BILL NUMBER:S3432

TITLE  OF BILL:   An act to amend the environmental conservation law, in
relation to the prohibition of the on-site storage of flowback water

PURPOSE OR GENERAL IDEA OF BILL:  The purpose of this bill is to provide
greater oversight of natural gas drilling.

SUMMARY OF SPECIFIC PROVISIONS: This bill would:

* prohibit the use of on-site reserve pits for flowback waters;

* require flowback waters to be contained within steel tanks;

* require the removal of flowback waters within seven days of a halt  in
drilling operations; and,

*  require the immediate removal of flowback waters if the site is to be
left unattended or if operations are suspended.

EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER:  Amends § 23-0305(8)
of the ECL to add a new paragraph K.

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 attrac-
tive.

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

The  use  of  on-site reserve pits for flowback waters poses a potential
hazard to humans and wildlife. The use of steel tanks will minimize such
hazard and also decrease the risk of accidental  releases  In  addition,
the  presence  storage  limitations will ensure that flowback waters are
not stockpiled on site for unlimited periods of time.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:  None.

EFFECTIVE DATE:  This Act shall take effect 90 days after enactment.