New Gas-drilling Moratorium Bill Would be Deadly to NY Economy

Two years of DEC review, combined with already strict environmental regulations, is sufficient.

ALBANY, NY (06/14/2010)(readMedia)-- The Independent Oil & Gas Industry strongly opposes a new bill proposed Thursday by Sen. Antoine Thompson (D-Buffalo) that would place an immediate one-year moratorium on new natural gas drilling permits in New York.

The Senator's bill (S8129) would block all permits for horizontal drilling and hydraulic fracturing in the Marcellus Shale until at least June 1, 2011. The Marcellus is perhaps the largest natural gas reserve in the United States with the potential to dramatically increase America's energy independence while vastly improving economic recovery and job creation.

The bill comes as the state Department of Environmental Conservation (DEC) is revising regulations for natural gas exploration in the Marcellus; it's an effort that began more than two years ago. New York's existing regulations, combined with the pending DEC rule changes, will provide adequate protection to the environment. No further delays are needed, said Brad Gill, executive director of IOGA of NY.

"What New York needs now is leadership toward a new energy economy for our state, rather than another bill rife with inaccuracies and false assumption," Gill said. "New Yorkers spend approximately $65 billion annually on energy, yet we produce less than 5 percent of the natural gas we use. We call upon Senator Thompson and his colleagues in the Legislature to step up and understand the huge potential of the Marcellus Shale as a boost for New York's economy."

Gill added, "Natural gas exploration should stimulate the state's economy in two major ways: business-to-business spending and payment to landowners. In 2007, $226 billion was invested in domestic exploration and production elsewhere in the United States. Similar investments in New York should drive economic growth, support struggling local businesses and put thousands of New Yorkers to work. Millions of dollars will be paid to local governments in the form of severance and income taxes."

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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. To send a message to Albany in support of natural gas exploration, visit marcellusfacts.com.

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