S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2972
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 23, 2017
                                ___________
 
 Introduced  by  M.  of  A.  ENGLEBRIGHT, COLTON, LIFTON, JAFFEE, TITONE,
   CRESPO, GOTTFRIED, ROSENTHAL, M. G. MILLER -- Multi-Sponsored by -- M.
   of A. COOK, SIMON, SOLAGES, THIELE -- (at request of the  State  Comp-
   troller)  --  read once and referred to the Committee on Environmental
   Conservation

 AN ACT to amend the  environmental  conservation  law,  in  relation  to
   establishing  the  natural  gas  production contamination response and
   compensation program; and to amend the state finance law, in  relation
   to  creating  the New York natural gas production contamination damage
   recovery and remediation fund
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Article 23 of the environmental conservation law is amended
 by adding a new title 29 to read as follows:
                                 TITLE 29
               NATURAL GAS PRODUCTION CONTAMINATION RESPONSE
                         AND COMPENSATION PROGRAM
 PART 1. GENERAL PROVISIONS.
      2. NATURAL  GAS  PRODUCTION  CONTAMINATION  CLEANUP  AND  DECONTAM-
           INATION.
      3. LIABILITY; THIRD PARTY COMPENSATION.
      4. MISCELLANEOUS.
                                  PART 1
                            GENERAL PROVISIONS
 SECTION 23-2901. LEGISLATIVE INTENT.
         23-2902. PURPOSES.
         23-2903. DEFINITIONS.
 § 23-2901. LEGISLATIVE INTENT.
   THE LEGISLATURE FINDS AND DECLARES THAT NEW YORK'S  LANDS  AND  WATERS
 CONSTITUTE   A   UNIQUE  AND  DELICATELY  BALANCED  RESOURCE;  THAT  THE
 PROTECTION AND PRESERVATION OF  THESE  LANDS  AND  WATERS  PROMOTES  THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD06662-01-7

 A. 2972                             2
 
 HEALTH,  SAFETY  AND WELFARE OF THE PEOPLE OF THIS STATE; THAT THE STATE
 IS THE TRUSTEE,  FOR  THE  BENEFIT  OF  ITS  CITIZENS,  OF  ALL  NATURAL
 RESOURCES WITHIN ITS JURISDICTION; AND THAT CONTAMINATION FROM INCIDENTS
 OR  ACCIDENTS  THAT  RESULT FROM NATURAL GAS PRODUCTION POSE A THREAT TO
 THE ECONOMY AND ENVIRONMENT OF THIS STATE. THE  LEGISLATURE  INTENDS  BY
 THE  PASSAGE  OF  THIS  TITLE  TO  EXERCISE  THE POWERS OF THIS STATE TO
 PROVIDE STRICT LIABILITY FOR DAMAGE SUSTAINED WITHIN  THIS  STATE  AS  A
 RESULT OF CONTAMINATION CAUSED BY NATURAL GAS PRODUCTION, REQUIRE PROMPT
 CLEANUP  AND  DECONTAMINATION OF ANY AFFECTED REAL OR PERSONAL PROPERTY,
 AND ESTABLISH A FUND FOR THE PAYMENT OF  REMEDIATION  COSTS  OF  CONTAM-
 INATION  AND  TIMELY AND ADEQUATE COMPENSATION TO ANY PERSONS DAMAGED BY
 SUCH CONTAMINATION.
 § 23-2902. PURPOSES.
   IT IS THE PURPOSE OF THIS TITLE TO  ENSURE  A  CLEAN  ENVIRONMENT  AND
 HEALTHY  ECONOMY  FOR  THE STATE BY PROVIDING FOR THE REMEDIATION OF ANY
 CONTAMINATION ASSOCIATED WITH NATURAL GAS PRODUCTION WHICH MAY RESULT IN
 DAMAGE TO LANDS, WATERS OR NATURAL RESOURCES OF THE STATE BY AUTHORIZING
 THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION TO RESPOND QUICKLY TO  SUCH
 CONTAMINATION  AND  EFFECT  PROMPT  CLEANUP  AND DECONTAMINATION OF SUCH
 CONTAMINATION, GIVING FIRST PRIORITY TO  PROTECTING  PUBLIC  HEALTH  AND
 MINIMIZING  ENVIRONMENTAL  DAMAGE, AND BY PROVIDING FOR STRICT LIABILITY
 FOR DAMAGE SUSTAINED WITHIN THE STATE AS A RESULT OF SUCH CONTAMINATION.
 § 23-2903. DEFINITIONS.
   FOR THE PURPOSES OF THIS TITLE, UNLESS THE CONTEXT  CLEARLY  INDICATES
 OTHERWISE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "ADMINISTRATOR" MEANS THE CHIEF EXECUTIVE, WITHIN THE DEPARTMENT OF
 AUDIT  AND CONTROL, OF THE NEW YORK NATURAL GAS PRODUCTION CONTAMINATION
 DAMAGE RECOVERY AND REMEDIATION FUND ESTABLISHED IN SECTION NINETY-TWO-T
 OF THE STATE FINANCE LAW;
   2. "CLAIM" MEANS, FOR PURPOSES OF PART THREE OF THIS TITLE, ANY  CLAIM
 OF THE FUND OR ANY CLAIM BY AN INJURED PERSON WHO IS NOT RESPONSIBLE FOR
 THE  CONTAMINATION  SEEKING COMPENSATION FOR CLEANUP AND DECONTAMINATION
 COSTS INCURRED OR DAMAGES SUSTAINED AS A RESULT  OF  CONTAMINATION  THAT
 RESULTS FROM NATURAL GAS PRODUCTION;
   3. "CLEANUP AND DECONTAMINATION" MEANS ACTIVITIES UNDERTAKEN TO PERMA-
 NENTLY  ELIMINATE, REMOVE, ABATE, CONTROL OR MONITOR HEALTH AND/OR ENVI-
 RONMENTAL HAZARDS OR POTENTIAL HAZARDS IN CONNECTION  WITH  NATURAL  GAS
 PRODUCTION;
   4. "CLEANUP AND DECONTAMINATION COSTS" MEANS ALL COSTS ASSOCIATED WITH
 THE  CLEANUP  AND  DECONTAMINATION OF CONTAMINATION INCLUDING RELOCATION
 COSTS PURSUANT TO SECTION 23-2907 OF THIS TITLE INCURRED BY THE STATE OR
 ITS POLITICAL SUBDIVISIONS OR THEIR AGENTS OR ANY PERSON  WITH  APPROVAL
 OF THE DEPARTMENT;
   5.  "CONTAMINATION"  MEANS  ANY DAMAGE TO ANY PROPERTY OR THE ENVIRON-
 MENT, INCLUDING, BUT NOT LIMITED TO, A PUBLIC OR PRIVATE  WATER  SUPPLY,
 ANY  THREAT  TO  PUBLIC HEALTH, OR ANY HAZARDOUS CONDITION THAT PREVENTS
 THE USE OF PROPERTY OR THAT REQUIRES RELOCATION OF PEOPLE OR PROPERTY TO
 PREVENT HARM RESULTING FROM NATURAL GAS PRODUCTION, OR  THE  RELEASE  OF
 ANY  SUBSTANCE  USED  IN OR ASSOCIATED WITH PROCESSES RELATED TO NATURAL
 GAS PRODUCTION, INCLUDING,  BUT  NOT  LIMITED  TO,  THE  DEVELOPMENT  OF
 NATURAL  GAS  WELLS;  ACTIVITIES  ASSOCIATED WITH DRILLING, STIMULATING,
 COMPLETING, OR OPERATING A NATURAL GAS WELL; ACTIVITIES ASSOCIATED  WITH
 THE  CONSTRUCTION  OR  OPERATION OF FACILITIES FOR THE COLLECTION AND/OR
 PROCESSING OF NATURAL GAS OR FOR THE TRANSMISSION OF  NATURAL  GAS  FROM
 GAS WELLS TO CONSUMERS OF NATURAL GAS; AND THE TRANSPORTATION OF MATERI-
 ALS ASSOCIATED WITH A NATURAL GAS WELL SITE OR NATURAL GAS PRODUCTION;

 A. 2972                             3
 
   6.  "ENVIRONMENT"  MEANS  ANY  WATER  INCLUDING, BUT NOT LIMITED TO, A
 STREAM, POND, LAKE, RIVER, WATER COURSE, AQUIFER, WETLAND OR  RESERVOIR,
 ANY  LAND  INCLUDING,  BUT NOT LIMITED TO, A LAND SURFACE OR SUBSURFACE,
 AIR, FISH, WILDLIFE, BIOTA AND ALL OTHER NATURAL RESOURCES;
   7.  "FUND"  MEANS  THE  NEW  YORK NATURAL GAS PRODUCTION CONTAMINATION
 DAMAGE RECOVERY AND REMEDIATION FUND ESTABLISHED BY SECTION NINETY-TWO-T
 OF THE STATE FINANCE LAW;
   8. "NATURAL GAS PRODUCTION" OR "GAS PRODUCTION" MEANS  ALL  ACTIVITIES
 ASSOCIATED  WITH  THE EXPLORATION AND PRODUCTION OF NATURAL GAS, INCLUD-
 ING, BUT NOT LIMITED TO, (A)  DEVELOPMENT  OF  NATURAL  GAS  WELLS;  (B)
 ACTIVITIES ASSOCIATED WITH DRILLING, STIMULATING, COMPLETING, OR OPERAT-
 ING  A NATURAL GAS WELL; (C) ACTIVITIES ASSOCIATED WITH THE CONSTRUCTION
 OR OPERATION OF  FACILITIES  FOR  THE  COLLECTION  AND  TRANSMISSION  OF
 NATURAL  GAS  FROM  GAS  WELLS  TO CONSUMERS OF NATURAL GAS; AND (D) THE
 TRANSPORTATION OF MATERIALS ASSOCIATED WITH A NATURAL GAS WELL  SITE  OR
 NATURAL  GAS  PRODUCTION WHETHER OR NOT SUCH GAS IS RE-INJECTED INTO THE
 SUBSURFACE OF THE EARTH, FROM A GEOLOGICAL FORMATION AND THE TRANSPORTA-
 TION OF SUCH NATURAL GAS TO ANOTHER LOCATION;
   9. "OWNER" OR "OPERATOR" MEANS WITH RESPECT TO NATURAL GAS  PRODUCTION
 ANY  PERSON  OWNING  OR  OPERATING  BY  LEASE, CONTRACT OR OTHER FORM OF
 AGREEMENT ANY NATURAL GAS PRODUCTION SITES,  FACILITIES,  EQUIPMENT,  OR
 DEVELOPMENT RIGHTS; WITH RESPECT TO ABANDONED OR DERELICT SITES, FACILI-
 TIES, EQUIPMENT, OR DEVELOPMENT RIGHTS, THE PERSON WHO OWNED OR OPERATED
 SUCH  SITES,  FACILITIES,  EQUIPMENT  OR  DEVELOPMENT RIGHTS IMMEDIATELY
 PRIOR TO SUCH ABANDONMENT, OR THE OWNER, OR  OPERATOR  AT  THE  TIME  OF
 CONTAMINATION;
   10.  "PERSON" MEANS PUBLIC OR PRIVATE CORPORATIONS, COMPANIES, ASSOCI-
 ATIONS, SOCIETIES, FIRMS, PARTNERSHIPS, JOINT STOCK COMPANIES,  INDIVID-
 UALS,  THE UNITED STATES, THE STATE OF NEW YORK AND ANY OF ITS POLITICAL
 SUBDIVISIONS OR AGENTS.
                                  PART 2
                   NATURAL GAS PRODUCTION CONTAMINATION
                        CLEANUP AND DECONTAMINATION
 SECTION 23-2904. CONTAMINATION CAUSED BY NATURAL GAS PRODUCTION;  PROHI-
                    BITION.
         23-2905. CLEANUP  AND DECONTAMINATION OF CONTAMINATION CAUSED BY
                    NATURAL GAS PRODUCTION.
         23-2906. NOTIFICATION BY PERSONS RESPONSIBLE FOR CONTAMINATION.
         23-2907. CLEANUP  AND  DECONTAMINATION  OF  PROHIBITED   CONTAM-
                    INATIONS.
         23-2908. EMERGENCY  NATURAL GAS PRODUCTION CONTAMINATION CONTROL
                    NETWORK AND EMERGENCY NATURAL GAS PRODUCTION  CONTAM-
                    INATION RELOCATION NETWORK.
         23-2909. RIGHT TO ENTER AND INSPECT.
         23-2910. REGISTRY OF REPORTS OF CONTAMINATION.
 § 23-2904. CONTAMINATION CAUSED BY NATURAL GAS PRODUCTION; PROHIBITION.
   CONTAMINATION  OF  THE ENVIRONMENT CAUSED BY NATURAL GAS PRODUCTION IS
 PROHIBITED.
 § 23-2905.  CLEANUP  AND  DECONTAMINATION  OF  CONTAMINATION  CAUSED  BY
              NATURAL GAS PRODUCTION.
   1. THE COMMISSIONER SHALL PROMULGATE REGULATIONS GOVERNING THE CLEANUP
 AND  DECONTAMINATION  OF  ANY  CONTAMINATION  RESULTING FROM NATURAL GAS
 PRODUCTION.
   2. NO PERSON SHALL SUPERVISE, AID OR PARTICIPATE  IN  ANY  CLEANUP  OR
 DECONTAMINATION METHOD WHICH IS INCONSISTENT WITH ANY RULE OR REGULATION
 PROMULGATED PURSUANT TO THIS SECTION.

 A. 2972                             4
 
 § 23-2906. NOTIFICATION BY PERSONS RESPONSIBLE FOR CONTAMINATION.
   ANY  PERSON  RESPONSIBLE  FOR  CAUSING CONTAMINATION SHALL IMMEDIATELY
 NOTIFY THE DEPARTMENT PURSUANT TO RULES AND REGULATIONS  ESTABLISHED  BY
 THE  DEPARTMENT,  BUT  IN NO CASE LATER THAN TWO HOURS AFTER THE CONTAM-
 INATION. FAILURE TO SO NOTIFY SHALL MAKE SUCH PERSON LIABLE PURSUANT  TO
 THE PENALTY PROVISIONS OF SECTION 23-2932 OF THIS TITLE.
 § 23-2907. CLEANUP AND DECONTAMINATION OF PROHIBITED CONTAMINATIONS.
   1.  ANY  PERSON CAUSING CONTAMINATION PROHIBITED BY SECTION 23-2904 OF
 THIS PART SHALL IMMEDIATELY UNDERTAKE  TO  CONTAIN  SUCH  CONTAMINATION.
 NOTWITHSTANDING THE ABOVE REQUIREMENT, THE DEPARTMENT, PURSUANT TO REGU-
 LATIONS  PROMULGATED FOR SUCH PURPOSE, MAY UNDERTAKE THE DECONTAMINATION
 OF SUCH CONTAMINATION AND MAY RETAIN AGENTS AND  CONTRACTORS  WHO  SHALL
 OPERATE UNDER THE DIRECTION OF SUCH DEPARTMENT FOR SUCH PURPOSE.
   2. (A) UPON THE OCCURRENCE OF CONTAMINATION RESULTING FROM NATURAL GAS
 PRODUCTION,  PURSUANT  TO  REGULATIONS PROMULGATED FOR SUCH PURPOSE, THE
 DEPARTMENT SHALL RESPOND PROMPTLY AND PROCEED TO CLEANUP AND REMOVE  THE
 CONTAMINATION IN ACCORDANCE WITH ENVIRONMENTAL PRIORITIES OR MAY, AT ITS
 DISCRETION,  DIRECT  THE  PERSON  RESPONSIBLE  FOR SUCH CONTAMINATION TO
 PROMPTLY CLEANUP AND REMOVE THE CONTAMINATION. THE DEPARTMENT  SHALL  BE
 RESPONSIBLE  FOR CLEANUP AND DECONTAMINATION OR, AS THE CASE MAY BE, FOR
 RETAINING AGENTS AND CONTRACTORS WHO SHALL OPERATE UNDER  THE  DIRECTION
 OF  THAT  DEPARTMENT  FOR SUCH PURPOSES.   IMPLEMENTATION OF CLEANUP AND
 DECONTAMINATION PROCEDURES OF EACH CONTAMINATION SHALL BE  CONDUCTED  IN
 ACCORDANCE  WITH  ENVIRONMENTAL PRIORITIES AND PROCEDURES ESTABLISHED BY
 THE DEPARTMENT.
   (B) SECTION EIGHT OF THE COURT OF CLAIMS ACT OR ANY OTHER PROVISION OF
 LAW TO THE CONTRARY NOTWITHSTANDING, THE  STATE  SHALL  BE  IMMUNE  FROM
 LIABILITY  AND  ACTION  WITH  RESPECT TO ANY ACT OR OMISSION DONE IN THE
 DISCHARGE OF THE DEPARTMENT'S RESPONSIBILITY  PURSUANT  TO  THIS  TITLE;
 PROVIDED,  HOWEVER,  THAT THIS SUBDIVISION SHALL NOT LIMIT ANY LIABILITY
 WHICH MAY OTHERWISE EXIST FOR UNLAWFUL, WILLFUL  OR  MALICIOUS  ACTS  OR
 OMISSIONS  ON  THE PART OF THE STATE, STATE AGENCIES, OR THEIR OFFICERS,
 EMPLOYEES OR AGENTS OR FOR CONTAMINATION IN VIOLATION OF SECTION 23-2904
 OF THIS PART.
   3. ANY UNEXPLAINED CONTAMINATION  CAUSED  BY  NATURAL  GAS  PRODUCTION
 WITHIN  STATE  JURISDICTION  OR  CONTAMINATION  CAUSED  BY  NATURAL  GAS
 PRODUCTION OCCURRING BEYOND STATE JURISDICTION THAT FOR ANY REASON PENE-
 TRATES WITHIN STATE JURISDICTION SHALL BE REMOVED BY OR UNDER THE DIREC-
 TION OF THE DEPARTMENT. EXCEPT FOR THOSE EXPENSES INCURRED BY THE  PARTY
 CAUSING SUCH CONTAMINATION, ANY EXPENSES INCURRED IN THE DECONTAMINATION
 OF  CONTAMINATION  SHALL  BE PAID PROMPTLY FROM THE NEW YORK NATURAL GAS
 PRODUCTION CONTAMINATION DAMAGE RECOVERY AND REMEDIATION  FUND  PURSUANT
 TO  SECTION NINETY-TWO-T OF THE STATE FINANCE LAW AND ANY REIMBURSEMENTS
 DUE SUCH FUND SHALL BE COLLECTED IN ACCORDANCE WITH  THE  PROVISIONS  OF
 SUCH SECTION.
   4.  CLEANUP  AND DECONTAMINATION OF CONTAMINATION AND ACTIONS TO MINI-
 MIZE DAMAGE FROM SUCH CONTAMINATION SHALL BE,  TO  THE  GREATEST  EXTENT
 POSSIBLE,  PERMANENT  REMEDIES  TO THE CONTAMINATION, IN ACCORDANCE WITH
 APPLICABLE FEDERAL AND STATE ENVIRONMENTAL LAWS, RULES AND REGULATIONS.
   5. THE DEPARTMENT, IN CONSULTATION WITH THE STATE COMPTROLLER AND  THE
 ATTORNEY GENERAL, SHALL DEVELOP A STANDARD CONTRACT FORM TO BE USED WHEN
 CONTRACTING  SERVICES  FOR  THE CLEANUP AND DECONTAMINATION OF A CONTAM-
 INATION.
   6. WHENEVER THE DEPARTMENT ACTS TO REMOVE CONTAMINATION  OR  CONTRACTS
 TO  SECURE  PROSPECTIVE  DECONTAMINATION  SERVICES,  THE  DEPARTMENT  IS
 AUTHORIZED TO DRAW UPON THE MONEY AVAILABLE IN THE FUND, PAID OUT ON THE

 A. 2972                             5
 
 AUDIT AND WARRANT OF THE COMPTROLLER.  SUCH MONEYS SHALL BE USED TO  PAY
 PROMPTLY  FOR  ALL  CLEANUP  AND  DECONTAMINATION  COSTS INCURRED BY THE
 DEPARTMENT.  WHENEVER THE DEPARTMENT ACTS  TO  REMOVE  CONTAMINATION  OR
 CONTRACTS  TO  SECURE  PROSPECTIVE  DECONTAMINATION  SERVICES TO ADDRESS
 CONTAMINATION THAT IS ASSOCIATED WITH AN OWNER  OR  OPERATOR,  IT  SHALL
 FIRST DRAW ON THE BOND OR OTHER FINANCIAL SECURITY REQUIRED BY PARAGRAPH
 (C)  OF  SUBDIVISION  THREE OF SECTION 23-2915 OF THIS TITLE PAID OUT ON
 THE AUDIT AND WARRANT OF THE COMPTROLLER.  IF  SUCH  BOND  OR  FINANCIAL
 SECURITY  IS INSUFFICIENT TO FULLY DISCHARGE CLEANUP AND DECONTAMINATION
 COSTS, THE DEPARTMENT IS AUTHORIZED TO DRAW ON MONEY  AVAILABLE  IN  THE
 FUND, PAID OUT ON THE AUDIT AND WARRANT OF THE STATE COMPTROLLER.
   7.  (A)  NOTHING  IN  THIS SECTION IS INTENDED TO PRECLUDE CLEANUP AND
 DECONTAMINATION BY ANY PERSON THREATENED BY SUCH CONTAMINATION, WHO,  AS
 SOON  AS  IS  REASONABLY  POSSIBLE, COORDINATES AND OBTAINS APPROVAL FOR
 SUCH ACTIONS WITH ONGOING STATE OR FEDERAL  OPERATIONS  AND  APPROPRIATE
 STATE  AND  FEDERAL  AUTHORITIES. NOTWITHSTANDING ANY OTHER PROVISION OF
 LAW TO THE CONTRARY, THE LIABILITY OF ANY CONTRACTOR  FOR  SUCH  PERSON,
 WHERE  SUCH  PERSON  OBTAINS APPROVAL FROM APPROPRIATE STATE AND FEDERAL
 AUTHORITIES FOR SUCH CLEANUP AND DECONTAMINATION, AND THE  LIABILITY  OF
 ANY  PERSON PROVIDING SERVICES RELATED TO THE CLEANUP OR DECONTAMINATION
 OF CONTAMINATION, UNDER CONTRACT WITH THE DEPARTMENT, FOR ANY INJURY  TO
 A  PERSON  OR  PROPERTY  CAUSED  BY OR RELATED TO SUCH SERVICES SHALL BE
 LIMITED TO ACTS OR OMISSIONS OF THE PERSON DURING THE COURSE OF PERFORM-
 ING SUCH SERVICES WHICH ARE SHOWN TO HAVE BEEN THE RESULT OF NEGLIGENCE,
 GROSS NEGLIGENCE OR RECKLESS, WANTON OR INTENTIONAL MISCONDUCT. NOTWITH-
 STANDING ANY OTHER PROVISIONS OF LAW, WHEN (I) A VERDICT OR DECISION  IN
 AN  ACTION  OR  CLAIM  FOR  INJURY  TO A PERSON OR PROPERTY CAUSED BY OR
 RELATED TO SUCH SERVICES IS DETERMINED IN FAVOR  OF  A  CLAIMANT  IN  AN
 ACTION  INVOLVING A PERSON PERFORMING SUCH SERVICES AND ANY OTHER PERSON
 OR PERSONS JOINTLY LIABLE, AND (II) THE LIABILITY OF THE PERSON PERFORM-
 ING SUCH SERVICES IS FOUND TO BE FIFTY PERCENT  OR  LESS  OF  THE  TOTAL
 LIABILITY ASSIGNED TO ALL PERSONS LIABLE, AND (III) THE LIABILITY OF THE
 PERSON  PERFORMING  SUCH  SERVICES IS NOT BASED ON A FINDING OF RECKLESS
 DISREGARD FOR THE SAFETY OF OTHERS, OR INTENTIONAL MISCONDUCT, THEN  THE
 LIABILITY  OF  THE  PERSON  PERFORMING SUCH SERVICES TO THE CLAIMANT FOR
 LOSS RELATING TO INJURY TO PROPERTY AND FOR NON-ECONOMIC  LOSS  RELATING
 TO INJURY TO A PERSON SHALL NOT EXCEED THE EQUITABLE SHARE OF THE PERSON
 PERFORMING  SUCH  SERVICES  DETERMINED  IN  ACCORDANCE WITH THE RELATIVE
 CULPABILITY OF EACH PERSON CAUSING OR CONTRIBUTING TO THE TOTAL  LIABIL-
 ITY FOR SUCH LOSSES; PROVIDED, HOWEVER, THAT THE CULPABLE CONDUCT OF ANY
 PERSON  NOT A PARTY TO THE ACTION SHALL NOT BE CONSIDERED IN DETERMINING
 ANY EQUITABLE SHARE HEREIN IF THE CLAIMANT PROVES THAT  WITH  DUE  DILI-
 GENCE THE CLAIMANT WAS UNABLE TO OBTAIN JURISDICTION OVER SUCH PERSON IN
 SAID  ACTION.  AS  USED  IN  THIS  SECTION, THE TERM "NON-ECONOMIC LOSS"
 INCLUDES, BUT IS NOT LIMITED TO, PAIN  AND  SUFFERING,  MENTAL  ANGUISH,
 LOSS  OF  CONSORTIUM  OR  OTHER DAMAGES FOR NON-ECONOMIC LOSS.  HOWEVER,
 NOTHING IN THIS SUBDIVISION SHALL BE DEEMED TO ALTER, MODIFY OR ABROGATE
 THE LIABILITY OF ANY PERSON PERFORMING SUCH SERVICES FOR BREACH  OF  ANY
 EXPRESS WARRANTY, LIMITED OR OTHERWISE, OR AN EXPRESS OR IMPLIED WARRAN-
 TY  UNDER  THE UNIFORM COMMERCIAL CODE, OR TO AN EMPLOYEE OF SUCH PERSON
 PURSUANT TO THE WORKERS'  COMPENSATION  LAW,  OR  TO  RELIEVE  FROM  ANY
 LIABILITY  ANY  PERSON WHO IS RESPONSIBLE FOR CONTAMINATION IN VIOLATION
 OF SECTION 23-2904 OF THIS PART.
   (B) NO ACTION TAKEN BY ANY PERSON TO CONTAIN OR  REMOVE  CONTAMINATION
 SHALL  BE CONSTRUED AS AN ADMISSION OF LIABILITY FOR SUCH CONTAMINATION.
 NO PERSON WHO GRATUITOUSLY RENDERS ASSISTANCE IN CONTAINING OR  REMOVING

 A. 2972                             6
 
 CONTAMINATION  SHALL  BE  LIABLE  FOR ANY CIVIL DAMAGES TO THIRD PARTIES
 RESULTING SOLELY FROM ACTS OR OMISSIONS OF SUCH PERSON IN RENDERING SUCH
 ASSISTANCE EXCEPT FOR ACTS OR OMISSIONS OF GROSS NEGLIGENCE  OR  WILLFUL
 MISCONDUCT.  IN  THE  COURSE  OF  CLEANUP AND DECONTAMINATION, NO PERSON
 SHALL DISCHARGE ANY DETERGENT OR OTHER SUBSTANCE INTO THE WATERS OF THIS
 STATE WITHOUT PRIOR AUTHORIZATION OF THE COMMISSIONER.
   (C) A PERSON MAY, WITHOUT ADMISSION OF RESPONSIBILITY  FOR  A  CONTAM-
 INATION  AND WITH THE CONSENT OF THE COMMISSIONER, COMMENCE CLEAN UP AND
 DECONTAMINATION OF THE CONTAMINATION AND UPON THE RECOMMENDATION OF  THE
 COMMISSIONER  OF  HEALTH  AND WITH THE CONSENT OF THE FUND UNDERTAKE THE
 RELOCATION OF PERSONS AFFECTED BY CONTAMINATION.  UPON DETERMINATION  BY
 THE  FUND  THAT THE PERSON IS NOT RESPONSIBLE FOR THE CONTAMINATION, THE
 PERSON SHALL BE REIMBURSED BY THE FUND  FOR  THE  ACTUAL  AND  NECESSARY
 EXPENSES INCURRED.
   8. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, INCLUD-
 ING  BUT  NOT  LIMITED TO SECTION 15-108 OF THE GENERAL OBLIGATIONS LAW,
 EVERY PERSON PROVIDING  CLEANUP,  DECONTAMINATION  OF  CONTAMINATION  OR
 RELOCATION  OF  PERSONS  PURSUANT  TO  THIS SECTION SHALL BE ENTITLED TO
 CONTRIBUTION FROM ANY OTHER RESPONSIBLE PARTY.
 § 23-2908. EMERGENCY  NATURAL  GAS  PRODUCTION   CONTAMINATION   CONTROL
              NETWORK  AND EMERGENCY NATURAL GAS PRODUCTION CONTAMINATION
              RELOCATION NETWORK.
   THE COMMISSIONER SHALL, BY REGULATION, ESTABLISH AN EMERGENCY  NATURAL
 GAS  PRODUCTION  CONTAMINATION  CONTROL NETWORK AND AN EMERGENCY NATURAL
 GAS PRODUCTION CONTAMINATION RELOCATION NETWORK.
 § 23-2909. RIGHT TO ENTER AND INSPECT.
   THE DEPARTMENT IS HEREBY AUTHORIZED TO ENTER AND INSPECT ANY  PROPERTY
 OR  PREMISES  FOR THE PURPOSE OF INSPECTING SITES, FACILITIES, OR EQUIP-
 MENT AND INVESTIGATING EITHER ACTUAL OR  SUSPECTED  SOURCES  OF  CONTAM-
 INATION OR VIOLATION OF THIS TITLE OR ANY RULE OR REGULATION PROMULGATED
 PURSUANT TO THIS TITLE. THE DEPARTMENT IS FURTHER AUTHORIZED TO ENTER ON
 PROPERTY  OR  PREMISES  IN  ORDER  TO ASSIST IN THE CLEANUP OR DECONTAM-
 INATION OF THE CONTAMINATION. ANY INFORMATION RELATING TO  SECRET  PROC-
 ESSES OR METHODS OF MANUFACTURE SHALL BE KEPT CONFIDENTIAL.
 § 23-2910. REGISTRY OF REPORTS OF CONTAMINATION.
   1.  THE  DEPARTMENT  SHALL  MAINTAIN  AND POST ON A PUBLICLY AVAILABLE
 INTERNET WEBSITE A REGISTRY OF ALL REPORTS OF CONTAMINATION PURSUANT  TO
 SECTION  23-2906 OF THIS PART. REPORTS SHALL BE ADDED TO THE REGISTRY ON
 AN ONGOING BASIS AS SOON AS POSSIBLE AFTER THE DATE ON  WHICH  THEY  ARE
 REPORTED,  BUT  NO LATER THAN THIRTY DAYS AFTER SUCH DATE. SUCH REGISTRY
 SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING ITEMS:
   (A) A GENERAL DESCRIPTION OF THE SITE CONSISTING OF:
   (I) THE NAME, IF ANY, OF THE SITE AND THE ADDRESS OF THE SITE, INCLUD-
 ING THE TOWN AND COUNTY;
   (II) THE CONTAMINATION AT THE SITE, INCLUDING, BUT NOT LIMITED  TO,  A
 DESCRIPTION  OF THE NATURAL GAS PRODUCTION ACTIVITY RESULTING IN CONTAM-
 INATION, THE DATE ON WHICH THIS ACTIVITY OCCURRED AND  ALL  INSPECTIONS,
 TESTS AND OTHER MEASURES EMPLOYED IN ASSESSING THE CONTAMINATION;
   (III)  THE OWNER OR OPERATOR OF THE NATURAL GAS PRODUCTION ACTIVITY AT
 THE TIME OF CONTAMINATION; AND
   (IV) THE NAME OF THE CURRENT OWNER OF THE SITE;
   (B) AN ASSESSMENT BY THE DEPARTMENT OF HARM TO THE ENVIRONMENT RESULT-
 ING FROM CONTAMINATION AT THE SITE;
   (C) AN ASSESSMENT PREPARED BY  THE  DEPARTMENT  OF  HEALTH  OF  PUBLIC
 HEALTH  PROBLEMS  AT  THE SITE RESULTING FROM CONTAMINATION AT THE SITE;
 AND

 A. 2972                             7
 
   (D) A DESCRIPTION OF CLEANUP AND CONTAMINATION  ACTIVITIES  UNDERTAKEN
 AT THE SITE.
   2.  PERIODICALLY,  BUT  NO  LESS  THAN  ANNUALLY, THE DEPARTMENT SHALL
 UPDATE THE REGISTRY TO REFLECT THE STATUS OF CLEANUP AND DECONTAMINATION
 MEASURES.
   3. WHEN A PERMANENT REMEDY OF CONTAMINATION  HAS  BEEN  ACHIEVED,  THE
 DEPARTMENT MAY, AT THE REQUEST OF THE SITE OWNER, REMOVE THE NAME OF THE
 SITE  OWNER  AND  THE  SITE  ADDRESS INFORMATION EXCEPT FOR THE TOWN AND
 COUNTY OF THE SITE FROM THE REGISTRY. ALL OTHER ITEMS  SHALL  REMAIN  AS
 PERMANENT RECORDS ON THE REGISTRY.
                                  PART 3
                    LIABILITY; THIRD PARTY COMPENSATION
 SECTION 23-2914. ADMINISTRATOR  OF  THE  NEW YORK NATURAL GAS PRODUCTION
                    DAMAGE RECOVERY AND REMEDIATION FUND.
         23-2915. LIABILITY.
         23-2916. ENVIRONMENTAL LIEN.
         23-2917. ENVIRONMENTAL LIEN NOTICE; CONTENTS.
         23-2918. FILING OF  NOTICE  OF  ENVIRONMENTAL  LIEN;  FILING  OF
                    RELEASE.
         23-2919. ENFORCEMENT OF ENVIRONMENTAL LIEN.
         23-2920. AMOUNTS RECEIVED TO SATISFY LIEN.
         23-2921. CLAIMS AGAINST THE FUND.
         23-2922. SETTLEMENTS.
         23-2923. SETTLEMENTS WHEN SOURCE OF CONTAMINATION IS UNKNOWN.
         23-2924. HEARINGS  FOR PERSONS ON CLAIMS FILED WITH THE ADMINIS-
                    TRATOR.
         23-2925. SUBROGATION OF RIGHTS.
         23-2926. AWARDS EXCEEDING CURRENT BALANCE.
         23-2927. CLAIMS AGAINST INSURERS.
         23-2928. APPLICATION OF TITLE.
 § 23-2914. ADMINISTRATOR OF THE NEW YORK NATURAL GAS  PRODUCTION  DAMAGE
              RECOVERY AND REMEDIATION FUND.
   THE  STATE COMPTROLLER SHALL APPOINT AND SUPERVISE AN ADMINISTRATOR OF
 THE NEW YORK NATURAL GAS PRODUCTION DAMAGE RECOVERY AND REMEDIATION FUND
 FOR THE PURPOSES OF THIS PART REFERRED TO AS "THE FUND". THE ADMINISTRA-
 TOR SHALL BE THE CHIEF EXECUTIVE OF THE FUND AND SHALL HAVE THE  FOLLOW-
 ING POWERS AND DUTIES:
   1.  TO REPRESENT THE STATE IN MEETINGS WITH THE ALLEGED PERSON RESPON-
 SIBLE FOR A CONTAMINATION AND CLAIMANTS  CONCERNING  LIABILITY  FOR  THE
 CONTAMINATION AND AMOUNT OF THE CLAIMS;
   2.  TO  DETERMINE  IF  HEARINGS ARE NEEDED TO SETTLE PARTICULAR CLAIMS
 FILED BY INJURED PERSONS;
   3. TO CONVENE HEARINGS;
   4. TO CERTIFY THE AMOUNT OF CLAIMS AND NAMES OF CLAIMANTS TO THE STATE
 COMPTROLLER; AND
   5. TO DISBURSE MONEYS FROM THE FUND FOR  CLEANUP  AND  DECONTAMINATION
 COSTS PURSUANT TO A CERTIFICATION OF CLAIMS BY THE COMMISSIONER.
 § 23-2915. LIABILITY.
   1.  ANY  PERSON WHO HAS CAUSED CONTAMINATION SHALL BE STRICTLY LIABLE,
 WITHOUT REGARD TO FAULT, FOR ALL CLEANUP AND DECONTAMINATION  COSTS  AND
 ALL DIRECT AND INDIRECT DAMAGES, NO MATTER BY WHOM SUSTAINED, AS DEFINED
 IN  THIS  SECTION.  IN ADDITION TO CLEANUP AND DECONTAMINATION COSTS AND
 DAMAGES, ANY SUCH PERSON WHO IS NOTIFIED OF SUCH CONTAMINATION  AND  WHO
 DID  NOT  UNDERTAKE  RELOCATION  OF  PERSONS RESIDING IN THE AREA OF THE
 CONTAMINATION IN ACCORDANCE WITH PARAGRAPH (C) OF SUBDIVISION  SEVEN  OF
 SECTION 23-2907 OF THIS TITLE, SHALL BE LIABLE TO THE FUND FOR AN AMOUNT

 A. 2972                             8
 
 EQUAL TO TWO TIMES THE ACTUAL AND NECESSARY EXPENSE INCURRED BY THE FUND
 FOR  SUCH  RELOCATION  PURSUANT  TO  REGULATIONS  AUTHORIZED  BY SECTION
 23-2908 OF THIS TITLE.
   2. THE FUND SHALL BE STRICTLY LIABLE, WITHOUT REGARD TO FAULT, FOR ALL
 CLEANUP  AND  DECONTAMINATION COSTS AND ALL DIRECT AND INDIRECT DAMAGES,
 NO MATTER BY WHOM SUSTAINED, INCLUDING, BUT NOT LIMITED TO:
   (A) CLEANUP AND DECONTAMINATION COSTS INCLUDING, BUT  NOT  LIMITED  TO
 THE  COST  OF  RESTORING,  REPAIRING,  OR REPLACING ANY REAL OR PERSONAL
 PROPERTY DAMAGED OR DESTROYED BY CONTAMINATION, ANY INCOME LOST FROM THE
 TIME SUCH PROPERTY IS DAMAGED TO THE TIME  SUCH  PROPERTY  IS  RESTORED,
 REPAIRED  OR REPLACED, ANY REDUCTION IN VALUE OF SUCH PROPERTY CAUSED BY
 SUCH CONTAMINATION BY COMPARISON WITH ITS VALUE PRIOR THERETO;
   (B) THE COST OF RESTORATION AND REPLACEMENT, WHERE  POSSIBLE,  OF  ANY
 NATURAL RESOURCE DAMAGED OR DESTROYED BY CONTAMINATION;
   (C)  LOSS OF INCOME OR IMPAIRMENT OF EARNING CAPACITY DUE TO DAMAGE TO
 REAL OR PERSONAL PROPERTY,  INCLUDING  NATURAL  RESOURCES  DESTROYED  OR
 DAMAGED  BY CONTAMINATION; PROVIDED THAT SUCH LOSS OR IMPAIRMENT EXCEEDS
 TEN PERCENT OF THE AMOUNT WHICH CLAIMANT DERIVES, BASED UPON  INCOME  OR
 BUSINESS  RECORDS, EXCLUSIVE OF OTHER SOURCES OF INCOME, FROM ACTIVITIES
 RELATED TO THE PARTICULAR REAL OR PERSONAL PROPERTY OR NATURAL RESOURCES
 DAMAGED OR DESTROYED BY SUCH CONTAMINATION DURING  THE  WEEK,  MONTH  OR
 YEAR FOR WHICH THE CLAIM IS FILED;
   (D) LOSS OF TAX REVENUE BY THE STATE OR LOCAL GOVERNMENTS FOR A PERIOD
 OF  ONE  YEAR  DUE  TO  DAMAGE  TO REAL OR PERSONAL PROPERTY PROXIMATELY
 RESULTING FROM CONTAMINATION; AND
   (E) INTEREST ON LOANS OBTAINED OR  OTHER  OBLIGATIONS  INCURRED  BY  A
 CLAIMANT  FOR  THE  PURPOSE  OF  AMELIORATING  THE  ADVERSE EFFECTS OF A
 CONTAMINATION PENDING THE PAYMENT OF A CLAIM IN FULL AS PROVIDED BY THIS
 TITLE.
   3. (A) THE OWNER OR OPERATOR WHICH HAS CAUSED CONTAMINATION  SHALL  BE
 STRICTLY LIABLE FOR THE FULL AMOUNT OF CLEANUP AND DECONTAMINATION COSTS
 AND DAMAGES, WITHOUT REGARD TO FAULT, SUBJECT TO THE DEFENSES ENUMERATED
 IN SUBDIVISION FOUR OF THIS SECTION, FOR ALL CLEANUP AND DECONTAMINATION
 COSTS AND ALL DIRECT AND INDIRECT DAMAGES PAID BY THE FUND.
   (B)  (I)  THE  COMMISSIONER IN CONSULTATION WITH THE SUPERINTENDENT OF
 FINANCIAL SERVICES SHALL PROMULGATE REGULATIONS REQUIRING THE  OWNER  OR
 OPERATOR OF A DRILLING SITE TO ESTABLISH AND MAINTAIN EVIDENCE OF FINAN-
 CIAL RESPONSIBILITY.
   (II)  FINANCIAL RESPONSIBILITY UNDER THIS PARAGRAPH MAY BE ESTABLISHED
 BY ANY ONE OR A COMBINATION OF THE FOLLOWING METHODS ACCEPTABLE  TO  THE
 COMMISSIONER  IN  CONSULTATION  WITH  THE  SUPERINTENDENT  OF  FINANCIAL
 SERVICES: EVIDENCE OF INSURANCE,  SURETY  BONDS,  GUARANTEE,  LETTER  OF
 CREDIT,  QUALIFICATION AS A SELF-INSURER, OR OTHER EVIDENCE OF FINANCIAL
 RESPONSIBILITY.
   (III) THE LIABILITY OF A THIRD-PARTY INSURER PROVIDING PROOF OF FINAN-
 CIAL RESPONSIBILITY ON BEHALF OF A  PERSON  REQUIRED  TO  ESTABLISH  AND
 MAINTAIN  EVIDENCE  OF  FINANCIAL  RESPONSIBILITY  UNDER THIS SECTION IS
 LIMITED TO THE TYPE OF RISK ASSUMED AND THE AMOUNT OF COVERAGE SPECIFIED
 IN THE PROOF OF FINANCIAL RESPONSIBILITY FURNISHED TO  AND  APPROVED  BY
 THE  DEPARTMENT. FOR THE PURPOSES OF THIS SECTION, THE TERM "THIRD-PARTY
 INSURER" MEANS A THIRD-PARTY INSURER, SURETY, GUARANTOR, PERSON FURNISH-
 ING A LETTER OF CREDIT, OR OTHER GROUP  OR  PERSON  PROVIDING  PROOF  OF
 FINANCIAL  RESPONSIBILITY  ON  BEHALF  OF  ANOTHER  PERSON;  IT DOES NOT
 INCLUDE THE PERSON REQUIRED TO ESTABLISH AND MAINTAIN EVIDENCE  OF  SUCH
 FINANCIAL RESPONSIBILITY.

 A. 2972                             9
 
   (C)  ANY OWNER OR OPERATOR ENGAGING IN OR SEEKING TO ENGAGE IN NATURAL
 GAS PRODUCTION SHALL PROVIDE A BOND OR OTHER FINANCIAL SECURITY ACCEPTA-
 BLE TO THE DEPARTMENT IN AN AMOUNT ESTABLISHED BY RULE OR REGULATION  IN
 CONSULTATION  WITH THE ADMINISTRATOR OF THE FUND CONDITIONED ON PERFORM-
 ANCE OF SUCH OWNER'S OR OPERATOR'S CLEANUP AND DECONTAMINATION RESPONSI-
 BILITIES  IN  THE EVENT OF CONTAMINATION AS DEFINED IN THIS SECTION. THE
 BOND SHALL BE IN AN AMOUNT SUFFICIENT TO FULLY DISCHARGE SUCH OWNER'S OR
 OPERATOR'S CLEANUP AND DECONTAMINATION RESPONSIBILITIES.  THE FAILURE OF
 ANY OWNER OR OPERATOR  TO  PREVENT  PROHIBITED  CONTAMINATION  SHALL  BE
 DEEMED  A  BREACH  OF THE RESPONSIBILITIES OF THIS TITLE AND ENTITLE THE
 DEPARTMENT TO CLAIM THE PROCEEDS OF THE BOND OR OTHER FINANCIAL SECURITY
 AUTHORIZED BY THIS PARAGRAPH.   IN THE  EVENT  THE  DEPARTMENT  ACTS  OR
 REMOVE  CONTAMINATION OR CONTRACTS TO SECURE PROSPECTIVE DECONTAMINATION
 SERVICES PURSUANT TO SUBDIVISION SIX OF SECTION 23-2907 OF THIS TITLE TO
 ADDRESS CONTAMINATION THAT IS ASSOCIATED WITH AN OWNER OR OPERATOR,  THE
 DEPARTMENT SHALL DRAW ON THE BOND OR OTHER FINANCIAL SECURITY AUTHORIZED
 BY  THIS PARAGRAPH TO PAY PROMPTLY FOR CLEANUP AND DECONTAMINATION COSTS
 INCURRED BY SUCH DEPARTMENT.
   4. (A) THE ONLY DEFENSES THAT MAY BE RAISED BY  A  PERSON  RESPONSIBLE
 FOR  CAUSING  CONTAMINATION ARE: (I) AN ACT OR OMISSION CAUSED SOLELY BY
 WAR, SABOTAGE, OR GOVERNMENTAL NEGLIGENCE OR (II) AN ACT OR OMISSION  OF
 A THIRD PARTY OTHER THAN AN EMPLOYEE OR AGENT OF THE PERSON RESPONSIBLE,
 OR  A  THIRD  PARTY  WHOSE  ACT  OR OMISSION OCCURS IN CONNECTION WITH A
 CONTRACTUAL RELATIONSHIP WITH THE  PERSON  RESPONSIBLE,  IF  THE  PERSON
 RESPONSIBLE  ESTABLISHES  BY  A  PREPONDERANCE  OF THE EVIDENCE THAT THE
 PERSON RESPONSIBLE EXERCISED DUE CARE WITH RESPECT TO  THE  NATURAL  GAS
 CONCERNED,  TAKING INTO CONSIDERATION THE CHARACTERISTICS OF NATURAL GAS
 AND IN LIGHT OF ALL RELEVANT FACTS AND CIRCUMSTANCES; AND
   (B) TOOK PRECAUTIONS AGAINST THE ACTS OR OMISSIONS OF ANY  SUCH  THIRD
 PARTY  AND  THE  CONSEQUENCES OF THOSE ACTS OR OMISSIONS. THESE DEFENSES
 SHALL NOT APPLY TO A PERSON RESPONSIBLE WHO  REFUSES  OR  FAILS  TO  (I)
 REPORT THE CONTAMINATION, OR (II) PROVIDE ALL REASONABLE COOPERATION AND
 ASSISTANCE  IN  CLEANUP  AND  DECONTAMINATION  ACTIVITIES  UNDERTAKEN ON
 BEHALF OF THE FUND BY THE DEPARTMENT. IN ANY CASE WHERE A PERSON RESPON-
 SIBLE FOR CONTAMINATION ESTABLISHES BY A PREPONDERANCE OF  THE  EVIDENCE
 THAT  THE  CONTAMINATION  AND  THE RESULTING CLEANUP AND DECONTAMINATION
 COSTS WERE CAUSED SOLELY BY AN ACT OR OMISSION  OF  ONE  OR  MORE  THIRD
 PARTIES AS DESCRIBED IN THIS PARAGRAPH, THE THIRD PARTY OR PARTIES SHALL
 BE  TREATED  AS  THE  PERSON  OR PERSONS RESPONSIBLE FOR THE PURPOSES OF
 DETERMINING LIABILITY UNDER THIS TITLE.
   (C) NOTHING SET FORTH IN THIS SUBDIVISION SHALL BE CONSTRUED TO HOLD A
 LENDER LIABLE TO THE STATE AS A PERSON RESPONSIBLE FOR THE CONTAMINATION
 CAUSED BY NATURAL GAS PRODUCTION AT A SITE IN THE EVENT: (I) SUCH  LEND-
 ER,  WITHOUT PARTICIPATING IN THE MANAGEMENT OF SUCH SITE, HOLDS INDICIA
 OF OWNERSHIP PRIMARILY TO PROTECT THE LENDER'S SECURITY INTEREST IN  THE
 SITE,  OR (II) SUCH LENDER DID NOT PARTICIPATE IN THE MANAGEMENT OF SUCH
 SITE PRIOR TO A FORECLOSURE, AND SUCH LENDER:
   (1) FORECLOSES ON SUCH SITE; AND
   (2) AFTER FORECLOSURE, SELLS,  RE-LEASES  (IN  THE  CASE  OF  A  LEASE
 FINANCE TRANSACTION), OR LIQUIDATES SUCH SITE, MAINTAINS BUSINESS ACTIV-
 ITIES,  WINDS  UP  OPERATIONS,  OR  TAKES ANY OTHER MEASURE TO PRESERVE,
 PROTECT OR PREPARE SUCH SITE FOR SALE OR DISPOSITION; PROVIDED  HOWEVER,
 THAT  SUCH LENDER SHALL TAKE ACTIONS TO SELL, RE-LEASE (IN THE CASE OF A
 LEASE FINANCE TRANSACTION), OR OTHERWISE DIVEST ITSELF OF SUCH  SITE  AT
 THE  EARLIEST PRACTICABLE, COMMERCIALLY REASONABLE TIME, ON COMMERCIALLY

 A. 2972                            10
 
 REASONABLE TERMS, TAKING INTO ACCOUNT MARKET CONDITIONS  AND  LEGAL  AND
 REGULATORY REQUIREMENTS.
   (D)  THIS  EXEMPTION  SHALL NOT APPLY TO ANY LENDER THAT HAS CAUSED OR
 CONTRIBUTED TO THE CONTAMINATION CAUSED BY NATURAL GAS  PRODUCTION  FROM
 OR AT THE SITE.
   THE  TERMS  "PARTICIPATING IN MANAGEMENT," "FORECLOSURE," "LENDER" AND
 "SECURITY INTEREST" SHALL HAVE THE  SAME  MEANING  AS  THOSE  TERMS  ARE
 DEFINED  IN  PARAGRAPH (C) OF SUBDIVISION ONE OF SECTION 27-1323 OF THIS
 CHAPTER.
   5. ANY CLAIM BY ANY INJURED PERSON FOR THE COSTS OF CLEANUP AND DECON-
 TAMINATION AND DIRECT AND INDIRECT DAMAGES BASED ON THE STRICT LIABILITY
 IMPOSED BY THIS SECTION MAY BE BROUGHT DIRECTLY AGAINST THE  PERSON  WHO
 HAS CAUSED CONTAMINATION, PROVIDED, HOWEVER, THAT DAMAGES RECOVERABLE BY
 ANY  INJURED PERSON IN SUCH A DIRECT CLAIM BASED ON THE STRICT LIABILITY
 IMPOSED BY THIS SECTION SHALL BE LIMITED TO THE  DAMAGES  AUTHORIZED  BY
 THIS SECTION.
 § 23-2916. ENVIRONMENTAL LIEN.
   1.  THE  FUND SHALL HAVE A LIEN FOR THE COSTS INCURRED BY THE FUND FOR
 THE CLEANUP AND DECONTAMINATION OF CONTAMINATION AND FOR THE PAYMENT  OF
 CLAIMS FOR DIRECT AND INDIRECT DAMAGES AS A RESULT OF CONTAMINATION UPON
 REAL PROPERTY LOCATED WITHIN THE STATE:
   (A)  OWNED BY A PERSON LIABLE TO THE FUND FOR SUCH COSTS UNDER SECTION
 23-2915 OF THIS PART AT THE TIME  A  NOTICE  OF  ENVIRONMENTAL  LIEN  IS
 FILED; AND
   (B) UPON WHICH THE CONTAMINATION OCCURRED.
   2. AN ENVIRONMENTAL LIEN SHALL ATTACH WHEN:
   (A) CLEANUP AND DECONTAMINATION COSTS AND DAMAGE COSTS ARE INCURRED BY
 THE FUND;
   (B) THE PERSON REFERRED TO IN SUBDIVISION ONE OF THIS SECTION FAILS TO
 PAY SUCH COSTS WITHIN NINETY DAYS AFTER A WRITTEN DEMAND THEREFOR BY THE
 ADMINISTRATOR  IS MAILED BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT
 REQUESTED; AND
   (C) A NOTICE OF ENVIRONMENTAL LIEN IS FILED  AS  PROVIDED  IN  SECTION
 23-2918  OF  THIS  PART; PROVIDED, HOWEVER, THAT A COPY OF THE NOTICE OF
 ENVIRONMENTAL LIEN IS SERVED UPON THE OWNER OF THE REAL PROPERTY SUBJECT
 TO THE ENVIRONMENTAL LIEN WITHIN THIRTY DAYS OF SUCH FILING  IN  ACCORD-
 ANCE WITH THE PROVISIONS OF SECTION ELEVEN OF THE LIEN LAW.
   3.  AN  ENVIRONMENTAL  LIEN  SHALL  CONTINUE AGAINST THE REAL PROPERTY
 UNTIL:
   (A) THE CLAIM OR JUDGMENT AGAINST THE PERSON REFERRED TO  IN  SUBDIVI-
 SION  ONE  OF  THIS  SECTION  FOR  CLEANUP AND DECONTAMINATION COSTS AND
 DAMAGE COSTS IS SATISFIED OR BECOMES UNENFORCEABLE;
   (B) THE LIEN IS RELEASED BY THE ADMINISTRATOR PURSUANT TO THIS  SUBDI-
 VISION;
   (C) THE LIEN IS DISCHARGED BY PAYMENT OF MONEYS INTO COURT; OR
   (D) THE LIEN IS OTHERWISE VACATED BY COURT ORDER.
   UPON  THE OCCURRENCE OF ANY OF THE FOREGOING, EXCEPT WHERE THE LIEN IS
 VACATED BY COURT ORDER, THE ADMINISTRATOR SHALL EXECUTE THE  RELEASE  OF
 AN  ENVIRONMENTAL  LIEN  AND  FILE  THE  RELEASE  AS PROVIDED IN SECTION
 23-2918 OF THIS PART. THE ADMINISTRATOR  MAY  RELEASE  AN  ENVIRONMENTAL
 LIEN WHERE:
   (I)  A LEGALLY ENFORCEABLE AGREEMENT SATISFACTORY TO THE ADMINISTRATOR
 HAS BEEN EXECUTED RELATING TO  CLEANUP  AND  DECONTAMINATION  COSTS  AND
 DAMAGE  COSTS  OR  REIMBURSING  THE FUND FOR CLEANUP AND DECONTAMINATION
 COSTS AND DAMAGE COSTS; OR

 A. 2972                            11
 
   (II) THE ATTACHMENT OR ENFORCEMENT OF THE ENVIRONMENTAL LIEN IS DETER-
 MINED BY THE ADMINISTRATOR NOT TO BE IN THE PUBLIC INTEREST.
   4. AN ENVIRONMENTAL LIEN IS SUBJECT TO THE RIGHTS OF ANY OTHER PERSON,
 INCLUDING  AN  OWNER, PURCHASER, HOLDER OF A MORTGAGE OR SECURITY INTER-
 EST, OR JUDGMENT LIEN CREDITOR, WHOSE INTEREST  IS  PERFECTED  BEFORE  A
 LIEN NOTICE HAS BEEN FILED AS PROVIDED IN SECTION 23-2918 OF THIS PART.
 § 23-2917. ENVIRONMENTAL LIEN NOTICE; CONTENTS.
   A NOTICE OF ENVIRONMENTAL LIEN MUST STATE:
   1.  THAT  THE  LIENOR  IS  THE NEW YORK NATURAL GAS PRODUCTION CONTAM-
 INATION DAMAGE RECOVERY AND REMEDIATION FUND;
   2. THE NAME OF THE RECORD OWNER OF THE  REAL  PROPERTY  ON  WHICH  THE
 ENVIRONMENTAL LIEN HAS ATTACHED;
   3.  THE  REAL PROPERTY SUBJECT TO THE LIEN, WITH A DESCRIPTION THEREOF
 SUFFICIENT FOR IDENTIFICATION;
   4. THAT THE REAL PROPERTY DESCRIBED IN THE NOTICE IS THE PROPERTY UPON
 WHICH CONTAMINATION OCCURRED AND THAT CLEANUP AND DECONTAMINATION  COSTS
 AND  DAMAGE  COSTS  HAVE BEEN INCURRED BY THE LIENOR AS A RESULT OF SUCH
 CONTAMINATION;
   5. THAT THE OWNER IS POTENTIALLY  LIABLE  FOR  CLEANUP  AND  DECONTAM-
 INATION COSTS AND DAMAGE COSTS PURSUANT TO SECTION 23-2915 OF THIS PART;
 AND
   6. THAT AN ENVIRONMENTAL LIEN HAS ATTACHED TO THE DESCRIBED REAL PROP-
 ERTY.
 § 23-2918. FILING OF NOTICE OF ENVIRONMENTAL LIEN; FILING OF RELEASE.
   1. A NOTICE OF ENVIRONMENTAL LIEN SHALL BE FILED WITHIN SIX YEARS FROM
 THE  TIME  A  DISBURSEMENT IS MADE BY THE FUND FOR CLEANUP AND DECONTAM-
 INATION COSTS AND DAMAGE COSTS INCURRED  BY  THE  FUND  IN  THE  CLERK'S
 OFFICE OF THE COUNTY WHERE THE PROPERTY IS SITUATED. IF SUCH PROPERTY IS
 SITUATED IN TWO OR MORE COUNTIES, THE NOTICE OF ENVIRONMENTAL LIEN SHALL
 BE FILED IN THE OFFICE OF THE CLERK OF EACH OF SUCH COUNTIES. THE NOTICE
 OF  LIEN  SHALL  BE  INDEXED  BY THE COUNTY CLERK IN ACCORDANCE WITH THE
 PROVISIONS OF SECTION TEN OF THE LIEN LAW.
   2. A RELEASE OF AN ENVIRONMENTAL LIEN SHALL BE FILED  IN  THE  CLERK'S
 OFFICE  OF  EACH COUNTY WHERE THE NOTICE OF ENVIRONMENTAL LIEN WAS FILED
 AND SHALL BE INDEXED IN THE MANNER PRESCRIBED FOR INDEXING ENVIRONMENTAL
 LIENS.
 § 23-2919. ENFORCEMENT OF ENVIRONMENTAL LIEN.
   AN ENVIRONMENTAL LIEN MAY BE ENFORCED AGAINST THE  PROPERTY  SPECIFIED
 IN  THE  NOTICE  OF ENVIRONMENTAL LIEN, AND AN ENVIRONMENTAL LIEN MAY BE
 VACATED OR RELEASED, AS PRESCRIBED IN ARTICLE THREE  OF  THE  LIEN  LAW;
 PROVIDED,  HOWEVER,  THAT NOTHING IN THIS ARTICLE OR IN ARTICLE THREE OF
 THE LIEN LAW SHALL AFFECT THE RIGHT OF THE FUND TO BRING  AN  ACTION  TO
 RECOVER CLEANUP AND DECONTAMINATION COSTS AND DAMAGE COSTS UNDER SECTION
 23-2915, 23-2926, 23-2927 OR 23-2928 OF THIS PART.
 § 23-2920. AMOUNTS RECEIVED TO SATISFY LIEN.
   AMOUNTS  RECEIVED  BY  THE  ADMINISTRATOR TO SATISFY ALL OR PART OF AN
 ENVIRONMENTAL LIEN SHALL BE DEPOSITED IN THE STATE TREASURY AND CREDITED
 TO THE NATURAL GAS PRODUCTION DAMAGE RECOVERY AND REMEDIATION FUND.
 § 23-2921. CLAIMS AGAINST THE FUND.
   CLAIMS SHALL BE FILED WITH THE  ADMINISTRATOR  NOT  LATER  THAN  THREE
 YEARS  AFTER  THE  DATE  OF DISCOVERY OF DAMAGE NOR LATER THAN TEN YEARS
 AFTER THE DATE OF THE INCIDENT WHICH CAUSED THE DAMAGE. THE  ADMINISTRA-
 TOR  SHALL  PRESCRIBE  APPROPRIATE FORMS AND PROCEDURES FOR SUCH CLAIMS,
 WHICH SHALL INCLUDE A PROVISION REQUIRING THE CLAIMANT TO MAKE  A  SWORN
 VERIFICATION  OF  THE CLAIM TO THE BEST OF HIS KNOWLEDGE. ANY PERSON WHO
 KNOWINGLY GIVES OR CAUSES TO BE GIVEN ANY FALSE INFORMATION AS A PART OF

 A. 2972                            12
 
 ANY SUCH CLAIM SHALL, IN ADDITION TO ANY OTHER PENALTIES HEREIN OR ELSE-
 WHERE PRESCRIBED, BE GUILTY OF A MISDEMEANOR PUNISHABLE BY A FINE OF  UP
 TO  ONE THOUSAND DOLLARS OR UP TO ONE YEAR IMPRISONMENT. UPON RECEIPT OF
 ANY  CLAIM,  THE  ADMINISTRATOR  SHALL AS SOON AS PRACTICABLE INFORM ALL
 AFFECTED PARTIES OF THE CLAIM.
 § 23-2922. SETTLEMENTS.
   THE ADMINISTRATOR SHALL ATTEMPT TO PROMOTE AND  ARRANGE  A  SETTLEMENT
 BETWEEN  THE  CLAIMANT AND THE PERSON RESPONSIBLE FOR THE CONTAMINATION.
 IF THE SOURCE OF THE CONTAMINATION CAN BE DETERMINED  AND  LIABILITY  IS
 CONCEDED,  THE  CLAIMANT  AND  THE  ALLEGED  PERSON  RESPONSIBLE FOR THE
 CONTAMINATION MAY AGREE TO A SETTLEMENT WHICH SHALL BE FINAL AND BINDING
 UPON THE PARTIES AND WHICH WILL WAIVE ALL RECOURSE AGAINST THE FUND.
 § 23-2923. SETTLEMENTS WHEN SOURCE OF CONTAMINATION IS UNKNOWN.
   IF THE SOURCE OF THE CONTAMINATION IS UNKNOWN OR CANNOT BE DETERMINED,
 THE CLAIMANT AND THE ADMINISTRATOR SHALL ATTEMPT TO ARRANGE A SETTLEMENT
 OF ANY CLAIM AGAINST THE FUND. THE ADMINISTRATOR IS AUTHORIZED TO  ENTER
 AND  CERTIFY PAYMENT OF SUCH SETTLEMENT SUBJECT TO SUCH PROOF AND PROCE-
 DURES CONTAINED IN REGULATIONS PROMULGATED BY THE ADMINISTRATOR.
 § 23-2924. HEARINGS FOR PERSONS ON CLAIMS FILED WITH THE ADMINISTRATOR.
   1. THE ADMINISTRATOR SHALL GRANT A HEARING WHEN PERSONS ALLEGED TO  BE
 RESPONSIBLE  FOR  THE  CONTAMINATION  CONTEST  THE VALIDITY OR AMOUNT OF
 DAMAGE CLAIMS OR CLAIMS FOR CLEANUP AND DECONTAMINATION COSTS  PRESENTED
 BY  INJURED  PERSONS TO THE FUND FOR PAYMENT OR WHEN INJURED PERSONS WHO
 HAVE FILED A CLAIM AGAINST THE FUND CONTEST THE VALIDITY  OR  AMOUNT  OF
 THE SETTLEMENT PROPOSED BY THE ADMINISTRATOR.
   2. ONE HEARING MAY BE GRANTED TO HEAR AND DETERMINE ALL CLAIMS ARISING
 FROM OR RELATED TO A COMMON CONTAMINATION.
   3.  THE  BURDEN  OF  PROOF  WITH  RESPECT TO THE VALIDITY OR AMOUNT OF
 DAMAGE CLAIMS OR CLAIMS FOR CLEANUP AND DECONTAMINATION COSTS  SHALL  BE
 UPON  THE PERSONS CONTESTING SUCH CLAIMS OR THE CLAIMANTS CONTESTING THE
 SETTLEMENT PROPOSED BY THE ADMINISTRATOR.
   4. AT LEAST TWENTY DAYS NOTICE OF SUCH HEARING SHALL BE GIVEN  BY  THE
 ADMINISTRATOR TO THE CLAIMANTS AND, IF KNOWN, THE ALLEGED PERSON RESPON-
 SIBLE FOR THE CONTAMINATION.
   5.  UPON  THE  RETURN  DAY OF SUCH NOTICE THE PERSON SO NOTIFIED SHALL
 FILE WITH THE ADMINISTRATOR A STATEMENT SETTING FORTH  THE  POSITION  OF
 THE  PERSON  SO  NOTIFIED. PERTINENT AND RELEVANT TESTIMONY OF WITNESSES
 SHALL BE RECEIVED IN SUPPORT OF OR OPPOSITION  TO  SUCH  STATEMENT.  THE
 CLAIMANTS  OR  ALLEGED  PERSONS  RESPONSIBLE  FOR  THE CONTAMINATION MAY
 APPEAR IN PERSON OR BY ATTORNEY, PRESENT WITNESSES, SUBMIT EVIDENCE  AND
 BE GIVEN FULL OPPORTUNITY TO BE HEARD.
   6.  THE  ADMINISTRATOR  SHALL  HAVE THE POWER TO ORDER TESTIMONY UNDER
 OATH AND MAY SUBPOENA ATTENDANCE AND  TESTIMONY  OF  WITNESSES  AND  THE
 PRODUCTION  OF  SUCH  DOCUMENTARY  MATERIALS  PERTINENT  TO  THE  ISSUES
 PRESENTED AT THE HEARING. EACH PERSON APPEARING AT THE  HEARING  MAY  BE
 REPRESENTED BY COUNSEL.
   7. WITHIN SIXTY CALENDAR DAYS FROM THE CLOSE OF SUCH HEARING AND AFTER
 DUE  CONSIDERATION  OF THE WRITTEN AND ORAL STATEMENTS AND TESTIMONY AND
 ARGUMENTS FILED PURSUANT TO THIS SECTION, OR ON DEFAULT IN APPEARANCE ON
 SAID RETURN DAY, THE ADMINISTRATOR SHALL MAKE HIS FINAL DETERMINATION ON
 THE VALIDITY OR AMOUNT OF THE DAMAGE CLAIMS OR CLAIMS  FOR  CLEANUP  AND
 DECONTAMINATION  COSTS  FILED  BY THE INJURED PERSONS. THE ADMINISTRATOR
 SHALL NOTIFY THE CLAIMANT AND, IF KNOWN, THE ALLEGED PERSON  RESPONSIBLE
 FOR  THE CONTAMINATION THEREOF IN WRITING BY REGISTERED MAIL.
   8.  DETERMINATIONS  MADE BY THE ADMINISTRATOR AFTER SUCH HEARING SHALL
 BE FINAL AND CONCLUSIVE. ANY ACTION FOR JUDICIAL REVIEW SHALL  BE  FILED

 A. 2972                            13
 
 PURSUANT  TO  THE PROVISIONS OF ARTICLE SEVENTY-EIGHT OF THE CIVIL PRAC-
 TICE LAW AND RULES.
   9.  UPON  A  DETERMINATION  BY  THE ADMINISTRATOR THAT PROVIDES FOR AN
 AWARD TO THE CLAIMANTS, THE ADMINISTRATOR SHALL CERTIFY  THE  AMOUNT  OF
 THE  AWARD  AND  THE  NAME OF THE CLAIMANT TO THE STATE COMPTROLLER, WHO
 SHALL PAY THE AWARD FROM THE FUND. IN ANY CASE IN WHICH A PERSON RESPON-
 SIBLE FOR THE CONTAMINATION SEEKS JUDICIAL REVIEW, REASONABLE ATTORNEY'S
 FEES AND COSTS SHALL BE AWARDED TO THE CLAIMANT IF THE DETERMINATION  OF
 THE ADMINISTRATOR IS AFFIRMED.
 § 23-2925. SUBROGATION OF RIGHTS.
   PAYMENT  OF  ANY  CLEANUP  COSTS OR DAMAGES BY THE FUND ARISING FROM A
 SINGLE INCIDENT SHALL BE CONDITIONED UPON THE ADMINISTRATOR ACQUIRING BY
 SUBROGATION ALL RIGHTS OF THE CLAIMANT TO  RECOVERY  OF  SUCH  COSTS  OR
 DAMAGES  FROM  THE  PERSON  RESPONSIBLE  FOR  THE CONTAMINATION OR OTHER
 RESPONSIBLE PARTY. THE ADMINISTRATOR SHALL THEN SEEK  SATISFACTION  FROM
 THE  PERSON RESPONSIBLE FOR THE CONTAMINATION OR OTHER RESPONSIBLE PARTY
 IN THE SUPREME COURT IF THE PERSON RESPONSIBLE FOR THE CONTAMINATION  OR
 OTHER  RESPONSIBLE  PARTY DOES NOT REIMBURSE THE FUND. IN ANY SUCH SUIT,
 EXCEPT AS PROVIDED BY SECTION 23-2915 OF THIS  PART,  THE  ADMINISTRATOR
 NEED  PROVE  ONLY  THAT AN UNLAWFUL CONTAMINATION OCCURRED WHICH WAS THE
 RESPONSIBILITY OF THE PERSON RESPONSIBLE FOR THE CONTAMINATION OR  OTHER
 RESPONSIBLE PARTY.  THE ADMINISTRATOR IS HEREBY AUTHORIZED AND EMPOWERED
 TO  COMPROMISE  AND  SETTLE THE AMOUNT SOUGHT FOR COSTS AND DAMAGES FROM
 THE PERSON RESPONSIBLE FOR THE CONTAMINATION OR OTHER RESPONSIBLE  PARTY
 AND ANY PENALTY ARISING UNDER THIS TITLE.
 § 23-2926. AWARDS EXCEEDING CURRENT BALANCE.
   IN  THE  EVENT  THAT THE TOTAL AWARDS FOR A SPECIFIC OCCURRENCE EXCEED
 THE CURRENT BALANCE OF THE FUND, THE IMMEDIATE AWARD SHALL BE PAID ON  A
 PRORATED BASIS, AND ALL CLAIMANTS PAID ON A PRORATED BASIS SHALL BE PAID
 AS  DETERMINED  BY  THE  ADMINISTRATOR,  A  PRO RATA SHARE OF ALL MONEYS
 RECEIVED BY THE FUND UNTIL THE TOTAL AMOUNT OF  THE  PROVEN  DAMAGES  IS
 PAID  TO  THE  CLAIMANT OR CLAIMANTS. THE ADMINISTRATOR MAY ALSO PROVIDE
 THROUGH REGULATION TO FIX THE PRIORITY FOR THE PAYMENT OF  CLAIMS  BASED
 ON EXTREME HARDSHIP.
 § 23-2927. CLAIMS AGAINST INSURERS.
   ANY  CLAIMS  FOR COSTS OF CLEANUP AND DECONTAMINATION, CIVIL PENALTIES
 OR DAMAGES BY THE STATE AND ANY CLAIM FOR DAMAGES BY ANY INJURED PERSON,
 MAY BE BROUGHT DIRECTLY AGAINST THE BOND,  THE  INSURER,  OR  ANY  OTHER
 PERSON PROVIDING EVIDENCE OF FINANCIAL RESPONSIBILITY.
 § 23-2928. APPLICATION OF TITLE.
   FOR  PURPOSES  OF CLEANUP AND DECONTAMINATION OF ANY PUBLIC OR PRIVATE
 GROUND WATER SUPPLY SYSTEM CONTAMINATED BY ANY  CONTAMINATION  OCCURRING
 EITHER  BEFORE  OR  AFTER THE EFFECTIVE DATE OF THIS TITLE, ALL RELEVANT
 PROVISIONS OF THIS TITLE SHALL APPLY.
                                  PART 4
                               MISCELLANEOUS
 SECTION 23-2931. JOINT RULES AND REGULATIONS.
         23-2932. ENFORCEMENT OF TITLE; PENALTIES.
         23-2933. AVAILABILITY OF ADDITIONAL REMEDIES.
         23-2934. CONSTRUCTION.
         23-2935. REPORTS.
         23-2936. EFFECT OF FEDERAL LEGISLATION.
 § 23-2931. JOINT RULES AND REGULATIONS.
   THE COMMISSIONER AND THE STATE COMPTROLLER ARE  AUTHORIZED  TO  ADOPT,
 AMEND,  REPEAL,  AND  ENFORCE SUCH RULES AND REGULATIONS PURSUANT TO THE

 A. 2972                            14
 
 STATE ADMINISTRATIVE PROCEDURE ACT, AS THEY MAY DEEM NECESSARY TO ACCOM-
 PLISH THE PURPOSES OF THIS TITLE.
 § 23-2932. ENFORCEMENT OF TITLE; PENALTIES.
   ANY  PERSON WHO KNOWINGLY GIVES OR CAUSES TO BE GIVEN ANY FALSE INFOR-
 MATION AS A PART OF, OR IN RESPONSE TO, ANY CLAIM MADE PURSUANT TO  THIS
 TITLE  FOR CLEANUP AND DECONTAMINATION COSTS, DIRECT OR INDIRECT DAMAGES
 RESULTING FROM CONTAMINATION, OR  WHO  OTHERWISE  VIOLATES  ANY  OF  THE
 PROVISIONS OF THIS TITLE OR ANY RULE PROMULGATED THEREUNDER OR WHO FAILS
 TO  COMPLY  WITH  ANY  DUTY  CREATED  BY THIS TITLE SHALL BE LIABLE TO A
 PENALTY OF NOT MORE THAN TWENTY-FIVE THOUSAND DOLLARS FOR  EACH  OFFENSE
 IN  A COURT OF COMPETENT JURISDICTION. IF THE VIOLATION IS OF A CONTINU-
 ING NATURE EACH DAY DURING WHICH IT CONTINUES SHALL CONSTITUTE AN  ADDI-
 TIONAL, SEPARATE AND DISTINCT OFFENSE.
 § 23-2933. AVAILABILITY OF ADDITIONAL REMEDIES.
   NOTHING  IN  THIS TITLE SHALL BE DEEMED TO PRECLUDE THE PURSUIT OF ANY
 OTHER CIVIL OR INJUNCTIVE REMEDY BY ANY PERSON. THE REMEDIES PROVIDED IN
 THIS TITLE ARE IN ADDITION TO THOSE PROVIDED BY  EXISTING  STATUTORY  OR
 COMMON  LAW,  BUT  NO  PERSON  WHO  RECEIVES COMPENSATION FOR DAMAGES OR
 CLEANUP AND DECONTAMINATION COSTS PURSUANT TO ANY OTHER STATE OR FEDERAL
 LAW SHALL BE PERMITTED TO RECEIVE COMPENSATION FOR THE SAME  DAMAGES  OR
 CLEANUP AND DECONTAMINATION COSTS UNDER THIS TITLE.
 § 23-2934. CONSTRUCTION.
   THIS TITLE, BEING NECESSARY FOR THE GENERAL HEALTH, SAFETY AND WELFARE
 OF  THE PEOPLE OF THIS STATE, SHALL BE LIBERALLY CONSTRUED TO AFFECT ITS
 PURPOSES.
 § 23-2935. REPORTS.
   THE COMMISSIONER AND THE ADMINISTRATOR SHALL MAKE AN ANNUAL REPORT  TO
 THE  LEGISLATURE  AND THE GOVERNOR WHICH SHALL DESCRIBE THE QUANTITY AND
 DEGREE OF CONTAMINATION CAUSED BY NATURAL GAS PRODUCTION, THE COSTS  AND
 DAMAGES  PAID  BY AND RECOVERED FOR THE FUND, AND THE ECONOMIC AND ENVI-
 RONMENTAL IMPACT ON THE STATE AS A RESULT OF THE ADMINISTRATION OF  THIS
 TITLE.
 § 23-2936. EFFECT OF FEDERAL LEGISLATION.
   IF  THE  UNITED  STATES  CONGRESS ENACTS LEGISLATION PROVIDING COMPEN-
 SATION IN THE EVENT OF CONTAMINATION CAUSED BY NATURAL  GAS  PRODUCTION,
 THE  COMMISSIONER  SHALL  DETERMINE  TO  WHAT  DEGREE  SUCH  LEGISLATION
 PROVIDES THE NEEDED PROTECTION FOR OUR CITIZENS, BUSINESSES AND ENVIRON-
 MENT AND SHALL MAKE THE APPROPRIATE RECOMMENDATIONS TO  THE  LEGISLATURE
 FOR AMENDMENTS TO THIS TITLE.
   §  2. Section 23-1903 of the environmental conservation law is amended
 by adding a new subdivision 3 to read as follows:
   3. THE COMMISSIONER IS HEREBY  AUTHORIZED  TO  ESTABLISH  A  SURCHARGE
 PURSUANT  TO  REGULATION  ON THE PERMIT FEES ON GAS WELLS, AUTHORIZED BY
 SUBDIVISION ONE OF THIS SECTION, TO BE CREDITED TO THE NEW YORK  NATURAL
 GAS PRODUCTION CONTAMINATION DAMAGE RECOVERY AND REMEDIATION FUND ESTAB-
 LISHED  IN  SECTION NINETY-TWO-T OF THE STATE FINANCE LAW. THE SURCHARGE
 SHALL BE ESTABLISHED TO PROVIDE SUFFICIENT FUNDS TO MEET THE OBLIGATIONS
 OF THE FUND.
   § 3. The state finance law is amended by adding a new section 92-t  to
 read as follows:
   §  92-T. NEW YORK NATURAL GAS PRODUCTION CONTAMINATION DAMAGE RECOVERY
 AND REMEDIATION FUND.   1. THERE IS  HEREBY  ESTABLISHED  IN  THE  JOINT
 CUSTODY  OF  THE  STATE COMPTROLLER AND THE COMMISSIONER OF TAXATION AND
 FINANCE A SPECIAL FUND TO BE KNOWN AS THE  "THE  NEW  YORK  NATURAL  GAS
 PRODUCTION CONTAMINATION DAMAGE RECOVERY AND REMEDIATION FUND".

 A. 2972                            15
 
   2.  THE  FUND SHALL CONSIST OF REVENUES COLLECTED BY THE DEPARTMENT OF
 ENVIRONMENTAL CONSERVATION PURSUANT  TO  SUBDIVISION  THREE  OF  SECTION
 23-1903,  SECTION  23-2915,  SECTION 23-2920, AND SECTION 23-2932 OF THE
 ENVIRONMENTAL CONSERVATION LAW AND ALL OTHER MONEYS APPROPRIATED,  CRED-
 ITED  OR  TRANSFERRED  THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO
 LAW.
   3. MONEYS IN THE FUND SHALL BE KEPT SEPARATE AND NOT  COMMINGLED  WITH
 ANY  OTHER  MONEYS  IN  THE  CUSTODY OF THE COMMISSIONER OF TAXATION AND
 FINANCE AND THE STATE COMPTROLLER.
   4. MONEYS OF THE FUND, FOLLOWING APPROPRIATION BY THE LEGISLATURE, MAY
 BE EXPENDED FOR THE FOLLOWING PURPOSES:
   (A) DAMAGES AS DEFINED IN SECTION 23-2915 OF THE ENVIRONMENTAL CONSER-
 VATION LAW;
   (B) RESEARCH ON THE PREVENTION AND THE EFFECTS OF  CONTAMINATION  FROM
 NATURAL  GAS  PRODUCTION  ON  THE  ENVIRONMENT AND ON THE DEVELOPMENT OF
 IMPROVED CLEANUP AND DECONTAMINATION OPERATIONS; PROVIDED, HOWEVER, THAT
 THE COST OF SUCH RESEARCH SHALL NOT EXCEED THE AMOUNT OF INTEREST  WHICH
 IS CREDITED TO THIS FUND;
   (C)  GENERAL ADMINISTRATION OF THE FUND, EQUIPMENT AND PERSONNEL COSTS
 OF THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION, THE  STATE  COMPTROLLER
 AND  ANY  OTHER STATE AGENCY RELATED TO THE ENFORCEMENT OF TITLE TWENTY-
 NINE OF ARTICLE TWENTY-THREE OF THE ENVIRONMENTAL CONSERVATION LAW;
   (D) RESEARCH AND DEMONSTRATION  PROGRAMS  CONCERNING  THE  CAUSES  AND
 ABATEMENT OF CONTAMINATION FROM NATURAL GAS PRODUCTION; PROVIDED, HOWEV-
 ER,  THAT THE COST OF SUCH RESEARCH AND DEMONSTRATION PROGRAMS SHALL NOT
 EXCEED THE AMOUNT OF INTEREST WHICH IS CREDITED TO THIS FUND.
   5. THE COMPTROLLER MAY INVEST AND REINVEST ANY MONEYS IN SUCH FUND  IN
 OBLIGATIONS IN WHICH THE COMPTROLLER IS AUTHORIZED TO INVEST PURSUANT TO
 THE  PROVISIONS OF SECTION NINETY-EIGHT-A OF THIS ARTICLE. ANY INCOME OR
 INTEREST DERIVED FROM SUCH INVESTMENT SHALL BE INCLUDED IN THE FUND.
   6. MONEYS, SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT  OF
 THE  COMPTROLLER  ON  VOUCHERS APPROVED AND CERTIFIED BY THE COMPTROLLER
 AND THE COMMISSIONER OF ENVIRONMENTAL CONSERVATION.
   7. THE ADMINISTRATOR OF THE FUND, AS ESTABLISHED IN SECTION 23-2914 OF
 THE ENVIRONMENTAL CONSERVATION LAW, SHALL RECOVER  TO  THE  FUND  MONEYS
 DISBURSED FOR THE FOLLOWING PURPOSES:
   A.  COSTS  INCURRED  BY THE FUND IN THE CLEANUP AND DECONTAMINATION OF
 CONTAMINATION WHEN THE PERSON RESPONSIBLE FOR  CAUSING  A  CONTAMINATION
 HAS  FAILED  TO  PROMPTLY  CLEAN  UP AND REMOVE THE CONTAMINATION TO THE
 SATISFACTION OF THE DEPARTMENT OF ENVIRONMENTAL CONSERVATION;
   B. COSTS INCURRED BY THE FUND IN THE PAYMENT OF CLAIMS FOR DIRECT  AND
 INDIRECT  DAMAGES,  AS  DEFINED  IN SECTION 23-2915 OF THE ENVIRONMENTAL
 CONSERVATION LAW; AND
   C. ALL PENALTIES ASSESSED PURSUANT TO  TITLE  TWENTY-NINE  OF  ARTICLE
 TWENTY-THREE OF THE ENVIRONMENTAL CONSERVATION LAW.
   § 4. Severability. If any clause, sentence, paragraph, section or part
 of  this act shall be adjudged by any court of competent jurisdiction to
 be invalid, the judgment shall not affect,  impair,  or  invalidate  the
 remainder thereof, but shall be confined in its operation to the clause,
 sentence,  paragraph,  section  or part thereof directly involved in the
 controversy in which the judgment shall have been rendered.
   § 5. This act shall take effect on the one hundred twentieth day after
 it shall have become a law; provided, however, that effective immediate-
 ly, the addition, amendment and/or repeal  of  any  rule  or  regulation
 necessary  for  the  implementation of this act on its effective date is
 authorized to be made and completed on or before such date.