO HUNDRED MILLIGRAMS PER KILOGRAM; OR
  E.  CAUSE  OR ARE CAPABLE OF CAUSING DEATH, SERIOUS ILLNESS OR SERIOUS
PHYSICAL INJURY TO ANY PERSON OR PERSONS AS  A  CONSEQUENCE  OF  RELEASE
INTO THE ENVIRONMENT.
  [8.]  17.  "Local  agency"  means  any local agency, board, authority,
school district, commission or governing  body,  including  any  county,
city, town, village or other political subdivision of the state.
  [9.]  18.  "Metered"  means  the  physical measurement of gas by means
acceptable to the department.
  [10.] 19. "Oil" means crude petroleum oil and all other  hydrocarbons,
regardless  of gravity, that are produced at the wellhead in liquid form
by ordinary production methods and that are not the result of  condensa-
tion of gas.
  20.  "OIL AND GAS FACILITY" MEANS EQUIPMENT, IMPROVEMENTS, OR PHYSICAL
STRUCTURES, INCLUDING ANY OIL OR GAS WELLS, USED OR INSTALLED AT AN  OIL
AND GAS LOCATION FOR THE EXPLORATION, PRODUCTION, WITHDRAWAL, GATHERING,
TREATMENT, OR PROCESSING OF OIL OR NATURAL GAS.
  21.  "OIL  AND  GAS LOCATION" MEANS A DEFINABLE AREA WHERE AN OPERATOR
HAS DISTURBED OR INTENDS TO DISTURB THE LAND SURFACE IN ORDER TO  LOCATE
AN OIL AND GAS FACILITY.
  22.  "OIL  AND  GAS  OPERATIONS"  MEANS  EXPLORATION  FOR OIL AND GAS,
INCLUDING THE CONDUCT OF SEISMIC OPERATIONS AND  THE  DRILLING  OF  TEST
BORES;  THE  SITING,  DRILLING,  DEEPENING,  RECOMPLETION, REWORKING, OR
ABANDONMENT OF AN OIL AND GAS WELL, UNDERGROUND INJECTION WELL,  OR  GAS
STORAGE  WELL;  PRODUCTION OPERATIONS RELATED TO ANY SUCH WELL INCLUDING
THE INSTALLATION OF FLOWLINES AND  GATHERING  SYSTEMS;  THE  GENERATION,
TRANSPORTATION,  STORAGE,  TREATMENT,  OR  DISPOSAL  OF  EXPLORATION AND
PRODUCTION WASTES; AND ANY CONSTRUCTION, SITE PREPARATION,  OR  RECLAMA-
TION ACTIVITIES ASSOCIATED WITH SUCH OPERATIONS.
  23. "OPERATOR" MEANS ANY PERSON WHO EXERCISES THE RIGHT TO CONTROL THE
CONDUCT OF, OR WHO CONDUCTS, OIL AND GAS OPERATIONS.
  [11.] 24. "Owner" means the person who has the right to drill into and
produce from a pool or a salt deposit and to appropriate the oil, gas or
salt  he  produces  either  for  himself  or  others, or for himself and
others.
  25. "PIT" MEANS ANY NATURAL OR MAN-MADE DEPRESSION IN THE GROUND  USED
FOR  THE  PURPOSE OF RETAINING OR STORING SUBSTANCES ASSOCIATED WITH OIL
AND GAS OPERATIONS.
  [12.] 26. "Person" means and includes any natural person, corporation,
association, partnership, receiver,  trustee,  executor,  administrator,
guardian,  fiduciary,  or other representative of any kind, and includes

S. 2697                             5

any department, agency or instrumentality of the state  or  any  of  its
governmental subdivisions.
  [13.]  27. "Plug and abandon" means the plugging, replugging if neces-
sary, and abandonment of a well bore including the placing of all bridg-
es, 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.
  [14.]  28.  "Pool"  means an underground reservoir containing a common
accumulation of oil or gas or both; each zone of a  structure  which  is
completely  separated  from  any  other  zone in the same structure is a
pool.
  29.   "POTENTIAL ENVIRONMENTAL  JUSTICE  AREA"  MEANS  A  MINORITY  OR
LOW-INCOME COMMUNITY THAT MAY BEAR A DISPROPORTIONATE SHARE OF THE NEGA-
TIVE  ENVIRONMENTAL  CONSEQUENCES  RESULTING FROM INDUSTRIAL, MUNICIPAL,
AND COMMERCIAL OPERATIONS OR THE EXECUTION OF FEDERAL, STATE, LOCAL, AND
TRIBAL PROGRAMS AND POLICIES.
  [15.] 30. "Producer" means the owner of a well  or  wells  capable  of
producing oil, gas, or salt; or any salt or hydrocarbon mixture.
  [16.]  31.  "Product"  means  any  commodity  made from oil or gas and
includes refined crude oil, crude tops, topped crude,  processed  crude,
processed crude petroleum, residue from crude petroleum, cracking stock,
uncracked  fuel  oil,  fuel  oil,  treated crude oil, residuum, gas oil,
casinghead gasoline, natural-gas gasoline, kerosene, benzine, wash  oil,
waste  oil, blended gasoline, lubricating oil, blends or mixtures of oil
with one or more liquid products or by-products derived from oil or gas,
and blends or mixtures of two or more  liquid  products  or  by-products
derived from oil or gas, whether herein enumerated or not.
  32.    "RELEASE"  MEANS ANY SPILLING, LEAKING, PUMPING, POURING, EMIT-
TING, EMPTYING, DISCHARGING, ESCAPING, LEACHING, DUMPING OR  DISCHARGING
INTO  THE  ENVIRONMENT  (INCLUDING  THE  ABANDONMENT  OR  DISCARDING  OF
BARRELS, CONTAINERS, AND OTHER CLOSED RECEPTACLES).
  [17.] 33. "Reservoir" means  any  underground  reservoir,  natural  or
artificial  cavern or geologic dome, sand or stratigraphic trap, whether
or not previously occupied by or containing oil or gas.
  [18.] 34. "Salt" means sodium chloride, evaporite or other water solu-
ble minerals, either in solution or as a solid or  crystalline  material
in a pure state or as a mixture.
  35.   "SITE" MEANS THE LOCATION OF ANY  OIL AND GAS OPERATION, INCLUD-
ING BUT NOT LIMITED TO WELLS AND WELL PADS, STORAGE FACILITIES,  NATURAL
GAS COMPRESSOR STATIONS, AND CENTRALIZED IMPOUNDMENTS.
  [19.]  36.  "Solution  mining"  means the dissolving of an underground
salt by water to produce a brine for transport to another underground or
surface location for sale, processing or storage.
  37.  "SURFACE WATER" MEANS ANY WATER OCCURRING ON THE EARTH'S  SURFACE
IN  THE  FORM OF A STREAM, RIVER, POND, LAKE, WETLAND, OCEAN, ARTIFICIAL
CHANNEL OR RESERVOIR, OR OTHER SURFACE WATER BODY.
  [20.] 38. "Waste" means
  a. Physical waste, as that term is generally understood in the oil and
gas industry;
  b. The inefficient, excessive or improper use of, or  the  unnecessary
dissipation of reservoir energy;
  c. The locating, spacing, drilling, equipping, operating, or producing
of  any  oil  or  gas well or wells in a manner which causes or tends to
cause reduction in the quantity of oil  or  gas  ultimately  recoverable
from  a  pool  under  prudent  and proper operations, or which causes or

S. 2697                             6

tends to cause unnecessary or excessive surface loss or  destruction  of
oil or gas;
  d. The inefficient storing of oil or gas; and
  e.  The  flaring  of gas produced from an oil or condensate well after
the department has found that the use of the gas, on terms that are just
and reasonable, is, or will be economically feasible within a reasonable
time.
  S 4. Section 23-0303 of the environmental conservation law, as amended
by chapter 846 of the laws of 1981, is amended to read as follows:
S 23-0303. Administration of article.
  1. Except to the extent that the administration  of  this  article  is
specifically entrusted to other agencies or officers of the state by its
provisions,  such administration shall be by the department.  Geological
services for the department in connection  with  the  administration  of
this article shall be provided by or in cooperation with the state geol-
ogist.  Within  appropriations  therefor the department is authorized to
employ such personnel as may be necessary for the administration of this
article and may also employ or secure the services of such  engineering,
technical and other consultants as it may require from time to time.
  2.  The  provisions  of this article shall supersede all local laws or
ordinances relating to the regulation  of  the  oil,  gas  and  solution
mining  industries;  [but shall not supersede local government jurisdic-
tion over local roads or the rights of local governments under the  real
property  tax law] PROVIDED, HOWEVER, THAT NOTHING IN THIS ARTICLE SHALL
BE CONSTRUED TO PREVENT ANY LOCAL GOVERNMENT FROM:
  A. ENACTING OR ENFORCING LOCAL LAWS OR ORDINANCES OF GENERAL  APPLICA-
BILITY, EXCEPT THAT SUCH LOCAL LAWS OR ORDINANCES SHALL NOT REGULATE OIL
AND GAS OPERATIONS REGULATED BY STATE STATUTE OR REGULATION; OR
  B. ENACTING OR ENFORCING LOCAL LAWS OR ORDINANCES RELATED TO THE REGU-
LATION  AND  MANAGEMENT  OF  LOCAL  ROADS, SUCH AS INGRESS AND EGRESS TO
PUBLIC THOROUGHFARES CONTROLLED BY THE LOCAL GOVERNMENT; OR
  C. ENACTING OR ENFORCING LAWS PURSUANT TO THE RIGHTS OF LOCAL  GOVERN-
MENTS UNDER THE REAL PROPERTY TAX LAW; OR
  D. ENFORCING ANY REQUIREMENT CONTAINED IN ANY OIL OR GAS PERMIT ISSUED
BY THE STATE; OR
  E.  ENACTING  OR ENFORCING LOCAL ZONING ORDINANCES OR LAWS THAT DETER-
MINE PERMISSIBLE USES IN ZONING DISTRICTS, INCLUDING WHETHER OIL AND GAS
FACILITIES ARE PERMISSIBLE WITHIN A PARTICULAR ZONING DISTRICT. WHERE AN
OIL AND GAS FACILITY  IS  DESIGNATED  A  PERMISSIBLE  USE  IN  A  ZONING
DISTRICT  AND  ALLOWED  BY SPECIAL USE PERMIT, CONDITIONS PLACED ON SUCH
SPECIAL USE PERMITS SHALL BE LIMITED TO THE FOLLOWING:
  I. REQUIREMENTS AND CONDITIONS CONCERNING SETBACK FROM PROPERTY BOUND-
ARIES, SURFACE WATERS, GROUNDWATER WELLS, HOMES OR  PRIVATE  RESIDENCES,
CHURCHES,  SCHOOLS, AND OTHER PUBLIC FACILITIES, AND PUBLIC THOROUGHFARE
RIGHTS-OF-WAY;
  II. REQUIREMENTS AND CONDITIONS CONCERNING NATURAL OR MAN-MADE  BARRI-
ERS TO RESTRICT ACCESS FROM OIL AND GAS FACILITIES, IF REQUIRED; AND
  III.  DUST,  NOISE, VIBRATION, OR LIGHT LIMITATIONS, AND REGULATION OF
HOURS OF OPERATION;
  3. NOTWITHSTANDING ANY PROVISION TO THE CONTRARY, LOCAL LAWS AND ORDI-
NANCES REGULATING ZONING, INCLUDING CONDITIONS IN  SPECIAL  USE  PERMITS
THAT IMPOSE SETBACKS, THE REQUIREMENT OF NATURAL OR MANMADE BARRIERS, OR
LIMITATIONS  ON DUST, NOISE, VIBRATION, LIGHT, OR HOURS OF OPERATION, DO
NOT CONSTITUTE THE REGULATION OF OIL AND  GAS  OPERATIONS  REGULATED  BY
STATE STATUTE OR REGULATION.

S. 2697                             7

  4.  IN  ORDER  TO  FACILITATE A MUNICIPALITY'S ABILITY TO EXERCISE ITS
AUTHORITY UNDER PARAGRAPH D OF SUBDIVISION  TWO  OF  THIS  SECTION,  THE
DEPARTMENT SHALL PROVIDE EVERY MUNICIPALITY WITH A COPY OF THE PERMIT OF
EACH WELL LOCATED OR PERMITTED TO BE LOCATED WITHIN ITS BOUNDARIES.
  [3.]  5. a. The commissioner shall accept from municipalities requests
for funds from the oil and gas fund to reimburse  the  municipality  for
costs  incurred in repairing damages to municipal land or property. Such
requests shall include such explanatory material  and  documentation  as
the commissioner may require.
  b.  The commissioner and director of the budget, may recommend payment
to the municipality to satisfy the request for reimbursement upon  find-
ing that:
  (1)  The  municipality  has made a bona fide effort to seek relief and
recover its costs from those deemed to  be  responsible  and  any  other
appropriate avenues, but has been unsuccessful;
  (2)  The damage was a direct result of activities regulated under this
article and that the amount of funds requested is reasonable in view  of
such damages; and
  (3)  The costs were incurred after the effective date of this subdivi-
sion.
  S 5. Paragraph d of subdivision 8 of section 23-0305 of  the  environ-
mental  conservation law, as amended by chapter 846 of the laws of 1981,
is amended to read as follows:
  d. Require the drilling, casing, operation, plugging and replugging of
wells and reclamation of surrounding land in accordance with  rules  and
regulations  of  the  department  in such manner as to prevent or remedy
[the following] ANY ACT RESULTING IN ENVIRONMENTAL DAMAGE, including but
not limited to: the escape of oil, gas, brine or water out of one  stra-
tum  into  another;  the intrusion of water into oil or gas strata other
than during enhanced recovery operations; the pollution of  fresh  water
supplies  by oil, gas, salt water, DRILLING FLUIDS, HYDRAULIC FRACTURING
FLUIDS or other contaminants; and blowouts, cavings, seepages and fires.
SUCH RULES AND REGULATIONS SHALL REGULATE THE TYPE, VOLUME, AND  CONCEN-
TRATION OF ADDITIVES FOR THE PROTECTION OF HUMAN HEALTH AND THE ENVIRON-
MENT;  AND SUCH REGULATIONS SHALL PROHIBIT THE USE OF DRILLING FLUIDS OR
HYDRAULIC FRACTURING FLUIDS CONTAINING ANY CHEMICAL SUBSTANCE THAT  UPON
EXPOSURE,  INGESTION,  INHALATION  OR  ASSIMILATION  INTO  ANY ORGANISM,
EITHER DIRECTLY FROM THE ENVIRONMENT, INCLUDING FROM DRINKING WATER,  OR
INDIRECTLY THROUGH FOOD CHAINS, WILL, ON THE BASIS OF INFORMATION AVAIL-
ABLE  TO THE DEPARTMENT, CAUSE DEATH, DISEASE, BEHAVIORAL ABNORMALITIES,
CANCER, GENETIC MUTATIONS, ENDOCRINE DISRUPTION, PHYSIOLOGICAL  MALFUNC-
TIONS, INCLUDING MALFUNCTIONS IN REPRODUCTION, OR PHYSICAL DEFORMATIONS,
IN  SUCH  ORGANISMS  OR  THEIR  OFFSPRING, INCLUDING BUT NOT LIMITED TO:
BENZENE AND ANY CHEMICAL SUBSTANCE THAT HAS BEEN IDENTIFIED PURSUANT  TO
THE  FEDERAL TOXIC SUBSTANCES CONTROL ACT AS PERSISTENT, BIOACCUMULATIVE
AND TOXIC.
  S 6. Section 23-0305 of the environmental conservation law is  amended
by adding a new subdivision 15 to read as follows:
  15.  THE  DEPARTMENT SHALL PROMULGATE REGULATIONS REQUIRING DISCLOSURE
OF CHEMICALS USED IN OIL AND GAS WELL DRILLING AND HYDRAULIC FRACTURING,
INCLUDING BUT NOT LIMITED TO THE FOLLOWING REQUIREMENTS:
  A. NO PERMIT TO DRILL, DEEPEN, PLUG BACK, OR CONVERT A WELL  SHALL  BE
ISSUED  UNDER  THIS ARTICLE UNTIL THE DEPARTMENT OBTAINS FROM THE PERMIT
APPLICANT A COMPLETE LIST OF THE CHEMICAL CONSTITUENTS OF EACH  ADDITIVE
THAT  MAY  BE  USED  IN DRILLING OR FRACTURING THE WELL SPECIFIED IN THE
APPLICATION;

S. 2697                             8

  B. WHENEVER THE DEPARTMENT OR A TREATING PHYSICIAN  OR  NURSE,  DETER-
MINES THAT A MEDICAL EMERGENCY EXISTS AS A RESULT OF OIL OR GAS EXPLORA-
TION, STIMULATION, OR PRODUCTION ACTIVITIES CONDUCTED BY A WELL DRILLING
PERMIT  HOLDER OR ITS SUBCONTRACTORS AND THAT THE DISCLOSURE OF PROPRIE-
TARY CHEMICAL INFORMATION, INCLUDING THE IDENTITY OF ANY CHEMICAL OR THE
FORMULA  OF  ANY  ADDITIVE USED IN DRILLING OR HYDRAULIC FRACTURING OF A
PERMITTED OIL OR GAS WELL, MAY BE NECESSARY FOR EMERGENCY  OR  FIRST-AID
TREATMENT,  THE  WELL  DRILLING  PERMIT  HOLDER  OR ANY SUBCONTRACTOR IN
POSSESSION OR CONTROL OF THE PROPRIETARY INFORMATION  SHALL  IMMEDIATELY
DISCLOSE THE PROPRIETARY INFORMATION REQUESTED TO THE DEPARTMENT OR THAT
TREATING  PHYSICIAN  OR  NURSE, REGARDLESS OF THE EXISTENCE OF A WRITTEN
STATEMENT OF NEED OR A CONFIDENTIALITY AGREEMENT.  THE PERMIT HOLDER  OR
SUBCONTRACTOR  MAY  REQUEST  A WRITTEN STATEMENT OF NEED AND A CONFIDEN-
TIALITY AGREEMENT AS SOON THEREAFTER AS  CIRCUMSTANCES  PERMIT.  IN  THE
EVENT  THE  PERMIT HOLDER OR SUBCONTRACTOR FAILS TO IMMEDIATELY DISCLOSE
SUCH PROPRIETARY INFORMATION, THE DEPARTMENT SHALL MAKE AVAILABLE  TO  A
TREATING PHYSICIAN OR NURSE ALL INFORMATION WITHIN ITS POSSESSION RELAT-
ING  TO  THE  INGREDIENTS OF ANY CHEMICAL OR THE FORMULA OF ANY ADDITIVE
USED IN DRILLING OR HYDRAULIC FRACTURING UTILIZED IN A PERMITTED OIL  OR
GAS WELL SUSPECTED OF CAUSING SUCH EMERGENCY;
  C.  EACH  PERMIT  HOLDER SHALL NOTIFY THE DEPARTMENT OF ANY CHANGES TO
THE CHEMICAL CONSTITUENTS USED IN DRILLING OR FRACTURING  PRIOR  TO  THE
FLUID'S USE IN THE DRILLING OR FRACTURING PROCESS.
  D.  THE  DEPARTMENT SHALL MAKE ANY DISCLOSURES FILED UNDER PARAGRAPH A
OR C OF THIS SUBDIVISION AVAILABLE TO THE PUBLIC  AND  SHALL  POST  SUCH
INFORMATION ON THE DEPARTMENT'S WEBSITE.
  S  7. Section 23-0313 of the environmental conservation law is amended
by adding four new subdivisions 3, 4, 5 and 6 to read as follows:
  3. THE DEPARTMENT SHALL PROMULGATE REGULATIONS REQUIRING:
  A. OIL AND GAS WELL OWNERS OR OPERATORS TO GIVE NOTICE TO THE  DEPART-
MENT,  LOCAL  HEALTH  DEPARTMENT  AND  RESPONDING EMERGENCY AGENCIES, IN
PERSON OR BY SUCH MEANS AS THE  DEPARTMENT  SHALL  SPECIFY,  IMMEDIATELY
AFTER  THE RELEASE OF ANY FUEL, HAZARDOUS CHEMICAL OR WASTE STORED AT OR
GENERATED BY AN OIL AND GAS FACILITY OR USED IN WELL DRILLING OR HYDRAU-
LIC FRACTURING OPERATIONS.
  B. NOTICE REQUIRED UNDER PARAGRAPH A OF THIS SUBDIVISION SHALL INCLUDE
EACH OF THE FOLLOWING (TO THE EXTENT KNOWN AT THE TIME OF THE NOTICE AND
SO LONG AS NO DELAY IN RESPONDING TO THE RELEASE RESULTS):
  I. THE CHEMICAL NAME OR IDENTITY OF  ANY  SUBSTANCE  INVOLVED  IN  THE
RELEASE; AND
  II.  AN  ESTIMATE  OF  THE  QUANTITY  OF  ANY  SUCH SUBSTANCE THAT WAS
RELEASED INTO THE ENVIRONMENT; AND
  III. THE TIME AND DURATION OF THE RELEASE; AND
  IV. THE MEDIUM OR MEDIA INTO WHICH THE RELEASE OCCURRED; AND
  V. ANY KNOWN OR ANTICIPATED ACUTE OR CHRONIC HEALTH  RISKS  ASSOCIATED
WITH THE RELEASE AND, WHERE APPROPRIATE, ADVICE REGARDING MEDICAL ATTEN-
TION NECESSARY FOR EXPOSED INDIVIDUALS; AND
  VI. PROPER PRECAUTIONS AND REMEDIAL ACTIONS TO TAKE AS A RESULT OF THE
RELEASE; AND
  VII.  THE  NAME  AND  TELEPHONE  NUMBER OF THE PERSON OR PERSONS TO BE
CONTACTED FOR FURTHER INFORMATION.
  C. AS SOON AS PRACTICABLE AFTER A RELEASE THAT REQUIRES  NOTICE  UNDER
PARAGRAPH  A OF THIS SUBDIVISION, SUCH OWNER OR OPERATOR SHALL PROVIDE A
WRITTEN FOLLOW-UP EMERGENCY NOTICE  (OR  NOTICES,  AS  MORE  INFORMATION
BECOMES  AVAILABLE)  SETTING FORTH AND UPDATING THE INFORMATION REQUIRED
UNDER PARAGRAPH B OF THIS SUBDIVISION, AND INCLUDING:

S. 2697                             9

  I. ACTIONS TAKEN TO RESPOND TO AND CONTAIN THE RELEASE;
  II.  ANY KNOWN OR ANTICIPATED ACUTE OR CHRONIC HEALTH RISKS ASSOCIATED
WITH THE RELEASE; AND
  III. ADVICE REGARDING MEDICAL ATTENTION NECESSARY FOR EXPOSED INDIVID-
UALS.
  D. THE DEPARTMENT SHALL POST ALL  CHEMICAL  SPILL  REPORT  INFORMATION
REFERENCED  IN  PARAGRAPHS A, B AND C OF THIS SUBDIVISION ON THE DEPART-
MENT'S WEBSITE.
  4. THE DEPARTMENT SHALL PROMULGATE  RULES  AND  REGULATIONS  REQUIRING
THAT  OWNERS  OR  OPERATORS  OF WELLS GIVE WRITTEN NOTICE TO ALL PERSONS
RESIDING WITHIN ONE HALF MILE OF ANY PROPOSED WELL SITE TWO WEEKS BEFORE
DRILLING OR HYDRAULIC FRACTURING OPERATIONS BEGIN. OWNERS  OR  OPERATORS
OF  WELLS SHALL PUBLISH A NOTICE IN A LOCAL NEWSPAPER CIRCULATING IN THE
AREA OF THE PROPOSED WELL SITE TWO WEEKS BEFORE  DRILLING  OR  HYDRAULIC
FRACTURING  OPERATIONS  BEGIN. WITHIN TWO BUSINESS DAYS OF GIVING NOTICE
UNDER THIS SECTION, A LIST OF RECIPIENTS AND A COPY OF ALL NOTICES, WITH
PROOF OF DELIVERY IN COMPLIANCE WITH THIS SECTION, SHALL BE SUBMITTED TO
THE DEPARTMENT FOR INCLUSION IN THE DRILLING PERMIT FILE. COPIES OF  ALL
NOTICES SHALL BE PUBLICLY AVAILABLE.
  5.  THE  DEPARTMENT SHALL DEVELOP MAPS OF ALL KNOWN OIL AND GAS WELLS,
INCLUDING ACTIVE AND ABANDONED WELLS, IN NEW  YORK  USING  A  GEOGRAPHIC
INFORMATION  SYSTEM AND MAKE THOSE MAPS SYSTEM PUBLICLY AVAILABLE ON THE
DEPARTMENT'S WEBSITE.
  6. THE DEPARTMENT SHALL CREATE AND OPERATE AN  EMERGENCY  1-800  TELE-
PHONE  NUMBER  FOR  PUBLIC  USE  IN IDENTIFYING AND REPORTING ANY OIL OR
NATURAL GAS-RELATED INCIDENTS TO THE DEPARTMENT.
  S 8. The environmental conservation law is amended  by  adding  a  new
section 23-0315 to read as follows:
S 23-0315. BEST MANAGEMENT PRACTICES.
  1. THE COMMISSIONER SHALL NOT PERMIT ANY OWNER OR OPERATOR TO COMMENCE
OPERATIONS  TO  DRILL,  DEEPEN, PLUG BACK OR CONVERT A WELL FOR EXPLORA-
TION, PRODUCTION, STORAGE OR DISPOSAL UNLESS SUCH  OPERATIONS  IMPLEMENT
BEST MANAGEMENT PRACTICES.
  2. THE COMMISSIONER SHALL INCLUDE ALL APPLICABLE BEST MANAGEMENT PRAC-
TICES  AS  CONDITIONS  OF  EACH  PERMIT  TO  DRILL, DEEPEN, PLUG BACK OR
CONVERT A WELL.
  3. EVERY THREE YEARS, AFTER HOLDING A PUBLIC HEARING WITH DUE  NOTICE,
THE COMMISSIONER SHALL PUBLISH AN INVENTORY OF BEST MANAGEMENT PRACTICES
THAT  MAY  BE  INCLUDED AS SPECIAL CONDITIONS OF PERMITS FOR NATURAL GAS
DRILLING, DEPENDING UPON SITE-SPECIFIC ANALYSIS OF A PROPOSED WELL  SITE
AND  AVAILABLE  CONTROL TECHNOLOGIES. ANY BEST MANAGEMENT PRACTICES THAT
MAY BE APPLIED TO ALL DRILLING PERMITS SHALL  BE  PROMULGATED  AS  REGU-
LATIONS  IN COMPLIANCE WITH THE REQUIREMENTS OF THE STATE ADMINISTRATIVE
PROCEDURE ACT.
  S 9. The environmental conservation law is amended  by  adding  a  new
section 23-0317 to read as follows:
S 23-0317. LIABILITY.
  1.  LIABLE PARTIES. THE FOLLOWING PERSONS SHALL BE LIABLE UNDER SUBDI-
VISION TWO OF THIS SECTION:
  A. THE OWNER OF AN OIL AND GAS FACILITY OR PIPELINE;
  B. THE OPERATOR OF AN OIL AND GAS FACILITY OR PIPELINE;
  C. ANY PERSON WHO BY CONTRACT, AGREEMENT, OR  OTHERWISE  ARRANGED  FOR
THE  TRANSPORT  OF OIL OR GAS, OR FOR THE TRANSPORT, DISPOSAL, OR TREAT-
MENT OF A HAZARDOUS SUBSTANCE USED IN OIL OR GAS  OPERATIONS,  INCLUDING
HAZARDOUS  HYDRAULIC FRACTURING FLUID OR ANY HAZARDOUS COMPONENTS THERE-
OF; AND,

S. 2697                            10

  D. ANY PERSON WHO ACCEPTS ANY HAZARDOUS SUBSTANCE USED IN OIL AND  GAS
OPERATIONS FOR RECYCLING, DISPOSAL, OR TREATMENT.
  2.  LIABILITY.  ANY  LIABLE PARTY MENTIONED IN SUBDIVISION ONE OF THIS
SECTION SHALL BE LIABLE FOR ANY ENVIRONMENTAL DAMAGE FROM, OR THE CONSE-
QUENCES OF  ANY  HAZARDOUS  RELEASE  FROM,  AN  OIL  AND  GAS  FACILITY,
WELL-BORE,  PIPELINE, OR FROM ANY STORAGE OR DISPOSAL AREA FOR OIL, GAS,
OR A HAZARDOUS SUBSTANCE USED IN OIL OR GAS OPERATIONS INCLUDING:
  A. ALL COSTS OF REMOVAL OR REMEDIAL ACTION INCURRED BY  THE  STATE  OR
ANY SUBDIVISION THEREOF;
  B. ANY OTHER NECESSARY COSTS OF RESPONSE OR MITIGATION INCURRED BY ANY
OTHER  PERSON AUTHORIZED BY THE STATE TO RESPOND TO THE CONTAMINATION OR
MITIGATE THE EFFECTS THEREOF;
  C.  DAMAGES  FOR  INJURY  TO,  DESTRUCTION  OF,  OR  LOSS  OF  NATURAL
RESOURCES,  INCLUDING  THE  REASONABLE  COSTS  OF ASSESSING SUCH INJURY,
DESTRUCTION, OR LOSS RESULTING FROM SUCH A RELEASE; AND,
  D. ALL DIRECT COSTS PROXIMATELY CAUSED BY THE ENVIRONMENTAL DAMAGE  OR
THE  CONSEQUENCES OF ANY HAZARDOUS RELEASE TO PRIVATE PARTIES, INCLUDING
BUT NOT LIMITED TO DAMAGE TO PROPERTY OWNED BY SUCH PARTIES OR INJURY TO
PERSONAL HEALTH OR WELFARE.
  3.  LIMITATION  OF  LIABILITY.  NOTHING  IN  THIS  SECTION  SHOULD  BE
CONSTRUED  AS  LIMITING  THE LIABILITY OF ANY LIABLE PARTY IDENTIFIED IN
SUBDIVISION ONE OF THIS SECTION AS AGAINST ANY PRIVATE PARTY IN A  CIVIL
ACTION.
  4.  NATURAL  RESOURCES  LIABILITY.  A.  IN  THE EVENT OF AN INJURY TO,
DESTRUCTION OF, OR LOSS OF NATURAL RESOURCES UNDER PARAGRAPH C OF SUBDI-
VISION TWO OF THIS SECTION, LIABILITY SHALL BE TO THE STATE OF NEW YORK;
PROVIDED, HOWEVER, THAT NO LIABILITY TO THE STATE OF NEW YORK  SHALL  BE
IMPOSED  UNDER PARAGRAPH C OF SUBDIVISION TWO OF THIS SECTION, WHERE THE
PARTY SOUGHT TO BE CHARGED HAS DEMONSTRATED THAT THE DAMAGES TO  NATURAL
RESOURCES  COMPLAINED OF WERE SPECIFICALLY IDENTIFIED AS AN IRREVERSIBLE
OR IRRETRIEVABLE COMMITMENT OF NATURAL  RESOURCES  IN  AN  ENVIRONMENTAL
IMPACT  STATEMENT,  OR  OTHER COMPARABLE ENVIRONMENTAL ANALYSIS, AND THE
DECISION TO GRANT A PERMIT OR  LICENSE  AUTHORIZES  SUCH  COMMITMENT  OF
NATURAL  RESOURCES,  AND THE FACILITY OR PROJECT WAS OTHERWISE OPERATING
WITHIN THE TERMS OF ITS PERMIT OR LICENSE.
  B. THE COMMISSIONER,  OR  ANOTHER  REPRESENTATIVE  AUTHORIZED  BY  THE
GOVERNOR  OF  NEW  YORK, SHALL ACT ON BEHALF OF THE PUBLIC AS TRUSTEE OF
SUCH NATURAL RESOURCES TO RECOVER FOR SUCH DAMAGES.  SUMS  RECOVERED  BY
THE  COMMISSIONER  AS TRUSTEE UNDER THIS SUBSECTION SHALL BE RETAINED BY
THE TRUSTEE, WITHOUT FURTHER APPROPRIATION, FOR  USE  ONLY  TO  RESTORE,
REPLACE,  OR ACQUIRE THE EQUIVALENT OF SUCH NATURAL RESOURCES. THE MEAS-
URE OF DAMAGES IN ANY ACTION UNDER PARAGRAPH C  OF  SUBDIVISION  ONE  OF
THIS  SECTION  SHALL  NOT  BE  LIMITED  BY THE SUMS WHICH CAN BE USED TO
RESTORE OR REPLACE SUCH RESOURCES.
  5. FINANCIAL RESPONSIBILITY. A. ANY OWNER OR OPERATOR  OF  A  WELL  OR
WELLS  MUST, BEFORE COMMENCEMENT OF OPERATIONS, POST A LIABILITY BOND OR
HOLD LIABILITY INSURANCE COVERAGE FOR EACH WELL OWNED OR OPERATED.
  B. THE LIABILITY BOND OR INSURANCE REQUIRED BY  PARAGRAPH  A  OF  THIS
SUBDIVISION  SHALL BE IN SUCH FORM AS THE DEPARTMENT BY REGULATION SHALL
REQUIRE AND IN SUCH AMOUNT AS THE DEPARTMENT SHALL DEEM TO BE REASONABLY
SUFFICIENT TO CORRECT, REPAIR OR  REMEDY  TO  THE  SATISFACTION  OF  THE
DEPARTMENT  ANY  ENVIRONMENTAL  DAMAGE  OR HAZARDOUS DISCHARGE RESULTING
FROM OIL OR GAS EXPLORATION OR PRODUCTION.  HOWEVER, FOR WELLS LESS THAN
TWO THOUSAND FIVE HUNDRED FEET IN DEPTH OR LENGTH,  A  MINIMUM  OF  FIVE
THOUSAND  FIVE HUNDRED DOLLARS PER WELL WILL BE REQUIRED TO SATISFY THIS
SECTION AND FOR WELLS BETWEEN TWO THOUSAND FIVE  HUNDRED  FEET  AND  SIX

S. 2697                            11

THOUSAND  FEET IN DEPTH OR LENGTH, TEN THOUSAND FIVE HUNDRED DOLLARS PER
WELL WILL BE REQUIRED. WELLS GREATER THAN SIX THOUSAND FEET IN DEPTH  OR
LENGTH  AND  FOR  WHICH  HYDRAULIC  FRACTURING FLUID SHALL BE USED, WILL
REQUIRE  THAT  THE OPERATOR PROVIDE ADDITIONAL FINANCIAL SECURITY OF TWO
HUNDRED FIFTY THOUSAND DOLLARS,  PROVIDED  HOWEVER  THE  DEPARTMENT  MAY
REQUIRE AN ADDITIONAL BOND OR FINANCIAL SECURITY IN AN AMOUNT SUFFICIENT
TO  COVER  POTENTIAL  REMEDIATION COSTS ASSOCIATED WITH CONTAMINATION OF
THE ENVIRONMENT.
  C. THE LIABILITY BOND OR INSURANCE REQUIRED BY  PARAGRAPH  A  OF  THIS
SUBDIVISION SHALL BE HELD FOR THE DURATION OF OPERATIONS.
  D.  AFTER  OPERATIONS  HAVE CEASED, ANY OWNER OR OPERATOR OF A WELL OR
WELLS SHALL POST A LIABILITY BOND OR HOLD LIABILITY INSURANCE  FOR  EACH
WELL OWNED OR OPERATED.
  E.  THE  LIABILITY  BOND  OR INSURANCE REQUIRED BY PARAGRAPH D OF THIS
SUBDIVISION SHALL BE IN SUCH FORM AS THE DEPARTMENT BY REGULATION  SHALL
REQUIRE  AND  IN  SUCH AMOUNT AS THE DEPARTMENT SHALL DEEM SUFFICIENT TO
CORRECT, REPAIR, OR REMEDY TO THE SATISFACTION  OF  THE  DEPARTMENT  ANY
ENVIRONMENTAL  DAMAGE  OR HAZARDOUS DISCHARGE RESULTING FROM MOVEMENT OF
ANY HAZARDOUS SUBSTANCE FROM THE PLUGGED OR PERMANENTLY ABANDONED WELL.
  F. THE LIABILITY BOND OR INSURANCE REQUIRED BY  PARAGRAPH  D  OF  THIS
SUBDIVISION  SHALL BE HELD FOR ONE HUNDRED YEARS AFTER THE WELL HAS BEEN
PLUGGED OR PERMANENTLY ABANDONED.
  G. NOTHING IN THIS SECTION SHALL AFFECT THE REQUIREMENTS OF  PARAGRAPH
E OF SUBDIVISION THREE OF SECTION 23-1101 OF THIS ARTICLE.
  6.  DEFINITION  OF  NATURAL  RESOURCES. "NATURAL RESOURCES" AS USED IN
THIS SECTION MEANS LAND,  FISH,  WILDLIFE,  BIOTA,  AIR,  WATER,  GROUND
WATER,  DRINKING  WATER SUPPLIES, AND OTHER SUCH RESOURCES BELONGING TO,
MANAGED BY, HELD IN TRUST BY, APPERTAINING TO, OR  OTHERWISE  CONTROLLED
BY THE STATE OF NEW YORK.
  S  10.  The  environmental conservation law is amended by adding a new
section 23-0505 to read as follows:
S 23-0505. OIL AND GAS FACILITY LOCATION REQUIREMENTS.
  1. MINIMUM SETBACKS. NO OIL AND GAS FACILITY, WELL-BORE, PIPELINE,  OR
STORAGE  OR DISPOSAL AREA FOR OIL, GAS, OR A HAZARDOUS SUBSTANCE USED IN
OIL OR GAS OPERATIONS SHALL BE LOCATED WITHIN TWO THOUSAND FEET  OF  ANY
SURFACE WATERS, GROUNDWATER WELL, HOME OR PRIVATE RESIDENCE (INCLUDING A
NURSING HOME), SCHOOL, CHURCH, DAY CARE FACILITY, OR HEALTH CARE FACILI-
TY.
  2.  SUBSURFACE  LANDS.  FOR  THE  PURPOSES  OF SUBDIVISION ONE OF THIS
SECTION, THE SETBACKS APPLICABLE  TO  ANY  SURFACE  WATERS,  GROUNDWATER
WELL,  HOME  OR  PRIVATE  RESIDENCE  (INCLUDING A NURSING HOME), SCHOOL,
CHURCH, DAY CARE FACILITY, OR HEALTH CARE FACILITY SHALL ALSO  APPLY  TO
THE LAND DIRECTLY BELOW THOSE AREAS, INCLUDING ANY SUBSURFACE STRATA.
  3.  CONTAMINATION  PREVENTION.  A. SPILLS, WELL LEAKS, AND CONTAMINANT
FLOW FROM TARGETED FORMATION.
  (1) THE WELL PAD OF ANY OIL OR GAS WELL LOCATED WITHIN  ONE-HALF  MILE
OF  ANY  SURFACE  WATERS  MUST BE SURROUNDED BY A PROTECTIVE BERM WITH A
WATER DETENTION CAPACITY OF AT LEAST TWENTY-FIVE THOUSAND  GALLONS.  THE
DEPARTMENT  MAY  REQUIRE  A PROTECTIVE BERM TO HAVE A DETENTION CAPACITY
GREATER THAN TWENTY-FIVE THOUSAND GALLONS IF THE  DEPARTMENT  DETERMINES
IT IS NECESSARY TO PROTECT SURFACE WATERS FROM CONTAMINATION.
  (2)  THE  DEPARTMENT  SHALL  REQUIRE  A  SITE-SPECIFIC ANALYSIS OF THE
TOPOGRAPHY, GEOLOGY, AND HYDROGEOLOGY OF ALL PROPOSED OIL AND GAS FACIL-
ITIES OR PIPELINES. THIS ANALYSIS SHOULD INCLUDE IDENTIFICATION  OF  ALL
POTENTIAL  PATHWAYS  AND  RECEIVING  WATERS  FOR SPILLS FROM THE SITE TO
REACH SURFACE WATERS.

S. 2697                            12

  (3) THE  DEPARTMENT  SHALL  REQUIRE  THE  DEVELOPMENT  OF  GROUNDWATER
CONTOUR  AND VERTICAL GRADIENT MAPS OF THE GEOLOGICAL FORMATION FROM THE
TARGET FORMATION TO THE GROUND SURFACE PRIOR  TO  APPROVAL  OF  ANY  GAS
DRILLING PERMIT.
  (4) THE DEPARTMENT SHALL PROMULGATE REGULATIONS IDENTIFYING TOPOGRAPH-
ICAL AND GEOLOGIC AND HYDROGEOLOGIC CONDITIONS, INCLUDING BUT NOT LIMIT-
ED TO STEEP SLOPES BETWEEN THE WELL PAD AND SURFACE WATERS; PROXIMITY TO
IMPAIRED  WATERWAYS  IDENTIFIED  BY  THE  STATE  OF NEW YORK PURSUANT TO
SECTION 303(D) OF THE FEDERAL CLEAN WATER  ACT;  CONDITIONS  THAT  WOULD
PERMIT  SUDDEN  SPILLS  TO  REACH  SURFACE  WATERS BEFORE CONTAINMENT IS
POSSIBLE; OR ANY OTHER  CONDITIONS  THAT  WOULD  INCREASE  THE  RISK  OF
SURFACE OR GROUNDWATER CONTAMINATION OR FURTHER DEGRADATION THAT REQUIRE
SETBACKS  LARGER THAN THOSE SPECIFIED IN SUBDIVISION ONE OF THIS SECTION
OR DENIAL OF A WELL DRILLING PERMIT.
  (5) AS A CONDITION OF ANY PERMIT GRANTED PURSUANT TO  SECTION  23-0501
OF  THIS  ARTICLE  FOR  ANY  WELL  SUBJECT  TO SETBACK REQUIREMENTS, THE
DEPARTMENT SHALL ESTABLISH SETBACKS SUFFICIENT TO PROTECT  HUMAN  HEALTH
AND THE WATERS OF THE STATE.
  B.  MONITORING REQUIREMENTS. (1) ALL OIL OR GAS WELLS MUST BE EQUIPPED
WITH A MONITORING DEVICE OR DEVICES INSTALLED TO DETECT ANY  CONTAMINANT
MOVEMENT FROM THE OIL OR GAS WELL IN THE DIRECTION OF ANY GROUNDWATER OR
GROUNDWATER WELL.
  (2)  THE  DEPARTMENT SHALL PROMULGATE REGULATIONS ESTABLISHING A MONI-
TORING PROGRAM TO DETECT ANY CONTAMINANT MOVEMENT FROM  AN  OIL  OR  GAS
FACILITY. THE REGULATIONS SHALL PROVIDE, AT A MINIMUM, THAT:
  (I) MONITORING SHALL OCCUR NO LESS OFTEN THAN QUARTERLY;
  (II)  GROUNDWATER  MONITORING  SHALL  COMMENCE AT OR NEAR THE PROPOSED
WELL SITE AT LEAST THREE HUNDRED SIXTY-FIVE DAYS BEFORE DRILLING  BEGINS
TO  PROVIDE  A WATER QUALITY BASELINE THAT ACCOUNTS FOR SEASONAL CHANGES
IN WATER QUALITY;
  (III) MONITORING SHALL CONTINUE FOR THE DURATION OF  OPERATIONS  UNTIL
FIFTY  YEARS  AFTER  OPERATIONS  HAVE CEASED OR THE OIL AND GAS WELL HAS
BEEN PLUGGED OR PERMANENTLY ABANDONED;
  (IV) THE MONITORING DEVICE OR DEVICES USED TO DETECT CONTAMINANT MOVE-
MENT SHALL REFLECT THE BEST TECHNOLOGY AVAILABLE FOR SUCH MONITORING;
  (V) MONITORING SHALL BE CONDUCTED FOR ONE OR MORE ACTUAL  CONSTITUENTS
OF DRILLING AND FRACTURING FLUIDS USED AT EACH PROXIMATE SITE; AND
  (VI)  SCREEN  LENGTHS,  MONITORING WELL DENSITY AND MONITORED AQUIFERS
SHALL BE BASED UPON A CONCEPTUAL FLOW MODEL, DEVELOPED ON THE  BASIS  OF
ALL AVAILABLE OR NEW DATA, AS APPROPRIATE, TO DETECT A LEAK OR MIGRATION
OF  ANY  CONTAMINATION  SO  AS  TO MAXIMIZE THE POSSIBILITY OF DETECTION
PRIOR TO CONTAMINATION OF ANY DRINKING WATER SOURCE.
  S 11. The environmental conservation law is amended by  adding  a  new
section 23-0507 to read as follows:
S 23-0507. EXCLUSION AREAS.
  1.  THE  DEPARTMENT  SHALL  IDENTIFY  SPECIFIC AREAS WITH DETERMINABLE
BOUNDARIES IN WHICH ANY OIL AND GAS FACILITIES,  WELL-BORES,  PIPELINES,
OR STORAGE OR DISPOSAL AREAS FOR OIL, GAS, OR A HAZARDOUS SUBSTANCE USED
IN OIL OR GAS OPERATIONS WILL BE PROHIBITED. THESE AREAS SHALL INCLUDE:
  A. THE AREA AROUND AND INCLUDING THE NEW YORK CITY WATERSHED;
  B.  THE  AREA AROUND AND INCLUDING ANY WATER SYSTEM THAT HAS RECEIVED,
AT ANY POINT IN TIME, A  FILTRATION  AVOIDANCE  DETERMINATION  FROM  THE
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY;
  C. ANY AREA OVERLYING A SOLE SOURCE AQUIFER;
  D.  ANY  OTHER  AREA IDENTIFIED BY THE DEPARTMENT AS NECESSARY FOR THE
PROTECTION OF DRINKING WATER RESOURCES;

S. 2697                            13

  E. ANY AREA IDENTIFIED AS A  CRITICAL  HABITAT  FOR  A  THREATENED  OR
ENDANGERED  SPECIES UNDER SECTION FOUR OF THE FEDERAL ENDANGERED SPECIES
ACT (42 U.S.C. S 1533) OR ANY AREA IDENTIFIED  AS  A  "NATURAL  HERITAGE
AREA" UNDER SECTION 11-0539 OF THIS CHAPTER;
  F.  ANY  AREA IDENTIFIED BY THE DEPARTMENT AS A BIRD CONSERVATION AREA
OR ANY OTHER CRITICAL BIRD HABITAT FOR THE PROTECTION  OF  MIGRATORY  OR
NON-MIGRATORY BIRDS;
  G. ALL FLOODPLAINS; AND,
  H.  ALL  AREAS  WITHIN ANY NEW YORK STATE PARK, FOREST PRESERVE, STATE
FOREST, WILDLIFE REFUGE, WILDLIFE MANAGEMENT AREA, OR WILDERNESS AREA.
  2. FOR ANY AREAS IDENTIFIED IN PARAGRAPH A OR B OF SUBDIVISION ONE  OF
THIS SECTION THE DEPARTMENT SHALL IDENTIFY AN ADDITIONAL AREA AROUND THE
PRIMARY DRINKING WATER RESOURCE IN WHICH OIL AND GAS OPERATIONS SHALL BE
PROHIBITED IN ORDER TO ENSURE ADEQUATE PROTECTION OF SUCH RESOURCE.
  3. FOR ANY AREAS IDENTIFIED IN PARAGRAPHS A, B, C, OR E OF SUBDIVISION
ONE  OF  THIS  SECTION  THE DEPARTMENT SHALL ADD AN ADDITIONAL EXCLUSION
BUFFER OF NO LESS THAN ONE-HALF MILE IN WHICH ANY OIL  AND  GAS  FACILI-
TIES,  WELL-BORES, PIPELINES, OR STORAGE OR DISPOSAL AREAS FOR OIL, GAS,
OR A HAZARDOUS SUBSTANCE USED IN OIL OR GAS OPERATIONS WILL BE PROHIBIT-
ED.
  4. ALL AREAS IDENTIFIED IN SUBDIVISION ONE OF  THIS  SECTION  AND  THE
EXCLUSION  BUFFER  AREAS  IDENTIFIED  IN SUBDIVISION TWO OF THIS SECTION
SHALL INCLUDE ALL THE LAND LOCATED DIRECTLY BELOW THOSE AREAS, INCLUDING
ALL LEVELS OF SUBSURFACE STRATA.
  5. THE DEPARTMENT MAY ALSO IDENTIFY ANY OTHER EXCLUSION AREA  FOR  THE
PROTECTION  OF  ANY  NATURAL  RESOURCE  AS DEFINED IN SUBDIVISION SIX OF
SECTION 23-0317 OF THIS ARTICLE OR FOR THE HEALTH,  SAFETY,  OR  GENERAL
WELFARE OF ANY CITIZEN, RESIDENT, OR VISITOR IN THE STATE OF NEW YORK.
  S  12.  The  environmental conservation law is amended by adding a new
section 23-0509 to read as follows:
S 23-0509. PROHIBITION ON WASTE STORAGE PITS OR IMPOUNDMENTS.
  PITS AND OTHER IMPOUNDMENTS, WHETHER OR NOT LINED, SHALL NOT  BE  USED
FOR ON-SITE OR OFF-SITE COLLECTION OR STORAGE OF ANY OIL OR GAS EXPLORA-
TION,  STIMULATION,  OR  PRODUCTION WASTES, INCLUDING BUT NOT LIMITED TO
DRILLING FLUIDS AND CUTTINGS, HYDRAULIC  FRACTURING  FLOWBACK,  PRODUCED
WATER,  AND RESIDUAL SLUDGES OR BRINES REMAINING AFTER ON-SITE TREATMENT
OF OIL OR GAS WASTES FOR REUSE OR RECYCLING. ALL OIL OR GAS EXPLORATION,
STIMULATION, OR PRODUCTION WASTES SHALL  BE  COLLECTED  AND  STORED  AND
RETRIEVABLE  AT  ALL  TIMES IN CLOSED-LOOP SYSTEMS. THE DEPARTMENT SHALL
PROMULGATE MINIMUM STANDARDS FOR CLOSED-LOOP SYSTEMS  FOR  OIL  AND  GAS
WASTE COLLECTION, STORAGE, AND RETRIEVAL.
  S  13.  Section  23-1903  of  the  environmental  conservation law, as
amended by section 1 of part R-1 of chapter 62 of the laws of  2003,  is
amended to read as follows:
S 23-1903. Imposition  of  oil,  gas  and solution mining regulation and
             reclamation fees.
  1. When a permit is granted to a person by the department pursuant  to
section  23-0305  of  this  article  to  drill  a  well or when a person
converts a well to one subject to the oil, gas and solution mining  law,
such person shall pay to the department:
  a.  A one hundred dollar fee to be credited to the oil and gas account
established under chapter fifty-eight of the laws  of  nineteen  hundred
eighty-two; and
  b.  A  fee in accordance with the depth AND LENGTH drilled or expected
to be drilled as set forth below:
     0-  500ft. - [$  190] $ 250

S. 2697                            14

   501- 1000ft. - [$  380] $ 500
  1001- 1500ft. - [$  570] $ 750
  1501- 2000ft. - [$  760] $1000
  2001- 2500ft. - [$  950] $1250
  2501- 3000ft. - [$1,140] $1500
  3001- 3500ft. - [$1,330] $1750
  3501- 4000ft. - [$1,520] $2000
  4001- 4500ft. - [$1,710] $2250
  4501- 5000ft. - [$1,900] $2500
  5001- 5500ft. - [$2,090] $2750
  5501- 6000ft. - [$2,280] $3000
  6001- 6500ft. - [$2,470] $3250
  6501- 7000ft. - [$2,660] $3500
  7001- 7500ft. - [$2,850] $3750
  7501- 8000ft. - [$3,040] $4000
  8001- 8500ft. - [$3,230] $4250
  8501- 9000ft. - [$3,420] $4500
  9001- 9500ft. - [$3,610] $4750
  9501-10,000ft.- [$3,800] $5000
  over 10,000ft.- [$3,800]  $5000  plus [$190] $250 for each incremental
500 feet of depth OR LENGTH over 10,000 feet.
  A person who has paid the fees described shall not be required to  pay
any  additional  fee  for a well conversion.  The fee for well deepening
permits pertaining to wells for which a well drilling permit was  issued
after  August twenty-fifth, nineteen hundred eighty-one, shall be calcu-
lated on the basis of the additional depth OR LENGTH drilled.
  In the event the actual depth drilled exceeds the depth expected to be
drilled, an additional amount shall be paid such that the total fee paid
shall be in accordance with the schedule set forth in this paragraph.
  2. THE DEPARTMENT SHALL REVIEW THE FEE SCHEDULES  SET  FORTH  IN  THIS
SECTION  PRIOR  TO  SEPTEMBER  FIRST  OF  EACH YEAR. THE FIGURES WILL BE
ADJUSTED UP OR DOWN ANNUALLY BY  THE  PREVIOUS  TWELVE  MONTH  INFLATION
FACTOR.  THE INFLATION FACTOR IS BASED UPON THE UNITED STATES DEPARTMENT
OF LABOR, BUREAU OF LABOR STATISTICS DATA PUBLISHED IN THE  MONTHLY  CPI
DETAILED  REPORT.  THE  DATA  WILL  BE TAKEN FROM THE MOST RECENT REPORT
AVAILABLE ON JULY FIRST OF EACH YEAR AND THE ACTUAL PERCENTAGE USED WILL
BE THE PAST YEAR PERCENT CHANGE FOR THE U.S. CITY  AVERAGE,  ALL  ITEMS,
ALL URBAN CONSUMERS.
  3.  Upon  requesting  from  the department any determination under the
Natural Gas Policy Act, such person shall  pay  a  [fifty]  ONE  HUNDRED
dollar fee per well for each such determination.
  S  14.  Article 23 of the environmental conservation law is amended by
adding a new title 29 to read as follows:
                                TITLE 29
                              CITIZEN SUITS
SECTION 23-2901. ACTIONS TO ENFORCE LAWS  ON  POLLUTION,  IMPAIRMENT  OR
                   DESTRUCTION  OF  ENVIRONMENT,  OR TO PROTECT ENVIRON-
                   MENT; DISMISSAL OF FRIVOLOUS ACTIONS.
S 23-2901. ACTIONS  TO  ENFORCE  LAWS  ON   POLLUTION,   IMPAIRMENT   OR
              DESTRUCTION  OF  ENVIRONMENT,  OR  TO PROTECT ENVIRONMENT;
              DISMISSAL OF FRIVOLOUS ACTIONS.
  1. ANY PERSON MAY COMMENCE A CIVIL ACTION  IN  A  COURT  OF  COMPETENT
JURISDICTION  AGAINST ANY OTHER PERSON ALLEGED TO BE IN VIOLATION OF ANY
STATUTE, REGULATION OR ORDINANCE WHICH IS DESIGNED TO PREVENT,  MINIMIZE
OR  CONTROL POLLUTION, IMPAIRMENT OR DESTRUCTION OF THE ENVIRONMENT. THE
ACTION MAY BE FOR INJUNCTIVE OR OTHER EQUITABLE RELIEF TO COMPEL COMPLI-

S. 2697                            15

ANCE WITH A STATUTE, REGULATION OR ORDINANCE, OR TO ASSESS CIVIL  PENAL-
TIES  FOR  THE VIOLATION AS PROVIDED BY LAW. THE ACTION MAY BE COMMENCED
UPON AN ALLEGATION THAT A PERSON IS IN VIOLATION, EITHER CONTINUOUSLY OR
INTERMITTENTLY, OF A STATUTE, REGULATION OR ORDINANCE, AND THAT THERE IS
A LIKELIHOOD THAT THE VIOLATION WILL RECUR IN THE FUTURE.
  2.  EXCEPT  IN THOSE INSTANCES WHERE THE CONDUCT COMPLAINED OF CONSTI-
TUTES A VIOLATION OF A STATUTE, REGULATION  OR  ORDINANCE  WHICH  ESTAB-
LISHES A MORE SPECIFIC STANDARD FOR THE CONTROL OF POLLUTION, IMPAIRMENT
OR  DESTRUCTION  OF  THE  ENVIRONMENT,  ANY  PERSON MAY COMMENCE A CIVIL
ACTION IN ANY COURT OF COMPETENT JURISDICTION FOR DECLARATORY AND  EQUI-
TABLE RELIEF AGAINST ANY OTHER PERSON FOR THE PROTECTION OF THE ENVIRON-
MENT,  OR THE INTEREST OF THE PUBLIC THEREIN, FROM POLLUTION, IMPAIRMENT
OR DESTRUCTION OCCURRING IN VIOLATION, EITHER CONTINUOUSLY OR  INTERMIT-
TENTLY, OF THIS ARTICLE.
  3.  THE  COURT  MAY, ON THE MOTION OF ANY PARTY, OR ON ITS OWN MOTION,
DISMISS ANY ACTION BROUGHT PURSUANT  TO  THIS  ACT  WHICH  ON  ITS  FACE
APPEARS TO BE PATENTLY FRIVOLOUS, HARASSING OR WHOLLY LACKING IN MERIT.
  S  15.  Article 23 of the environmental conservation law is amended by
adding a new title 31 to read as follows:
                                TITLE 31
                        HEALTH IMPACT ASSESSMENT
SECTION 23-3101. PREPARATION OF HEALTH IMPACT ASSESSMENT.
S 23-3101. PREPARATION OF HEALTH IMPACT ASSESSMENT.
  1. NO PERMIT SHALL BE ISSUED UNDER SECTION  23-0501  OF  THIS  ARTICLE
UNTIL  THE  DEPARTMENT OF HEALTH HAS COMPLETED THE HEALTH IMPACT ASSESS-
MENT DESCRIBED IN SUBDIVISION TWO OF THIS SECTION AND THE DEPARTMENT HAS
ADOPTED REGULATIONS AND IMPLEMENTED ANY MITIGATION MEASURES  RECOMMENDED
IN  THE HEALTH IMPACT ASSESSMENT. THE PURPOSE OF A HEALTH IMPACT ASSESS-
MENT IS TO PROVIDE DETAILED INFORMATION ABOUT THE  EFFECT  OIL  AND  GAS
OPERATIONS  ARE  LIKELY  TO  HAVE ON PUBLIC HEALTH, TO IDENTIFY MEASURES
THAT COULD BE IMPLEMENTED TO MINIMIZE ANY ADVERSE EFFECTS OF SUCH  OPER-
ATIONS,  AND TO SUGGEST ALTERNATIVES TO SUCH AN ACTION SO AS TO FORM THE
BASIS FOR A DECISION WHETHER OR NOT TO UNDERTAKE OR APPROVE SUCH  ACTIV-
ITIES.
  2.  THE DEPARTMENT OF HEALTH SHALL PREPARE, OR CAUSE TO BE PREPARED BY
CONTRACT OR OTHERWISE, A COMPREHENSIVE HEALTH IMPACT ASSESSMENT  OF  OIL
AND  GAS  OPERATIONS  INVOLVING ANY SHALE FORMATION, INCLUDING ALL OPER-
ATIONS RELATED AND INCIDENT THERETO, WHICH MAY HAVE AN ADVERSE IMPACT ON
PUBLIC HEALTH.
  A. SUCH AN ASSESSMENT SHALL INCLUDE A DETAILED STATEMENT SETTING FORTH
THE FOLLOWING:
  I. A DESCRIPTION OF THE OPERATIONS;
  II. THE PUBLIC HEALTH IMPACT OF THE OPERATIONS,  INCLUDING  SHORT-TERM
AND LONG-TERM EFFECTS;
  III. WHETHER AN OPERATION OCCURS IN, OR DISPROPORTIONATELY WILL IMPOSE
NEGATIVE HEALTH IMPACTS UPON A POTENTIAL ENVIRONMENTAL JUSTICE AREA, AND
IF SO, THE IDENTITY OF SUCH AREA;
  IV. ANY ADVERSE PUBLIC HEALTH EFFECTS THAT CANNOT BE AVOIDED;
  V.  ALTERNATIVES  TO  THE OIL AND GAS OPERATIONS GENERALLY OR ALTERNA-
TIVES TO ANY ASPECT RELATED  OR  INCIDENT  THERETO  WHICH  MAY  HAVE  AN
ADVERSE IMPACT ON PUBLIC HEALTH;
  VI. MITIGATION MEASURES PROPOSED TO MINIMIZE THE PUBLIC HEALTH IMPACT;
  VII.  ANY  SUCH OTHER INFORMATION CONSISTENT WITH THE PURPOSES OF THIS
ARTICLE AS MAY BE PRESCRIBED IN GUIDELINES ISSUED BY THE COMMISSIONER.
  B. THE DEPARTMENT OF HEALTH SHALL FIRST ISSUE A  DRAFT  HEALTH  IMPACT
ASSESSMENT THAT SATISFIES THE REQUIREMENTS OF PARAGRAPH A OF THIS SUBDI-

S. 2697                            16

VISION.  THE DRAFT SHOULD RESEMBLE IN FORM AND CONTENT THE HEALTH IMPACT
ASSESSMENT TO BE PREPARED AFTER COMMENTS HAVE BEEN RECEIVED AND  CONSID-
ERED.
  3. THE DRAFT ASSESSMENT SHALL BE FILED WITH THE DEPARTMENT.
  A.  THE DEPARTMENT AND THE DEPARTMENT OF HEALTH SHALL SOLICIT COMMENTS
FROM THE PUBLIC AND FEDERAL, STATE, REGIONAL AND LOCAL  AGENCIES  HAVING
AN  INTEREST IN THE ASSESSMENT. THE COMMENT PERIOD SHALL LAST NO SHORTER
THAN NINETY DAYS.
  B. THE DRAFT ASSESSMENT SHALL BE POSTED ON THE DEPARTMENT OF  HEALTH'S
AND THE DEPARTMENT'S WEBSITES.
  4.  AFTER  THE  FILING  OF A DRAFT HEALTH IMPACT ASSESSMENT EITHER THE
DEPARTMENT OF HEALTH OR THE DEPARTMENT SHALL DETERMINE WHETHER OR NOT TO
CONDUCT A PUBLIC HEARING ON THE PUBLIC HEALTH IMPACT OF THE OIL AND  GAS
OPERATIONS.  IF  EITHER AGENCY DETERMINES TO HOLD SUCH HEARING, IT SHALL
COMMENCE THE HEARING WITHIN SIXTY DAYS OF THE FILING UNLESS THE PROPOSED
ACTION IS WITHDRAWN FROM CONSIDERATION.
  5. IF NO HEARING IS HELD, THE AGENCY SHALL PREPARE AND MAKE  AVAILABLE
THE  FINAL  HEALTH IMPACT ASSESSMENT. THE FINAL ASSESSMENT SHALL INCLUDE
COPIES OR A SUMMARY OF THE SUBSTANTIVE COMMENTS RECEIVED BY  THE  AGENCY
PURSUANT TO SUBDIVISION FOUR OF THIS SECTION, AND THE AGENCY RESPONSE TO
SUCH COMMENTS.
  6.  THE  HEALTH IMPACT ASSESSMENT TOGETHER WITH ALL COMMENTS, SHALL BE
FILED WITH THE COMMISSIONER, MADE AVAILABLE TO THE PUBLIC, AND POSTED ON
A PUBLICLY-AVAILABLE INTERNET WEBSITE UPON ISSUANCE.
  7. WHEN AN AGENCY DECIDES TO CARRY OUT OR APPROVE AN ACTION WHICH  HAS
BEEN  THE  SUBJECT  OF  THIS  HEALTH IMPACT ASSESSMENT, IT SHALL MAKE AN
EXPLICIT FINDING THAT THE REQUIREMENTS OF THIS SECTION HAVE BEEN MET AND
THAT TO THE MAXIMUM EXTENT PRACTICABLE, ADVERSE  PUBLIC  HEALTH  IMPACTS
REVEALED  IN  THE  HEALTH IMPACT ASSESSMENT PROCESS WILL BE MINIMIZED OR
AVOIDED.
  8. WHERE THE DEPARTMENT OF  HEALTH  CONCLUDES  OR  THE  HEALTH  IMPACT
ASSESSMENT  INDICATES  THAT  THE  OIL  AND GAS OPERATIONS, OR OPERATIONS
RELATED OR INCIDENT THERETO, OCCUR IN, OR DISPROPORTIONATELY WILL IMPOSE
NEGATIVE HEALTH IMPACTS UPON A POTENTIAL ENVIRONMENTAL JUSTICE AREA, THE
DEPARTMENT OF HEALTH SHALL REQUIRE A SITE SPECIFIC HEALTH IMPACT ASSESS-
MENT. THAT ASSESSMENT SHALL CONFORM TO THE  REQUIREMENTS  SET  FORTH  IN
SUBDIVISION TWO OF THIS SECTION, AND THE DEPARTMENT OF HEALTH SHALL MAKE
REGULATIONS SPECIFYING ADDITIONAL REQUIREMENTS WHICH SHALL APPLY TO SITE
SPECIFIC ASSESSMENTS. NO PERMIT SHALL BE ISSUED UNDER SECTION 23-0501 OF
THIS  ARTICLE  IN  ANY  AREA  SUBJECT  TO  A SITE SPECIFIC HEALTH IMPACT
ASSESSMENT UNTIL THE SITE SPECIFIC HEALTH  IMPACT  ASSESSMENT  HAS  BEEN
COMPLETED  AND  THE  MITIGATION  MEASURES  SUGGESTED  THEREIN  HAVE BEEN
ADOPTED. THE DEPARTMENT OF HEALTH MAY REQUIRE  A  SITE  SPECIFIC  HEALTH
IMPACT ASSESSMENTS IN ANY OTHER CIRCUMSTANCES IT DEEMS ADVISABLE.
  S  16.  Article 23 of the environmental conservation law is amended by
adding a new title 33 to read as follows:
                                TITLE 33
                         AIR QUALITY MONITORING
SECTION 23-3301. AIR QUALITY MONITORING.
S 23-3301. AIR QUALITY MONITORING.
  WITHIN SIX MONTHS OF THE ENACTMENT  OF  THIS  SECTION  THE  DEPARTMENT
SHALL:
  1.  PREPARE  A  DRAFT  AIR QUALITY TESTING AND MONITORING PLAN FOR ALL
AREAS OF CURRENT OR POTENTIAL OIL AND GAS OPERATIONS IN NEW YORK  STATE.
THE  DRAFT  PLAN  SHALL  BE  SUBJECT TO PUBLIC REVIEW, INCLUDING BUT NOT

S. 2697                            17

LIMITED TO NOTICE AND A COMMENT PERIOD OF  AT  LEAST  THIRTY  DAYS.  THE
DRAFT AND FINAL PLAN SHALL INCORPORATE THE FOLLOWING MINIMUM PROVISIONS:
  A.  MANDATORY  BASELINE TESTING OF AIR QUALITY AND AIR POLLUTANT EMIS-
SIONS THROUGHOUT THE OIL AND GAS DEVELOPMENT REGION OF NEW  YORK  STATE,
INCLUDING  EMISSIONS  FROM  BOTH MOBILE AND STATIONARY AIR CONTAMINATION
SOURCES INVOLVED IN OIL AND GAS OPERATIONS, AS  DEFINED  IN  SUBDIVISION
FIVE OF SECTION 19-0107 OF THIS CHAPTER;
  B. DEPLOYMENT OF A SUFFICIENT NUMBER OF AIR QUALITY MONITORING DEVICES
WITHIN  THE OIL AND GAS DEVELOPMENT REGION TO ENSURE PROMPT DETECTION OF
ANY VIOLATIONS OF AIR QUALITY STANDARDS;
  C. DELINEATION OF OIL AND GAS DEVELOPMENT SUBREGIONS WITHIN  NEW  YORK
STATE, BASED ON THE AIRSHEDS FOR EACH REGULATED POLLUTANT EMITTED BY OIL
AND  GAS  FACILITIES;  PREPARATION  OF CUMULATIVE IMPACT ANALYSES OF AIR
EMISSIONS IN EACH SUBREGION, INCLUDING EMISSIONS FROM  ALL  NATURAL  GAS
COMPRESSOR  STATIONS; AND DEVELOPMENT OF STANDARDS AND REGULATORY PROCE-
DURES FOR CONTROL OF COMPRESSOR STATION EMISSIONS;
  D. DEVELOPMENT OF PROCEDURES AND A SCHEDULE FOR THE REGULAR MONITORING
AND REPORTING OF AIR QUALITY AND AIR POLLUTANT DENSITY  WITHIN  EACH  OF
THE SUBREGIONS;
  E. MANDATORY POSTING OF SUCH REPORTS ON THE DEPARTMENT'S WEBSITE;
  F.  ESTABLISHMENT  OF  PROCEDURES FOR APPROPRIATE RESPONSES, INCLUDING
EMERGENCY RESPONSES, TO VIOLATIONS OF AIR QUALITY STANDARDS.
  2. IN THE FINAL AIR QUALITY TESTING AND MONITORING PLAN,  THE  DEPART-
MENT  SHALL  RESPOND TO ALL SUBSTANTIVE COMMENTS TIMELY SUBMITTED ON THE
DRAFT PLAN.
  3. NO PERMIT SHALL BE ISSUED UNDER SECTION  23-0501  OF  THIS  ARTICLE
UNTIL  THIRTY  DAYS  AFTER  NOTICE OF THE FINAL PLAN IS PUBLISHED IN THE
ENVIRONMENTAL NOTICE BULLETIN.
  4. NO PERMIT SHALL BE ISSUED UNDER SECTION 23-0501 OF THIS ARTICLE, IF
AIR EMISSIONS FROM THE PERMITTED OPERATION WOULD CAUSE OR CONTRIBUTE  TO
A VIOLATION OF ANY AIR QUALITY STANDARD.
  S 17. Section 27-0903 of the environmental conservation law is amended
by adding a new subdivision 4 to read as follows:
  4.  UNIFORM TREATMENT OF WASTE. NOTWITHSTANDING ANY OTHER LAW OR REGU-
LATION TO THE CONTRARY, ALL WASTE RESULTING FROM THE EXPLORATION, DEVEL-
OPMENT, EXTRACTION OR PRODUCTION OF CRUDE OIL OR NATURAL GAS,  INCLUDING
BUT NOT LIMITED TO DRILLING FLUIDS AND PRODUCED WATERS, SHALL BE CONSID-
ERED  HAZARDOUS  WASTE  UNDER  THE  LAW OF THIS STATE AND SUBJECT TO ALL
PERTINENT GENERATION, TRANSPORTATION, TREATMENT, STORAGE,  AND  DISPOSAL
LAWS  AND  REGULATIONS,  IF SUCH WASTE MEETS THE DEFINITION OF HAZARDOUS
WASTE SET FORTH IN SUBDIVISION THREE OF SECTION 27-0901 OF THIS CHAPTER.
WITHIN SIX MONTHS FROM THE  EFFECTIVE  DATE  OF  THIS  SUBDIVISION,  THE
DEPARTMENT  SHALL  MAKE  ALL  NECESSARY CHANGES TO BRING ITS REGULATIONS
INTO COMPLIANCE WITH THIS SECTION.
  S 18. Section  15-1501  of  the  environmental  conservation  law,  as
amended  by  chapter  233  of  the  laws  of 1979, is amended to read as
follows:
S 15-1501. [New or additional sources of water supply] WATER WITHDRAWAL;
             permit.
  1. Except as otherwise provided in this title, no  person  [or  public
corporation]  who  is  authorized and engaged in, or proposing to engage
in, the [acquisition, conservation, development, use and distribution of
water for potable purposes, for the irrigation  of  agricultural  lands,
for  projects  taken  pursuant  to Article 5-D of the County Law, or for
multi-purpose projects authorized by a general plan adopted and approved
pursuant to title 11 of this article,] OPERATION OF A  WATER  WITHDRAWAL

S. 2697                            18

SYSTEM WITH A CAPACITY OF GREATER THAN OR EQUAL TO THE THRESHOLD VOLUME,
shall  have  any  power to do the following until such person [or public
corporation] has first obtained a permit OR PERMIT MODIFICATION from the
department pursuant to this title:
  a.  To  [acquire  or take] MAKE a water [supply] WITHDRAWAL FROM A NEW
SOURCE or an [additional] INCREASED water [supply]  WITHDRAWAL  from  an
existing [approved] source; [or]
  b. To take or condemn lands for THE PROTECTION OF ANY EXISTING SOURCES
OF  PUBLIC WATER SUPPLY; OR FOR THE DEVELOPMENT OR PROTECTION OF any new
or additional sources of PUBLIC water supply [or for the utilization  of
such supplies]; [or]
  c.  To commence or undertake the construction of any works or projects
in connection with the proposed [plans] WITHDRAWAL; or
  d. [To exercise any franchise hereafter granted to supply water to any
inhabitants of the state; or
  e. To extend its supply or distribution  mains  into  a  municipality,
water  district,  water  supply district, or other civil division of the
state wherein it has not heretofore legally supplied water; or
  f. To construct any extension of its  supply  mains  except  within  a
service area approved by the department after public hearing; or
  g. To extend the boundaries of a water district; or
  h.  To  supply  water in or for use in any other municipality or civil
division of the state which owns and  operates  a  water  supply  system
therein, or in any duly organized water supply or fire district supplied
with  water  by  another person or public corporation] TO MAKE A SIGNIF-
ICANT CHANGE IN THE PRINCIPAL USE OF THE WATER  WITHDRAWAL  SYSTEM  FROM
THAT SPECIFIED IN THE PERMIT, OR PERMIT APPLICATION.
  2.  [A  permit  shall  not be necessary for the extension of supply or
distributing mains or pipes of a municipal water supply plant  into  and
for the purpose of supplying water in any territory within the limits of
the  municipality  owning  such plant, including territory which has not
been heretofore supplied with water by such plant, nor  for  the  recon-
struction  or  replacement  of existing facilities in connection with an
existing plant wherein the capacity of the plant is in no way increased,
nor for the construction of filtration  or  other  treatment  facilities
which will not in any way increase the amount of water which can be made
available  from  the  present  sources  of supply. A permit shall not be
necessary for the extension of supply or distributing mains or pipes  of
a  county water authority into and for the purpose of supplying water in
any territory assigned to such county water authority within the  limits
of  the  county but excluding territory specifically assigned to private
or other municipal water companies by the department which has not  been
heretofore  supplied  with water by such county water authority, nor for
the reconstruction or replacement of existing facilities  in  connection
with  an  existing  plant wherein the capacity of the plant is in no way
increased, nor for the construction of  filtration  or  other  treatment
facilities  which will not in any way increase the amount of water which
can be made available from the  present  sources  of  supply,  provided,
however,  that  nothing herein contained shall be held to authorize such
county water authority to enter into competition with, for  the  purpose
of service in the area served by the mains, the transmission or distrib-
ution mains of any other water works system, either publicly or private-
ly  owned,  already  legally  established in said county for the sale of
water at wholesale or retail, or which hereafter may legally  be  estab-
lished  for  said  purpose;  or  to  sell water to any other water works
system, either publicly or privately owned, and not now served  by  said

S. 2697                            19

county  authority]  ALL  PERSONS  REQUIRED TO OBTAIN A PERMIT UNDER THIS
SECTION SHALL SUBMIT ANNUALLY TO THE  DEPARTMENT  A  FEE  IN  AN  AMOUNT
PRESCRIBED  IN  TITLE  EIGHT  OF  ARTICLE  SEVENTY-TWO  OF THIS CHAPTER;
PROVIDED,  HOWEVER,  THAT  NO  PERSON  SHALL BE REQUIRED TO PAY SUCH FEE
UNTIL THE DEPARTMENT PROMULGATES  REGULATIONS  PURSUANT  TO  SUBDIVISION
FIVE OF THIS SECTION.
  3.  UNTIL  THE DEPARTMENT PROMULGATES REGULATIONS PURSUANT TO SUBDIVI-
SION FIVE OF THIS SECTION, NOTHING CONTAINED IN SUBDIVISION ONE OF  THIS
SECTION  CONCERNING  PERMITS  FROM THE DEPARTMENT SHALL BE APPLICABLE TO
WATER WITHDRAWALS OTHER THAN FOR A PUBLIC WATER SUPPLY SYSTEM. UNTIL AND
UNLESS OTHERWISE PROVIDED BY SUCH REGULATIONS, ALL  VALID  PUBLIC  WATER
SUPPLY PERMITS ISSUED BY THE DEPARTMENT OR ITS PREDECESSORS SHALL REMAIN
IN  FULL  FORCE  AND  EFFECT  AND  SHALL BE DEEMED TO SATISFY THE PERMIT
REQUIREMENTS OF SUBDIVISION ONE OF THIS SECTION FOR EXISTING WATER WITH-
DRAWALS FROM A SOURCE AND IN AN AMOUNT AUTHORIZED BY THE PERMIT.
  4. Nothing CONTAINED  in  this  [section  provided]  TITLE  CONCERNING
PERMITS  FROM  THE  DEPARTMENT  FOR WATER WITHDRAWALS shall be deemed to
nullify the requirements of [Regulation 2, Chapter V] SECTION 5-1.22  of
the  State  Sanitary  Code, as in effect on [January 1, 1960, that plans
for a new water treatment plant for the treatment of an existing  public
water supply or for any addition to or modification of an existing water
treatment  plant,  or  for  any  addition to or modification of a public
water supply system which will or may affect the quality of  the  public
water  supply, shall be submitted to and approved by the Commissioner of
Health, which regulation has no  application  to  a  new  or  additional
source  or sources of public water supply of a permanent character which
require a permit from the Department of Environmental Conservation under
the provisions of this article] APRIL 25, 2001, AS AMENDED FROM TIME  TO
TIME.    NO SUPPLIER OF WATER SHALL MAKE, INSTALL OR CONSTRUCT, OR ALLOW
TO BE MADE, INSTALLED OR CONSTRUCTED, A PUBLIC WATER  SUPPLY  SYSTEM  OR
ANY  ADDITION  OR  DELETION  TO OR MODIFICATION OF A PUBLIC WATER SUPPLY
SYSTEM UNTIL THE PLANS AND SPECIFICATIONS THEREFOR HAVE  BEEN  SUBMITTED
TO AND APPROVED BY THE COMMISSIONER OF HEALTH OR HIS OR HER DESIGNEE.
  5.  THE DEPARTMENT SHALL PROMULGATE REGULATIONS TO IMPLEMENT A PERMIT-
TING PROGRAM FOR WATER WITHDRAWALS EQUAL TO OR GREATER THAN THE  THRESH-
OLD  VOLUME CONSISTENT WITH THE REQUIREMENTS OF THIS SECTION. SUCH REGU-
LATIONS WILL INCLUDE BUT ARE NOT LIMITED TO: (A) MINIMUM  STANDARDS  FOR
CONSTRUCTION  AND  OPERATION  OF WATER WITHDRAWAL SYSTEMS, (B) REPORTING
AND RECORDKEEPING REQUIREMENTS, (C) REQUIREMENTS FOR PERSONS WHO OWN  OR
OPERATE  PUBLIC WATER SUPPLY SYSTEMS TO ENSURE SAFE AND RELIABLE SERVICE
TO USERS AND POTENTIAL USERS OF SUCH SYSTEMS, (D) PROTECTIONS FOR  PRES-
ENT  AND  FUTURE  NEEDS FOR SOURCES OF POTABLE WATER SUPPLY, AND (E) ANY
OTHER CONDITIONS,  LIMITATIONS  AND  RESTRICTIONS  THAT  THE  DEPARTMENT
DETERMINES  ARE  NECESSARY  TO  PROTECT  THE  ENVIRONMENT AND THE PUBLIC
HEALTH, SAFETY AND WELFARE AND TO ENSURE THE PROPER  MANAGEMENT  OF  THE
WATERS OF THE STATE.
  6.  THE DEPARTMENT SHALL ESTABLISH A WATER CONSERVATION AND EFFICIENCY
PROGRAM WITH THE GOALS OF (A) ENSURING IMPROVEMENT  OF  THE  WATERS  AND
WATER  DEPENDENT  NATURAL  RESOURCES,  (B)  PROTECTING AND RESTORING THE
HYDROLOGIC AND ECOSYSTEM INTEGRITY OF WATERSHEDS THROUGHOUT  THE  STATE,
(C)  RETAINING  THE  QUANTITY  OF  SURFACE  WATER AND GROUNDWATER IN THE
STATE, (D) ENSURING SUSTAINABLE USE OF STATE WATERS, AND  (E)  PROMOTING
THE EFFICIENCY OF USE AND REDUCING LOSSES AND WASTE OF WATER.
  7.  THE  DEPARTMENT IS AUTHORIZED TO CONSOLIDATE EXISTING WATER SUPPLY
PERMITS FOR A PUBLIC WATER  SUPPLY  SYSTEM  INTO  ONE  PERMIT,  AND  MAY
REQUIRE  SUBMISSION  OF AN APPLICATION FOR SUCH PERMIT WHERE THE DEPART-

S. 2697                            20

MENT DETERMINES THAT SUCH ACTIONS ARE NECESSARY TO PROTECT THE  ENVIRON-
MENT  AND THE PUBLIC HEALTH, SAFETY AND WELFARE AND TO ENSURE THE PROPER
MANAGEMENT OF THE WATERS OF THE STATE.
  8.  EACH  PERSON  WHO  IS REQUIRED UNDER THIS SECTION TO HOLD A PERMIT
SHALL ANNUALLY, ON A FORM  PRESCRIBED  BY  THE  DEPARTMENT,  REPORT  ALL
INFORMATION  REQUESTED  BY  THE DEPARTMENT, INCLUDING BUT NOT LIMITED TO
WATER CONSERVATION PRACTICES AND MEASURES UNDERTAKEN DURING THE  REPORT-
ING  PERIOD.  SUCH  INFORMATION  SHALL  BE  POSTED  TO  THE DEPARTMENT'S
WEBSITE.
  9. THE FOLLOWING WATER WITHDRAWALS ARE EXEMPT FROM THE PERMIT REQUIRE-
MENTS ESTABLISHED  BY  THIS  SECTION:  (A)  WITHDRAWALS  USED  FOR  FIRE
SUPPRESSION OR PUBLIC EMERGENCY PURPOSES, (B) WITHDRAWALS SUBJECT TO THE
PERMITTING  REQUIREMENTS OF A COMPACT BASIN COMMISSION WHICH ADMINISTERS
A PERMITTING PROGRAM GOVERNING SUCH WATER WITHDRAWALS, (C) CLOSED  LOOP,
STANDING  COLUMN,  OR  SIMILAR NON-EXTRACTIVE GEOTHERMAL HEAT PUMPS; AND
(D) WITHDRAWALS FOR WHICH A PERMIT  HAS  BEEN  ISSUED  PURSUANT  TO  THE
REQUIREMENTS OF SECTION 15-1527 OF THIS TITLE.
  10.  NOTHING  IN  THIS  CHAPTER SHALL RELIEVE AN APPLICANT FOR A WATER
WITHDRAWAL PERMIT FROM FULL COMPLIANCE WITH THE PROVISIONS OF ARTICLE  8
OF THIS CHAPTER, RELATING TO ENVIRONMENTAL QUALITY REVIEW.
  S 19. Section 15-1502 of the environmental conservation law is amended
by  adding  nine  new subdivisions 7, 8, 9, 10, 11, 12, 13, 14 and 15 to
read as follows:
  7. "COMPACT BASIN COMMISSION"  SHALL  MEAN  AN  INTERSTATE  COMMISSION
HAVING  JURISDICTION  WITH  RESPECT TO THE REGULATION OF WATER RESOURCES
WITHIN A BASIN IN THE STATE, CREATED BY INTERSTATE  COMPACT  OR  FEDERAL
INTERSTATE  COMPACT, INCLUDING BUT NOT LIMITED TO, THE SUSQUEHANNA RIVER
BASIN COMMISSION AND THE DELAWARE RIVER BASIN COMMISSION.
  8. "INTERBASIN DIVERSION" SHALL MEAN  THE  WITHDRAWAL,  DIVERSION,  OR
PUMPING  OF  SURFACE  WATER  FROM  ONE SUBREGIONAL DRAINAGE BASIN OR THE
WITHDRAWAL OF GROUNDWATER FROM A POINT LOCATED  WITHIN  OR  BENEATH  ONE
SUBREGIONAL  DRAINAGE  BASIN AND RELEASE OF ALL OR ANY PART OF THE WATER
IN ANOTHER SUBREGIONAL DRAINAGE BASIN. A SUBREGIONAL DRAINAGE  BASIN  IS
DEFINED  BY  THE  FOUR  DIGIT  HYDROLOGIC UNIT CODE OF THE UNITED STATES
GEOLOGICAL SURVEY.
  9. "PERSON" SHALL MEAN ANY INDIVIDUAL, PUBLIC OR PRIVATE  CORPORATION,
POLITICAL  SUBDIVISION,  GOVERNMENT  AGENCY, DEPARTMENT OR BUREAU OF THE
STATE, MUNICIPALITY, INDUSTRY, CO-PARTNERSHIP, ASSOCIATION, FIRM, TRUST,
ESTATE OR ANY OTHER LEGAL ENTITY WHATSOEVER.
  10. "POTABLE" SHALL MEAN WATER INTENDED  FOR  HUMAN  CONSUMPTION  THAT
MEETS THE REQUIREMENTS ESTABLISHED BY 10 NYCRR 5-1.
  11.  "PUBLIC  WATER  SUPPLY SYSTEM" SHALL MEAN A PERMANENTLY INSTALLED
WATER WITHDRAWAL  SYSTEM  INCLUDING  ITS  SOURCE,  COLLECTION,  PUMPING,
TREATMENT,  TRANSMISSION,  STORAGE  AND  DISTRIBUTION FACILITIES USED IN
CONNECTION WITH SUCH SYSTEM, WHICH PROVIDES PIPED WATER  TO  THE  PUBLIC
FOR  POTABLE  PURPOSES,  IF  SUCH  SYSTEM  HAS  AT  LEAST  FIVE  SERVICE
CONNECTIONS USED BY YEAR-ROUND RESIDENTS.
  12. "THRESHOLD VOLUME" SHALL MEAN THE WITHDRAWAL OF WATER OF A  VOLUME
OF  FIFTY  THOUSAND  GALLONS OR MORE PER DAY, DETERMINED BY THE LIMITING
MAXIMUM CAPACITY OF  THE  WATER  WITHDRAWAL,  TREATMENT,  OR  CONVEYANCE
SYSTEM.
  13.  "ENVIRONMENTALLY  SOUND AND ECONOMICALLY FEASIBLE WATER CONSERVA-
TION MEASURES" SHALL MEAN THOSE MEASURES, METHODS, TECHNOLOGIES OR PRAC-
TICES FOR EFFICIENT WATER USE AND FOR REDUCTION OF WATER LOSS AND  WASTE
OR  FOR REDUCING A WITHDRAWAL OR DIVERSION THAT: (A) ARE ENVIRONMENTALLY
SOUND, (B) REFLECT BEST PRACTICES APPLICABLE TO THE  WATER  USE  SECTOR,

S. 2697                            21

(C)  CONSIDER  THE  PARTICULAR FACILITIES AND PROCESSES INVOLVED, TAKING
INTO ACCOUNT THE ENVIRONMENTAL IMPACT, AGE OF EQUIPMENT  AND  FACILITIES
INVOLVED,  THE  PROCESSES EMPLOYED, ENERGY IMPACTS AND OTHER APPROPRIATE
FACTORS,  (D)  ARE  DESIGNED  TO  REDUCE  THE  DEMAND FOR WATER; (E) ARE
DESIGNED TO IMPROVE EFFICIENCY IN WATER USE; (F) ARE DESIGNED TO  REDUCE
LEAKAGE,  LOSSES  AND  WASTE OF WATER; (G) ARE DESIGNED TO IMPROVE REUSE
AND RECYCLING OF WATER; AND (H) IMPROVE  LAND  MANAGEMENT  PRACTICES  TO
CONSERVE WATER OR TO PRESERVE OR INCREASE GROUNDWATER RECHARGE.
  14.  "WATER  WITHDRAWAL  SYSTEM"  SHALL MEAN A PHYSICAL INTERCONNECTED
INFRASTRUCTURE OPERATED  AND  MAINTAINED  FOR  THE  PROVISION  OF  WATER
INCLUDING,  BUT  NOT  LIMITED TO, COLLECTION, PUMPING, TREATMENT, TRANS-
MISSION, STORAGE AND DISTRIBUTION FACILITIES USED IN CONNECTION WITH THE
WITHDRAWAL OF WATER.
  15. "WITHDRAWAL" OR "WITHDRAWAL OF WATER" SHALL MEAN  THE  REMOVAL  OR
TAKING OF WATER FOR ANY PURPOSE FROM THE WATERS OF THE STATE.
  S  20.  Section  15-1503  of  the  environmental  conservation law, as
amended by chapter 364 of the laws  of  1988,  is  amended  to  read  as
follows:
S 15-1503. Permits.
  1.  A  permit application or request for a permit renewal or modifica-
tion shall be made on [forms provided] A FORM PRESCRIBED by the  depart-
ment  and shall [be accompanied by] CONTAIN ALL INFORMATION REQUESTED BY
THE DEPARTMENT RELATIVE TO THE  WATER  WITHDRAWAL,  USE  AND  DISCHARGE,
INCLUDING BUT NOT LIMITED TO:
  A.  WITH  RESPECT  TO  A PUBLIC WATER SUPPLY SYSTEM, proof of adequate
authorization for the proposed project[,];
  B. such exhibits as may be necessary clearly to indicate the scope  of
the proposed project[,];
  C. a map of any lands to be acquired [and];
  D. project plans[. The application shall also indicate];
  E. A STATEMENT OF the need for and the reasons why the proposed source
or  sources  of supply were selected among the alternative sources which
are or may become available[,] AND the adequacy of the  supply  selected
[and the method proposed to determine and provide for the proper compen-
sation  for any direct and indirect legal damages to persons or property
that will result from the acquisition of any lands  in  connection  with
the  proposed project or from the execution of the proposed project. The
application shall also contain, in accordance with local water  resource
needs and conditions,]; AND
  F.  a description of the applicant's PROPOSED near term and long range
water conservation program THAT COMPLIES WITH ENVIRONMENTALLY SOUND  AND
ECONOMICALLY  FEASIBLE  WATER  CONSERVATION  MEASURES AS DEFINED IN THIS
SECTION, including implementation [and enforcement]  procedures,  effec-
tiveness  to  date  and any planned modifications for the future. [Such]
FOR A PUBLIC WATER SUPPLY SYSTEM, THE  WATER  CONSERVATION  program  may
include but [shall] NEED not be limited to:
  [a.]  I.  the identification of and cost effectiveness of distribution
system rehabilitation to correct sources of lost water;
  [b.] II. measures which encourage proper maintenance and water conser-
vation;
  [c.] III. a public information program to promote water  conservation,
including industrial and commercial recycling and reuse;
  [d.] IV. household conservation measures; and
  [e.] V. contingency measures for limiting water use during seasonal or
drought shortages. If the proposed project provides for the use of water
for  potable purposes, the application shall also include adequate proof

S. 2697                            22

of the character and purity of the water supply to be acquired  or  used
and the proposed method of treatment.
  G.  ANY  POTENTIAL  INDIVIDUAL  OR CUMULATIVE ADVERSE IMPACTS THAT MAY
RESULT FROM THE PROPOSED WATER WITHDRAWAL.
  2. [In making its decision to grant or deny a permit  or  to  grant  a
permit  with  conditions,  the  department  shall  determine whether the
proposed project is justified by the public necessity, whether it  takes
proper  consideration  of other sources of supply that are or may become
available, whether all work connected with the project  will  be  proper
and  construction  safe,  whether  the  supply will be adequate, whether
there will be proper protection of the supply and watershed  or  whether
there  will  be  proper  treatment of any additional supply, whether the
project is just and equitable to all affected municipalities  and  their
inhabitants  and  in  particular with regard to their present and future
needs for sources of water supply, whether there is provision  for  fair
and  equitable determinations of and payments of any direct and indirect
legal damages to persons or property that will result from the  acquisi-
tion  of  any  lands in connection with the proposed project or from the
execution of the proposed project, and whether the applicant has  devel-
oped  and  implemented  a  water conservation program in accordance with
local water resource needs and conditions. If the proposed project is  a
multi-purpose  project, in whole or in part authorized by a general plan
adopted and approved pursuant to title 11 of this article,  the  depart-
ment in addition shall determine if the proposed project is in conformi-
ty  with  the  general  plan.] IN MAKING ITS DECISION TO GRANT OR DENY A
PERMIT OR TO GRANT A PERMIT WITH CONDITIONS, THE DEPARTMENT  SHALL  ONLY
ISSUE A PERMIT IF THE PROPOSED WITHDRAWAL MEETS THE FOLLOWING CRITERIA:
  A.  THE  WITHDRAWAL  WILL  BE  IMPLEMENTED  SO  AS  TO ENSURE THAT THE
PROPOSAL WILL RESULT IN NO SIGNIFICANT INDIVIDUAL OR CUMULATIVE  ADVERSE
IMPACTS  TO  THE  QUANTITY  OR QUALITY OF THE WATERS AND WATER DEPENDENT
NATURAL RESOURCES AS DEFINED IN SECTION 1.2  OF  ARTICLE  1  OF  SECTION
21-1001 OF THIS CHAPTER;
  B.  THE  WITHDRAWAL  WILL  IMPLEMENT ENVIRONMENTALLY SOUND AND ECONOM-
ICALLY FEASIBLE WATER CONSERVATION MEASURES;
  C. THE WITHDRAWAL, WILL BE IMPLEMENTED SO AS TO ENSURE THAT IT  IS  IN
COMPLIANCE WITH ALL APPLICABLE MUNICIPAL, STATE AND FEDERAL LAWS AS WELL
AS REGIONAL INTERSTATE AND INTERNATIONAL AGREEMENTS;
  D.  THE  PROPOSED  USE  IS REASONABLE, BASED UPON CONSIDERATION OF THE
FOLLOWING FACTORS:
  I. WHETHER THE PROPOSED  WITHDRAWAL  IS  PLANNED  IN  A  FASHION  THAT
PROVIDES  FOR EFFICIENT USE OF THE WATER, AND WILL AVOID OR MINIMIZE THE
WASTE OF WATER;
  II. IF THE PROPOSAL IS FOR AN INCREASED WITHDRAWAL, WHETHER  EFFICIENT
USE  IS  MADE OF EXISTING WATER SUPPLIES AND WHETHER THE NEED FOR ALL OR
PART OF THE PROPOSED WITHDRAWAL COULD BE REASONABLY AVOIDED THROUGH  THE
EFFICIENT USE AND CONSERVATION OF EXISTING WATER SUPPLIES;
  III. THE PROBABLE DEGREE AND DURATION OF ANY ADVERSE IMPACTS CAUSED OR
EXPECTED  TO  BE  CAUSED  BY  THE  PROPOSED WITHDRAWAL UNDER FORESEEABLE
CONDITIONS, TO OTHER LAWFUL CONSUMPTIVE OR NON-CONSUMPTIVE USES OF WATER
OR TO THE  QUANTITY  OR  QUALITY  OF  THE  WATERS  AND  WATER  DEPENDENT
RESOURCES,  AND  THE  PROPOSED  PLANS  AND ARRANGEMENTS FOR AVOIDANCE OR
MITIGATION OF SUCH IMPACTS;
  E. THE PROPOSED WATER WITHDRAWAL TAKES PROPER CONSIDERATION  OF  OTHER
SOURCES OF SUPPLY THAT ARE OR MAY BECOME AVAILABLE;
  F. THE QUANTITY OF SUPPLY WILL BE ADEQUATE FOR THE PROPOSED USE;

S. 2697                            23

  G.  THE  PROPOSED WITHDRAWAL WILL NOT ADVERSELY IMPACT EXISTING GROUND
OR SURFACE WATER USERS, WILL NOT ADVERSELY IMPACT THE NATURAL REPLENISH-
MENT OF THE WATER RESOURCES, WILL NOT CAUSE OR CONTRIBUTE TO A VIOLATION
OF STATE WATER QUALITY STANDARDS, AND  WILL  NOT  ADVERSELY  IMPACT  THE
RELIABILITY AND SAFE YIELD OF HYDROLOGICALLY INTERCONNECTED WATER SOURC-
ES;
  H.  THE  PROPOSED WITHDRAWAL MAY RESULT IN SIGNIFICANT ADVERSE IMPACTS
TO PROXIMATE MUNICIPALITIES AND THEIR INHABITANTS WITH REGARD  TO  THEIR
PRESENT AND FUTURE NEEDS FOR SOURCES OF POTABLE WATER SUPPLY;
  I. THE NEED FOR ALL OR PART OF THE PROPOSED WATER WITHDRAWAL CANNOT BE
REASONABLY  AVOIDED THROUGH THE EFFICIENT USE AND CONSERVATION OF EXIST-
ING WATER SUPPLIES;
  J. THE PROPOSED WATER WITHDRAWAL IS LIMITED  TO  QUANTITIES  THAT  ARE
CONSIDERED  REASONABLE  FOR  THE  PURPOSES  FOR  WHICH  THE WATER USE IS
PROPOSED;
  K. THE PROPOSED WATER WITHDRAWAL WILL BE IMPLEMENTED IN A MANNER  THAT
INCORPORATES  ENVIRONMENTALLY  SOUND  AND  ECONOMICALLY  FEASIBLE  WATER
CONSERVATION MEASURES AS DEFINED IN THIS SECTION;
  L. THE PROPOSED WATER WITHDRAWAL WILL BE IMPLEMENTED IN A MANNER  THAT
IS  CONSISTENT WITH APPLICABLE MUNICIPAL, STATE AND FEDERAL LAWS AS WELL
AS REGIONAL INTERSTATE AND INTERNATIONAL AGREEMENTS;
  M. THE WITHDRAWAL IS CONSISTENT WITH THE  STATE'S  WATER  CONSERVATION
GOALS INCLUDING THE FOLLOWING:
  I. APPLICATION OF BEST MANAGEMENT PRACTICES TO DETECT AND REPAIR WATER
LEAKS;
  II. IDENTIFICATION AND INSTALLATION OF STATE-OF-THE-ART WATER-CONSERV-
ING FIXTURES;
  III.  EMPLOYEE TRAINING REGARDING APPROPRIATE WATER CONSERVATION TECH-
NIQUES;
  IV. PUBLIC EDUCATION REGARDING WATER CONSERVATION IN  CONNECTION  WITH
THE USE OF WATER FOR WHICH THE APPLICANT'S PERMIT IS GRANTED; AND
  V.  OTHER  WATER  CONSERVATION  MEASURES  AND GOALS INCLUDING PRICING,
CONSERVATION MEASURES, DROUGHT PROTECTION MEASURES, AND  LIMITING  UNAC-
COUNTED-FOR WATER;
  N. IF ANY OF THE ABOVE TERMS ARE NOT MET, THE DEPARTMENT SHALL REQUIRE
THE  APPLICANT TO ADJUST THE WATER WITHDRAWAL APPLICATION TO COMPLY WITH
THE REQUIREMENTS OF THIS SUBSECTION. IF THE  APPLICANT  CHOOSES  NOT  TO
ADJUST THE APPLICATION ACCORDINGLY, THE DEPARTMENT SHALL DENY THE APPLI-
CATION;
  O.  FOR  WATER  WITHDRAWAL PROPOSALS WITHIN THE GREAT LAKES BASIN, ALL
WATER WITHDRAWN WITHIN THE GREAT LAKES BASIN SHALL BE  RETURNED,  EITHER
NATURALLY  OR  AFTER  USE, TO THE SOURCE WATERSHED LESS AN ALLOWANCE FOR
CONSUMPTIVE USE.
  3. BEFORE DECIDING TO GRANT OR DENY AN APPLICATION FOR A  WATER  WITH-
DRAWAL  PERMIT,  AS  SET  FORTH UNDER THIS CHAPTER, THE DEPARTMENT SHALL
PROVIDE A PUBLIC COMMENT PERIOD ON THE DRAFT  AND  ASSOCIATED  DOCUMENTS
(INCLUDING  BUT  NOT  LIMITED TO THE PERMIT APPLICATION) OF NO LESS THAN
THIRTY DAYS. FURTHER, THE DEPARTMENT SHALL PROVIDE THE OPPORTUNITY FOR A
PUBLIC HEARING, UPON THIRTY DAYS NOTICE,  WHENEVER  IT  DETERMINES  THAT
THERE  MAY  BE  SIGNIFICANT  PUBLIC INTEREST IN THE PROPOSED WATER WITH-
DRAWAL PERMIT.
  [3.] 4. In order to assist the development of local water conservation
plans FOR PUBLIC WATER SUPPLY SYSTEMS, the  department  shall[,  by  the
effective  date of this subdivision,] CONTINUE TO publish and distribute
a [model local water conservation plan] WATER CONSERVATION  MANUAL  that
includes  beneficial  near term and long range water conservation proce-

S. 2697                            24

dures which reflect local water resource needs  and  conditions.    Such
plan shall include examples of:
  a.  methods  of  identifying and determining the cost effectiveness of
distribution system rehabilitation to correct sources of lost water;
  b. measures which encourage proper maintenance and water conservation;
  c. a public information program to promote water conservation, includ-
ing industrial and commercial recycling and reuse;
  d. household conservation measures; and
  e. contingency measures for limiting  water  use  during  seasonal  or
drought shortages.
  [4.]  5.  The  department may grant or deny a permit or grant a permit
with such conditions as may be necessary to provide satisfactory compli-
ance by the applicant with the matters subject  to  department  determi-
nation pursuant to subdivision [2] TWO of this section, or to bring into
cooperation  all  persons or public corporations that may be affected by
the project, but it shall make a reasonable effort to meet the needs  of
the  applicant,  with  due  regard  to  the actual or prospective needs,
interests and rights of others that may be affected by the project.
  [5.] 6. The rules and regulations adopted by the department to  imple-
ment  this  title  and  the provisions of article 70 of this chapter and
rules and regulations adopted thereunder shall  govern  permit  applica-
tions,  renewals,  modifications, suspensions and revocations under this
title.
  7. A NEW PERMIT FOR A WATER WITHDRAWAL SYSTEM SHALL  BE  VALID  FOR  A
PERIOD  OF TIME NOT TO EXCEED FIVE YEARS FROM THE DATE OF ISSUANCE, UPON
WHICH TIME A REQUEST FOR A RENEWAL MUST BE FILED WITH THE DEPARTMENT.  A
RENEWAL  SHALL BE VALID FOR A PERIOD OF TIME SPECIFIED BY THE DEPARTMENT
NOT TO EXCEED FIVE YEARS. A PERMIT APPLICATION MUST BE  FILED  WITH  THE
DEPARTMENT  UPON  ANY  TRANSFER  OR CHANGE OF OWNERSHIP OF A WATER WITH-
DRAWAL SYSTEM.
  8. ALL HOLDERS OF WATER WITHDRAWAL PERMITS ISSUED  BY  THE  DEPARTMENT
UNDER  THIS LAW SHALL BE REQUIRED TO CONDUCT CONTINUOUS ON-SITE MONITOR-
ING OF WATER WITHDRAWAL VOLUMES USING MONITORING SYSTEMS APPROVED BY THE
DEPARTMENT. SUCH RECORDS SHALL BE MADE AVAILABLE TO  THE  DEPARTMENT  OR
THE PUBLIC UPON REQUEST.
  S  21.  Section  15-1505  of  the  environmental  conservation law, as
amended by chapter 233 of the laws  of  1979,  is  amended  to  read  as
follows:
S 15-1505. [Water]  INTERBASIN  DIVERSIONS  AND  WATER  supply  to other
             states.
  1. No person or public corporation shall transport  or  carry  through
pipes,  conduits,  ditches or canals the waters of any fresh water lake,
pond, brook, river, stream, or creek in this state or any well,  subsur-
face  or  percolating  waters of this state into any other state for use
therein without first obtaining a permit from the department pursuant to
this title.
  2. NO PERSON MAY MAKE A NEW OR INCREASED INTERBASIN DIVERSION OF WATER
WHICH RESULTS IN A DIVERSION IN EXCESS OF ONE MILLION GALLONS PER DAY AS
DETERMINED BY THE LIMITING MAXIMUM CAPACITY OF THE TREATMENT OR  CONVEY-
ANCE  SYSTEM,  OR CONSTRUCT FACILITIES OR EQUIPMENT THEREFOR, UNTIL SUCH
PERSON HAS REGISTERED SUCH DIVERSION WITH THE DEPARTMENT. NO LATER  THAN
ONE  YEAR  FROM  THE  EFFECTIVE  DATE  OF THIS SUBDIVISION, ALL EXISTING
INTERBASIN DIVERSIONS OF WATER IN EXCESS OF ONE MILLION GALLONS PER  DAY
SHALL BE REGISTERED WITH THE DEPARTMENT.
  3.  THE  DEPARTMENT IS AUTHORIZED TO ASSESS AN ANNUAL REGISTRATION FEE
OF TWO HUNDRED DOLLARS FOR ALL PERSONS REQUIRED TO REGISTER AN  INTERBA-

S. 2697                            25

SIN  DIVERSION.  SUCH  FEE  SHALL BE PAID AT THE TIME OF REGISTRATION OR
REGISTRATION RENEWAL. ALL FEES COLLECTED PURSUANT TO THIS SECTION  SHALL
BE  PAID INTO THE ENVIRONMENTAL CONSERVATION SPECIAL REVENUE FUND TO THE
CREDIT  OF  THE  ENVIRONMENTAL  REGULATORY ACCOUNT. THE REGISTRATION FEE
SHALL NOT BE APPLICABLE TO AN INTERBASIN DIVERSION WHICH IS  PART  OF  A
WATER  WITHDRAWAL  SYSTEM  FOR  WHICH THE DEPARTMENT HAS ISSUED A PERMIT
UNDER THIS TITLE. REGISTRATION SHALL BE RENEWED EVERY YEAR  OR  WHENEVER
TITLE  TO  THE FACILITIES WHICH CREATE AN INTERBASIN DIVERSION IS TRANS-
FERRED, WHICHEVER OCCURS FIRST. REGISTRATION  SHALL  BE  MADE  ON  FORMS
PRESCRIBED BY THE DEPARTMENT AND SHALL CONTAIN ALL INFORMATION REQUESTED
BY  THE  DEPARTMENT RELATIVE TO THE WATER WITHDRAWAL, USE AND DISCHARGE.
EACH PERSON WHO IS REQUIRED UNDER THIS SECTION TO  HOLD  A  REGISTRATION
SHALL  ANNUALLY,  ON  A  FORM  PRESCRIBED  BY THE DEPARTMENT, REPORT ALL
INFORMATION REQUESTED BY THE DEPARTMENT, INCLUDING THE AMOUNT  OF  WATER
DIVERTED.  SUCH INFORMATION SHALL BE POSTED ON THE DEPARTMENT'S WEBSITE.
  4. NO PERSON SHALL BE AUTHORIZED TO MAKE A NEW OR INCREASED INTERBASIN
DIVERSION  WHICH  RESULTS  IN  A SIGNIFICANT ADVERSE IMPACT ON THE WATER
QUANTITY OF THE SOURCE SUBREGIONAL DRAINAGE BASIN.
  5. AN INTERBASIN DIVERSION WILL ONLY BE PERMITTED AND  IMPLEMENTED  SO
AS  TO  ENSURE  THAT  IT IS IN COMPLIANCE WITH ALL APPLICABLE MUNICIPAL,
STATE, AND FEDERAL LAWS AS WELL AS REGIONAL INTERSTATE AND INTERNATIONAL
AGREEMENTS. IN THE GREAT LAKES  BASIN  ALL  INTERBASIN  DIVERSIONS  WILL
COMPLY  WITH  THE GREAT LAKES - ST. LAWRENCE RIVER BASIN WATER RESOURCES
COMPACT.
  S 22. Section  15-1521  of  the  environmental  conservation  law,  as
amended  by  chapter  233  of  the  laws  of 1979, is amended to read as
follows:
S 15-1521. Supply of water to other public water supply systems.
  On any application for a new or additional WITHDRAWAL OF WATER  FOR  A
PUBLIC  water  supply  [or  source  of water supply], the department may
require or authorize [any] THE applicant  to  make  provisions  for  the
supply  and  to  supply  PUBLIC  water to any area of the state which as
determined by the department in its decision on that application proper-
ly should be supplied with PUBLIC water from the source  or  sources  of
water  supply  sought  by  the  applicant.  The owner or operator of any
existing or proposed [water works] PUBLIC  WATER  SUPPLY  system  within
such  area  may  apply to the department for a permit to take water from
that source of water supply or from any part of the PUBLIC water  supply
system  of  the applicant supplied in whole or in part from that source.
If the department so requires, or if it grants a permit, it shall be the
duty of the applicant so to supply water, subject to  such  requirements
as the department may impose. The amount of water so to be taken and the
price  to  be paid therefor may be agreed upon between the applicant and
the taker of the water, or if they cannot  agree,  fair  and  reasonable
amounts  and  rates  shall  be, after due hearings thereon, fixed by the
department, provided however, that such department shall have  no  power
to  fix  rates  in any case where the Public Service Commission has such
power, and provided further, that  nothing  in  this  section  contained
shall  be  construed  as  diminishing  the powers of said Public Service
Commission in respect to rates of water works companies subject  to  its
jurisdiction.  Any such agreement or determination of the department may
from time to time be modified by further agreement between  the  parties
affected thereby or by the further order of the department.
  S 23. Section 15-1529 of the environmental conservation law is amended
to read as follows:

S. 2697                            26

S 15-1529. [Final  approval  of  work] APPROVAL OF COMPLETED WATER WITH-
             DRAWAL SYSTEMS.
  [Before  any  project  authorized to be developed or carried out under
this title 15 shall be  operated,  it  must,  as  completed,  have  been
approved  by  the  department]  THE  CONSTRUCTION OF ANY NEW OR MODIFIED
WATER WITHDRAWAL SYSTEM AUTHORIZED UNDER THIS TITLE SHALL BE  UNDER  THE
GENERAL  SUPERVISION  OF  A  PERSON OR FIRM LICENSED TO PRACTICE PROFES-
SIONAL ENGINEERING IN THE STATE. UPON COMPLETION OF  CONSTRUCTION,  SUCH
PERSON  OR  FIRM  SHALL CERTIFY TO THE DEPARTMENT AND THE OWNER THAT THE
WATER WITHDRAWAL SYSTEM HAS BEEN FULLY COMPLETED IN ACCORDANCE WITH  THE
APPROVED  ENGINEERING  REPORT,  PLANS AND SPECIFICATIONS, AND THE PERMIT
ISSUED BY THE DEPARTMENT PURSUANT TO THIS TITLE.  THE  OWNER  SHALL  NOT
COMMENCE  OPERATION OF THE NEW OR MODIFIED WATER WITHDRAWAL SYSTEM PRIOR
TO THE DEPARTMENT RECEIVING SUCH CERTIFICATE  AND  BEFORE  APPROVAL,  IF
NECESSARY, BY THE DEPARTMENT OF HEALTH OR ITS DESIGNEE.
  S  24.  The  environmental conservation law is amended by adding a new
section 15-1531 to read as follows:
S 15-1531. REPORTING.
  THE COMMISSIONER SHALL, WITHIN TWO YEARS OF THE EFFECTIVE DATE OF THIS
SECTION, AND THEREAFTER AS OFTEN AS THE COMMISSIONER DEEMS  APPROPRIATE,
REPORT TO THE GOVERNOR AND THE LEGISLATURE ON THE IMPLEMENTATION OF THIS
TITLE. THE REPORT MAY INCLUDE BUT NEED NOT BE LIMITED TO RECOMMENDATIONS
FOR  MODIFICATIONS TO THIS TITLE, INCLUDING BUT NOT LIMITED TO MODIFICA-
TIONS TO THE THRESHOLD VOLUME PROVIDED  IN  THIS  TITLE  FOR  PARTICULAR
WATER SOURCES, WATERSHEDS, WATER BODIES OR REGIONS, WHERE THE DEPARTMENT
HAS  DETERMINED  THAT  SUCH  WATER  SOURCES, WATERSHEDS, WATER BODIES OR
REGIONS ARE IN NEED OF SPECIAL  PROTECTION  BECAUSE  OF  THE  NATURE  OR
VOLUME  OF  DEMANDS  MADE  UPON  THEM AND A MODIFICATION IS NECESSARY TO
PROTECT THE PUBLIC HEALTH, SAFETY AND WELFARE.
  S 25. Title 33 of article 15 of the environmental conservation law  is
REPEALED and a new title 33 is added to read as follows:
                                 TITLE 33
                           WATER USE STANDARDS
SECTION 15-3301. WATER USE STANDARDS.
S 15-3301. WATER USE STANDARDS.
  THE  DEPARTMENT SHALL ADOPT RULES ESTABLISHING WATER USE STANDARDS FOR
MAINTAINING IN-STREAM FLOWS THAT ARE  PROTECTIVE  OF  AQUATIC  LIFE  AND
OTHER  USES  AND THAT ESTABLISH CRITERIA FOR DESIGNATING WATERSHEDS MOST
AT RISK FROM CUMULATIVE WATER USE. STANDARDS ADOPTED UNDER THIS  SECTION
MUST BE BASED ON THE NATURAL VARIATION OF FLOWS AND WATER LEVELS, ALLOW-
ING FOR VARIANCES IF USE WILL STILL BE PROTECTIVE OF WATER QUALITY WITH-
IN THAT CLASSIFICATION.
  S  26. Subdivision 1 of section 71-1127 of the environmental conserva-
tion law, as amended by chapter 640 of the laws of 1977, is  amended  to
read as follows:
  1.  Any  person who violates any of the provisions of, or who fails to
perform any duty imposed by article 15 except section  15-1713,  or  who
violates or who fails to comply with any rule, regulation, determination
or  order of the department heretofore or hereafter promulgated pursuant
to article 15 except section 15-1713,  or  any  condition  of  a  permit
issued  pursuant  to article 15 of this chapter, or any determination or
order of the former water resources commission  or  the  [Department  of
Environmental  Conservation]  DEPARTMENT heretofore promulgated pursuant
to former article 5 of the Conservation Law, shall be liable for a civil
penalty of not more than TWO THOUSAND  five  hundred  dollars  for  such
violation  and  an  additional civil penalty of not more than [one] FIVE

S. 2697                            27

hundred dollars for each day during which such violation continues, and,
in addition thereto, such person may be enjoined  from  continuing  such
violation as otherwise provided in article 15 except section 15-1713.
  S  27.  Article 72 of the environmental conservation law is amended by
adding a new title 8 to read as follows:
                                 TITLE 8
                    WATER SUPPLY PERMIT PROGRAM FEES
SECTION 72-0801. DEFINITIONS.
        72-0802. WATER SUPPLY PERMIT PROGRAM FEES.
S 72-0801. DEFINITIONS.
  WHEN USED IN THIS TITLE:
  1. "AGRICULTURAL PURPOSE" SHALL  MEAN  THE  PRACTICE  OF  FARMING  FOR
CROPS,  PLANTS, VINES AND TREES; AND THE KEEPING, GRAZING, OR FEEDING OF
LIVESTOCK FOR SALE OF LIVESTOCK OR LIVESTOCK PRODUCTS.
  2. "PUBLIC WATER SUPPLY PURPOSE" SHALL MEAN  WATER  USE  BY  A  PUBLIC
WATER SUPPLY SYSTEM.
  3. "WATER SUPPLY PERMIT PROGRAM" MEANS THOSE ACTIVITIES OF THE DEPART-
MENT  AS  SPECIFIED  IN TITLE FIFTEEN OF ARTICLE FIFTEEN OF THIS CHAPTER
RELATED TO THE WITHDRAWAL  OF  WATERS  OF  THE  STATE  AND  ANY  RELATED
ENFORCEMENT ACTIVITIES.
S 72-0802. WATER SUPPLY PERMIT PROGRAM FEES.
  1.  EXCEPT  AS OTHERWISE PROVIDED IN THIS TITLE, ALL PERSONS, EXCEPT A
POLITICAL SUBDIVISION OF THE STATE, OR AN  AGENCY,  DEPARTMENT,  BUREAU,
PUBLIC  AUTHORITY  OF  THE  STATE,  OR PERSONS MAKING WITHDRAWALS FOR AN
AGRICULTURAL PURPOSE WHO ARE TO OBTAIN A PERMIT PURSUANT  TO  THE  WATER
SUPPLY PERMIT PROGRAM SHALL SUBMIT ANNUALLY TO THE DEPARTMENT A FEE, FOR
EACH WATER WITHDRAWAL SYSTEM, IN AN AMOUNT TO BE DETERMINED AS FOLLOWS:
  A. FIFTY DOLLARS FOR A WATER WITHDRAWAL SYSTEM WITH A CAPACITY OF LESS
THAN ONE MILLION GALLONS PER DAY, USED PRIMARILY FOR PUBLIC WATER SUPPLY
PURPOSES;
  B.  ONE HUNDRED TWENTY-FIVE DOLLARS FOR A WATER WITHDRAWAL SYSTEM WITH
A CAPACITY OF BETWEEN ONE MILLION AND NINE MILLION NINE HUNDRED  NINETY-
NINE  THOUSAND  NINE HUNDRED NINETY-NINE GALLONS PER DAY, USED PRIMARILY
FOR PUBLIC WATER SUPPLY PURPOSES;
  C. TWO HUNDRED FIFTY DOLLARS FOR A  WATER  WITHDRAWAL  SYSTEM  WITH  A
CAPACITY  OF  TEN  MILLION  GALLONS  PER DAY OR MORE, USED PRIMARILY FOR
PUBLIC WATER SUPPLY PURPOSES;
  D. TWO HUNDRED FIFTY DOLLARS FOR A  WATER  WITHDRAWAL  SYSTEM  WITH  A
CAPACITY OF BETWEEN FIFTY THOUSAND AND NINETY-NINE THOUSAND NINE HUNDRED
NINETY-NINE GALLONS PER DAY, FOR ANY AND ALL USES WHICH ARE NOT PRIMARI-
LY FOR AGRICULTURAL OR PUBLIC WATER SUPPLY PURPOSES;
  E.  FIVE  HUNDRED  FIFTY  DOLLARS FOR A WATER WITHDRAWAL SYSTEM WITH A
CAPACITY OF BETWEEN ONE HUNDRED THOUSAND AND ONE HUNDRED  THOUSAND  NINE
HUNDRED  NINETY-NINE GALLONS PER DAY, FOR ANY AND ALL USES WHICH ARE NOT
PRIMARILY FOR AGRICULTURAL OR PUBLIC WATER SUPPLY PURPOSES;
  F. ONE THOUSAND DOLLARS FOR A WATER WITHDRAWAL SYSTEM WITH A  CAPACITY
OF   BETWEEN  TWO  HUNDRED  FIFTY  THOUSAND  GALLONS  AND  FOUR  HUNDRED
NINETY-NINE THOUSAND NINE HUNDRED NINETY-NINE GALLONS PER DAY,  FOR  ANY
AND  ALL  USES  WHICH ARE NOT PRIMARILY FOR AGRICULTURAL OR PUBLIC WATER
SUPPLY PURPOSES;
  G. TWO THOUSAND FIVE HUNDRED DOLLARS FOR  A  WATER  WITHDRAWAL  SYSTEM
WITH  A  CAPACITY  OF  BETWEEN  FIVE  HUNDRED  THOUSAND GALLONS AND NINE
HUNDRED NINETY-NINE THOUSAND NINE HUNDRED NINETY-NINE GALLONS  PER  DAY,
FOR  ANY AND ALL USES WHICH ARE NOT PRIMARILY FOR AGRICULTURAL OR PUBLIC
WATER SUPPLY PURPOSES;

S. 2697                            28

  H. FIVE THOUSAND DOLLARS FOR A WATER WITHDRAWAL SYSTEM WITH A CAPACITY
OF BETWEEN ONE MILLION AND NINE MILLION NINE HUNDRED  NINETY-NINE  THOU-
SAND  NINE  HUNDRED  NINETY-NINE  GALLONS  PER DAY, FOR ANY AND ALL USES
WHICH  ARE  NOT  PRIMARILY  FOR  AGRICULTURAL  OR  PUBLIC  WATER  SUPPLY
PURPOSES;
  I.  SEVEN  THOUSAND FIVE HUNDRED DOLLARS FOR A WATER WITHDRAWAL SYSTEM
WITH A CAPACITY OF BETWEEN  TEN  MILLION  AND  FORTY-NINE  MILLION  NINE
HUNDRED  NINETY-NINE  THOUSAND NINE HUNDRED NINETY-NINE GALLONS PER DAY,
FOR ANY AND ALL USES WHICH ARE NOT PRIMARILY FOR AGRICULTURAL OR  PUBLIC
WATER SUPPLY PURPOSES;
  J.  TEN THOUSAND DOLLARS FOR A WATER WITHDRAWAL SYSTEM WITH A CAPACITY
OF FIFTY MILLION GALLONS PER DAY OR MORE, FOR ANY AND ALL USES WHICH ARE
NOT PRIMARILY FOR AGRICULTURAL OR PUBLIC WATER SUPPLY PURPOSES.
  2. FOR THE PURPOSE OF DETERMINING  THE  APPROPRIATE  FEE  REQUIRED  BY
SUBDIVISION  ONE  OF  THIS  SECTION, THE AMOUNT OF RECLAIMED WASTEWATER,
WHICH A PERSON WITHDRAWS FOR REUSE, SHALL NOT BE INCLUDED IN  THE  TOTAL
CAPACITY OF THE WATER WITHDRAWAL.
  3.  ALL FEES COLLECTED PURSUANT TO THIS ARTICLE SHALL BE PAID INTO THE
ENVIRONMENTAL CONSERVATION SPECIAL REVENUE FUND TO  THE  CREDIT  OF  THE
ENVIRONMENTAL REGULATORY ACCOUNT.
  S  28.  This act shall take effect immediately; provided, however that
section twenty-five of this act shall take effect upon the completion of
rule-making required in subdivision 3 of section 15-1501 of the environ-
mental conservation law  and  provided  that  the  commissioner  of  the
department  of  environmental  conservation shall notify the legislative
bill drafting commission upon the occurrence of  the  enactment  of  the
rules  required  under  subdivision 3 of section 15-1501 of the environ-
mental conservation law in order that the  commission  may  maintain  an
accurate and timely effective data base of the official text of the laws
of  the  state of New York in furtherance of effectuating the provisions
of section 44 of the legislative law and  section  70-b  of  the  public
officers law.

Co-Sponsors

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S2697A (ACTIVE) - Bill Details

Current Committee:
Law Section:
Environmental Conservation Law
Laws Affected:
Amd En Con L, generally
Versions Introduced in 2009-2010 Legislative Session:
A11347

S2697A (ACTIVE) - Bill Texts

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Relates to natural gas development using hydraulic fracturing; enacts provisions to ensure natural gas development practices will be sustainable and safe.

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BILL NUMBER:S2697A

TITLE OF BILL:
An act
to amend the environmental conservation law, in relation to natural gas
development using hydraulic fracturing

PURPOSE OR GENERAL IDEA OF THE BILL:
The purpose of this legislation
is to provide for greater regulation of oil and natural gas operations.

SUMMARY OF PROVISIONS:
Section 1 contains the legislative intent of the bill.

Section 2 relates to wastewater treatment facilities, directing the
Commissioner of the DEC to, after a public hearing, promulgate
regulations establishing a standard of performance for the control of
the discharge of pollutants from facilities.

Section 3 defines terms as used, in the Article, including: air
pollutant, best management practices, closed loop systems
consequences of hazardous discharge, environmental damage, fund,
groundwater, groundwater well, hazardous release, hazardous
substance, oil and gas facility, oil and gas location, oil and gas
operations, operator, pit, potential environmental justice area,
release, site, and surface water.

Section 4 relates to local powers, and clarifies the extent to which
local law will and will not be superseded by state law. Local
jurisdiction is explicitly allowed over roads, real property taxes,
enforcement of permits, zoning and ordinances, setback requirements,
natural or manmade barriers restricting access to oil and gas
facilities, dust/noise/vibration/light limitations, and hours of
operation.

Section 5 broadens the scope of the DEC's regulatory ability to
prevent environmental damage, and adds hydraulic fracturing fluids
and drilling fluids to the list of contaminants in ECL. The section
prohibits hydraulic fracturing fluids that contain any chemical
substance that harms human health.

Section 6 requires the disclosure of the composition of drilling and
hydraulic fracturing fluids as a condition of receiving a drilling
permit. The section also requires the disclosure of the composition
of these fluids to healthcare professionals responding to a medical
emergency.

This section requires permit holders to notify the department of any
changes to the chemical constituents used in drilling and fracturing,
and provides for public notification on the DEC's Website.

Section 7 requires oil and gas well owners and operators to notify the
DEC, local health department and responding emergency agencies
immediately after the release of any fuel, hazardous chemical or
waste generated, stored or used at the facility. Subsequently, the
owner or operator shall submit a follow-up notice detailing
remediation places and public health implications. The owner or
operator will also notify the public. DEC will develop and make
public maps of all oil and gas wells in the State, and set up a
hotline for reporting oil and gas incidents to the department.

Section 8 requires the adoption of best management practices, set by
the Commissioner after public hearings every three years, to be a
condition of approval for a drilling permit.

Section 9 delineates liability, liable parties, limitations of
liability, natural resource liability, and financial responsibility.
This section also addresses bonding requirements.

Section 10 relates to location and setback requirements.

Section 11 sets exclusion areas, including in and around the New York
City watershed, aquifers, critical habitats, and state parks.

Section 12 prohibits waste storage pits and other impoundments.

Section 13 adjusts drilling permit fees and sets up an adjustment
mechanism to account for inflation.

Section 14 adds a new article to ECL allowing for citizen suits to
enforce laws on pollution; impairment or destruction of environment,
to protect the environment.

Section 15 requires the Department of Health to a conducted Health
Impact Assessment. The Health Impact Assessment will identify
measures that minimize adverse impacts on human health.

This section also directs the Department of Health to conduct a
comprehensive Health Impact Assessment of oil and natural has
operations involving any shale formation which may have an adverse
impact on human health.
This section also requires a site-specific health impact assessment
whenever oil and gas operations may pose negative health impacts upon
a potential environmental justice area.

Section 16 adds a new article to ECL regarding air quality monitoring,
and the establishment of an air quality testing and monitoring plan,
requiring testing of air quality at every stage of oil and gas
development and public posting of air monitoring results. No permit
shall be issued until 30 days after notice of the final plan is
published in the Environmental Notice Bulletin, or if air emissions
from the permitted operations violate air quality standards.

Section 17 considers all waste resulting from the exploration,
development, extraction, or production of crude oil or natural gas as
hazardous waste.

Section 18 relates to water withdrawal and water withdrawal permits.
This section also includes a water conservation and efficiency
program with the goals of ensuring the improvement of the waters and
natural resources, protecting the ecosystem, retaining the quality of
surface and groundwater, and promoting the efficient use of water.

Section 19 requires a report to the Governor and Legislature by the
Commissioner of the DEC within two years of the effective date of
this section.

Section 20 adds a new title to ECL setting water use standards. Such
standards will maintain in stream water flows, protect aquatic life,
and designate at risk watersheds.

Section 21 adds a new article to ECL setting water supply permit
program fees.

Section 22 sets an immediate effective date; provided that the
amendments to the opening paragraph of paragraph f of subdivision 1
and subdivision 6 of section 15-1503 of the environmental
conservation law made by section eighteen of this act shall take
effect on the same date and in the same manner as section 3 of
chapter 40 of the laws of 2011, takes effect; provided further,
however that section twenty of this act shall take effect upon the
completion of rule-making required in subdivision 2 of section
15-1501 of the environmental conservation law and provided that the
commissioner of the department of environmental conservation shall
notify the legislative bill drafting commission upon the occurrence
of the enactment of rules required subdivision 2 of section 15-1501
of the environmental conservation law in order that the commission
may maintain an accurate and timely effective data base of the
official text of the laws of the state of New York in furtherance of
effectuating the provisions of section 33 of the legislative law and
section 70-b of the public officers law.

JUSTIFICATION:

New York is home to rich natural gas reserves. In 2006, there were
6,213 active natural gas wells that generated a state record of 55.3
billion cubic feet of natural gas. The Marcellus formation that
extends from the Southern Tier into Ohio, Pennsylvania and West
Virginia is estimated to have $1 trillion worth of natural gas, and
is largely untapped. The rising price of natural gas has led to an
increased demand for, new sources and made formations like the
Marcellus even more attractive.

The extraction of these reserves is accompanied by considerable risk
to the environment. In order to fully examine this risk, the Assembly

Environmental Conservation Committee has held a series of hearings to
examine the environmental protections needed in the Department of
Environmental Conservation's (DEC) natural gas and oil drilling
regulatory structure in order to safeguard natural resources. ]n the
course of these hearings, much expert testimony was presented on
necessary steps to ensure the safety of New York's precious water
resources.

This legislation draws from the suggestions presented at these public
hearings. By making public health and the environment the primary
factor in permitting drilling operations, the bill ensures that
generations of New Yorkers can continue to enjoy our natural resources.

LEGISLATIVE HISTORY:
2010: A. 11347 (Sweeney) Assembly Environmental Conservation

FISCAL IMPLICATIONS:
Yet to be determined.

EFFECTIVE DATE:
This act shall take effect immediately provided that the amendments to
the opening paragraph of paragraph f of subdivision 1 and subdivision
6 of section 15-1503 of the environmental conservation law made by
section eighteen of this act shall take effect on the same date and
in the same manner as section 3 of chapter 40 of the laws of 2011,
takes effect; provided further, however that section twenty of this
act shall take effect upon the completion of rule-making required in
subdivision 2 of section 15-1501 of the environmental conservation
law and provided that the commissioner of the department of
environmental conservation shall notify the legislative bill drafting
commission upon the occurrence of the enactment of rules required
subdivision 2 of section 15-1501 of the environmental conservation
law in order that the commission may maintain an accurate and timely
effective data base of the official text of the laws of the state of
New York in furtherance of effectuating the provisions of section 33
of the legislative law and section 70-b of the public officers law.

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

                                 2697--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            January 28, 2011
                               ___________

Introduced by Sens. AVELLA, ADDABBO, CARLUCCI, ESPAILLAT, KRUEGER, MONT-
  GOMERY,  RIVERA,  SERRANO  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Environmental Conservation
  -- recommitted to  the  Committee  on  Environmental  Conservation  in
  accordance  with  Senate  Rule 6, sec. 8 -- committee discharged, bill
  amended, ordered reprinted as amended and recommitted to said  commit-
  tee

AN  ACT  to  amend  the  environmental  conservation law, in relation to
  natural gas development using hydraulic fracturing

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

  Section  1.  Legislative  declarations and purpose. 1. The legislature
recognizes that the expansion of natural gas development in the state of
New York using hydraulic fracturing poses unique threats to human health
and to the environment. The  legislature  further  recognizes  that  New
York's current laws are inadequate to protect against these threats.
  2.  As  natural gas development expands, it is the highest priority of
this state to protect human health as well as to ensure  the  safety  of
irreplaceable  natural  assets  such  as safe drinking water, clean air,
wildlife, and the aesthetic beauty of the state.
  3. Hydraulic fracturing utilizes components that are often toxic, that
are non-biodegradable, and that are virtually impossible to remove  once
they  enter  the  natural environment. Many of these hazardous chemicals
are known carcinogens  and  others  can  cause  other  life  threatening
illnesses.  Drinking  water  contamination from hydraulic fracturing can
lead to exposure to endocrine disrupting agents and to  other  chemicals
that  can  cause  kidney,  liver,  heart,  blood, brain damage and other
hazardous health effects.
  4. Hydraulic fracturing operations withdraw  millions  of  gallons  of
water  from  the  ground  and  surface  waters of the state, which are a
precious, finite and invaluable resource, upon which there is likely  to

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02942-02-1

S. 2697--A                          2

be  an  ever-increasing  demand for present, new and competing uses. The
withdrawal of ground and surface waters of the state should be regulated
in a manner that benefits the people of the state and is compatible with
long-range  water resource planning and with managing such waters in the
public trust for the benefit of all New Yorkers.
  5. Hydraulic fracturing operations result in wastewater  that  returns
to the surface laden with salt, heavy metals, other chemicals and radio-
active  elements.  In  other  states, this wastewater is often stored in
open pits until transported for ultimate disposal.  Chemicals  evaporate
from these open pits, contributing to air pollution. Leaks and spills of
chemicals  from  the  trucks  and  waste pits may cause contamination of
surface waters. Fracturing fluid left underground could migrate or  seep
through   fractures  in  underground  formations,  cracks  in  well-bore
casings, through abandoned wells, or otherwise to  pollute  groundwater.
Given  the  increased  prevalence  of natural gas drilling in the state,
these negative effects may  increase  if  the  process  of  natural  gas
extraction is not carefully and thoughtfully regulated.
  6.  One  of  the  chief environmental and infrastructure assets of the
state of New York is its drinking water systems, which play a  fundamen-
tal  role  in  the economic productivity and public health of the state.
The policy of the state with respect to  the  management  of  shale  gas
extraction must be one of zero drinking water risk.
  7.  Furthermore,  natural  gas  exploration  must  be carried out in a
manner that is sensitive to the ecological richness and aesthetic beauty
of the state. Widespread, uncontrolled  natural  gas  development  using
hydraulic  fracturing will diminish or destroy the natural beauty of the
land and disrupt the natural habitat of wildlife. The legislature  finds
that  natural  gas  development  must  be  carried out to minimize these
effects to the maximum extent possible.
  8. Natural gas extraction can impose both  monetary  and  non-monetary
costs  on  municipalities  and cause property damage or otherwise reduce
the property value of private land owners. It is the  intention  of  the
legislature  that  all  persons who undertake natural gas development in
the state of New York take full responsibility for  their  actions,  and
act consistent with local concerns.
  9.  Although  natural gas development provides the promise of economic
benefit for the state of New York, the state must ensure that the  bene-
fits  outweigh the costs. It is the policy of the state that natural gas
development practices will be sustainable, respectful, and safe.    This
act is intended to ensure that goal is met.
  S  2.  The  environmental  conservation law is amended by adding a new
section 17-0709 to read as follows:
S 17-0709. WASTEWATER TREATMENT FACILITIES.
  NOTWITHSTANDING ANYTHING TO  THE  CONTRARY  CONTAINED  IN  SUBDIVISION
TWENTY-ONE  OF  SECTION 17-0105 OF THIS ARTICLE, THE COMMISSIONER SHALL,
AFTER HOLDING A PUBLIC HEARING WITH DUE NOTICE,  PROMULGATE  REGULATIONS
ESTABLISHING  A STANDARD OF PERFORMANCE FOR THE CONTROL OF THE DISCHARGE
OF POLLUTANTS FROM FACILITIES  WHICH  TREAT  WASTEWATER  FROM  HYDRAULIC
FRACTURING  OPERATIONS.  THIS  STANDARD OF PERFORMANCE SHALL REFLECT THE
GREATEST DEGREE OF EFFLUENT REDUCTION WHICH THE COMMISSIONER  DETERMINES
TO  BE ACHIEVABLE THROUGH APPLICATION OF THE BEST AVAILABLE DEMONSTRATED
CONTROL TECHNOLOGY, PROCESSES, OPERATING METHODS, OR OTHER ALTERNATIVES,
INCLUDING, WHERE PRACTICABLE, A  STANDARD  PERMITTING  NO  DISCHARGE  OF
POLLUTANTS.  THIS  STANDARD  OF PERFORMANCE SHALL REMAIN IN EFFECT UNTIL
SUCH TIME THAT THE FEDERAL GOVERNMENT DETERMINES THAT A  GREATER  DEGREE
OF  EFFLUENT LIMITATION IS ACHIEVABLE BY THIS CATEGORY OF FACILITIES, AT

S. 2697--A                          3

WHICH TIME THIS STANDARD OF PERFORMANCE  SHALL  BE  SUPERSEDED  BY  SUCH
FEDERAL STANDARD.
  S 3. Section 23-0101 of the environmental conservation law, as amended
by chapter 846 of the laws of 1981 and subdivision 1 as amended by chap-
ter 891 of the laws of 1984, is amended to read as follows:
S 23-0101. Definitions.
  As used in this article, unless the context otherwise requires:
  1.  "AIR POLLUTANT" MEANS VOLATILE ORGANIC COMPOUNDS (VOCS) AS DEFINED
AT 40 CFR 51.100(S), HAZARDOUS AIR POLLUTANTS (HAPS) AS  DEFINED  AT  42
USC  S  7412(B)  AND  40  CFR 63, NITROGEN OXIDES (NOX), CARBON MONOXIDE
(CO), METHANE (CH4), ETHANE (C2H6), PARTICULATE MATTER (PM10 AND PM2.5),
OZONE (O3), LEAD (PB), SULFUR DIOXIDE (SO2) AND OTHER  AIR  CONTAMINANTS
AS MAY BE IDENTIFIED BY THE DEPARTMENT.
  2.  "BEST MANAGEMENT PRACTICES (BMPS)" ARE PRACTICES THAT ARE DESIGNED
TO PREVENT OR REDUCE IMPACTS CAUSED BY OIL AND GAS  OPERATIONS  TO  AIR,
WATER, SOIL, OR BIOLOGICAL RESOURCES, AND TO MINIMIZE ADVERSE IMPACTS TO
PUBLIC  HEALTH,  SAFETY AND WELFARE, INCLUDING THE ENVIRONMENT AND WILD-
LIFE RESOURCES.
  3. "Buffer zone" means all  that  area  outside  and  surrounding  the
underground  gas  storage  reservoir  which  the  department approves as
appropriate to protect the integrity of the reservoir, no part of  which
shall  be  more  than  thirty-five hundred linear feet from the boundary
thereof.
  [2.] 4. "Cavity" means an open or partially open space  left  after  a
salt has been solution mined.
  [3.]  5.  "CLOSED-LOOP  SYSTEM" MEANS A SYSTEM FOR HANDLING OIL OR GAS
EXPLORATION, STIMULATION, OR PRODUCTION WASTES, INCLUDING BUT NOT LIMIT-
ED TO DRILLING  FLUIDS  AND  CUTTINGS,  HYDRAULIC  FRACTURING  FLOWBACK,
PRODUCED  WATER,  AND  RESIDUAL  SLUDGES OR BRINES, WITHOUT THE NEED FOR
PITS.
  6. "Commissioner" means the commissioner  of  environmental  conserva-
tion.
  [4.]  7.  "CONSEQUENCES  OF  ANY  HAZARDOUS DISCHARGE" AS USED IN THIS
SECTION MEANS ANY DETRIMENTAL EFFECT TO THE HEALTH, SAFETY, WELFARE,  OR
AESTHETIC ENJOYMENT OF ANY CITIZEN, RESIDENT, OR VISITOR IN THE STATE BY
A HAZARDOUS DISCHARGE.
  8. "Department" means the department of environmental conservation.
  [5.]  9.  "ENVIRONMENTAL  DAMAGE" AS USED IN THIS SECTION MEANS DAMAGE
TO:
  A. ANY WATERS OF THE STATE;
  B. ANY LAND SURFACE OR SUBSURFACE STRATA OF THE STATE;
  C. ANY AMBIENT AIR WITHIN THE STATE; OR,
  D. THE WILDLIFE OR ECOLOGICAL SYSTEMS IN THE LAND, AIR, OR  WATERS  OF
THE STATE.
  10.  "Fund"  means  the  oil  and  gas [fund as established in section
eighty-three-a of the state finance law] ACCOUNT ESTABLISHED UNDER CHAP-
TER FIFTY-EIGHT OF THE LAWS OF NINETEEN HUNDRED EIGHTY-TWO.
  [6.] 11. "Field" means the general  area  underlaid  by  one  or  more
pools.
  [7.]  12.  "Gas" means all natural, manufactured, mixed, and byproduct
gas, and all other hydrocarbons not defined as oil in this section.
  [8.] 13. "GROUNDWATER" MEANS WATER IN  A  SATURATED  ZONE  OR  STRATUM
BENEATH THE SURFACE OF LAND OR WATER.
  14.  "GROUNDWATER  WELL"  MEANS ANY WELL DESIGNED OR USED FOR THE SOLE
PURPOSE OF OBTAINING GROUNDWATER.

S. 2697--A                          4

  15. "HAZARDOUS RELEASE" AS USED IN THIS SECTION MEANS THE RELEASE OF A
HAZARDOUS SUBSTANCE.
  16.  "HAZARDOUS  SUBSTANCE"  MEANS SUBSTANCES WHICH MEET THE FOLLOWING
CRITERIA, INCLUDING BUT NOT LIMITED TO THOSE LISTED  IN  N.Y.C.R.R.    S
597.2:
  A.  BECAUSE OF THEIR QUANTITY, CONCENTRATION, OR PHYSICAL, CHEMICAL OR
INFECTIOUS CHARACTERISTICS CAUSE PHYSICAL INJURY OR ILLNESS WHEN IMPROP-
ERLY TREATED, STORED, TRANSPORTED, DISPOSED OF, OR OTHERWISE MANAGED;
  B. POSE A PRESENT OR POTENTIAL HAZARD TO THE ENVIRONMENT WHEN  IMPROP-
ERLY TREATED, STORED, TRANSPORTED, DISPOSED OF, OR OTHERWISE MANAGED;
  C.  BECAUSE  OF  THEIR  TOXICITY  OR  CONCENTRATION  WITHIN BIOLOGICAL
CHAINS, PRESENT A DEMONSTRATED THREAT TO  BIOLOGICAL  LIFE  CYCLES  WHEN
RELEASED INTO THE ENVIRONMENT;
  D.  HAVE  AN  ORAL LD (RAT) TOXICITY OF LESS THAN FIFTY MILLIGRAMS PER
KILOGRAM; OR HAVE AN INHALATION LC  (RAT)  TOXICITY  OF  LESS  THAN  TWO
MILLIGRAMS PER LITER; OR HAVE A DERMAL LD (RABBIT) TOXICITY OF LESS THAN
TWO HUNDRED MILLIGRAMS PER KILOGRAM; OR
  E.  CAUSE  OR ARE CAPABLE OF CAUSING DEATH, SERIOUS ILLNESS OR SERIOUS
PHYSICAL INJURY TO ANY PERSON OR PERSONS AS  A  CONSEQUENCE  OF  RELEASE
INTO THE ENVIRONMENT.
  17.  "Local  agency"  means any local agency, board, authority, school
district, commission or governing  body,  including  any  county,  city,
town, village or other political subdivision of the state.
  [9.]  18.  "Metered"  means  the  physical measurement of gas by means
acceptable to the department.
  [10.] 19. "Oil" means crude petroleum oil and all other  hydrocarbons,
regardless  of gravity, that are produced at the wellhead in liquid form
by ordinary production methods and that are not the result of  condensa-
tion of gas.
  [11.]  20.  "OIL  AND  GAS FACILITY" MEANS EQUIPMENT, IMPROVEMENTS, OR
PHYSICAL STRUCTURES, INCLUDING ANY OIL OR GAS WELLS, USED  OR  INSTALLED
AT  AN OIL AND GAS LOCATION FOR THE EXPLORATION, PRODUCTION, WITHDRAWAL,
GATHERING, TREATMENT, OR PROCESSING OF OIL OR NATURAL GAS.
  21. "OIL AND GAS LOCATION" MEANS A DEFINABLE AREA  WHERE  AN  OPERATOR
HAS  DISTURBED OR INTENDS TO DISTURB THE LAND SURFACE IN ORDER TO LOCATE
AN OIL AND GAS FACILITY.
  22. "OIL AND GAS  OPERATIONS"  MEANS  EXPLORATION  FOR  OIL  AND  GAS,
INCLUDING  THE  CONDUCT  OF  SEISMIC OPERATIONS AND THE DRILLING OF TEST
BORES; THE SITING,  DRILLING,  DEEPENING,  RECOMPLETION,  REWORKING,  OR
ABANDONMENT  OF  AN OIL AND GAS WELL, UNDERGROUND INJECTION WELL, OR GAS
STORAGE WELL; PRODUCTION OPERATIONS RELATED TO ANY SUCH  WELL  INCLUDING
THE  INSTALLATION  OF  FLOWLINES  AND GATHERING SYSTEMS; THE GENERATION,
TRANSPORTATION, STORAGE,  TREATMENT,  OR  DISPOSAL  OF  EXPLORATION  AND
PRODUCTION  WASTES;  AND ANY CONSTRUCTION, SITE PREPARATION, OR RECLAMA-
TION ACTIVITIES ASSOCIATED WITH SUCH OPERATIONS.
  23. "OPERATOR" MEANS ANY PERSON WHO EXERCISES THE RIGHT TO CONTROL THE
CONDUCT OF, OR WHO CONDUCTS, OIL AND GAS OPERATIONS.
  24. "Owner" means the person who has  the  right  to  drill  into  and
produce from a pool or a salt deposit and to appropriate the oil, gas or
salt  he  produces  either  for  himself  or  others, or for himself and
others.
  [12.] 25. "PIT" MEANS ANY NATURAL OR MAN-MADE DEPRESSION IN THE GROUND
USED FOR THE PURPOSE OF RETAINING OR STORING SUBSTANCES ASSOCIATED  WITH
OIL AND GAS OPERATIONS.
  26. "Person" means and includes any natural person, corporation, asso-
ciation, partnership, receiver, trustee, executor, administrator, guard-

S. 2697--A                          5

ian,  fiduciary,  or  other representative of any kind, and includes any
department, agency or instrumentality of the state or any of its govern-
mental subdivisions.
  [13.]  27. "Plug and abandon" means the plugging, replugging if neces-
sary, and abandonment of a well bore including the placing of all bridg-
es, 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.
  [14.]  28.  "Pool"  means an underground reservoir containing a common
accumulation of oil or gas or both; each zone of a  structure  which  is
completely  separated  from  any  other  zone in the same structure is a
pool.
  [15.] 29.  "POTENTIAL ENVIRONMENTAL JUSTICE AREA" MEANS A MINORITY  OR
LOW-INCOME COMMUNITY THAT MAY BEAR A DISPROPORTIONATE SHARE OF THE NEGA-
TIVE  ENVIRONMENTAL  CONSEQUENCES  RESULTING FROM INDUSTRIAL, MUNICIPAL,
AND COMMERCIAL OPERATIONS OR THE EXECUTION OF FEDERAL, STATE, LOCAL, AND
TRIBAL PROGRAMS AND POLICIES.
  30. "Producer" means the owner of a well or wells capable of producing
oil, gas, or salt; or any salt or hydrocarbon mixture.
  [16.] 31. "Product" means any commodity  made  from  oil  or  gas  and
includes  refined  crude oil, crude tops, topped crude, processed crude,
processed crude petroleum, residue from crude petroleum, cracking stock,
uncracked fuel oil, fuel oil, treated  crude  oil,  residuum,  gas  oil,
casinghead  gasoline, natural-gas gasoline, kerosene, benzine, wash oil,
waste oil, blended gasoline, lubricating oil, blends or mixtures of  oil
with one or more liquid products or by-products derived from oil or gas,
and  blends  or  mixtures  of two or more liquid products or by-products
derived from oil or gas, whether herein enumerated or not.
  [17.] 32.  "RELEASE" MEANS ANY SPILLING,  LEAKING,  PUMPING,  POURING,
EMITTING,   EMPTYING,   DISCHARGING,   ESCAPING,  LEACHING,  DUMPING  OR
DISCHARGING INTO THE ENVIRONMENT (INCLUDING THE ABANDONMENT OR  DISCARD-
ING OF BARRELS, CONTAINERS, AND OTHER CLOSED RECEPTACLES).
  33. "Reservoir" means any underground reservoir, natural or artificial
cavern  or  geologic  dome,  sand  or stratigraphic trap, whether or not
previously occupied by or containing oil or gas.
  [18.] 34. "Salt" means sodium chloride, evaporite or other water solu-
ble minerals, either in solution or as a solid or  crystalline  material
in a pure state or as a mixture.
  [19.]  35.    "SITE" MEANS THE LOCATION OF ANY  OIL AND GAS OPERATION,
INCLUDING BUT NOT LIMITED TO WELLS AND WELL  PADS,  STORAGE  FACILITIES,
NATURAL GAS COMPRESSOR STATIONS, AND CENTRALIZED IMPOUNDMENTS.
  36.  "Solution  mining" means the dissolving of an underground salt by
water to produce a brine for transport to another underground or surface
location for sale, processing or storage.
  [20.] 37.  "SURFACE WATER" MEANS ANY WATER OCCURRING  ON  THE  EARTH'S
SURFACE  IN  THE  FORM  OF  A STREAM, RIVER, POND, LAKE, WETLAND, OCEAN,
ARTIFICIAL CHANNEL OR RESERVOIR, OR OTHER SURFACE WATER BODY.
  38. "Waste" means
  a. Physical waste, as that term is generally understood in the oil and
gas industry;
  b. The inefficient, excessive or improper use of, or  the  unnecessary
dissipation of reservoir energy;
  c. The locating, spacing, drilling, equipping, operating, or producing
of  any  oil  or  gas well or wells in a manner which causes or tends to
cause reduction in the quantity of oil  or  gas  ultimately  recoverable
from  a  pool  under  prudent  and proper operations, or which causes or

S. 2697--A                          6

tends to cause unnecessary or excessive surface loss or  destruction  of
oil or gas;
  d. The inefficient storing of oil or gas; and
  e.  The  flaring  of gas produced from an oil or condensate well after
the department has found that the use of the gas, on terms that are just
and reasonable, is, or will be economically feasible within a reasonable
time.
  S 4. Section 23-0303 of the environmental conservation law, as amended
by chapter 846 of the laws of 1981, is amended to read as follows:
S 23-0303. Administration of article.
  1. Except to the extent that the administration  of  this  article  is
specifically entrusted to other agencies or officers of the state by its
provisions,  such administration shall be by the department.  Geological
services for the department in connection  with  the  administration  of
this article shall be provided by or in cooperation with the state geol-
ogist.  Within  appropriations  therefor the department is authorized to
employ such personnel as may be necessary for the administration of this
article and may also employ or secure the services of such  engineering,
technical and other consultants as it may require from time to time.
  2.  The  provisions  of this article shall supersede all local laws or
ordinances relating to the regulation  of  the  oil,  gas  and  solution
mining  industries;  [but shall not supersede local government jurisdic-
tion over local roads or the rights of local governments under the  real
property  tax law] PROVIDED, HOWEVER, THAT NOTHING IN THIS ARTICLE SHALL
BE CONSTRUED TO PREVENT ANY LOCAL GOVERNMENT FROM:
  A. ENACTING OR ENFORCING LOCAL LAWS OR ORDINANCES OF GENERAL  APPLICA-
BILITY, EXCEPT THAT SUCH LOCAL LAWS OR ORDINANCES SHALL NOT REGULATE OIL
AND GAS OPERATIONS REGULATED BY STATE STATUTE OR REGULATION; OR
  B. ENACTING OR ENFORCING LOCAL LAWS OR ORDINANCES RELATED TO THE REGU-
LATION  AND  MANAGEMENT  OF  LOCAL  ROADS, SUCH AS INGRESS AND EGRESS TO
PUBLIC THOROUGHFARES CONTROLLED BY THE LOCAL GOVERNMENT; OR
  C. ENACTING OR ENFORCING LAWS PURSUANT TO THE RIGHTS OF LOCAL  GOVERN-
MENTS UNDER THE REAL PROPERTY TAX LAW; OR
  D. ENFORCING ANY REQUIREMENT CONTAINED IN ANY OIL OR GAS PERMIT ISSUED
BY THE STATE; OR
  E.  ENACTING  OR ENFORCING LOCAL ZONING ORDINANCES OR LAWS THAT DETER-
MINE PERMISSIBLE USES IN ZONING DISTRICTS, INCLUDING WHETHER OIL AND GAS
FACILITIES ARE PERMISSIBLE WITHIN A PARTICULAR ZONING DISTRICT. WHERE AN
OIL AND GAS FACILITY  IS  DESIGNATED  A  PERMISSIBLE  USE  IN  A  ZONING
DISTRICT  AND  ALLOWED  BY SPECIAL USE PERMIT, CONDITIONS PLACED ON SUCH
SPECIAL USE PERMITS SHALL BE LIMITED TO THE FOLLOWING:
  I. REQUIREMENTS AND CONDITIONS CONCERNING SETBACK FROM PROPERTY BOUND-
ARIES, SURFACE WATERS, GROUNDWATER WELLS, HOMES OR  PRIVATE  RESIDENCES,
CHURCHES,  SCHOOLS, AND OTHER PUBLIC FACILITIES, AND PUBLIC THOROUGHFARE
RIGHTS-OF-WAY;
  II. REQUIREMENTS AND CONDITIONS CONCERNING NATURAL OR MAN-MADE  BARRI-
ERS TO RESTRICT ACCESS FROM OIL AND GAS FACILITIES, IF REQUIRED; AND
  III.  DUST,  NOISE, VIBRATION, OR LIGHT LIMITATIONS, AND REGULATION OF
HOURS OF OPERATION.
  3. NOTWITHSTANDING ANY PROVISION TO THE CONTRARY, LOCAL LAWS AND ORDI-
NANCES REGULATING ZONING, INCLUDING CONDITIONS IN  SPECIAL  USE  PERMITS
THAT IMPOSE SETBACKS, THE REQUIREMENT OF NATURAL OR MANMADE BARRIERS, OR
LIMITATIONS  ON DUST, NOISE, VIBRATION, LIGHT, OR HOURS OF OPERATION, DO
NOT CONSTITUTE THE REGULATION OF OIL AND  GAS  OPERATIONS  REGULATED  BY
STATE STATUTE OR REGULATION.

S. 2697--A                          7

  4.  IN  ORDER  TO  FACILITATE A MUNICIPALITY'S ABILITY TO EXERCISE ITS
AUTHORITY UNDER PARAGRAPH D OF SUBDIVISION  TWO  OF  THIS  SECTION,  THE
DEPARTMENT SHALL PROVIDE EVERY MUNICIPALITY WITH A COPY OF THE PERMIT OF
EACH WELL LOCATED OR PERMITTED TO BE LOCATED WITHIN ITS BOUNDARIES.
  [3.]  5. a. The commissioner shall accept from municipalities requests
for funds from the oil and gas fund to reimburse  the  municipality  for
costs  incurred in repairing damages to municipal land or property. Such
requests shall include such explanatory material  and  documentation  as
the commissioner may require.
  b.  The commissioner and director of the budget, may recommend payment
to the municipality to satisfy the request for reimbursement upon  find-
ing that:
  (1)  The  municipality  has made a bona fide effort to seek relief and
recover its costs from those deemed to  be  responsible  and  any  other
appropriate avenues, but has been unsuccessful;
  (2)  The damage was a direct result of activities regulated under this
article and that the amount of funds requested is reasonable in view  of
such damages; and
  (3)  The costs were incurred after the effective date of this subdivi-
sion.
  S 5. Paragraph d of subdivision 8 of section 23-0305 of  the  environ-
mental  conservation law, as amended by chapter 846 of the laws of 1981,
is amended to read as follows:
  d. Require the drilling, casing, operation, plugging and replugging of
wells and reclamation of surrounding land in accordance with  rules  and
regulations  of  the  department  in such manner as to prevent or remedy
[the following] ANY ACT RESULTING IN ENVIRONMENTAL DAMAGE, including but
not limited to: the escape of oil, gas, brine or water out of one  stra-
tum  into  another;  the intrusion of water into oil or gas strata other
than during enhanced recovery operations; the pollution of  fresh  water
supplies  by oil, gas, salt water, DRILLING FLUIDS, HYDRAULIC FRACTURING
FLUIDS or other contaminants; and blowouts, cavings, seepages and fires.
SUCH RULES AND REGULATIONS SHALL REGULATE THE TYPE, VOLUME, AND  CONCEN-
TRATION OF ADDITIVES FOR THE PROTECTION OF HUMAN HEALTH AND THE ENVIRON-
MENT;  AND SUCH REGULATIONS SHALL PROHIBIT THE USE OF DRILLING FLUIDS OR
HYDRAULIC FRACTURING FLUIDS CONTAINING ANY CHEMICAL SUBSTANCE THAT  UPON
EXPOSURE,  INGESTION,  INHALATION  OR  ASSIMILATION  INTO  ANY ORGANISM,
EITHER DIRECTLY FROM THE ENVIRONMENT, INCLUDING FROM DRINKING WATER,  OR
INDIRECTLY THROUGH FOOD CHAINS, WILL, ON THE BASIS OF INFORMATION AVAIL-
ABLE  TO THE DEPARTMENT, CAUSE DEATH, DISEASE, BEHAVIORAL ABNORMALITIES,
CANCER, GENETIC MUTATIONS, ENDOCRINE DISRUPTION, PHYSIOLOGICAL  MALFUNC-
TIONS, INCLUDING MALFUNCTIONS IN REPRODUCTION, OR PHYSICAL DEFORMATIONS,
IN  SUCH  ORGANISMS  OR  THEIR  OFFSPRING, INCLUDING BUT NOT LIMITED TO:
BENZENE AND ANY CHEMICAL SUBSTANCE THAT HAS BEEN IDENTIFIED PURSUANT  TO
THE  FEDERAL TOXIC SUBSTANCES CONTROL ACT AS PERSISTENT, BIOACCUMULATIVE
AND TOXIC.
  S 6. Section 23-0305 of the environmental conservation law is  amended
by adding a new subdivision 15 to read as follows:
  15.  THE  DEPARTMENT SHALL PROMULGATE REGULATIONS REQUIRING DISCLOSURE
OF CHEMICALS USED IN OIL AND GAS WELL DRILLING AND HYDRAULIC FRACTURING,
INCLUDING BUT NOT LIMITED TO THE FOLLOWING REQUIREMENTS:
  A. NO PERMIT TO DRILL, DEEPEN, PLUG BACK, OR CONVERT A WELL  SHALL  BE
ISSUED  UNDER  THIS ARTICLE UNTIL THE DEPARTMENT OBTAINS FROM THE PERMIT
APPLICANT A COMPLETE LIST OF THE CHEMICAL CONSTITUENTS OF EACH  ADDITIVE
THAT  MAY  BE  USED  IN DRILLING OR FRACTURING THE WELL SPECIFIED IN THE
APPLICATION;

S. 2697--A                          8

  B. WHENEVER THE DEPARTMENT OR A TREATING PHYSICIAN  OR  NURSE,  DETER-
MINES THAT A MEDICAL EMERGENCY EXISTS AS A RESULT OF OIL OR GAS EXPLORA-
TION, STIMULATION, OR PRODUCTION ACTIVITIES CONDUCTED BY A WELL DRILLING
PERMIT  HOLDER OR ITS SUBCONTRACTORS AND THAT THE DISCLOSURE OF PROPRIE-
TARY CHEMICAL INFORMATION, INCLUDING THE IDENTITY OF ANY CHEMICAL OR THE
FORMULA  OF  ANY  ADDITIVE USED IN DRILLING OR HYDRAULIC FRACTURING OF A
PERMITTED OIL OR GAS WELL, MAY BE NECESSARY FOR EMERGENCY  OR  FIRST-AID
TREATMENT,  THE  WELL  DRILLING  PERMIT  HOLDER  OR ANY SUBCONTRACTOR IN
POSSESSION OR CONTROL OF THE PROPRIETARY INFORMATION  SHALL  IMMEDIATELY
DISCLOSE THE PROPRIETARY INFORMATION REQUESTED TO THE DEPARTMENT OR THAT
TREATING  PHYSICIAN  OR  NURSE, REGARDLESS OF THE EXISTENCE OF A WRITTEN
STATEMENT OF NEED OR A CONFIDENTIALITY AGREEMENT.  THE PERMIT HOLDER  OR
SUBCONTRACTOR  MAY  REQUEST  A WRITTEN STATEMENT OF NEED AND A CONFIDEN-
TIALITY AGREEMENT AS SOON THEREAFTER AS  CIRCUMSTANCES  PERMIT.  IN  THE
EVENT  THE  PERMIT HOLDER OR SUBCONTRACTOR FAILS TO IMMEDIATELY DISCLOSE
SUCH PROPRIETARY INFORMATION, THE DEPARTMENT SHALL MAKE AVAILABLE  TO  A
TREATING PHYSICIAN OR NURSE ALL INFORMATION WITHIN ITS POSSESSION RELAT-
ING  TO  THE  INGREDIENTS OF ANY CHEMICAL OR THE FORMULA OF ANY ADDITIVE
USED IN DRILLING OR HYDRAULIC FRACTURING UTILIZED IN A PERMITTED OIL  OR
GAS WELL SUSPECTED OF CAUSING SUCH EMERGENCY;
  C.  EACH  PERMIT  HOLDER SHALL NOTIFY THE DEPARTMENT OF ANY CHANGES TO
THE CHEMICAL CONSTITUENTS USED IN DRILLING OR FRACTURING  PRIOR  TO  THE
FLUID'S USE IN THE DRILLING OR FRACTURING PROCESS.
  D.  THE  DEPARTMENT SHALL MAKE ANY DISCLOSURES FILED UNDER PARAGRAPH A
OR C OF THIS SUBDIVISION AVAILABLE TO THE PUBLIC  AND  SHALL  POST  SUCH
INFORMATION ON THE DEPARTMENT'S WEBSITE.
  S  7. Section 23-0313 of the environmental conservation law is amended
by adding four new subdivisions 3, 4, 5 and 6 to read as follows:
  3. THE DEPARTMENT SHALL PROMULGATE REGULATIONS REQUIRING:
  A. OIL AND GAS WELL OWNERS OR OPERATORS TO GIVE NOTICE TO THE  DEPART-
MENT,  LOCAL  HEALTH  DEPARTMENT  AND  RESPONDING EMERGENCY AGENCIES, IN
PERSON OR BY SUCH MEANS AS THE  DEPARTMENT  SHALL  SPECIFY,  IMMEDIATELY
AFTER  THE RELEASE OF ANY FUEL, HAZARDOUS CHEMICAL OR WASTE STORED AT OR
GENERATED BY AN OIL AND GAS FACILITY OR USED IN WELL DRILLING OR HYDRAU-
LIC FRACTURING OPERATIONS.
  B. NOTICE REQUIRED UNDER PARAGRAPH A OF THIS SUBDIVISION SHALL INCLUDE
EACH OF THE FOLLOWING (TO THE EXTENT KNOWN AT THE TIME OF THE NOTICE AND
SO LONG AS NO DELAY IN RESPONDING TO THE RELEASE RESULTS):
  I. THE CHEMICAL NAME OR IDENTITY OF  ANY  SUBSTANCE  INVOLVED  IN  THE
RELEASE; AND
  II.  AN  ESTIMATE  OF  THE  QUANTITY  OF  ANY  SUCH SUBSTANCE THAT WAS
RELEASED INTO THE ENVIRONMENT; AND
  III. THE TIME AND DURATION OF THE RELEASE; AND
  IV. THE MEDIUM OR MEDIA INTO WHICH THE RELEASE OCCURRED; AND
  V. ANY KNOWN OR ANTICIPATED ACUTE OR CHRONIC HEALTH  RISKS  ASSOCIATED
WITH THE RELEASE AND, WHERE APPROPRIATE, ADVICE REGARDING MEDICAL ATTEN-
TION NECESSARY FOR EXPOSED INDIVIDUALS; AND
  VI. PROPER PRECAUTIONS AND REMEDIAL ACTIONS TO TAKE AS A RESULT OF THE
RELEASE; AND
  VII.  THE  NAME  AND  TELEPHONE  NUMBER OF THE PERSON OR PERSONS TO BE
CONTACTED FOR FURTHER INFORMATION.
  C. AS SOON AS PRACTICABLE AFTER A RELEASE THAT REQUIRES  NOTICE  UNDER
PARAGRAPH  A OF THIS SUBDIVISION, SUCH OWNER OR OPERATOR SHALL PROVIDE A
WRITTEN FOLLOW-UP EMERGENCY NOTICE  (OR  NOTICES,  AS  MORE  INFORMATION
BECOMES  AVAILABLE)  SETTING FORTH AND UPDATING THE INFORMATION REQUIRED
UNDER PARAGRAPH B OF THIS SUBDIVISION, AND INCLUDING:

S. 2697--A                          9

  I. ACTIONS TAKEN TO RESPOND TO AND CONTAIN THE RELEASE;
  II.  ANY KNOWN OR ANTICIPATED ACUTE OR CHRONIC HEALTH RISKS ASSOCIATED
WITH THE RELEASE; AND
  III. ADVICE REGARDING MEDICAL ATTENTION NECESSARY FOR EXPOSED INDIVID-
UALS.
  D. THE DEPARTMENT SHALL POST ALL  CHEMICAL  SPILL  REPORT  INFORMATION
REFERENCED  IN  PARAGRAPHS A, B AND C OF THIS SUBDIVISION ON THE DEPART-
MENT'S WEBSITE.
  4. THE DEPARTMENT SHALL PROMULGATE  RULES  AND  REGULATIONS  REQUIRING
THAT  OWNERS  OR  OPERATORS  OF WELLS GIVE WRITTEN NOTICE TO ALL PERSONS
RESIDING WITHIN ONE HALF MILE OF ANY PROPOSED WELL SITE TWO WEEKS BEFORE
DRILLING OR HYDRAULIC FRACTURING OPERATIONS BEGIN. OWNERS  OR  OPERATORS
OF  WELLS SHALL PUBLISH A NOTICE IN A LOCAL NEWSPAPER CIRCULATING IN THE
AREA OF THE PROPOSED WELL SITE TWO WEEKS BEFORE  DRILLING  OR  HYDRAULIC
FRACTURING  OPERATIONS  BEGIN. WITHIN TWO BUSINESS DAYS OF GIVING NOTICE
UNDER THIS SECTION, A LIST OF RECIPIENTS AND A COPY OF ALL NOTICES, WITH
PROOF OF DELIVERY IN COMPLIANCE WITH THIS SECTION, SHALL BE SUBMITTED TO
THE DEPARTMENT FOR INCLUSION IN THE DRILLING PERMIT FILE. COPIES OF  ALL
NOTICES SHALL BE PUBLICLY AVAILABLE.
  5.  THE  DEPARTMENT SHALL DEVELOP MAPS OF ALL KNOWN OIL AND GAS WELLS,
INCLUDING ACTIVE AND ABANDONED WELLS, IN NEW  YORK  USING  A  GEOGRAPHIC
INFORMATION  SYSTEM AND MAKE THOSE MAPS SYSTEM PUBLICLY AVAILABLE ON THE
DEPARTMENT'S WEBSITE.
  6. THE DEPARTMENT SHALL CREATE AND OPERATE AN  EMERGENCY  1-800  TELE-
PHONE  NUMBER  FOR  PUBLIC  USE  IN IDENTIFYING AND REPORTING ANY OIL OR
NATURAL GAS-RELATED INCIDENTS TO THE DEPARTMENT.
  S 8. The environmental conservation law is amended  by  adding  a  new
section 23-0315 to read as follows:
S 23-0315. BEST MANAGEMENT PRACTICES.
  1. THE COMMISSIONER SHALL NOT PERMIT ANY OWNER OR OPERATOR TO COMMENCE
OPERATIONS  TO  DRILL,  DEEPEN, PLUG BACK OR CONVERT A WELL FOR EXPLORA-
TION, PRODUCTION, STORAGE OR DISPOSAL UNLESS SUCH  OPERATIONS  IMPLEMENT
BEST MANAGEMENT PRACTICES.
  2. THE COMMISSIONER SHALL INCLUDE ALL APPLICABLE BEST MANAGEMENT PRAC-
TICES  AS  CONDITIONS  OF  EACH  PERMIT  TO  DRILL, DEEPEN, PLUG BACK OR
CONVERT A WELL.
  3. EVERY THREE YEARS, AFTER HOLDING A PUBLIC HEARING WITH DUE  NOTICE,
THE COMMISSIONER SHALL PUBLISH AN INVENTORY OF BEST MANAGEMENT PRACTICES
THAT  MAY  BE  INCLUDED AS SPECIAL CONDITIONS OF PERMITS FOR NATURAL GAS
DRILLING, DEPENDING UPON SITE-SPECIFIC ANALYSIS OF A PROPOSED WELL  SITE
AND  AVAILABLE  CONTROL TECHNOLOGIES. ANY BEST MANAGEMENT PRACTICES THAT
MAY BE APPLIED TO ALL DRILLING PERMITS SHALL  BE  PROMULGATED  AS  REGU-
LATIONS  IN COMPLIANCE WITH THE REQUIREMENTS OF THE STATE ADMINISTRATIVE
PROCEDURE ACT.
  S 9. The environmental conservation law is amended  by  adding  a  new
section 23-0317 to read as follows:
S 23-0317. LIABILITY.
  1.  LIABLE PARTIES. THE FOLLOWING PERSONS SHALL BE LIABLE UNDER SUBDI-
VISION TWO OF THIS SECTION:
  A. THE OWNER OF AN OIL AND GAS FACILITY OR PIPELINE;
  B. THE OPERATOR OF AN OIL AND GAS FACILITY OR PIPELINE;
  C. ANY PERSON WHO BY CONTRACT, AGREEMENT, OR  OTHERWISE  ARRANGED  FOR
THE  TRANSPORT  OF OIL OR GAS, OR FOR THE TRANSPORT, DISPOSAL, OR TREAT-
MENT OF A HAZARDOUS SUBSTANCE USED IN OIL OR GAS  OPERATIONS,  INCLUDING
HAZARDOUS  HYDRAULIC FRACTURING FLUID OR ANY HAZARDOUS COMPONENTS THERE-
OF; AND,

S. 2697--A                         10

  D. ANY PERSON WHO ACCEPTS ANY HAZARDOUS SUBSTANCE USED IN OIL AND  GAS
OPERATIONS FOR RECYCLING, DISPOSAL, OR TREATMENT.
  2.  LIABILITY.  ANY  LIABLE PARTY MENTIONED IN SUBDIVISION ONE OF THIS
SECTION SHALL BE LIABLE FOR ANY ENVIRONMENTAL DAMAGE FROM, OR THE CONSE-
QUENCES OF  ANY  HAZARDOUS  RELEASE  FROM,  AN  OIL  AND  GAS  FACILITY,
WELL-BORE,  PIPELINE, OR FROM ANY STORAGE OR DISPOSAL AREA FOR OIL, GAS,
OR A HAZARDOUS SUBSTANCE USED IN OIL OR GAS OPERATIONS INCLUDING:
  A. ALL COSTS OF REMOVAL OR REMEDIAL ACTION INCURRED BY  THE  STATE  OR
ANY SUBDIVISION THEREOF;
  B. ANY OTHER NECESSARY COSTS OF RESPONSE OR MITIGATION INCURRED BY ANY
OTHER  PERSON AUTHORIZED BY THE STATE TO RESPOND TO THE CONTAMINATION OR
MITIGATE THE EFFECTS THEREOF;
  C.  DAMAGES  FOR  INJURY  TO,  DESTRUCTION  OF,  OR  LOSS  OF  NATURAL
RESOURCES,  INCLUDING  THE  REASONABLE  COSTS  OF ASSESSING SUCH INJURY,
DESTRUCTION, OR LOSS RESULTING FROM SUCH A RELEASE; AND,
  D. ALL DIRECT COSTS PROXIMATELY CAUSED BY THE ENVIRONMENTAL DAMAGE  OR
THE  CONSEQUENCES OF ANY HAZARDOUS RELEASE TO PRIVATE PARTIES, INCLUDING
BUT NOT LIMITED TO DAMAGE TO PROPERTY OWNED BY SUCH PARTIES OR INJURY TO
PERSONAL HEALTH OR WELFARE.
  3.  LIMITATION  OF  LIABILITY.  NOTHING  IN  THIS  SECTION  SHOULD  BE
CONSTRUED  AS  LIMITING  THE LIABILITY OF ANY LIABLE PARTY IDENTIFIED IN
SUBDIVISION ONE OF THIS SECTION AS AGAINST ANY PRIVATE PARTY IN A  CIVIL
ACTION.
  4.  NATURAL  RESOURCES  LIABILITY.  A.  IN  THE EVENT OF AN INJURY TO,
DESTRUCTION OF, OR LOSS OF NATURAL RESOURCES UNDER PARAGRAPH C OF SUBDI-
VISION TWO OF THIS SECTION, LIABILITY SHALL BE TO THE STATE OF NEW YORK;
PROVIDED, HOWEVER, THAT NO LIABILITY TO THE STATE OF NEW YORK  SHALL  BE
IMPOSED  UNDER PARAGRAPH C OF SUBDIVISION TWO OF THIS SECTION, WHERE THE
PARTY SOUGHT TO BE CHARGED HAS DEMONSTRATED THAT THE DAMAGES TO  NATURAL
RESOURCES  COMPLAINED OF WERE SPECIFICALLY IDENTIFIED AS AN IRREVERSIBLE
OR IRRETRIEVABLE COMMITMENT OF NATURAL  RESOURCES  IN  AN  ENVIRONMENTAL
IMPACT  STATEMENT,  OR  OTHER COMPARABLE ENVIRONMENTAL ANALYSIS, AND THE
DECISION TO GRANT A PERMIT OR  LICENSE  AUTHORIZES  SUCH  COMMITMENT  OF
NATURAL  RESOURCES,  AND THE FACILITY OR PROJECT WAS OTHERWISE OPERATING
WITHIN THE TERMS OF ITS PERMIT OR LICENSE.
  B. THE COMMISSIONER,  OR  ANOTHER  REPRESENTATIVE  AUTHORIZED  BY  THE
GOVERNOR  OF  NEW  YORK, SHALL ACT ON BEHALF OF THE PUBLIC AS TRUSTEE OF
SUCH NATURAL RESOURCES TO RECOVER FOR SUCH DAMAGES.  SUMS  RECOVERED  BY
THE  COMMISSIONER  AS TRUSTEE UNDER THIS SUBSECTION SHALL BE RETAINED BY
THE TRUSTEE, WITHOUT FURTHER APPROPRIATION, FOR  USE  ONLY  TO  RESTORE,
REPLACE,  OR ACQUIRE THE EQUIVALENT OF SUCH NATURAL RESOURCES. THE MEAS-
URE OF DAMAGES IN ANY ACTION UNDER PARAGRAPH C  OF  SUBDIVISION  ONE  OF
THIS  SECTION  SHALL  NOT  BE  LIMITED  BY THE SUMS WHICH CAN BE USED TO
RESTORE OR REPLACE SUCH RESOURCES.
  5. FINANCIAL RESPONSIBILITY. A. ANY OWNER OR OPERATOR  OF  A  WELL  OR
WELLS  MUST, BEFORE COMMENCEMENT OF OPERATIONS, POST A LIABILITY BOND OR
HOLD LIABILITY INSURANCE COVERAGE FOR EACH WELL OWNED OR OPERATED.
  B. THE LIABILITY BOND OR INSURANCE REQUIRED BY  PARAGRAPH  A  OF  THIS
SUBDIVISION  SHALL BE IN SUCH FORM AS THE DEPARTMENT BY REGULATION SHALL
REQUIRE AND IN SUCH AMOUNT AS THE DEPARTMENT SHALL DEEM TO BE REASONABLY
SUFFICIENT TO CORRECT, REPAIR OR  REMEDY  TO  THE  SATISFACTION  OF  THE
DEPARTMENT  ANY  ENVIRONMENTAL  DAMAGE  OR HAZARDOUS DISCHARGE RESULTING
FROM OIL OR GAS EXPLORATION OR PRODUCTION.  HOWEVER, FOR WELLS LESS THAN
TWO THOUSAND FIVE HUNDRED FEET IN DEPTH OR LENGTH,  A  MINIMUM  OF  FIVE
THOUSAND  FIVE HUNDRED DOLLARS PER WELL WILL BE REQUIRED TO SATISFY THIS
SECTION AND FOR WELLS BETWEEN TWO THOUSAND FIVE  HUNDRED  FEET  AND  SIX

S. 2697--A                         11

THOUSAND  FEET IN DEPTH OR LENGTH, TEN THOUSAND FIVE HUNDRED DOLLARS PER
WELL WILL BE REQUIRED. WELLS GREATER THAN SIX THOUSAND FEET IN DEPTH  OR
LENGTH  AND  FOR  WHICH  HYDRAULIC  FRACTURING FLUID SHALL BE USED, WILL
REQUIRE  THAT  THE OPERATOR PROVIDE ADDITIONAL FINANCIAL SECURITY OF TWO
HUNDRED FIFTY THOUSAND DOLLARS,  PROVIDED  HOWEVER  THE  DEPARTMENT  MAY
REQUIRE AN ADDITIONAL BOND OR FINANCIAL SECURITY IN AN AMOUNT SUFFICIENT
TO  COVER  POTENTIAL  REMEDIATION COSTS ASSOCIATED WITH CONTAMINATION OF
THE ENVIRONMENT.
  C. THE LIABILITY BOND OR INSURANCE REQUIRED BY  PARAGRAPH  A  OF  THIS
SUBDIVISION SHALL BE HELD FOR THE DURATION OF OPERATIONS.
  D.  AFTER  OPERATIONS  HAVE CEASED, ANY OWNER OR OPERATOR OF A WELL OR
WELLS SHALL POST A LIABILITY BOND OR HOLD LIABILITY INSURANCE  FOR  EACH
WELL OWNED OR OPERATED.
  E.  THE  LIABILITY  BOND  OR INSURANCE REQUIRED BY PARAGRAPH D OF THIS
SUBDIVISION SHALL BE IN SUCH FORM AS THE DEPARTMENT BY REGULATION  SHALL
REQUIRE  AND  IN  SUCH AMOUNT AS THE DEPARTMENT SHALL DEEM SUFFICIENT TO
CORRECT, REPAIR, OR REMEDY TO THE SATISFACTION  OF  THE  DEPARTMENT  ANY
ENVIRONMENTAL  DAMAGE  OR HAZARDOUS DISCHARGE RESULTING FROM MOVEMENT OF
ANY HAZARDOUS SUBSTANCE FROM THE PLUGGED OR PERMANENTLY ABANDONED WELL.
  F. THE LIABILITY BOND OR INSURANCE REQUIRED BY  PARAGRAPH  D  OF  THIS
SUBDIVISION  SHALL BE HELD FOR ONE HUNDRED YEARS AFTER THE WELL HAS BEEN
PLUGGED OR PERMANENTLY ABANDONED.
  G. NOTHING IN THIS SECTION SHALL AFFECT THE REQUIREMENTS OF  PARAGRAPH
E OF SUBDIVISION THREE OF SECTION 23-1101 OF THIS ARTICLE.
  6.  DEFINITION  OF  NATURAL  RESOURCES. "NATURAL RESOURCES" AS USED IN
THIS SECTION MEANS LAND,  FISH,  WILDLIFE,  BIOTA,  AIR,  WATER,  GROUND
WATER,  DRINKING  WATER SUPPLIES, AND OTHER SUCH RESOURCES BELONGING TO,
MANAGED BY, HELD IN TRUST BY, APPERTAINING TO, OR  OTHERWISE  CONTROLLED
BY THE STATE OF NEW YORK.
  S  10.  The  environmental conservation law is amended by adding a new
section 23-0505 to read as follows:
S 23-0505. OIL AND GAS FACILITY LOCATION REQUIREMENTS.
  1. MINIMUM SETBACKS. NO OIL AND GAS FACILITY, WELL-BORE, PIPELINE,  OR
STORAGE  OR DISPOSAL AREA FOR OIL, GAS, OR A HAZARDOUS SUBSTANCE USED IN
OIL OR GAS OPERATIONS SHALL BE LOCATED WITHIN TWO THOUSAND FEET  OF  ANY
SURFACE WATERS, GROUNDWATER WELL, HOME OR PRIVATE RESIDENCE (INCLUDING A
NURSING HOME), SCHOOL, CHURCH, DAY CARE FACILITY, OR HEALTH CARE FACILI-
TY.
  2.  SUBSURFACE  LANDS.  FOR  THE  PURPOSES  OF SUBDIVISION ONE OF THIS
SECTION, THE SETBACKS APPLICABLE  TO  ANY  SURFACE  WATERS,  GROUNDWATER
WELL,  HOME  OR  PRIVATE  RESIDENCE  (INCLUDING A NURSING HOME), SCHOOL,
CHURCH, DAY CARE FACILITY, OR HEALTH CARE FACILITY SHALL ALSO  APPLY  TO
THE LAND DIRECTLY BELOW THOSE AREAS, INCLUDING ANY SUBSURFACE STRATA.
  3.  CONTAMINATION  PREVENTION.  A. SPILLS, WELL LEAKS, AND CONTAMINANT
FLOW FROM TARGETED FORMATION.
  (1) THE WELL PAD OF ANY OIL OR GAS WELL LOCATED WITHIN  ONE-HALF  MILE
OF  ANY  SURFACE  WATERS  MUST BE SURROUNDED BY A PROTECTIVE BERM WITH A
WATER DETENTION CAPACITY OF AT LEAST TWENTY-FIVE THOUSAND  GALLONS.  THE
DEPARTMENT  MAY  REQUIRE  A PROTECTIVE BERM TO HAVE A DETENTION CAPACITY
GREATER THAN TWENTY-FIVE THOUSAND GALLONS IF THE  DEPARTMENT  DETERMINES
IT IS NECESSARY TO PROTECT SURFACE WATERS FROM CONTAMINATION.
  (2)  THE  DEPARTMENT  SHALL  REQUIRE  A  SITE-SPECIFIC ANALYSIS OF THE
TOPOGRAPHY, GEOLOGY, AND HYDROGEOLOGY OF ALL PROPOSED OIL AND GAS FACIL-
ITIES OR PIPELINES. THIS ANALYSIS SHOULD INCLUDE IDENTIFICATION  OF  ALL
POTENTIAL  PATHWAYS  AND  RECEIVING  WATERS  FOR SPILLS FROM THE SITE TO
REACH SURFACE WATERS.

S. 2697--A                         12

  (3) THE  DEPARTMENT  SHALL  REQUIRE  THE  DEVELOPMENT  OF  GROUNDWATER
CONTOUR  AND VERTICAL GRADIENT MAPS OF THE GEOLOGICAL FORMATION FROM THE
TARGET FORMATION TO THE GROUND SURFACE PRIOR  TO  APPROVAL  OF  ANY  GAS
DRILLING PERMIT.
  (4) THE DEPARTMENT SHALL PROMULGATE REGULATIONS IDENTIFYING TOPOGRAPH-
ICAL AND GEOLOGIC AND HYDROGEOLOGIC CONDITIONS, INCLUDING BUT NOT LIMIT-
ED TO STEEP SLOPES BETWEEN THE WELL PAD AND SURFACE WATERS; PROXIMITY TO
IMPAIRED  WATERWAYS  IDENTIFIED  BY  THE  STATE  OF NEW YORK PURSUANT TO
SECTION 303(D) OF THE FEDERAL CLEAN WATER  ACT;  CONDITIONS  THAT  WOULD
PERMIT  SUDDEN  SPILLS  TO  REACH  SURFACE  WATERS BEFORE CONTAINMENT IS
POSSIBLE; OR ANY OTHER  CONDITIONS  THAT  WOULD  INCREASE  THE  RISK  OF
SURFACE OR GROUNDWATER CONTAMINATION OR FURTHER DEGRADATION THAT REQUIRE
SETBACKS  LARGER THAN THOSE SPECIFIED IN SUBDIVISION ONE OF THIS SECTION
OR DENIAL OF A WELL DRILLING PERMIT.
  (5) AS A CONDITION OF ANY PERMIT GRANTED PURSUANT TO  SECTION  23-0501
OF  THIS TITLE FOR ANY WELL SUBJECT TO SETBACK REQUIREMENTS, THE DEPART-
MENT SHALL ESTABLISH SETBACKS SUFFICIENT TO PROTECT HUMAN HEALTH AND THE
WATERS OF THE STATE.
  B. MONITORING REQUIREMENTS. (1) ALL OIL OR GAS WELLS MUST BE  EQUIPPED
WITH  A MONITORING DEVICE OR DEVICES INSTALLED TO DETECT ANY CONTAMINANT
MOVEMENT FROM THE OIL OR GAS WELL IN THE DIRECTION OF ANY GROUNDWATER OR
GROUNDWATER WELL.
  (2) THE DEPARTMENT SHALL PROMULGATE REGULATIONS ESTABLISHING  A  MONI-
TORING  PROGRAM  TO  DETECT  ANY CONTAMINANT MOVEMENT FROM AN OIL OR GAS
FACILITY. THE REGULATIONS SHALL PROVIDE, AT A MINIMUM, THAT:
  (I) MONITORING SHALL OCCUR NO LESS OFTEN THAN QUARTERLY;
  (II) GROUNDWATER MONITORING SHALL COMMENCE AT  OR  NEAR  THE  PROPOSED
WELL  SITE AT LEAST THREE HUNDRED SIXTY-FIVE DAYS BEFORE DRILLING BEGINS
TO PROVIDE A WATER QUALITY BASELINE THAT ACCOUNTS FOR  SEASONAL  CHANGES
IN WATER QUALITY;
  (III)  MONITORING  SHALL CONTINUE FOR THE DURATION OF OPERATIONS UNTIL
FIFTY YEARS AFTER OPERATIONS HAVE CEASED OR THE OIL  AND  GAS  WELL  HAS
BEEN PLUGGED OR PERMANENTLY ABANDONED;
  (IV) THE MONITORING DEVICE OR DEVICES USED TO DETECT CONTAMINANT MOVE-
MENT SHALL REFLECT THE BEST TECHNOLOGY AVAILABLE FOR SUCH MONITORING;
  (V)  MONITORING SHALL BE CONDUCTED FOR ONE OR MORE ACTUAL CONSTITUENTS
OF DRILLING AND FRACTURING FLUIDS USED AT EACH PROXIMATE SITE; AND
  (VI) SCREEN LENGTHS, MONITORING WELL DENSITY  AND  MONITORED  AQUIFERS
SHALL  BE  BASED UPON A CONCEPTUAL FLOW MODEL, DEVELOPED ON THE BASIS OF
ALL AVAILABLE OR NEW DATA, AS APPROPRIATE, TO DETECT A LEAK OR MIGRATION
OF ANY CONTAMINATION SO AS TO  MAXIMIZE  THE  POSSIBILITY  OF  DETECTION
PRIOR TO CONTAMINATION OF ANY DRINKING WATER SOURCE.
  S  11.  The  environmental conservation law is amended by adding a new
section 23-0507 to read as follows:
S 23-0507. EXCLUSION AREAS.
  1. THE DEPARTMENT SHALL  IDENTIFY  SPECIFIC  AREAS  WITH  DETERMINABLE
BOUNDARIES  IN  WHICH ANY OIL AND GAS FACILITIES, WELL-BORES, PIPELINES,
OR STORAGE OR DISPOSAL AREAS FOR OIL, GAS, OR A HAZARDOUS SUBSTANCE USED
IN OIL OR GAS OPERATIONS WILL BE PROHIBITED. THESE AREAS SHALL INCLUDE:
  A. THE AREA AROUND AND INCLUDING THE NEW YORK CITY WATERSHED;
  B. THE AREA AROUND AND INCLUDING ANY WATER SYSTEM THAT  HAS  RECEIVED,
AT  ANY  POINT  IN  TIME,  A FILTRATION AVOIDANCE DETERMINATION FROM THE
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY;
  C. ANY AREA OVERLYING A SOLE SOURCE AQUIFER;
  D. ANY OTHER AREA IDENTIFIED BY THE DEPARTMENT AS  NECESSARY  FOR  THE
PROTECTION OF DRINKING WATER RESOURCES;

S. 2697--A                         13

  E.  ANY  AREA  IDENTIFIED  AS  A  CRITICAL HABITAT FOR A THREATENED OR
ENDANGERED SPECIES UNDER SECTION FOUR OF THE FEDERAL ENDANGERED  SPECIES
ACT  (42  U.S.C.  S  1533) OR ANY AREA IDENTIFIED AS A "NATURAL HERITAGE
AREA" UNDER SECTION 11-0539 OF THIS CHAPTER;
  F.  ANY  AREA IDENTIFIED BY THE DEPARTMENT AS A BIRD CONSERVATION AREA
OR ANY OTHER CRITICAL BIRD HABITAT FOR THE PROTECTION  OF  MIGRATORY  OR
NON-MIGRATORY BIRDS;
  G. ALL FLOODPLAINS; AND,
  H.  ALL  AREAS  WITHIN ANY NEW YORK STATE PARK, FOREST PRESERVE, STATE
FOREST, WILDLIFE REFUGE, WILDLIFE MANAGEMENT AREA, OR WILDERNESS AREA.
  2. FOR ANY AREAS IDENTIFIED IN PARAGRAPH A OR B OF SUBDIVISION ONE  OF
THIS SECTION THE DEPARTMENT SHALL IDENTIFY AN ADDITIONAL AREA AROUND THE
PRIMARY DRINKING WATER RESOURCE IN WHICH OIL AND GAS OPERATIONS SHALL BE
PROHIBITED IN ORDER TO ENSURE ADEQUATE PROTECTION OF SUCH RESOURCE.
  3. FOR ANY AREAS IDENTIFIED IN PARAGRAPHS A, B, C, OR E OF SUBDIVISION
ONE  OF  THIS  SECTION  THE DEPARTMENT SHALL ADD AN ADDITIONAL EXCLUSION
BUFFER OF NO LESS THAN ONE-HALF MILE IN WHICH ANY OIL  AND  GAS  FACILI-
TIES,  WELL-BORES, PIPELINES, OR STORAGE OR DISPOSAL AREAS FOR OIL, GAS,
OR A HAZARDOUS SUBSTANCE USED IN OIL OR GAS OPERATIONS WILL BE PROHIBIT-
ED.
  4. ALL AREAS IDENTIFIED IN SUBDIVISION ONE OF  THIS  SECTION  AND  THE
EXCLUSION  BUFFER  AREAS  IDENTIFIED  IN SUBDIVISION TWO OF THIS SECTION
SHALL INCLUDE ALL THE LAND LOCATED DIRECTLY BELOW THOSE AREAS, INCLUDING
ALL LEVELS OF SUBSURFACE STRATA.
  5. THE DEPARTMENT MAY ALSO IDENTIFY ANY OTHER EXCLUSION AREA  FOR  THE
PROTECTION  OF  ANY  NATURAL  RESOURCE  AS DEFINED IN SUBDIVISION SIX OF
SECTION 23-0317 OF THIS ARTICLE OR FOR THE HEALTH,  SAFETY,  OR  GENERAL
WELFARE OF ANY CITIZEN, RESIDENT, OR VISITOR IN THE STATE OF NEW YORK.
  S  12.  The  environmental conservation law is amended by adding a new
section 23-0509 to read as follows:
S 23-0509. PROHIBITION ON WASTE STORAGE PITS OR IMPOUNDMENTS.
  PITS AND OTHER IMPOUNDMENTS, WHETHER OR NOT LINED, SHALL NOT  BE  USED
FOR ON-SITE OR OFF-SITE COLLECTION OR STORAGE OF ANY OIL OR GAS EXPLORA-
TION,  STIMULATION,  OR  PRODUCTION WASTES, INCLUDING BUT NOT LIMITED TO
DRILLING FLUIDS AND CUTTINGS, HYDRAULIC  FRACTURING  FLOWBACK,  PRODUCED
WATER,  AND RESIDUAL SLUDGES OR BRINES REMAINING AFTER ON-SITE TREATMENT
OF OIL OR GAS WASTES FOR REUSE OR RECYCLING. ALL OIL OR GAS EXPLORATION,
STIMULATION, OR PRODUCTION WASTES SHALL  BE  COLLECTED  AND  STORED  AND
RETRIEVABLE  AT  ALL  TIMES IN CLOSED-LOOP SYSTEMS. THE DEPARTMENT SHALL
PROMULGATE MINIMUM STANDARDS FOR CLOSED-LOOP SYSTEMS  FOR  OIL  AND  GAS
WASTE COLLECTION, STORAGE, AND RETRIEVAL.
  S  13.  Section  23-1903  of  the  environmental  conservation law, as
amended by section 1 of part R-1 of chapter 62 of the laws of  2003,  is
amended to read as follows:
S 23-1903. Imposition  of  oil,  gas  and solution mining regulation and
             reclamation fees.
  1. When a permit is granted to a person by the department pursuant  to
section  23-0305  of  this  article  to  drill  a  well or when a person
converts a well to one subject to the oil, gas and solution mining  law,
such person shall pay to the department:
  a.  A one hundred dollar fee to be credited to the oil and gas account
established under chapter fifty-eight of the laws  of  nineteen  hundred
eighty-two; and
  b.  A  fee in accordance with the depth AND LENGTH drilled or expected
to be drilled as set forth below:
     0-  500ft. - [$  190] $ 250

S. 2697--A                         14

   501- 1000ft. - [$  380] $ 500
  1001- 1500ft. - [$  570] $ 750
  1501- 2000ft. - [$  760] $1000
  2001- 2500ft. - [$  950] $1250
  2501- 3000ft. - [$1,140] $1500
  3001- 3500ft. - [$1,330] $1750
  3501- 4000ft. - [$1,520] $2000
  4001- 4500ft. - [$1,710] $2250
  4501- 5000ft. - [$1,900] $2500
  5001- 5500ft. - [$2,090] $2750
  5501- 6000ft. - [$2,280] $3000
  6001- 6500ft. - [$2,470] $3250
  6501- 7000ft. - [$2,660] $3500
  7001- 7500ft. - [$2,850] $3750
  7501- 8000ft. - [$3,040] $4000
  8001- 8500ft. - [$3,230] $4250
  8501- 9000ft. - [$3,420] $4500
  9001- 9500ft. - [$3,610] $4750
  9501-10,000ft.- [$3,800] $5000
  over 10,000ft.- [$3,800]  $5000  plus [$190] $250 for each incremental
500 feet of depth OR LENGTH over 10,000 feet.
  A person who has paid the fees described shall not be required to  pay
any  additional  fee  for a well conversion.  The fee for well deepening
permits pertaining to wells for which a well drilling permit was  issued
after  August twenty-fifth, nineteen hundred eighty-one, shall be calcu-
lated on the basis of the additional depth OR LENGTH drilled.
  In the event the actual depth drilled exceeds the depth expected to be
drilled, an additional amount shall be paid such that the total fee paid
shall be in accordance with the schedule set forth in this paragraph.
  2. THE DEPARTMENT SHALL REVIEW THE FEE SCHEDULES  SET  FORTH  IN  THIS
SECTION  PRIOR  TO  SEPTEMBER  FIRST  OF  EACH YEAR. THE FIGURES WILL BE
ADJUSTED UP OR DOWN ANNUALLY BY  THE  PREVIOUS  TWELVE  MONTH  INFLATION
FACTOR.  THE INFLATION FACTOR IS BASED UPON THE UNITED STATES DEPARTMENT
OF LABOR, BUREAU OF LABOR STATISTICS DATA PUBLISHED IN THE  MONTHLY  CPI
DETAILED  REPORT.  THE  DATA  WILL  BE TAKEN FROM THE MOST RECENT REPORT
AVAILABLE ON JULY FIRST OF EACH YEAR AND THE ACTUAL PERCENTAGE USED WILL
BE THE PAST YEAR PERCENT CHANGE FOR THE U.S. CITY  AVERAGE,  ALL  ITEMS,
ALL URBAN CONSUMERS.
  3.  Upon  requesting  from  the department any determination under the
Natural Gas Policy Act, such person shall  pay  a  [fifty]  ONE  HUNDRED
dollar fee per well for each such determination.
  S  14.  Article 23 of the environmental conservation law is amended by
adding a new title 29 to read as follows:
                                TITLE 29
                              CITIZEN SUITS
SECTION 23-2901. ACTIONS TO ENFORCE LAWS  ON  POLLUTION,  IMPAIRMENT  OR
                   DESTRUCTION  OF  ENVIRONMENT,  OR TO PROTECT ENVIRON-
                   MENT; DISMISSAL OF FRIVOLOUS ACTIONS.
S 23-2901. ACTIONS  TO  ENFORCE  LAWS  ON   POLLUTION,   IMPAIRMENT   OR
              DESTRUCTION  OF  ENVIRONMENT,  OR  TO PROTECT ENVIRONMENT;
              DISMISSAL OF FRIVOLOUS ACTIONS.
  1. ANY PERSON MAY COMMENCE A CIVIL ACTION  IN  A  COURT  OF  COMPETENT
JURISDICTION  AGAINST ANY OTHER PERSON ALLEGED TO BE IN VIOLATION OF ANY
STATUTE, REGULATION OR ORDINANCE WHICH IS DESIGNED TO PREVENT,  MINIMIZE
OR  CONTROL POLLUTION, IMPAIRMENT OR DESTRUCTION OF THE ENVIRONMENT. THE
ACTION MAY BE FOR INJUNCTIVE OR OTHER EQUITABLE RELIEF TO COMPEL COMPLI-

S. 2697--A                         15

ANCE WITH A STATUTE, REGULATION OR ORDINANCE, OR TO ASSESS CIVIL  PENAL-
TIES  FOR  THE VIOLATION AS PROVIDED BY LAW. THE ACTION MAY BE COMMENCED
UPON AN ALLEGATION THAT A PERSON IS IN VIOLATION, EITHER CONTINUOUSLY OR
INTERMITTENTLY, OF A STATUTE, REGULATION OR ORDINANCE, AND THAT THERE IS
A LIKELIHOOD THAT THE VIOLATION WILL RECUR IN THE FUTURE.
  2.  EXCEPT  IN THOSE INSTANCES WHERE THE CONDUCT COMPLAINED OF CONSTI-
TUTES A VIOLATION OF A STATUTE, REGULATION  OR  ORDINANCE  WHICH  ESTAB-
LISHES A MORE SPECIFIC STANDARD FOR THE CONTROL OF POLLUTION, IMPAIRMENT
OR  DESTRUCTION  OF  THE  ENVIRONMENT,  ANY  PERSON MAY COMMENCE A CIVIL
ACTION IN ANY COURT OF COMPETENT JURISDICTION FOR DECLARATORY AND  EQUI-
TABLE RELIEF AGAINST ANY OTHER PERSON FOR THE PROTECTION OF THE ENVIRON-
MENT,  OR THE INTEREST OF THE PUBLIC THEREIN, FROM POLLUTION, IMPAIRMENT
OR DESTRUCTION OCCURRING IN VIOLATION, EITHER CONTINUOUSLY OR  INTERMIT-
TENTLY, OF THIS ARTICLE.
  3.  THE  COURT  MAY, ON THE MOTION OF ANY PARTY, OR ON ITS OWN MOTION,
DISMISS ANY ACTION BROUGHT PURSUANT  TO  THIS  ACT  WHICH  ON  ITS  FACE
APPEARS TO BE PATENTLY FRIVOLOUS, HARASSING OR WHOLLY LACKING IN MERIT.
  S  15.  Article 23 of the environmental conservation law is amended by
adding a new title 31 to read as follows:
                                TITLE 31
                        HEALTH IMPACT ASSESSMENT
SECTION 23-3101. PREPARATION OF HEALTH IMPACT ASSESSMENT.
S 23-3101. PREPARATION OF HEALTH IMPACT ASSESSMENT.
  1. NO PERMIT SHALL BE ISSUED UNDER SECTION  23-0501  OF  THIS  ARTICLE
UNTIL  THE  DEPARTMENT OF HEALTH HAS COMPLETED THE HEALTH IMPACT ASSESS-
MENT DESCRIBED IN SUBDIVISION TWO OF THIS SECTION AND THE DEPARTMENT HAS
ADOPTED REGULATIONS AND IMPLEMENTED ANY MITIGATION MEASURES  RECOMMENDED
IN  THE HEALTH IMPACT ASSESSMENT. THE PURPOSE OF A HEALTH IMPACT ASSESS-
MENT IS TO PROVIDE DETAILED INFORMATION ABOUT THE  EFFECT  OIL  AND  GAS
OPERATIONS  ARE  LIKELY  TO  HAVE ON PUBLIC HEALTH, TO IDENTIFY MEASURES
THAT COULD BE IMPLEMENTED TO MINIMIZE ANY ADVERSE EFFECTS OF SUCH  OPER-
ATIONS,  AND TO SUGGEST ALTERNATIVES TO SUCH AN ACTION SO AS TO FORM THE
BASIS FOR A DECISION WHETHER OR NOT TO UNDERTAKE OR APPROVE SUCH  ACTIV-
ITIES.
  2.  THE DEPARTMENT OF HEALTH SHALL PREPARE, OR CAUSE TO BE PREPARED BY
CONTRACT OR OTHERWISE, A COMPREHENSIVE HEALTH IMPACT ASSESSMENT  OF  OIL
AND  GAS  OPERATIONS  INVOLVING ANY SHALE FORMATION, INCLUDING ALL OPER-
ATIONS RELATED AND INCIDENT THERETO, WHICH MAY HAVE AN ADVERSE IMPACT ON
PUBLIC HEALTH.
  A. SUCH AN ASSESSMENT SHALL INCLUDE A DETAILED STATEMENT SETTING FORTH
THE FOLLOWING:
  I. A DESCRIPTION OF THE OPERATIONS;
  II. THE PUBLIC HEALTH IMPACT OF THE OPERATIONS,  INCLUDING  SHORT-TERM
AND LONG-TERM EFFECTS;
  III. WHETHER AN OPERATION OCCURS IN, OR DISPROPORTIONATELY WILL IMPOSE
NEGATIVE HEALTH IMPACTS UPON A POTENTIAL ENVIRONMENTAL JUSTICE AREA, AND
IF SO, THE IDENTITY OF SUCH AREA;
  IV. ANY ADVERSE PUBLIC HEALTH EFFECTS THAT CANNOT BE AVOIDED;
  V.  ALTERNATIVES  TO  THE OIL AND GAS OPERATIONS GENERALLY OR ALTERNA-
TIVES TO ANY ASPECT RELATED  OR  INCIDENT  THERETO  WHICH  MAY  HAVE  AN
ADVERSE IMPACT ON PUBLIC HEALTH;
  VI. MITIGATION MEASURES PROPOSED TO MINIMIZE THE PUBLIC HEALTH IMPACT;
  VII.  ANY  SUCH OTHER INFORMATION CONSISTENT WITH THE PURPOSES OF THIS
ARTICLE AS MAY BE PRESCRIBED IN GUIDELINES ISSUED BY THE COMMISSIONER.
  B. THE DEPARTMENT OF HEALTH SHALL FIRST ISSUE A  DRAFT  HEALTH  IMPACT
ASSESSMENT THAT SATISFIES THE REQUIREMENTS OF PARAGRAPH A OF THIS SUBDI-

S. 2697--A                         16

VISION.  THE DRAFT SHOULD RESEMBLE IN FORM AND CONTENT THE HEALTH IMPACT
ASSESSMENT TO BE PREPARED AFTER COMMENTS HAVE BEEN RECEIVED AND  CONSID-
ERED.
  3. THE DRAFT ASSESSMENT SHALL BE FILED WITH THE DEPARTMENT.
  A.  THE DEPARTMENT AND THE DEPARTMENT OF HEALTH SHALL SOLICIT COMMENTS
FROM THE PUBLIC AND FEDERAL, STATE, REGIONAL AND LOCAL  AGENCIES  HAVING
AN  INTEREST IN THE ASSESSMENT. THE COMMENT PERIOD SHALL LAST NO SHORTER
THAN NINETY DAYS.
  B. THE DRAFT ASSESSMENT SHALL BE POSTED ON THE DEPARTMENT OF  HEALTH'S
AND THE DEPARTMENT'S WEBSITES.
  4.  AFTER  THE  FILING  OF A DRAFT HEALTH IMPACT ASSESSMENT EITHER THE
DEPARTMENT OF HEALTH OR THE DEPARTMENT SHALL DETERMINE WHETHER OR NOT TO
CONDUCT A PUBLIC HEARING ON THE PUBLIC HEALTH IMPACT OF THE OIL AND  GAS
OPERATIONS.  IF  EITHER AGENCY DETERMINES TO HOLD SUCH HEARING, IT SHALL
COMMENCE THE HEARING WITHIN SIXTY DAYS OF THE FILING UNLESS THE PROPOSED
ACTION IS WITHDRAWN FROM CONSIDERATION.
  5. IF NO HEARING IS HELD, THE AGENCY SHALL PREPARE AND MAKE  AVAILABLE
THE  FINAL  HEALTH IMPACT ASSESSMENT. THE FINAL ASSESSMENT SHALL INCLUDE
COPIES OR A SUMMARY OF THE SUBSTANTIVE COMMENTS RECEIVED BY  THE  AGENCY
PURSUANT TO SUBDIVISION FOUR OF THIS SECTION, AND THE AGENCY RESPONSE TO
SUCH COMMENTS.
  6.  THE  HEALTH IMPACT ASSESSMENT TOGETHER WITH ALL COMMENTS, SHALL BE
FILED WITH THE COMMISSIONER, MADE AVAILABLE TO THE PUBLIC, AND POSTED ON
A PUBLICLY-AVAILABLE INTERNET WEBSITE UPON ISSUANCE.
  7. WHEN AN AGENCY DECIDES TO CARRY OUT OR APPROVE AN ACTION WHICH  HAS
BEEN  THE  SUBJECT  OF  THIS  HEALTH IMPACT ASSESSMENT, IT SHALL MAKE AN
EXPLICIT FINDING THAT THE REQUIREMENTS OF THIS SECTION HAVE BEEN MET AND
THAT TO THE MAXIMUM EXTENT PRACTICABLE, ADVERSE  PUBLIC  HEALTH  IMPACTS
REVEALED  IN  THE  HEALTH IMPACT ASSESSMENT PROCESS WILL BE MINIMIZED OR
AVOIDED.
  8. WHERE THE DEPARTMENT OF  HEALTH  CONCLUDES  OR  THE  HEALTH  IMPACT
ASSESSMENT  INDICATES  THAT  THE  OIL  AND GAS OPERATIONS, OR OPERATIONS
RELATED OR INCIDENT THERETO, OCCUR IN, OR DISPROPORTIONATELY WILL IMPOSE
NEGATIVE HEALTH IMPACTS UPON A POTENTIAL ENVIRONMENTAL JUSTICE AREA, THE
DEPARTMENT OF HEALTH SHALL REQUIRE A SITE SPECIFIC HEALTH IMPACT ASSESS-
MENT. THAT ASSESSMENT SHALL CONFORM TO THE  REQUIREMENTS  SET  FORTH  IN
SUBDIVISION TWO OF THIS SECTION, AND THE DEPARTMENT OF HEALTH SHALL MAKE
REGULATIONS SPECIFYING ADDITIONAL REQUIREMENTS WHICH SHALL APPLY TO SITE
SPECIFIC ASSESSMENTS. NO PERMIT SHALL BE ISSUED UNDER SECTION 23-0501 OF
THIS  ARTICLE  IN  ANY  AREA  SUBJECT  TO  A SITE SPECIFIC HEALTH IMPACT
ASSESSMENT UNTIL THE SITE SPECIFIC HEALTH  IMPACT  ASSESSMENT  HAS  BEEN
COMPLETED  AND  THE  MITIGATION  MEASURES  SUGGESTED  THEREIN  HAVE BEEN
ADOPTED. THE DEPARTMENT OF HEALTH MAY REQUIRE  A  SITE  SPECIFIC  HEALTH
IMPACT ASSESSMENTS IN ANY OTHER CIRCUMSTANCES IT DEEMS ADVISABLE.
  S  16.  Article 23 of the environmental conservation law is amended by
adding a new title 33 to read as follows:
                                TITLE 33
                         AIR QUALITY MONITORING
SECTION 23-3301. AIR QUALITY MONITORING.
S 23-3301. AIR QUALITY MONITORING.
  WITHIN SIX MONTHS OF THE ENACTMENT  OF  THIS  SECTION  THE  DEPARTMENT
SHALL:
  1.  PREPARE  A  DRAFT  AIR QUALITY TESTING AND MONITORING PLAN FOR ALL
AREAS OF CURRENT OR POTENTIAL OIL AND GAS OPERATIONS IN NEW YORK  STATE.
THE  DRAFT  PLAN  SHALL  BE  SUBJECT TO PUBLIC REVIEW, INCLUDING BUT NOT

S. 2697--A                         17

LIMITED TO NOTICE AND A COMMENT PERIOD OF  AT  LEAST  THIRTY  DAYS.  THE
DRAFT AND FINAL PLAN SHALL INCORPORATE THE FOLLOWING MINIMUM PROVISIONS:
  A.  MANDATORY  BASELINE TESTING OF AIR QUALITY AND AIR POLLUTANT EMIS-
SIONS THROUGHOUT THE OIL AND GAS DEVELOPMENT REGION OF NEW  YORK  STATE,
INCLUDING  EMISSIONS  FROM  BOTH MOBILE AND STATIONARY AIR CONTAMINATION
SOURCES INVOLVED IN OIL AND GAS OPERATIONS, AS  DEFINED  IN  SUBDIVISION
FIVE OF SECTION 19-0107 OF THIS CHAPTER;
  B. DEPLOYMENT OF A SUFFICIENT NUMBER OF AIR QUALITY MONITORING DEVICES
WITHIN  THE OIL AND GAS DEVELOPMENT REGION TO ENSURE PROMPT DETECTION OF
ANY VIOLATIONS OF AIR QUALITY STANDARDS;
  C. DELINEATION OF OIL AND GAS DEVELOPMENT SUBREGIONS WITHIN  NEW  YORK
STATE, BASED ON THE AIRSHEDS FOR EACH REGULATED POLLUTANT EMITTED BY OIL
AND  GAS  FACILITIES;  PREPARATION  OF CUMULATIVE IMPACT ANALYSES OF AIR
EMISSIONS IN EACH SUBREGION, INCLUDING EMISSIONS FROM  ALL  NATURAL  GAS
COMPRESSOR  STATIONS; AND DEVELOPMENT OF STANDARDS AND REGULATORY PROCE-
DURES FOR CONTROL OF COMPRESSOR STATION EMISSIONS;
  D. DEVELOPMENT OF PROCEDURES AND A SCHEDULE FOR THE REGULAR MONITORING
AND REPORTING OF AIR QUALITY AND AIR POLLUTANT DENSITY  WITHIN  EACH  OF
THE SUBREGIONS;
  E. MANDATORY POSTING OF SUCH REPORTS ON THE DEPARTMENT'S WEBSITE;
  F.  ESTABLISHMENT  OF  PROCEDURES FOR APPROPRIATE RESPONSES, INCLUDING
EMERGENCY RESPONSES, TO VIOLATIONS OF AIR QUALITY STANDARDS.
  2. IN THE FINAL AIR QUALITY TESTING AND MONITORING PLAN,  THE  DEPART-
MENT  SHALL  RESPOND TO ALL SUBSTANTIVE COMMENTS TIMELY SUBMITTED ON THE
DRAFT PLAN.
  3. NO PERMIT SHALL BE ISSUED UNDER SECTION  23-0501  OF  THIS  ARTICLE
UNTIL  THIRTY  DAYS  AFTER  NOTICE OF THE FINAL PLAN IS PUBLISHED IN THE
ENVIRONMENTAL NOTICE BULLETIN.
  4. NO PERMIT SHALL BE ISSUED UNDER SECTION 23-0501 OF THIS ARTICLE, IF
AIR EMISSIONS FROM THE PERMITTED OPERATION WOULD CAUSE OR CONTRIBUTE  TO
A VIOLATION OF ANY AIR QUALITY STANDARD.
  S 17. Section 27-0903 of the environmental conservation law is amended
by adding a new subdivision 4 to read as follows:
  4.  UNIFORM TREATMENT OF WASTE. NOTWITHSTANDING ANY OTHER LAW OR REGU-
LATION TO THE CONTRARY, ALL WASTE RESULTING FROM THE EXPLORATION, DEVEL-
OPMENT, EXTRACTION OR PRODUCTION OF CRUDE OIL OR NATURAL GAS,  INCLUDING
BUT NOT LIMITED TO DRILLING FLUIDS AND PRODUCED WATERS, SHALL BE CONSID-
ERED  HAZARDOUS  WASTE  UNDER  THE  LAW OF THIS STATE AND SUBJECT TO ALL
PERTINENT GENERATION, TRANSPORTATION, TREATMENT, STORAGE,  AND  DISPOSAL
LAWS  AND  REGULATIONS,  IF SUCH WASTE MEETS THE DEFINITION OF HAZARDOUS
WASTE SET FORTH IN SUBDIVISION THREE OF SECTION 27-0901 OF THIS CHAPTER.
WITHIN SIX MONTHS FROM THE  EFFECTIVE  DATE  OF  THIS  SUBDIVISION,  THE
DEPARTMENT  SHALL  MAKE  ALL  NECESSARY CHANGES TO BRING ITS REGULATIONS
INTO COMPLIANCE WITH THIS SECTION.
  S 18.   The opening paragraph of paragraph  f  of  subdivision  1  and
subdivision  6 of section 15-1503 of the environmental conservation law,
the opening paragraph of paragraph f of subdivision  1  as  amended  and
subdivision  6  as added by chapter 401 of the laws of 2011, are amended
to read as follows:
  a description of the applicant's proposed near  term  and  long  range
water conservation program that [incorporates] MUST COMPLY WITH environ-
mentally  sound  and  economically feasible water conservation measures,
including implementation and enforcement  procedures,  effectiveness  to
date  and  any  planned modifications for the future. For a public water
supply system, the water conservation program may include but  need  not
be limited to:

S. 2697--A                         18

  6.  A  new  permit  for  a  water withdrawal system and any subsequent
renewal thereof shall be valid for a period of time not to exceed  [ten]
FIVE  years  from the date of issuance. A new permit or permit modifica-
tion must be obtained from the  department  prior  to  any  transfer  or
change of ownership of a water withdrawal system.
  S  19.  The  environmental conservation law is amended by adding a new
section 15-1531 to read as follows:
S 15-1531. REPORTING.
  THE COMMISSIONER SHALL, WITHIN TWO YEARS OF THE EFFECTIVE DATE OF THIS
SECTION, AND THEREAFTER AS OFTEN AS THE COMMISSIONER DEEMS  APPROPRIATE,
REPORT TO THE GOVERNOR AND THE LEGISLATURE ON THE IMPLEMENTATION OF THIS
TITLE. THE REPORT MAY INCLUDE BUT NEED NOT BE LIMITED TO RECOMMENDATIONS
FOR  MODIFICATIONS TO THIS TITLE, INCLUDING BUT NOT LIMITED TO MODIFICA-
TIONS TO THE THRESHOLD VOLUME PROVIDED  IN  THIS  TITLE  FOR  PARTICULAR
WATER SOURCES, WATERSHEDS, WATER BODIES OR REGIONS, WHERE THE DEPARTMENT
HAS  DETERMINED  THAT  SUCH  WATER  SOURCES, WATERSHEDS, WATER BODIES OR
REGIONS ARE IN NEED OF SPECIAL  PROTECTION  BECAUSE  OF  THE  NATURE  OR
VOLUME  OF  DEMANDS  MADE  UPON  THEM AND A MODIFICATION IS NECESSARY TO
PROTECT THE PUBLIC HEALTH, SAFETY AND WELFARE.
  S 20. Article 15 of the environmental conservation law is  amended  by
adding a new title 35 to read as follows:
                                 TITLE 35
                           WATER USE STANDARDS
SECTION 15-3501. WATER USE STANDARDS.
S 15-3501. WATER USE STANDARDS.
  THE  DEPARTMENT SHALL ADOPT RULES ESTABLISHING WATER USE STANDARDS FOR
MAINTAINING IN-STREAM FLOWS THAT ARE  PROTECTIVE  OF  AQUATIC  LIFE  AND
OTHER  USES  AND THAT ESTABLISH CRITERIA FOR DESIGNATING WATERSHEDS MOST
AT RISK FROM CUMULATIVE WATER USE. STANDARDS ADOPTED UNDER THIS  SECTION
MUST BE BASED ON THE NATURAL VARIATION OF FLOWS AND WATER LEVELS, ALLOW-
ING FOR VARIANCES IF USE WILL STILL BE PROTECTIVE OF WATER QUALITY WITH-
IN THAT CLASSIFICATION.
  S  21.  Article 72 of the environmental conservation law is amended by
adding a new title 8 to read as follows:
                                 TITLE 8
                    WATER SUPPLY PERMIT PROGRAM FEES
SECTION 72-0801. DEFINITIONS.
        72-0802. WATER SUPPLY PERMIT PROGRAM FEES.
S 72-0801. DEFINITIONS.
  WHEN USED IN THIS TITLE:
  1. "AGRICULTURAL PURPOSE" SHALL  MEAN  THE  PRACTICE  OF  FARMING  FOR
CROPS,  PLANTS, VINES AND TREES; AND THE KEEPING, GRAZING, OR FEEDING OF
LIVESTOCK FOR SALE OF LIVESTOCK OR LIVESTOCK PRODUCTS.
  2. "PUBLIC WATER SUPPLY PURPOSE" SHALL MEAN  WATER  USE  BY  A  PUBLIC
WATER SUPPLY SYSTEM.
  3. "WATER SUPPLY PERMIT PROGRAM" MEANS THOSE ACTIVITIES OF THE DEPART-
MENT  AS  SPECIFIED  IN TITLE FIFTEEN OF ARTICLE FIFTEEN OF THIS CHAPTER
RELATED TO THE WITHDRAWAL  OF  WATERS  OF  THE  STATE  AND  ANY  RELATED
ENFORCEMENT ACTIVITIES.
S 72-0802. WATER SUPPLY PERMIT PROGRAM FEES.
  1.  EXCEPT  AS OTHERWISE PROVIDED IN THIS TITLE, ALL PERSONS, EXCEPT A
POLITICAL SUBDIVISION OF THE STATE, OR AN  AGENCY,  DEPARTMENT,  BUREAU,
PUBLIC  AUTHORITY  OF  THE  STATE,  OR PERSONS MAKING WITHDRAWALS FOR AN
AGRICULTURAL PURPOSE WHO ARE TO OBTAIN A PERMIT PURSUANT  TO  THE  WATER
SUPPLY PERMIT PROGRAM SHALL SUBMIT ANNUALLY TO THE DEPARTMENT A FEE, FOR
EACH WATER WITHDRAWAL SYSTEM, IN AN AMOUNT TO BE DETERMINED AS FOLLOWS:

S. 2697--A                         19

  A. FIFTY DOLLARS FOR A WATER WITHDRAWAL SYSTEM WITH A CAPACITY OF LESS
THAN ONE MILLION GALLONS PER DAY, USED PRIMARILY FOR PUBLIC WATER SUPPLY
PURPOSES;
  B.  ONE HUNDRED TWENTY-FIVE DOLLARS FOR A WATER WITHDRAWAL SYSTEM WITH
A CAPACITY OF BETWEEN ONE MILLION AND NINE MILLION NINE HUNDRED  NINETY-
NINE  THOUSAND  NINE HUNDRED NINETY-NINE GALLONS PER DAY, USED PRIMARILY
FOR PUBLIC WATER SUPPLY PURPOSES;
  C. TWO HUNDRED FIFTY DOLLARS FOR A  WATER  WITHDRAWAL  SYSTEM  WITH  A
CAPACITY  OF  TEN  MILLION  GALLONS  PER DAY OR MORE, USED PRIMARILY FOR
PUBLIC WATER SUPPLY PURPOSES;
  D. TWO HUNDRED FIFTY DOLLARS FOR A  WATER  WITHDRAWAL  SYSTEM  WITH  A
CAPACITY OF BETWEEN FIFTY THOUSAND AND NINETY-NINE THOUSAND NINE HUNDRED
NINETY-NINE GALLONS PER DAY, FOR ANY AND ALL USES WHICH ARE NOT PRIMARI-
LY FOR AGRICULTURAL OR PUBLIC WATER SUPPLY PURPOSES;
  E.  FIVE  HUNDRED  FIFTY  DOLLARS FOR A WATER WITHDRAWAL SYSTEM WITH A
CAPACITY OF BETWEEN ONE HUNDRED THOUSAND AND ONE HUNDRED  THOUSAND  NINE
HUNDRED  NINETY-NINE GALLONS PER DAY, FOR ANY AND ALL USES WHICH ARE NOT
PRIMARILY FOR AGRICULTURAL OR PUBLIC WATER SUPPLY PURPOSES;
  F. ONE THOUSAND DOLLARS FOR A WATER WITHDRAWAL SYSTEM WITH A  CAPACITY
OF   BETWEEN  TWO  HUNDRED  FIFTY  THOUSAND  GALLONS  AND  FOUR  HUNDRED
NINETY-NINE THOUSAND NINE HUNDRED NINETY-NINE GALLONS PER DAY,  FOR  ANY
AND  ALL  USES  WHICH ARE NOT PRIMARILY FOR AGRICULTURAL OR PUBLIC WATER
SUPPLY PURPOSES;
  G. TWO THOUSAND FIVE HUNDRED DOLLARS FOR  A  WATER  WITHDRAWAL  SYSTEM
WITH  A  CAPACITY  OF  BETWEEN  FIVE  HUNDRED  THOUSAND GALLONS AND NINE
HUNDRED NINETY-NINE THOUSAND NINE HUNDRED NINETY-NINE GALLONS  PER  DAY,
FOR  ANY AND ALL USES WHICH ARE NOT PRIMARILY FOR AGRICULTURAL OR PUBLIC
WATER SUPPLY PURPOSES;
  H. FIVE THOUSAND DOLLARS FOR A WATER WITHDRAWAL SYSTEM WITH A CAPACITY
OF BETWEEN ONE MILLION AND NINE MILLION NINE HUNDRED  NINETY-NINE  THOU-
SAND  NINE  HUNDRED  NINETY-NINE  GALLONS  PER DAY, FOR ANY AND ALL USES
WHICH  ARE  NOT  PRIMARILY  FOR  AGRICULTURAL  OR  PUBLIC  WATER  SUPPLY
PURPOSES;
  I.  SEVEN  THOUSAND FIVE HUNDRED DOLLARS FOR A WATER WITHDRAWAL SYSTEM
WITH A CAPACITY OF BETWEEN  TEN  MILLION  AND  FORTY-NINE  MILLION  NINE
HUNDRED  NINETY-NINE  THOUSAND NINE HUNDRED NINETY-NINE GALLONS PER DAY,
FOR ANY AND ALL USES WHICH ARE NOT PRIMARILY FOR AGRICULTURAL OR  PUBLIC
WATER SUPPLY PURPOSES;
  J.  TEN THOUSAND DOLLARS FOR A WATER WITHDRAWAL SYSTEM WITH A CAPACITY
OF FIFTY MILLION GALLONS PER DAY OR MORE, FOR ANY AND ALL USES WHICH ARE
NOT PRIMARILY FOR AGRICULTURAL OR PUBLIC WATER SUPPLY PURPOSES.
  2. FOR THE PURPOSE OF DETERMINING  THE  APPROPRIATE  FEE  REQUIRED  BY
SUBDIVISION  ONE  OF  THIS  SECTION, THE AMOUNT OF RECLAIMED WASTEWATER,
WHICH A PERSON WITHDRAWS FOR REUSE, SHALL NOT BE INCLUDED IN  THE  TOTAL
CAPACITY OF THE WATER WITHDRAWAL.
  3.  ALL FEES COLLECTED PURSUANT TO THIS ARTICLE SHALL BE PAID INTO THE
ENVIRONMENTAL CONSERVATION SPECIAL REVENUE FUND TO  THE  CREDIT  OF  THE
ENVIRONMENTAL REGULATORY ACCOUNT.
  S 22. This act shall take effect immediately; provided that the amend-
ments  to  the  opening  paragraph  of  paragraph f of subdivision 1 and
subdivision 6 of section 15-1503 of the environmental  conservation  law
made  by section eighteen of this act shall take effect on the same date
and in the same manner as section 3 of chapter 401 of the laws of  2011,
takes  effect; provided further, however that section twenty of this act
shall take effect upon the completion of rule-making required in  subdi-
vision  2  of  section 15-1501 of the environmental conservation law and

S. 2697--A                         20

provided that  the  commissioner  of  the  department  of  environmental
conservation  shall notify the legislative bill drafting commission upon
the occurrence of the enactment of the rules required under  subdivision
2 of section 15-1501 of the environmental conservation law in order that
the  commission  may maintain an accurate and timely effective data base
of the official text of the laws of the state of New York in furtherance
of effectuating the provisions of section 44 of the legislative law  and
section 70-b of the public officers law.

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