S03410 Summary:

BILL NOS03410
 
SAME ASNo same as
 
SPONSORYOUNG
 
COSPNSR
 
MLTSPNSR
 
Add S23-0315, En Con L
 
Establishes a natural gas and oil well security fund to enable natural gas and oil producers to meet the financial security requirements in the environmental conservation law for the permitting, operation, maintenance and plugging of natural gas and oil wells.
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S03410 Actions:

BILL NOS03410
 
03/18/2009REFERRED TO ENVIRONMENTAL CONSERVATION
01/06/2010REFERRED TO ENVIRONMENTAL CONSERVATION
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S03410 Floor Votes:

There are no votes for this bill in this legislative session.
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S03410 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3410
 
                               2009-2010 Regular Sessions
 
                    IN SENATE
 
                                     March 18, 2009
                                       ___________
 
        Introduced  by  Sen.  YOUNG  -- 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  a fund for the natural gas and oil producing industry to
          make financial security affordable for natural gas and  oil  producers

          who own, operate, maintain and plug natural gas and oil wells
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The environmental conservation law is amended by  adding  a
     2  new section 23-0315 to read as follows:
     3  § 23-0315. Financial security fund.
     4    1.  Notwithstanding  any  other  provision of law, the commissioner of
     5  taxation and finance and comptroller are hereby directed and  authorized
     6  to  establish  a  natural  gas  and  oil well security fund (hereinafter
     7  referred to in this section as the "fund") to  enable  eligible  natural
     8  gas  and  oil  producers  to meet the financial security requirements of
     9  this chapter for the permitting, operation, maintenance and plugging  of

    10  natural gas and oil wells. The fund shall be administered by the commis-
    11  sioner in accordance with the provisions of this section. In lieu of the
    12  financial  security requirements established by the commissioner or this
    13  chapter, a natural gas or oil producer may satisfy the financial securi-
    14  ty requirements for natural gas or oil well plugging and abandonment  by
    15  participation in the natural gas and oil well security fund.
    16    2.  (a) A natural gas producer who is the owner and/or operator of any
    17  natural gas well drilled to a completion depth of no more than six thou-
    18  sand feet that has been registered with and permitted by the  department
    19  shall be eligible to participate in the fund.

    20    (b)  An  oil producer who is the owner and/or operator of any oil well
    21  drilled to a completion depth of no more than six thousand feet that has
    22  been registered with and permitted by the department shall  be  eligible
    23  to participate in the fund.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07186-01-9

        S. 3410                             2
 
     1    (c)  The  rate  of payment into the fund shall be ten dollars per well
     2  per year.
     3    (d)  The  commissioner  shall deposit all monies received from natural
     4  gas and oil producers for this fund and all funds so received and depos-

     5  ited in such fund shall not be deemed to be  state  funds.    The  comp-
     6  troller  shall  be  empowered  to  invest such funds pursuant to section
     7  ninety-eight-a of the state finance law consistent with the purposes  of
     8  this  section.  The  commissioner is hereby authorized to draw upon such
     9  funds, in his or her discretion, to purchase credit  insurance  for  the
    10  benefit of the fund. The commissioner shall make an annual report of the
    11  receipts  to  and  disbursements  from  the  fund, including the cost of
    12  administration of the fund, which report shall be made available to each
    13  eligible natural gas and oil producer and to any other person having  an
    14  interest  in  the  fund. A copy of such report shall be forwarded to the

    15  director of the division of the budget, the chairperson  of  the  senate
    16  finance  committee  and  the  chairperson of the assembly ways and means
    17  committee.
    18    (e) When the fund has  accumulated  fifty  thousand  dollars  or  such
    19  greater  or lesser amount which shall be sufficient to cover the cost of
    20  plugging up to five wells per year, calculated upon  the  basis  of  the
    21  average  cost of plugging wells typically covered by the fund during the
    22  preceding calendar year, as the commissioner may determine is sufficient
    23  to protect the plugging requirements  of  producers,  he  or  she  shall
    24  administer the fund in the manner prescribed in this section.
    25    (f)  If a natural gas or oil producer participating in the fund elects

    26  to terminate his or her participation therein,  he  or  she  shall  give
    27  notice in writing to the commissioner six months prior to the withdrawal
    28  and  he  or  she  shall file a surety bond or other security ninety days
    29  before the withdrawal date. Upon being satisfied that the natural gas or
    30  oil producer is not in default in any plugging or gas or oil well permit
    31  requirements, the commissioner shall authorize the comptroller to pay to
    32  such producer his or her pro rata share within thirty days.
    33    (g) Any natural gas or oil producer who first elects to participate in
    34  the fund shall make an initial payment  to  the  fund  of  five  hundred
    35  dollars.  Upon  the  payment  of  the  initial deposit into the fund, as

    36  required herein, a producer electing to  participate  in  the  fund  may
    37  apply  to  the commissioner for termination or adjustment of an existing
    38  bond or existing alternative security requirement filed with the commis-
    39  sioner.
    40    3. The commissioner, after notice and public hearing, is authorized to
    41  adopt, amend, repeal and enforce such rules  and  regulations  that  the
    42  commissioner  deems  necessary to carry out the provisions and intent of
    43  this fund.
    44    § 2. This act shall take effect immediately.
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