NGI The Weekly Gas Market Report / NGI All News Access

New York Frack Supporters See Limited Approval

April 30, 2012
/ Print
| Share More
/ Text Size+

Legislators and regulators in New York are hinting that should high-volume hydraulic fracturing (fracking) be permitted in the Empire State, localities that are the most receptive to the practice may be the first -- and, possibly, the only -- areas to allow it.

Two supporters of unconventional gas drilling in New York -- state Sens. Thomas Libous (R-Binghamton) and James Seward (R-Milford) -- believe the Department of Environmental Conservation (DEC) will ultimately approve fracking, but possibly in select areas first. Conventional drilling doesn't require wells to be stimulated using fracking, but it is used in nearly all unconventional wells that are drilled horizontally.

"I believe they're going to look at areas of the state where there is Marcellus Shale, where there is potential for drilling in areas of the state that are going to be open to it," Libous, who also serves as the Senate's deputy majority leader, told The Journal News. "It just doesn't make sense for them to do it elsewhere, and I think there are enough areas of the state that would be open to it."

Seward concurred. "My sense is once DEC completes [its] process, I think that we'll ease into this. There will be a limited number of permits. Where the best opportunity is for the most return on wells and where the local community welcomes the opportunity, I think that obviously makes sense to issue permits that meet those two criteria."

DEC spokeswoman Emily DeSantis indicated that regulators may indeed be considering that approach as they continue to finalize a supplemental generic environmental impact statement (SGEIS) on fracking. The SGEIS would serve as the agency's regulatory framework for unconventional drilling.

"Under the draft SGEIS, if a local government does not feel the applicant's plan is consistent with land use and local zoning laws, the municipality can raise a flag with DEC," DeSantis said. "If high-volume hydraulic fracturing moves forward in New York, local governments will get advance notice of all applications, and can comment on compatibility of such application with local land use laws and policies. DEC will consider this in its review of the permit application and can deny or condition a permit based on this information if it deems such action is appropriate based on the impacts."

Cherie Messore, spokeswoman for the Independent Oil & Gas Association of New York, told NGI that "while it may be premature to speculate, activity will begin in the areas that geology has determined the most productive and where there are leasing opportunities. This may be places in or around Chemung, Tioga and Broome counties, as they are the more geologically desirable regions bordering Pennsylvania. Support for natural gas there is also considered significant."

Although Libous' and Seward's combined jurisdictions are among the most coveted by oil and gas companies for development -- specifically, Broome, Chenango, Cortland, Otsego, Tioga and Tompkins counties -- some localities are in opposition. The towns of Middlefield in Otsego County and Dryden in Tompkins County have enacted local ordinances that ban fracking, and in separate rulings earlier this year county judges upheld those ordinances (see NGI, Feb. 27). Both decisions are expected to be appealed.

©Copyright 2012 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.

ISSN © 2577-9877 | ISSN © 1532-1266
Comments powered by Disqus