S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3663
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 30, 2017
                                ___________
 
 Introduced by M. of A. GRAF, MONTESANO, RAIA, CURRAN, SALADINO, BLANKEN-
   BUSH,  LUPINACCI, MURRAY -- read once and referred to the Committee on
   Environmental Conservation
 
 AN ACT to amend the  environmental  conservation  law,  in  relation  to
   establishing  a  set-aside  for power generated through the process of
   hydraulic fracturing

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The environmental conservation law is amended by adding a
 new section 23-0505 to read as follows:
 § 23-0505. HYDRAULIC FRACTURING RESERVE.
   1. FOR PURPOSES OF THIS SECTION, "HYDRAULIC FRACTURING" MEANS A  PROC-
 ESS  USED  TO CREATE FRACTURES IN ROCK BY MAN-MADE FRACTURING TECHNIQUES
 FOR THE PURPOSES OF STIMULATING NATURAL GAS OR OIL WELL PRODUCTION.
   2. FOR ALL HYDRAULIC FRACTURING PERMITS ISSUED UNDER THIS  TITLE,  TEN
 PERCENT  OF NATURAL GAS OR WELL OIL PRODUCED AS THE RESULT OF SUCH PROC-
 ESS SHALL BE DIVERTED TO THE HYDRAULIC FRACTURING  RESERVE,  ESTABLISHED
 IN  SUBDIVISION  THREE  OF THIS SECTION. THE CONTRIBUTION OF GAS OR WELL
 OIL MANDATED BY THIS SECTION SHALL BE AT NO COST TO THE STATE AND  SHALL
 NOT  BE  REIMBURSED EXCEPT IN THE INCIDENTAL EXPENSES INCURRED IN TRANS-
 PORTATION OF SUCH GAS OR OIL IN ACCORDANCE WITH THIS SECTION.
   3. THE COMMISSIONER SHALL ESTABLISH A RESERVE  TO  RECEIVE  AND  STORE
 NATURAL  GAS  AND WELL OIL PRODUCED AS A RESULT OF HYDRAULIC FRACTURING.
 SUCH RESERVE SHALL BE FOR THE EXCLUSIVE USE OF THE VARIOUS POWER AUTHOR-
 ITIES OF THE STATE. THE COMMISSIONER, IN HIS  OR  HER  SOLE  DISCRETION,
 SHALL DISTRIBUTE THE CONTENTS OF SUCH RESERVE PROVIDED:
   A. THE NATURAL GAS OR WELL OIL DISTRIBUTED UNDER THIS SECTION SHALL BE
 USED EXCLUSIVELY BY POWER AUTHORITIES FOR THE PRODUCTION OF ELECTRICITY;
 AND
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD05658-01-7

              

 A. 3663                             2
 
   B.  THE  COMMISSIONER  SHALL IMPLEMENT RULES AND REGULATIONS REGARDING
 THE DISTRIBUTION OF THE RESERVE AND SHALL  DISTRIBUTE  THE  CONTENTS  OF
 SUCH IN A FAIR  AND EQUITABLE MANNER.
   4.  ALL CONTRACTS AND PERMITS ISSUED FOR THE EXTRACTION OF NATURAL GAS
 AND WELL OIL THROUGH THE PROCESS OF HYDRAULIC FRACTURING SHALL INCLUDE A
 CLAUSE THAT  EXPLICITLY  DETAILS  THE  OBLIGATION  OF  THE  PRODUCER  TO
 CONTRIBUTE  TEN PERCENT OF SUCH PRODUCTION AND EXTRACTION TO THE RESERVE
 AT NO COST TO THE STATE.
   5. THE ATTORNEY GENERAL SHALL BE RESPONSIBLE FOR  THE  ENFORCEMENT  OF
 THIS SECTION.
   § 2. This act shall take effect immediately.