IOGA of NY Praises Governor David Paterson for Courageous Veto of Moratorium Bill

ALBANY, NY (12/11/2010)(readMedia)-- Albany – The Independent Oil and Gas Association of New York (IOGA of NY) was joined by the business and farming communities in praising the decision by New York Governor David Paterson to veto legislation to impose a moratorium on the drilling of natural gas wells using "hydraulic fracturing."

Governor Paterson demonstrated political courage today as he rejected a bill that would have halted existing and potential natural gas and oil exploration in New York, and put the future of thousands of workers and hundreds of employers in jeopardy, New York's oil and gas industry said.

IOGA of NY Executive Director Brad Gill said, "We are grateful to Governor Paterson for his courage and clear-headed judgment in vetoing S.8129-B (Thompson)/A.11443-B (Sweeney). This bill would have had far-reaching consequences to the state's oil and natural gas industry, and to the communities in which our member companies work."

Gill added, "We are very pleased that the governor saw the bill for what it was – a flawed piece of legislation replete with unintended and dire consequences for the people and businesses in our industry. Our members are aware of the considerable pressure put upon lawmakers and the governor to approve this bill. We're hopeful that the governor's veto today will set the stage for a more reasoned and rationale public discussion about these issues going forward."

The bill passed in the Senate in August and in the Assembly late last month. It was flawed in that it did not distinguish between vertical and horizontal drilling, the latter of which has been the target of misguided criticism.

IOGA of NY member companies opposed this measure, which imperiled the viability of more than 300 producing companies – and the jobs of their 5,000 employees – which rely on the issuance of permits from the state Department of Environmental Conservation each year.

New York's business leaders also praised the governor's veto:

Douglas Walch, president of Getzville-based U.S. Energy Development Corp., said his company would have been severely impacted by the proposed ban. U.S. Energy continues to be ranked among the Top 50 independent oil and gas drillers in the United States.

"This year is our 30th anniversary as a company, and our operations in New York State could have come to a standstill if the moratorium bill had become law," Walch said. "On behalf of our employees and the landowners with whom we work every day, we appreciate Governor Paterson's thoughtful examination of this bill, and his decisive leadership."

New York Farm Bureau, the state's largest general agricultural advocacy organization, also objected to the moratorium. "New York Farm Bureau supports responsible natural gas drilling. Our members have benefited from vertical gas drilling for many years, using the royalty payments to re-invest in their farms. New York Farm Bureau appreciates Governor Paterson's veto, which would have jeopardized on-going vertical drilling in New York," said Dean Norton, president of New York Farm Bureau.

Mike Elmendorf, New York State Director of the National Federation of Independent Business, said, "We are grateful for Gov. Paterson's veto of this legislation, which went well beyond imposing a moratorium on natural gas drilling. It would have ended ongoing drilling operations and thousands of jobs. While NFIB members are still evaluating the broader issue of drilling in the Marcellus Shale, we strongly opposed this bill because of the job losses and negative impacts that would have resulted. We applaud Gov. Paterson for standing up for small business and the economy by disapproving this bill."

Upstate also achieved a victory with the governor's veto. "Through this veto the governor has saved an important sector of the Upstate economy," said Brian Sampson, executive director of Unshackle Upstate. "He recognized that the legislation's technical flaws would have shut down numerous small businesses across the Southern Tier. These are businesses that have operated in an environmentally safe manner for years, if not decades."

John Holko is president of Alexander-based Lenape Resources, Inc. and a member of the IOGA of NY Board of Directors. "The moratorium bill would have forced me to evaluate my company's future in New York. Additional and unnecessary delays and restrictions do nothing but frustrate an industry that provides far reaching economic benefits in New York under a very strict regulatory regime," Holko said. "The governor should be credited for recognizing the bill's flaws and vetoing it."

IOGA of 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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