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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2914
SPONSOR: Lupardo (MS) 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 OR GENERAL IDEA OF BILL: The purpose of this legislation is
to establish a task force on indigenous natural gas and the potential
value-added benefit to New York State.
SUMMARY OF SPECIFIC 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
district to the benefit of Chautauqua County.
The Marcellus Shale lies 300 to 600 feet below the Allegheny Plateau
Region of North America and cover 54,000 square miles, running through
Ohio, West Virginia, across Pennsylvania and into New York's Southern
Tier. In 20002, 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 commod-
ity, 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 be utilizing this gas in value-added activities can New York
State obtain the real value of this unique commodity.
PRIOR LEGISLATIVE HISTORY: A10234A of 2009-10ation.
FISCAL IMPLICATIONS: This legislation does allow for task force
members to receive travel expenses, however, the expense would be mini-
mal. 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
________________________________________________________________________
2914
2011-2012 Regular Sessions
IN ASSEMBLY
January 21, 2011
___________
Introduced by M. of A. LUPARDO, CROUCH, GIGLIO -- read once and referred
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:
1 Section 1. Legislative findings. The legislature hereby finds and
2 declares that within New York state lies the Marcellus shale which is a
3 black shale formation extending deep underground from Ohio and West
4 Virginia northeast into Pennsylvania and southern New York. According to
5 the New York state department of environmental conservation some geolo-
6 gists estimate that the entire Marcellus shale formation contains
7 between 168 trillion to 516 trillion cubic feet of natural gas through-
8 out its entire extent. It is not yet known how much gas will be commer-
9 cially recoverable from the Marcellus shale in New York state. New York
10 state currently uses 1.1 trillion cubic feet of natural gas a year. In
11 order for New York state to derive the full value of this commodity
12 located in the state, we need to utilize the gas in New York state for
13 manufacturing and other value added activities.
14 § 2. Article 19 of the environmental conservation law is amended by
15 adding a new title 13 to read as follows:
16 TITLE 13
17 NEW YORK STATE INDIGENOUS NATURAL GAS VALUE ADDED TASK FORCE
18 Section 19-1301. New York state indigenous natural gas value added task
19 force.
20 19-1303. Task force composition.
21 19-1305. Powers and duties of the task force.
22 § 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
A. 2914 2
1 1. The New York state indigenous natural gas value added task force is
2 hereby established.
3 The role of the task force shall include, but not be limited to,
4 conducting an in-depth examination of issues related to the value added
5 opportunities for indigenous natural gas in New York state.
6 § 19-1303. Task force composition.
7 1. The task force shall consist of a total of nine members and shall
8 include the commissioner, the commissioner of economic development, the
9 president of the New York state energy research and development authori-
10 ty, the chair of the public service commission, the executive director
11 of the foundation for science, technology and innovation, and one member
12 each appointed by the temporary president of the senate, the speaker of
13 the assembly, the minority leader of the senate, and the minority leader
14 of the assembly.
15 2. The commissioner or his or her designated representative shall
16 serve as chairperson of the task force.
17 3. For the purposes of this section, non-governmental appointees shall
18 be considered officers or employees of public entities and shall be
19 afforded such defense and indemnification provided under the public
20 officers law.
21 4. The members of the task force shall receive no compensation for
22 their services, but shall be allowed their actual and necessary expenses
23 incurred in the performance of their duties.
24 5. No appointed member of the task force shall be an elected or
25 appointed public officer.
26 § 19-1305. Powers and duties of the task force.
27 1. The task force shall meet quarterly, or at the call of the chair-
28 person.
29 2. In recognition of the importance of the value added potential of
30 the Marcellus shale natural gas, the task force may consult with any
31 organization, educational institution, other government entity or agency
32 or person in the development of its recommendations.
33 3. The department shall provide the task force with such facilities,
34 assistance and data as will enable the task force to carry out its
35 powers and duties. Additionally, all other agencies of the state or
36 subdivisions thereof may, at the request of the chairperson, provide the
37 task force with such facilities, assistance, and data to enable the task
38 force to carry out its powers and duties.
39 4. Within twelve months of the effective date of this title, the task
40 force shall issue a draft report on the value added opportunities of the
41 Marcellus shale natural gas.
42 Copies of the report shall also be made available to the public and
43 posted on the department's website and notice of the availability of
44 such plan shall be published in the environmental notice bulletin.
45 § 3. This act shall take effect on the ninetieth day after it shall
46 have become a law and shall expire and be deemed repealed five years
47 after such effective date.
