N.Y. Aiming to Lift Fracking Moratorium
Pittsburgh Post Gazette
1 July 2011
By Danny Hakim and Nicholas Confessore, The New York Times
NEW YORK -- The Cuomo administration is seeking to lift what has
effectively been a moratorium in New York state on hydraulic
fracturing, a controversial technique used to extract natural gas from
shale, state environmental regulators said Thursday.
The process would be allowed on private lands, opening New York to one
of the fastest-growing -- critics would say reckless -- areas of the
energy industry. It would be banned inside New York City's sprawling
upstate watershed, as well as inside a watershed used by Syracuse, and
in underground water sources used by other cities and towns. It would
also be banned on state lands, such as parks and wildlife preserves.
It will most likely take months before the policy becomes official.
Today, the state Department of Environmental Conservation will release
a long-awaited study of the process, widely known as hydrofracking. The
report will include recommendations about how to proceed, and then
there will be a lengthy period for public comments before a final
determination can be made.
The agency detailed its recommendations in a statement it released
Thursday afternoon. "This report strikes the right balance between
protecting our environment, watersheds and drinking water and promoting
economic development," said Joseph Martens, commissioner of the
department, a state agency controlled by the governor's office.
Hydrofracking has prompted intense protests from some environmental
activists, who say it threatens the cleanliness of groundwater. The
process involves injecting large volumes of water, mixed with sand and
chemicals, deep into the ground to break up rock formations and release
natural gas. It is legal in a number of other states, including
Pennsylvania.
Natural gas companies in Pennsylvania declined to speculate how they
would react to an end to the New York moratorium, but industry
representatives predicted that the decision, if it comes to fruition,
would have little impact on the commonwealth.
"I don't think it will dramatically impact how many rigs are in
Pennsylvania," said Travis Windle, spokesman for the Marcellus Shale
Coalition, based in Canonsburg. "Probably what will continue to be the
biggest impact and driving force on rigs in Pennsylvania is
Pennsylvania's regulatory framework and the price of gas."
Mr. Windle said New York's uncertain regulatory climate will keep many
firms from flooding that state with hydrofracking operations, although
proximity to the New York City market is a tempting draw.
There is little doubt that Pennsylvania has benefited from New York's
moratorium, as companies have established headquarters in Pennsylvania,
where Marcellus Shale development is booming.
Lou D'Amico, president of the Pennsylvania Independent Oil and Gas
Association, which represents smaller drillers, said the firms drilling
in northeastern Pennsylvania could move big, expensive rigs across the
border.
A primary concern among environmental groups has been the leftover
wastewater that can be contaminated with toxic materials buried
underground, including naturally occurring radioactive elements or
carcinogens such as benzene.
Proponents, on the other hand, focus on the potential benefits.
Drilling for natural gas has been promoted because it burns more
cleanly than coal and can reduce dependence on imported energy sources,
and it can also bring jobs to economically battered regions of the
state.
The statement released by the New York environmental agency said
hydrofracking would be permitted on private lands "under rigorous and
effective controls."
Among other restrictions, there would be no permits for drilling
"within 500 feet of a private water well or domestic-use spring," or
within 2,000 feet of a public reservoir or drinking water supply
without further study. The agency is also creating an advisory panel of
environmental and industry experts to make recommendations on
monitoring steps to mitigate potential hazards and explore fees that
would be levied on the industry.
Gov. Andrew M. Cuomo has generally had good relations with
environmental groups; he shielded them from the kind of large cuts he
dealt to hospitals and schools this year. He has also repeatedly called
for closure of Westchester County's Indian Point nuclear plant, a
popular move with advocacy groups.
An energy policy campaign document Mr. Cuomo released last year
referred to potential development of the Marcellus Shale, a rock
formation that stretches from southern New York state through
Pennsylvania to Ohio and West Virginia.
Meantime, France became the first country to pass a law banning
fracking when French senators voted in Paris on Thursday to outlaw the
technique in natural-gas exploration.
Under the bill, championed by groups concerned with potential
environmental damage, companies with exploration permits will have two
months to declare whether they intend to use hydraulic fracturing. If
they do, their permits will be revoked.
Post-Gazette staff writer Daniel Malloy and Bloomberg News contributed.