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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S3472-2013 Actions

• Feb 4, 2013: REFERRED TO ENVIRONMENTAL CONSERVATION

S3472-2013 Memo

BILL NUMBER:S3472

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
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 forma-
tion held 30.7 trillion cubic feet (tot) 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.

S3472-2013 Text

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

                                    3472

                         2013-2014 Regular Sessions

                              I N  SENATE

                              February 4, 2013
                                 ___________

  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 expi-
    ration 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.
                                                             LBD08542-01-3

 S. 3472                             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.