Prohibits inclusion of non-disclosure agreements in settlements of hydraulic fracturing actions when there is evidence of threat to public health or safety.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A10630
SPONSOR: Rules (Maisel) TITLE OF BILL: An act to amend the civil practice law and rules, in
relation to the settlement of causes of action relating to hydraulic
fracturing
PURPOSE OF THE BILL: To prohibit inclusion of non-disclosure agree-
ments in settlements of hydraulic fracturing actions when there is
evidence of threat to public health or safety.
SUMMARY OF PROVISIONS: The bill would prohibit the inclusion of any
non-disclosure agreement in a settlement relating to hydraulic fractur-
ing where the facts disclosed in the action relate to a public health or
safety threat. Further, the bill would prohibit the court from approving
or allowing a settlement of such action that includes a non-closure
agreement until the court has reviewed all facts in the case with regard
to a threat to public health or safety.
JUSTIFICATION:. Because of the nature of hydraulic fracturing, it is
likely that legal actions relating to this activity involve the impact
of toxic chemicals used in the process of fracturing as well as the
storage, transportation and disposal of such fluids. These chemicals may
have a significant impact on public health and safety during the actual
hydrofracturing activity (e.g. contamination of solid and groundwater),
transport of (racking fluids to the site and transport/disposal of waste
fluids. It is important that any information revealed in a legal action
that could threaten public health or safety be generally available to
the public, as it may be relevant to other actions relating to hydraulic
fracturing.
PRIOR LEGISLATIVE HISTORY: New bill.
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.
EFFECTIVE DATE: This act would take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
10630
IN ASSEMBLY
June 12, 2012
___________
Introduced by COMMITTEE ON RULES -- (at request of M. of A. Maisel) --
read once and referred to the Committee on Judiciary
AN ACT to amend the civil practice law and rules, in relation to the
settlement of causes of action relating to hydraulic fracturing
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The civil practice law and rules is amended by adding a new
2 section 5003-b to read as follows:
3 § 5003-b. Settlement of hydraulic fracturing claims. (a) For the
4 purposes of this section, "hydraulic fracturing" means the use of chemi-
5 cals, water and other substances injected or pumped into a natural gas
6 well to stimulate the extraction of natural gas.
7 (b) When the parties to an action, which in any manner relates to
8 hydraulic fracturing, agree to settle such action, the terms of such
9 settlement shall not include or be subject to any non-disclosure agree-
10 ment where any facts disclosed in such action relate to a threat to the
11 public health or safety. No court shall approve or allow any settlement
12 of such an action, which includes a non-disclosure agreement until the
13 court has reviewed all facts related to the hydraulic fracturing action
14 to determine whether there is any evidence of a threat to the public
15 health or safety.
16 § 2. This act shall take effect immediately and shall apply to settle-
17 ments of actions occurring on or after such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD14689-01-2
