Environment DEC
From the August 2008 issue
Two Announcements Affect the Future of Energy Exploration in New York
New Oil and Gas Drilling Law Signed
Governor David Paterson recently signed a new law which updates the spacing and setback requirements for oil and gas drilling in New York. Environmental Conservation Law previously established "spacing units" and "set back" requirements only for some types of drilling activity. A spacing unit is the land area from which a well is expected to recover oil or gas; a setback is the distance that a well must be from the boundaries of the spacing unit. The bill also adds requirements about how wells may be located within spacing units. The new requirements will lead to greater administrative efficiency, result in more effective recovery of oil and natural gas, and reduce unnecessary land disturbance.
Safeguards Maintained
The protection of water and public water supplies continues to be a top priority when evaluating new gas or oil well applications
"This new law will ensure greater efficiency in the processing of requests to permit oil and gas wells, while maintaining environmental and public health safeguards," said Governor Paterson. "Natural gas exploration has the potential to increase domestic supplies of natural gas, create jobs, expand the tax base and benefit the upstate economy. My administration is committed to working with the public and local governments to ensure that if the drilling goes forward, it takes place in the most environmentally responsible way possible."
DEC Commissioner Pete Grannis said: "This new law appropriately addresses the issue of how oil and gas wells will be spaced without compromising the environmental oversight. Let it be clear: DEC will be vigilant in ensuring environmental safeguards. Water protection will be a top priority. As the issue of potential natural gas drilling develops, Governor Paterson and DEC are committed to exercising its authority to protect New Yorkers and their environment."
GEIS to be Supplemented
In a related development, Governor Paterson has directed DEC to prepare a supplement to its Generic Environmental Impact Statement (GEIS) on natural gas and oil drilling that will specifically address the the potential environmental impacts of horizontal well drilling in the Marcellus Shale Formation. Energy companies have expressed renewed interest in the Marcellus Shale Formation, a natural gas reserve that stretches from West Virginia to New York. Drilling into the deep formation was long considered economically unfeasible, but rising fuel prices have spurred some companies to seek land leases from property owners across a number of counties.
The GEIS updating process will examine potential impacts from new horizontal drilling techniques, including impacts to groundwater, surface water, wetlands, air quality, aesthetics, noise, traffic and community character, as well as cumulative impacts. Drilling in horizontal shale uses large volumes of water to hydraulically fracture the shale. Potential impacts relate to both the sources of water, additives used to facilitate fracturing, and the recovery, handling and disposal of water during and after drilling.
Public Meetings to be Held
Applications for horizontal drilling in the Marcellus Shale formation will receive individual, site-specific review
By the end of this summer, DEC expects to make a draft scoping document available for public review and comment. The purpose of the scoping document is to outline the factors that must be included in the Supplemental GEIS. Public meetings in the Southern Tier and Catskills are anticipated to begin in September.
While the process of scoping and preparing the Supplemental GEIS is ongoing, any entity that applies for a drilling permit for horizontal drilling in the Marcellus Shale, and opts to proceed with its permit application, will be required to undertake an individual, site-specific environmental review. That review must take into account the same issues being considered in the Supplemental GEIS process and must be consistent with the requirements of SEQRA and state Environmental Conservation Law.
Draft Scoping Document to Come
"DEC is committed to an open, transparent process and welcomes the participation of local government officials, industry representatives, advocacy groups and the general public," Commissioner Grannis said.
Following the public hearings and comment period, DEC will release a final scoping document and prepare the Supplemental GEIS. While dependent upon the final scope, DEC will seek to have a draft Supplemental GEIS ready for public review by early spring 2009.
