Authorizes counties to lease county land for natural gas exploration, development and production for five years or as long as gas is produced in paying quantities.

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S974-2013 Actions

• May 1, 2013: COMMITTEE DISCHARGED AND COMMITTED TO ENVIRONMENTAL CONSERVATION
• Jan 9, 2013: REFERRED TO LOCAL GOVERNMENT

S974-2013 Memo

BILL NUMBER:S974

TITLE OF BILL:
An act
to amend the county law, in relation to leases for the exploration and
drilling for and extraction of natural gas and liquefied natural gas

PURPOSE:
The purpose of this bill is to allow non-charter counties to enter
into leases for a period exceeding 5 years in order to put them in
the same position as charter counties.

SUMMARY OF PROVISIONS:

� 1 proposes to amend County Law �215 by adding a new subdivision to
allow a board of supervisors or other county legislative body to
lease, upon such terms and conditions the board or body shall
determine, county land for the purposes of exploration, development
and production of natural gas and liquefied natural gas, for not more
than five years and, if gas is produced the lease shall continue
until the production is no longer being produced in paying quantities.

�2 Sets the effective date of the act as immediately.

JUSTIFICATION:
Currently, �215 of County Law restricts the lease term counties may
enter into to a period not to exceed five years. At the same time
2(b) of County Law allows charter counties to adopt Local Law, by
amending their charter to allow the County to enter into a lease term
they see fit. This legislation aims to give non-charter counties and
charter counties the same opportunities when drilling for natural gas
in New York State.

Under the current system, the length of leases and rate in the natural
gas industry are determined by the market. Non-charter counties are
severely handicapped in their negotiations with natural gas companies
because of the five year limitation placed on them by � 215 of County
Law. As a result, counties fear that they will simply be integrated
under compulsory integration and lose control of county-owned lands.

The proposal to allow for a primary term not exceeding a five year
term for exploration and the commencement of drilling, which either
lapses if drilling fails to commence" or extends the lease until
drilling terminates is consistent with the practice employed by the
New York State Department of Environmental Conservation, when the
State of New York contracts with a private company to produce
natural gas.

LEGISLATIVE HISTORY:
2012: S.3137 - Referred to Environmental Conservation
2010: S.6325 - Referred to Local Government

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:


This act shall take effect immediately.

S974-2013 Text

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

                                     974

                         2013-2014 Regular Sessions

                              I N  SENATE

                                 (PREFILED)

                               January 9, 2013
                                 ___________

  Introduced  by  Sen.  LIBOUS -- read twice and ordered printed, and when
    printed to be committed to the Committee on Local Government

  AN ACT to amend the county law, in relation to leases for  the  explora-
    tion  and  drilling  for  and  extraction of natural gas and liquefied
    natural gas

    THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
  BLY, DO ENACT AS FOLLOWS:


    Section  1.  Section  215 of the county law is amended by adding a new
  subdivision 4-a to read as follows:

    4-A. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISIONS THREE AND FOUR  OF
  THIS  SECTION,  A  BOARD OF SUPERVISORS OR OTHER COUNTY LEGISLATIVE BODY
  MAY LEASE, UPON SUCH TERMS AND CONDITIONS AS THE  BOARD  OR  BODY  SHALL
  DETERMINE,  COUNTY LAND FOR THE PURPOSES OF THE EXPLORATION, DEVELOPMENT
  AND PRODUCTION OF NATURAL GAS AND LIQUEFIED NATURAL GAS, AS  SUCH  TERMS
  ARE  DEFINED  IN  SECTION 23-1705 OF THE ENVIRONMENTAL CONSERVATION LAW,
  FOR NOT MORE THAN FIVE YEARS AND, IF ANY SUCH GAS IS PRODUCED  UPON  THE
  COUNTY  LAND  PRIOR TO THE EXPIRATION OF SUCH FIVE YEAR LEASE, THE LEASE
  SHALL BE EXTENDED FOR AS LONG AS NATURAL GAS OR LIQUEFIED NATURAL GAS IS
  PRODUCED IN PAYING QUANTITIES.
    S 2. This act shall take effect immediately.




   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD05284-01-3