Marcellus Shale Moratorium in New York, But Only Until May

Posted on November 30, 2010 by David Mandelbaum

 

 On November 29, the New York Assembly passed A1143B/S08129B which had previously passed the Senate.  Governor Paterson is reported to be prepared to sign the bill, although the New York Times blog reports that industry groups are still pushing for a veto.  The bill, if signed, would impose a moratorium on new permits for natural gas wells that use hydraulic fracturing until May 15, 2011. 

 
Reports are that New York is allied with Pennsylvania in trying to break the logjam on natural gas well regulations at the Delaware River Basin Commission.  That suggests some division in the New York approach.  Some believe that the moratorium until May 15 is just political posturing because it will not really mean much.  Note that no permits can be granted in New York until NYSDEC finalizes its Revised Generic Environmental Impact Statement.   With a gubernatorial transition upcoming, May is not likely to be much further out than the GEIS, so this action may be more cosmetic than important.
 
The text of the bill follows.
 

       AN ACT to suspend hydraulic fracturing; and providing for the repeal  of
         such provisions upon the expiration thereof

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

    1    Section 1. There is hereby established a suspension of the issuance of
    2  new permits for the drilling of a well which utilizes  the  practice  of
    3  hydraulic  fracturing  for the purpose of stimulating natural gas or oil
    4  in low permeability natural gas reservoirs, such as  the  Marcellus  and
    5  Utica shale formations.
    6    The  purpose  of  such suspension shall be to afford the state and its
    7  residents the opportunity to continue the review  and  analysis  of  the
    8  effects  of hydraulic fracturing on water and air quality, environmental
    9  safety and public health.
   10    For the purposes of this section, "hydraulic  fracturing"  shall  mean
   11  the  fracturing  of rock by fluid for the purpose of stimulating natural
   12  gas or oil for any purpose.
   13    This section shall not apply to permits issued prior to the  effective
   14  date  of this act which utilize hydraulic fracturing that are subject to
   15  renewal.
   16    S 2. This act shall take effect immediately, and shall expire  and  be
   17  deemed repealed on May 15, 2011.


 

 
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The Moratorium Mantra Reaches Texas.

Posted on June 30, 2010 by LexBlog

Thanks to K.B. Battaglini of GT Houston for this post.

What with Interior Secretary Ken Salazar seeking to re-impose an unpopular moratorium on deep water drilling, and with New York and Pennsylvania experimenting with various moratoria to quell drilling in the Marcellus Shale, Texas State Representative Lon Burnam (Democrat, Fort Worth) has gotten into the act by calling for a moratorium on new natural gas drilling in the Barnett Shale due to allegedly high benzene levels from existing gas production. Burnam, a minority member of the Texas House Committee on Environmental Regulation, asserts in an editorial in the Fort Worth Star Telegram that "fugitive emissions" of benzene at compressor stations exceed the exposure limits recommended by the Agency for Toxic Substances and Disease Registry. However, the exposure cited by Burnam does not result from drilling but from compression, and Burnam does not address how a drilling moratorium is intended to address the compression issue.

Bryan Shaw, Chairman of the Texas Commission on Environmental Quality, who holds a Ph.D. in agricultural engineering and is an associate professor in the Biological and Agricultural Engineering Department at Texas A&M University, says the benzene levels pose no immediate health risk, because health problems would arise only after exposure for 24 hours a day for 70 years.

Burnam's proposed moratorium is an outgrowth of election-year politics in Texas, as the race for Governor pits incumbent Rick Perry (a Republican and proponent of drilling in the Barnett Shale) against Bill White (a Democrat and proponent of tough action against individual producers who violate pollution control standards).

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