senate Bill S972

2013-2014 Legislative Session

Establishes the natural gas oversight fund to provide funding to the department of environmental conservation for enforcement of well drilling provisions

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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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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to finance
Jan 09, 2013 referred to finance

S972 - Bill Details

Current Committee:
Law Section:
State Finance Law
Laws Affected:
Add §81, St Fin L; amd §§23-1903 & 23-0501, En Con L
Versions Introduced in 2011-2012 Legislative Session:
S5167A

S972 - Bill Texts

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Establishes the natural gas oversight fund to provide funding to the department of environmental conservation for enforcement of well drilling provisions; imposes a $2,000 fee upon the issuance of a well drilling permit in the fault-bounded Treton and/or Black River hydrothermal dolomite gas pools.

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BILL NUMBER:S972

TITLE OF BILL:
An act
to amend the state finance law and the environmental conservation law,
in relation to establishing the natural gas oversight fund;
and to amend the environmental conservation law, in relation to
imposing an additional fee on the issuance of a well drilling permit for
certain gas pools

PURPOSE:
The purpose of this bill is to establish the Natural Gas Oversight
Fund in order to ensure funding to the Department of Environmental
Conservation for enforcement of provisions for safe natural gas
exploration and extraction and for the protection of our environment.

SUMMARY OF PROVISIONS:
Section 1 establishes the "Natural Gas oversight Fund" in the joint
custody of the State Comptroller and the Commissioner of Taxation &
Finance.

Subsection 2:

The Comptroller shall establish the following separate and distinct
accounts within the Natural Gas Oversight Fund:

(a) Internet Permit Information Account;
(b) Water Quality Account;
(c) Public Awareness Account;
(d) Independent Survey Account;
(e) Implementation Account.

Subsection 3:

The Fund will consist of all moneys appropriated thereto, funds
transferred from any other source, and all moneys received by the DEC
for the issuance of permits to drill, deepen, plug back or convert a
well pursuant to the Environmental Conservation Law.

Moneys deposited in the Fund shall be held in interest-bearing
accounts in public depositories as prescribed by this chapter, and
may be invested or reinvested in such securities as are approved by
the State Comptroller.

Interest or other income earned on moneys deposited in the Fund and
any moneys which may be appropriated or otherwise become available
for the purposes of the Fund, shall be credited to and deposited in
the fund for use as set forth in this section.

Subsection 4:

The moneys in the Natural Gas Oversight Fund shall be kept separate
from and shall not be commingled with any other moneys in the custody
of State comptroller and the Commissioner of Taxation & Finance.

Subsection 5:


a) All moneys deposited in the Internet Permit Information Account
shall be allocated to and expended by the DEC to establish a website
and database, accessible to the public, which provides information
on all applications for permits issued pursuant to this section.

b) Moneys from the water Quality Account shall be made available for
t,he conducting of baseline and follow-up surveys of water' quality
by the DEC at sites near any active well.

c) Moneys from the public Awareness Account shall be made available to
the DEC to conduct a public awareness program providing information
on the manner of notifying the DEC in the event of any concern or
problem relating to a natural gas well.

d) Moneys from the Independent Survey Account shall be made available
to the DEC for the expenses of contracting for the provisions of an
independent survey of the DEC's performance relating to regulation
and oversight of wells, Such survey shall be conducted not less than
three years nor more than five years after the effective date of
this section and shall be submitted to the Governor, the Temporary
president of the Senate and the speaker of the Assembly.

e) Moneys from the Implementation Account shall be allocated to and
expended by the DEC solely for the implementation and enforcement of
the provisions pursuant to this section.

Section 2 establishes a two thousand dollar fee for each well drill
permit issued.

Section 3 not withstands any provision of this chapter to the contrary
all fees collected by the Department for the issuance of a permit for
a well as described in this section, shall be paid to the state
comptroller who shall deposit such money in the Natural Gas
Oversight Fund established pursuant to section 81 of the state
Finance Law.

JUSTIFICATION:
Safe natural gas exploration offers an unprecedented opportunity;
billions of dollars invested in our communities, yet the potential
for environmental damage.

The dramatic increases in tax revenues to both State and Local
Governments are well documented, and the feverish rush for revenue
has only increased during our great recession.

As policy makers, it is incumbent upon us to ensure that our State's
Agencies have the resources they need to, do the job they are tasked
with. As stewards of the environment, we must work to make certain
that we listen to the experts in the areas safely in areas they
represent, and move forward safely in areas where we can.

There is nothing easy about this issue. On one hand, New York State
cannot afford to allow this new economy to pass us by. On the other,
we must protect our water, our roads, and our air.

To begin this process, we must make sure that the funds generated from
this industry are used to ensure its safety and success.


As we've all seen with the Dedicated Highway and Bridge Trust Fund,
when you sweep funds from their intended purpose you create an
enormous hole in both capital and confidence. The creation of a
Natural Gas Oversight Fund will ensure that the Department of
Environmental Conservation is adequately funded and proprietarily
protected.

This Fund will be supported by the current fees collecting from
permits issued for exploration and extraction along with an
additional $2k fee for each permit to drill. These fees will provide
significant funding to the DEC in an area where it will be needed most.

The Fund will make sure that if the experts and scientists at the DEC
say we can move forward, that we do so safely and, above all, avoid
the mistakes made in Pennsylvania and Texas.

LEGISLATIVE HISTORY:
S.5167 - Referred to Finance

FISCAL IMPLICATIONS:
None to the State. Adequate funding is provided to the State
Department of Environmental Conservation to ensure that natural gas
exploration and extraction occurs safely and within the confines of
regulations established to protect our State's water, land and air.

EFFECTIVE DATE:
This act shall take effect on the thirtieth day after it shall have
become law.

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

                                   972

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

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

AN ACT to amend the state finance law and the environmental conservation
  law, in relation to establishing the natural gas oversight  fund;  and
  to  amend  the environmental conservation law, in relation to imposing
  an additional fee on the  issuance  of  a  well  drilling  permit  for
  certain gas pools

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

  Section 1.  The state finance law is amended by adding a  new  section
81 to read as follows:
  S  81.  NATURAL  GAS OVERSIGHT FUND. 1. THERE IS HEREBY ESTABLISHED IN
THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXA-
TION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE  "NATURAL  GAS  OVER-
SIGHT FUND".
  2. THE COMPTROLLER SHALL ESTABLISH THE FOLLOWING SEPARATE AND DISTINCT
ACCOUNTS WITHIN THE NATURAL GAS OVERSIGHT FUND:
  (A) INTERNET PERMIT INFORMATION ACCOUNT;
  (B) WATER QUALITY ACCOUNT;
  (C) PUBLIC AWARENESS ACCOUNT;
  (D) INDEPENDENT SURVEY ACCOUNT; AND
  (E) IMPLEMENTATION ACCOUNT.
  3.  SUCH  FUND SHALL CONSIST OF ALL MONEYS APPROPRIATED THERETO, FUNDS
TRANSFERRED FROM ANY OTHER FUND OR SOURCE, AND ALL  MONEYS  RECEIVED  BY
THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION FOR THE ISSUANCE OF PERMITS
PURSUANT  TO  TITLE  FIVE  OF  ARTICLE TWENTY-THREE OF THE ENVIRONMENTAL
CONSERVATION LAW TO DRILL, DEEPEN, PLUG BACK OR CONVERT A WELL DESCRIBED
IN CLAUSE (VI) OF SUBPARAGRAPH ONE OF PARAGRAPH B OF SUBDIVISION ONE  OF
SECTION  23-0501 OF SUCH LAW. MONEYS DEPOSITED IN THE FUND SHALL BE HELD
IN INTEREST BEARING ACCOUNTS IN PUBLIC  DEPOSITORIES  AS  PRESCRIBED  BY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05280-01-3

S. 972                              2

THIS  CHAPTER,  AND  MAY BE INVESTED OR REINVESTED IN SUCH SECURITIES AS
ARE APPROVED BY THE STATE COMPTROLLER. INTEREST OR OTHER  INCOME  EARNED
ON MONEYS DEPOSITED IN THE FUND AND ANY MONEYS WHICH MAY BE APPROPRIATED
OR  OTHERWISE  BECOME  AVAILABLE  FOR THE PURPOSES OF THE FUND, SHALL BE
CREDITED TO AND DEPOSITED IN THE FUND FOR  USE  AS  SET  FORTH  IN  THIS
SECTION.
  4. THE MONEYS IN THE NATURAL GAS OVERSIGHT FUND SHALL BE KEPT SEPARATE
FROM AND SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS IN THE CUSTODY OF
THE STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE.
  5.    (A)  ALL  MONEYS  DEPOSITED  IN  THE INTERNET PERMIT INFORMATION
ACCOUNT SHALL BE ALLOCATED TO AND EXPENDED BY THE DEPARTMENT OF ENVIRON-
MENTAL CONSERVATION TO ESTABLISH AN INTERNET WEBSITE AND DATABASE ACCES-
SIBLE TO THE PUBLIC, WHICH PROVIDES INFORMATION ON ALL APPLICATIONS  FOR
PERMITS   AND   PERMITS   ISSUED  PURSUANT  TO  TITLE  FIVE  OF  ARTICLE
TWENTY-THREE OF THE ENVIRONMENTAL CONSERVATION  LAW  TO  DRILL,  DEEPEN,
PLUG BACK OR CONVERT A WELL DESCRIBED IN CLAUSE (VI) OF SUBPARAGRAPH ONE
OF PARAGRAPH B OF SUBDIVISION ONE OF SECTION 23-0501 OF SUCH LAW.
  (B)  MONEYS FROM THE WATER QUALITY ACCOUNT SHALL BE MADE AVAILABLE FOR
THE CONDUCTING OF BASELINE AND FOLLOW-UP SURVEYS OF WATER QUALITY BY THE
DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION  AT  SITES  NEAR  ANY   WELL
DESCRIBED  IN CLAUSE (VI) OF SUBPARAGRAPH ONE OF PARAGRAPH B OF SUBDIVI-
SION ONE OF SECTION 23-0501 OF THE ENVIRONMENTAL CONSERVATION LAW.
  (C) MONEYS FROM THE PUBLIC AWARENESS ACCOUNT SHALL BE  MADE  AVAILABLE
TO  THE  DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION TO CONDUCT A PUBLIC
AWARENESS PROGRAM PROVIDING INFORMATION ON THE MANNER OF NOTIFYING  SUCH
DEPARTMENT  IN THE EVENT OF ANY CONCERN OR PROBLEM RELATING TO A NATURAL
GAS WELL.
  (D) MONEYS FROM THE INDEPENDENT SURVEY ACCOUNT SHALL BE MADE AVAILABLE
TO THE DEPARTMENT OF ENVIRONMENTAL  CONSERVATION  FOR  THE  EXPENSES  OF
CONTRACTING  FOR  THE PROVISION OF AN INDEPENDENT SURVEY OF SUCH DEPART-
MENT'S PERFORMANCES RELATING TO THE REGULATION  OF  WELLS.  SUCH  SURVEY
SHALL  BE  CONDUCTED  NOT LESS THAN THREE YEARS NOR MORE THAN FIVE YEARS
AFTER THE EFFECTIVE DATE OF THIS SECTION,  SHALL  BE  SUBMITTED  TO  THE
GOVERNOR,  THE  TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF THE
ASSEMBLY.
  (E) MONEYS FROM THE IMPLEMENTATION ACCOUNT SHALL BE ALLOCATED  TO  AND
EXPENDED  BY THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION SOLELY FOR THE
IMPLEMENTATION AND ENFORCEMENT OF THE PROVISIONS OF TITLES THREE,  FIVE,
SEVEN  AND  NINE  OF ARTICLE TWENTY-THREE, AND TITLE THIRTEEN OF ARTICLE
SEVENTY-ONE OF THE ENVIRONMENTAL CONSERVATION LAW.
  S 2.  Paragraph b of subdivision 1 of section 23-1903 of the  environ-
mental  conservation law is relettered paragraph c and a new paragraph b
is added to read as follows:
  B. A TWO THOUSAND DOLLAR FEE FOR EACH PERMIT TO DRILL  A  WELL  ISSUED
PURSUANT  TO  CLAUSE (VI) OF SUBPARAGRAPH ONE OF PARAGRAPH B OF SUBDIVI-
SION ONE OF SECTION 23-0501 OF THIS ARTICLE; AND
  S 3.  Section 23-0501 of the environmental conservation law is amended
by adding a new subdivision 4 to read as follows:
  4. NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER TO THE CONTRARY,  ALL
FEES COLLECTED BY THE DEPARTMENT FOR THE ISSUANCE OF A PERMIT FOR A WELL
DESCRIBED  IN CLAUSE (VI) OF SUBPARAGRAPH ONE OF PARAGRAPH B OF SUBDIVI-
SION ONE OF THIS SECTION SHALL BE PAID  TO  THE  STATE  COMPTROLLER  WHO
SHALL  DEPOSIT  SUCH MONEY IN THE NATURAL GAS OVERSIGHT FUND ESTABLISHED
PURSUANT TO SECTION EIGHTY-ONE OF THE STATE FINANCE LAW.
  S 4. This act shall take effect on the thirtieth day  after  it  shall
have become a law.

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