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.
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 the 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 formation held 30.7 trillion cubic feet (tcf) 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.
STATE OF NEW YORK ________________________________________________________________________ 4793 2011-2012 Regular Sessions IN SENATE April 25, 2011 ___________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 the expiration 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. LBD07314-01-1 S. 4793 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.