N.Y Govenor vetoes Natural Gas billGOVERNOR PATERSON ISSUES EXECUTIVE ORDER ON HYDRAULIC FRACTURING
Governor Vetoes S.8129-B/A.11443-B
GovernorDavid A. Paterson has issued an Executive Order directing theDepartment of Environmental Conservation (DEC) to conduct furthercomprehensive review and analysis of high-volume hydraulic fracturing inthe Marcellus Shale. The Executive Order requires that, if approved,high-volume, horizontal hydraulic fracturing would not be permitteduntil July 1, 2011, at the earliest. This should allay any fears thathigh-volume hydraulic fracturing and horizontal drilling under study byDEC will commence without assurances of safety.
“We in governmentmust always focus on protecting the well-being of those whom werepresent and serve, but we also have an obligation to look to thefuture and protect the long-term interests for our State and itsresidents,” Governor Paterson said. “Therefore, I am proud to issue thisExecutive Order, which will guarantee that before any high-volume,horizontal hydraulic fracturing is permitted, the Department ofEnvironmental Conversation will complete its studies and certify thatsuch operations are safe.”
Permits for high-volume, horizontalhydraulic fracturing can not be issued until the Department ofEnvironmental Conservation (DEC) completes a Supplemental GenericEnvironmental Impact Statement (SGEIS), which is currently beingdeveloped. As a result, there is already in place a de-facto moratoriumon such permits.
The Governor issued the Executive Ordercontemporaneously with his veto of S.8129-B/A.11443-B, which would havesuspended the issuance of new oil and gas drilling permits through May15, 2011, including all conventional, low-volume, vertical oil and gaswells.
“This legislation, which was well intentioned, would have aserious impact on our State if signed into law. Enacting thislegislation would put people out of work – work that is permitted by theDepartment of Environmental Conservation and causes no demonstratedenvironmental harm, in order to effectuate a moratorium that isprincipally symbolic,” Governor Paterson said. “Symbols can have greatimportance, but particularly in our current terrible economic straits, Icannot agree to put individuals out of work for a symbolic act.”
“Iam sympathetic to the sponsors’ desire to protect the environment andpublic health, and I respect the concerns that produced thislegislation,” the Governor continued. “But this legislation does notaccomplish this purpose, since the activities at the heart of themoratorium are not currently taking place, and would not take placeuntil well after the legislation’s proposed moratorium.”
The billgoes well beyond high-volume, horizontal hydraulic fracturing andeffectively would result in a moratorium on all new oil and gas welldrilling in this State. The cessation of such new activity, even for alimited period, would have substantial negative financial consequencesfor the State, local governments, landowners and small businessesinvolved in conventional oil and gas production.
The Division of theBudget estimates that the bill would cause a substantial reduction inState revenues from the loss of permit fees and tax revenue. With a $315million budget gap in the current fiscal year, and a projected gap ofover $9 billion in the 2011-12 State fiscal year, New York simply cannotafford to send hundreds and perhaps thousands of jobs, and millions ofdollars in capital investment to Pennsylvania and other states to oursouth.
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