Senate Bill S1675

                                BILL NUMBER:S1675

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
the 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
S.972 of 2014: 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.