senate Bill S4793

2011-2012 Legislative Session

Establishes the New York state indigenous natural gas value added task force

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Archive: Last Bill Status - In Committee


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

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 04, 2012 referred to environmental conservation
Apr 25, 2011 referred to environmental conservation

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S4793 - Bill Details

See Assembly Version of this Bill:
A2914
Current Committee:
Senate Environmental Conservation
Law Section:
Environmental Conservation Law
Laws Affected:
Add Art 19 Title 13 ยงยง19-1301 - 19-1305, En Con L
Versions Introduced in 2009-2010 Legislative Session:
A10234A

S4793 - Bill Texts

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Establishes the New York state indigenous natural gas value added task force to prepare a report on the value added opportunities of the Marcellus shale natural gas.

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BILL NUMBER:S4793

TITLE OF BILL:
An act
to amend the environmental conservation law, in relation to establishing
the New York state indigenous natural gas value added task force; and
providing for the repeal of such provisions upon the expiration thereof

PURPOSE:
The purpose of this legislation is to establish a task force on
indigenous gas and the potential value-added benefit to New York State.

SUMMARY OF PROVISIONS:
Section 1: Legislative Intent.

Section 2: Article 19 of the environmental conservation law is amended
by adding a new title 13.

Section 3: Effective date

JUSTIFICATION:
The first natural gas well drilled in the United States was drilled in
Fredonia, New York in 1821, since that time more than 75,000 wells
have been drilled. Over the years the natural gas has been utilized
by homeowners, businesses, manufacturing and school districts to the
benefit of Chautauqua County.

The Marcellus shale lies 300 to 600 feet below the Allegheny Plateau
Region of North America and covers 54,000 square miles, running
through Ohio, West Virginia, Pennsylvania and into New York's Southern
Tier. In 2002, a U.S. Geological Survey estimated that the Marcellus
Shale formation held 30.7 trillion cubic feet (tcf) of natural gas -
a huge amount for the country, considering that the U.S. consumes
about 23 tcf of natural gas per year, but only produces about 19 tcf.
In order for the residents of New York to derive the full value of
this commodity, we need to utilize the gas in state for manufacturing
and other value-added activities.

This legislation would establish a task force which would examine
issues related to the value added opportunities for indigenous
natural gas in NYS. Only by utilizing this gas in value-added
activities can New York State obtain the real value of this unique
commodity.

LEGISLATIVE HISTORY:
2010 - A.10234A

FISCAL IMPLICATIONS:
This legislation does allow for task force members to receive travel
expenses, however the expense would be minimal. The state could

receive increased revenues from the instate use of its natural gas
supply.

EFFECTIVE DATE:
This act shall take effect on the ninetieth day and the Task Force
will expire in five years.

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

                                  4793

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             April 25, 2011
                               ___________

Introduced  by  Sen.  O'MARA -- 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
  establishing  the  New  York  state indigenous natural gas value added
  task force; and providing for the repeal of such provisions  upon  the
  expiration thereof

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

  Section 1. Legislative findings.   The legislature  hereby  finds  and
declares  that within New York state lies the Marcellus shale which is a
black shale formation extending deep  underground  from  Ohio  and  West
Virginia northeast into Pennsylvania and southern New York. According to
the  New York state department of environmental conservation some geolo-
gists estimate  that  the  entire  Marcellus  shale  formation  contains
between  168 trillion to 516 trillion cubic feet of natural gas through-
out its entire extent. It is not yet known how much gas will be  commer-
cially  recoverable from the Marcellus shale in New York state. New York
state currently uses 1.1 trillion cubic feet of natural gas a  year.  In
order  for  New  York  state  to derive the full value of this commodity
located in the state, we need to utilize the gas in New York  state  for
manufacturing and other value added activities.
  S  2.  Article  19 of the environmental conservation law is amended by
adding a new title 13 to read as follows:
                                 TITLE 13
      NEW YORK STATE INDIGENOUS NATURAL GAS VALUE ADDED TASK FORCE
SECTION 19-1301. NEW YORK STATE INDIGENOUS NATURAL GAS VALUE ADDED  TASK
                    FORCE.
        19-1303. TASK FORCE COMPOSITION.
        19-1305. POWERS AND DUTIES OF THE TASK FORCE.
S 19-1301. NEW YORK STATE INDIGENOUS NATURAL GAS VALUE ADDED TASK FORCE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07314-01-1

S. 4793                             2

  1. THE NEW YORK STATE INDIGENOUS NATURAL GAS VALUE ADDED TASK FORCE IS
HEREBY ESTABLISHED.
  THE  ROLE  OF  THE  TASK  FORCE  SHALL INCLUDE, BUT NOT BE LIMITED TO,
CONDUCTING AN IN-DEPTH EXAMINATION OF ISSUES RELATED TO THE VALUE  ADDED
OPPORTUNITIES FOR INDIGENOUS NATURAL GAS IN NEW YORK STATE.
S 19-1303. TASK FORCE COMPOSITION.
  1.  THE  TASK FORCE SHALL CONSIST OF A TOTAL OF NINE MEMBERS AND SHALL
INCLUDE THE COMMISSIONER, THE COMMISSIONER OF ECONOMIC DEVELOPMENT,  THE
PRESIDENT OF THE NEW YORK STATE ENERGY RESEARCH AND DEVELOPMENT AUTHORI-
TY,  THE  CHAIR OF THE PUBLIC SERVICE COMMISSION, THE EXECUTIVE DIRECTOR
OF THE FOUNDATION FOR SCIENCE, TECHNOLOGY AND INNOVATION, AND ONE MEMBER
EACH APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE, THE SPEAKER  OF
THE ASSEMBLY, THE MINORITY LEADER OF THE SENATE, AND THE MINORITY LEADER
OF THE ASSEMBLY.
  2.  THE  COMMISSIONER  OR  HIS  OR HER DESIGNATED REPRESENTATIVE SHALL
SERVE AS CHAIRPERSON OF THE TASK FORCE.
  3. FOR THE PURPOSES OF THIS SECTION, NON-GOVERNMENTAL APPOINTEES SHALL
BE CONSIDERED OFFICERS OR EMPLOYEES OF  PUBLIC  ENTITIES  AND  SHALL  BE
AFFORDED  SUCH  DEFENSE  AND  INDEMNIFICATION  PROVIDED UNDER THE PUBLIC
OFFICERS LAW.
  4. THE MEMBERS OF THE TASK FORCE SHALL  RECEIVE  NO  COMPENSATION  FOR
THEIR SERVICES, BUT SHALL BE ALLOWED THEIR ACTUAL AND NECESSARY EXPENSES
INCURRED IN THE PERFORMANCE OF THEIR DUTIES.
  5.  NO  APPOINTED  MEMBER  OF  THE  TASK  FORCE SHALL BE AN ELECTED OR
APPOINTED PUBLIC OFFICER.
S 19-1305. POWERS AND DUTIES OF THE TASK FORCE.
  1. THE TASK FORCE SHALL MEET QUARTERLY, OR AT THE CALL OF  THE  CHAIR-
PERSON.
  2.  IN  RECOGNITION  OF THE IMPORTANCE OF THE VALUE ADDED POTENTIAL OF
THE MARCELLUS SHALE NATURAL GAS, THE TASK FORCE  MAY  CONSULT  WITH  ANY
ORGANIZATION, EDUCATIONAL INSTITUTION, OTHER GOVERNMENT ENTITY OR AGENCY
OR PERSON IN THE DEVELOPMENT OF ITS RECOMMENDATIONS.
  3.  THE  DEPARTMENT SHALL PROVIDE THE TASK FORCE WITH SUCH FACILITIES,
ASSISTANCE AND DATA AS WILL ENABLE THE  TASK  FORCE  TO  CARRY  OUT  ITS
POWERS  AND  DUTIES.  ADDITIONALLY,  ALL  OTHER AGENCIES OF THE STATE OR
SUBDIVISIONS THEREOF MAY, AT THE REQUEST OF THE CHAIRPERSON, PROVIDE THE
TASK FORCE WITH SUCH FACILITIES, ASSISTANCE, AND DATA TO ENABLE THE TASK
FORCE TO CARRY OUT ITS POWERS AND DUTIES.
  4. WITHIN TWELVE MONTHS OF THE EFFECTIVE DATE OF THIS TITLE, THE  TASK
FORCE SHALL ISSUE A DRAFT REPORT ON THE VALUE ADDED OPPORTUNITIES OF THE
MARCELLUS SHALE NATURAL GAS.
  COPIES  OF  THE  REPORT SHALL ALSO BE MADE AVAILABLE TO THE PUBLIC AND
POSTED ON THE DEPARTMENT'S WEBSITE AND NOTICE  OF  THE  AVAILABILITY  OF
SUCH PLAN SHALL BE PUBLISHED IN THE ENVIRONMENTAL NOTICE BULLETIN.
  S  3.  This  act shall take effect on the ninetieth day after it shall
have become a law and shall expire and be  deemed  repealed  five  years
after such effective date.

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