Assembly Must Not Consider Job-Killing Bill in Special Session

A.11443-B/S.8129-B Badly Drafted – "If the Bill's Broke, Don't Pass It!"

ALBANY, NY (11/24/2010)(readMedia)-- Independent oil and gas producers are again urging members of the State Assembly to oppose a bill to enact a moratorium on natural gas exploration, saying that the bill would halt most oil and gas drilling currently allowed, would intrude on the current work by the Department of Environmental Conservation and contains flaws that would harm the state's entire oil and gas industry.

S.8129-B (Thompson)/A.11443-B (Sweeney) would place an immediate moratorium on new natural gas drilling permits for horizontal drilling and hydraulic fracturing. Although intended to delay permitting for wells in the Marcellus Shale, the bill is badly drafted. As written it would affect the vast majority of CURRENT (non-Marcellus) oil and gas production in New York State. The bill would:

(1) Bar existing safe drilling that has been going on for many years in New York; and

(2) Result in the loss of 5,000 jobs, because producing companies would go out of business and their employees would be forced out of work.

(3) Jeopardize $1 million in annual revenue the state collects from traditional drilling permit fees.

Notwithstanding the concerns many people may have regarding exploring the Marcellus Shale, the provisions of S.8129-B/A.11443-B are not limited to the collection of shale gas from the Marcellus formation.

"The members of the Assembly must understand that the S.8129-B/A.11443-B would jeopardize an industry that has operated safely in New York for more than 100 years and employs more than 5,000 people today," said Brad Gill, executive director of IOGA of NY. "We hope the Assembly will allow the DEC to complete its review of the state's regulations governing high volume hydraulic fracturing and not cave to the smear campaign being waged by radical opponents against the people of our industry."

The bill passed in the Senate in August. IOGA of NY has called on supporters to contact their Assembly representatives and ask them to consider the far-reaching negative ramifications of this bill and support the expansion of natural gas exploration in New York.

In 2008 the total market value of New York-produced oil and gas was $488 million. More specifically, the value of natural gas produced in our State was $450 million from natural gas and $38 million from oil.

Local communities in oil and gas producing areas benefit directly from the industry's activity. It is estimated that real property taxes on 2008 production totaled roughly $14.6 million, while landowner royalties were $61 million.

IOGA-NY was founded in 1980 to protect, foster and advance the common interests of oil and gas producers, as well as professionals and related industries in the State of New York.

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