Proposed Gas-drilling Moratorium Bill Unnecessary

Two years of DEC review, combined with already strict environmental regulations, will protect New York's environment.

Albany, N.Y. - The Independent Oil & Gas Industry, joined by a coalition of 30 industry and business groups, urged New York State legislators to oppose a proposed bill to place a moratorium on natural gas exploration until May 15, 2011.

The Senate today may take up a bill by Sen. Antoine Thompson (D-Buffalo) that, as drafted, would put a halt to all permits for horizontal drilling when hydraulic fracturing would be used.

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 throughout New York. The moratorium bill is proposed at a time when the state Department of Environmental Conservation is completing a two-plus year review of the state's Supplemental Environmental Impact Statement (SGEIS), which will set new parameters that apply statewide for SEQRA review of gas-well permitting.

"Even before the DEC's review began in 2008, its staff had already been evaluating the potential environmental impacts of drilling and hydraulic fracturing. That review has lasted for more than 15 years," said Brad Gill, IOGA of NY executive director. "It would be irresponsible to see lawmakers cave to the scare tactics of radical opponents, and it would be a slap in the face to landowners, New York taxpayers, all the people of the Southern Tier, as well as the DEC, to allow a moratorium bill to pass in the Legislature."

Natural gas exploration using hydraulic fracturing has been shown to be safe in New York State and by the U.S. Department of Environmental Conservation, the Ground Water Protection Council and by more than one million instances where it has been successfully used nationwide.

The economic impacts also cannot be ignored. A recent American Petroleum Institute study showed Marcellus Shale developed in New York and Pennsylvania could create 280,000 new American jobs and add $6 billion in new tax revenues over the next decade. In addition, application fees paid each year to the NYS Department of Environmental Conservation total approximately $1 million. These revenues, combined with the additional revenues from new Marcellus Shale permits, would be lost during the moratorium.

Supporters include the following New York employers

Independent Gas & Oil Association of NY

Greater Binghamton Chamber of Commerce

Independent Power Producers of NY

The Business Council of New York State, Inc.

Unshackle Upstate

New York State Economic Development Council

National Federation of Independent Business

New York Construction Materials Association

New York State Petroleum Council

New York State Motor Truck Association

Conrad Geoscience Corp.

Palmerton Group

Southern Tier Economic Group

Owego Harford Railway

New York & Ogdensburg Railroad Company

Western New York & Pennsylvania Railroad Company

Chesapeake Energy Corporation

Energy In Depth

Enervest Operating, LLC

Marcellus Shale Coalition

New York & Lake Erie Railroad

Walking Ridge Development, LLC

Clarendon & Pittsford Railroad Company

Inflection Energy

Elexco Land Services

B & H Rail Corporation/Livonia

Livonia, Avon, Lakeville Railroad Corporation

Railroads of New York, Inc.

Canadian Pacific Railway

Chautauqua Energy Management, Inc.

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IOGA of NY Urges Lawmakers to Do No Harm; Allow DEC to Complete its Review of Natural Gas Drilling Rules

Lawmakers should reject duplicative pending moratorium bills.

Albany, N.Y. - As the Legislature is preparing a return to session, lawmakers should keep in mind the primary lessons learned by medical students: "First, Do No Harm."

This primary healthcare lesson reminding future health care professionals to consider the possible harm that intervention might cause is applicable as the Legislature convenes in extraordinary session Wednesday. In this case, they should do no harm by rejecting "moratorium" bills pending in both houses of the Legislature.

While two competing bills have not made it to the Senate or Assembly floors, the industry is concerned that elevated rhetoric and scare tactics from opponents will shift lawmakers' focus from the facts surrounding natural gas exploration in New York.

"We strongly believe that New York's existing regulations, combined with the pending DEC rule changes, will provide more than adequate protection to New York's natural resources," said Brad Gill, executive director of IOGA of NY. "Further delays are not needed and would certainly not result in greater protections. Public policy and lawmaking should be deliberated with facts in hand and cool heads. Action premised on hysterical falsehoods risks causing more harm than good."

One bill, sponsored by Sen. Antoine Thompson (D-Buffalo) and Assemblyman Robert Sweeney (D-Lindenhurst), would place an immediate moratorium on new natural gas drilling permits in New York. As written, the bill would ban all hydraulic fracturing in the state, even on residential water wells and low-volume natural gas wells. Another bill, sponsored by Assemblyman Steven Englebright (D-Setauket) and Senator Joseph Addabbo (D-Howard Beach), would halt natural gas exploration using hydraulic fracturing until completion of a study by the U.S. Environmental Protection Agency.

The state Department of Environmental Conservation (DEC) is revising regulations for exploration in the Marcellus Shale - a vast natural gas reserve underneath parts of five eastern states. The DEC review began more than two years ago and is expected to be complete and released in late summer or early fall.

With adequate regulations in place, New York can expect to see tremendous economic impacts for decades to come. According to a new study by the American Petroleum Institute, natural gas production in the Marcellus Shale could create 280,000 jobs and add $6 billion in tax revenues to local, state and federal governments over the next 10 years. In 2009 alone, natural gas production in the Marcellus yielded 57,000 new jobs in Pennsylvania and West Virginia primarily, the study showed. The study also concluded that delays in New York have resulted in "$11 billion in lost economic output."

"Environmental protection and expanded natural gas exploration is not an either-or issue," Gill said. "The two goals can co-exist. The industry has an excellent record of success in New York. Our commitment to excellence will remain strong as the Marcellus Shale is explored."

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New Study Finds Natural Gas in Marcellus Shale Region Worth 280,000 Jobs, $6 Billion in Government Revenue

Eric Wohlschlegel | 202.682.8114 | wohlschlegele@api.org

WASHINGTON, July 21, 2010 - Natural gas production in the Marcellus Shale region - if developed - could create 280,000 new American jobs and add $6 billion in new tax revenues to local, state and federal governments over the next decade, a new study released today finds.

"One of the biggest opportunities to create jobs and increase America's energy security lies within the Marcellus Shale region," said Jack Gerard, president and CEO of the American Petroleum Institute. "Pennsylvania, New York and West Virginia have enough natural gas to create hundreds of thousands of well-paying jobs and provide Americans with a stable, domestic energy source for generations to come."

The study, "The Economic Impacts of the Marcellus Shale: Implications for New York, Pennsylvania, and West Virginia," by Timothy J. Considine, Ph.D. of Natural Resource Economics, expands on a recent Pennsylvania State University study, which found similar economic benefits from developing the Marcellus region - a layer of shale rock underneath much of western Appalachia, from southern West Virginia into southwestern, central, and northeastern Pennsylvania, and the southern tier of upstate New York.

Natural gas production in the Marcellus grew considerably during 2009 adding 57,000 new jobs mostly in Pennsylvania and West Virginia. "This new analysis predicts that many tens of thousands of more jobs could be created in the coming years if public policies do not drastically limit production," said Considine. "Under the best scenarios the development of Marcellus could mean $24 billion in total economic value to the region, which would positively impact all sectors of the economy including the service industry, construction, manufacturing, health care, and education."

The study also examines factors that could limit the benefits of natural gas development in the region, including: a possible severance tax in Pennsylvania; the current de facto moratorium on horizontal drilling in New York, estimated at $11 billion dollar in lost economic output; and the effects of a challenging tax and regulatory climate in West Virginia.

"Maintaining production growth is like running on a treadmill. Slowing down drilling and production would negatively impact employment and economic growth. If governments pursue policies that encourage the development of natural gas, the ultimate benefits to the economy, the tax base, and society would be significant," said Considine.

The study finds that natural gas development stimulates the economy through business-to-business spending and via payments to land owners. The process involves exploration, drilling, building gas processing plants, and pipeline construction. These activities require goods and services from many sectors of the economy, including construction, transportation, iron and steel, and engineering services. Natural gas companies also pay lease and royalty payments to land owners, who in turn pay taxes and spend income on goods and services.

For complete text of the survey and more information - including survey methodology - please go to: The Economic Impacts of the Marcellus Shale: Implications for New York, Pennsylvania, and West Virginia

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July 20, 2010

Natural Gas Opponents Continue to Mislead the Public

Editor's Note: The flowing is attributable to Brad Gill, executive director of the Independent Oil & Gas Association of New York, in response to today's news conference outside the Senate chamber.

"Today's news conference to support proposed moratorium legislation is another example of the reckless disregard for the facts that ill-informed and dishonest opponents continue to put forth as they attempt to block the safe exploration of natural gas and economic recovery in New York.

New York is already under a two-plus year moratorium to explore the Marcellus Shale. Another moratorium is simply unnecessary, and would be an example of shortsightedness in an election year. The Department of Environmental Conservation will not issue a permit to drill until it completes the Supplemental Generic Environmental Impact Statement. It should be allowed to continue its work and publish its findings without unnecessary interference by environmental groups attempting to create fear.

When I speak to business groups, struggling landowners, economic development professionals, and especially the scientists and geologists and operators who understand the technologies involved in extracting natural gas, it is absolutely clear that we can harvest this abundant natural resource safely and efficiently, benefiting our communities and our state."

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June 25, 2010

New Yorkers Who Support Safe Natural Gas Exploration Appeal to Legislature in Droves

New Yorkers have sent nearly 12,000 e-mail messages to state lawmakers in the past month, strongly urging them to oppose two bills that would impose moratoriums on natural gas extraction in the state.

One bill sponsored by Sen. Antoine Thompson (D-Buffalo) and Assemblyman Robert Sweeney (D-Lindenhuurst) would place an immediate one-year moratorium on new natural gas drilling permits in New York. Another by Assemblyman Steven Englebright (D-Setauket) and Senator Joseph Addabbo (D-Howard Beach) would halt natural gas exploration using hydraulic fracturing until completion of a study by the U.S. Environmental Protection Agency (EPA).

Through an electronic letter-writing campaign sponsored by IOGA of NY, residents have sent a strong message to the Legislature that a moratorium is not necessary. These bills are being considered as the state Department of Environmental Conservation (DEC) is revising regulations for natural gas exploration in the Marcellus Shale. The agency's final report is expected in late summer or early fall.

"New Yorkers sent almost 12,000 messages in a month. That is an outstanding accomplishment and a strong message that the DEC's work over the past two years should not be blocked by a moratorium," said Brad Gill, IOGA of NY executive director. "DEC must be allowed to do its job. Then we must allow New Yorkers - and New York State - to reap the benefits that safe natural gas development will bring."

The e-mail message stated, "These bills would further delay the greatest economic development opportunity that New York and its residents have seen in a generation, and would stifle economic recovery and vitality throughout the Southern Tier and across our state. In short, thousands of jobs and billions of dollars in economic impact are at stake."

Expanded natural gas exploration will produce efficient, abundant and environmentally clean fuel and increase New York's energy independence. It will also create thousands of jobs. The economic impact of just 300 Marcellus Shale wells is estimated to exceed $1.4 billion, with $108 million going to landowners, $19 million to municipal taxes, $32 million to state coffers and thousands of new jobs.

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June 23, 2010

Groups to Lawmakers: Do Not Stand in the Way of Expanded Natural Gas Exploration
Thirty-three organizations ask Legislature to reject moratorium bills

Albany, NY - A coalition of business, labor and economic development groups, led by the Independent Oil & Gas Association of New York, today appealed to the New York State Legislature to oppose legislation to establish a statutory moratorium on gas drilling in New York.

Thirty-three groups, including chambers of commerce, labor and other pro-business and pro-taxpayer groups, implored lawmakers to allow the State Department of Environmental Conservation to complete its review of the environmental impact statement governing natural gas exploration.

"We need your support for this compelling economic development opportunity, one that could benefit the State and localities significantly for years to come," the groups wrote. "We believe that the way forward to the safe development of the Marcellus Shale is now clear. We should embrace our state's ability to bring New York-produced gas to New York customers, and by so doing create new opportunity and prosperity in our own state."

One bill, A.10490-A (Englebright)/ S.7592-A (Addabbo), would impose a moratorium on hydraulic fracturing until 120 days after the U.S. Environmental Protection Agency completes yet another study on the technique. Another bill, S.8129-B (Thompson)/ A.11443-B (Sweeney) would block all permits for horizontal drilling and hydraulic fracturing in the Marcellus Shale until at least May 15, 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.

"We ask you to let the process proceed with the DEC continuing the review and revisions to the SGEIS. There are no permits being issued at this time. There is no need for a statutory moratorium," the signers wrote. "We believe that New York cannot afford to turn away or postpone the tremendous opportunity for economic resurgence and a clean energy supply presented by the Marcellus Shale."

Download a PDF of the sign on letter here.

Supporting Organizations include:
Independent Gas & Oil Association of NY
Delaware County Board of Supervisors
Greater Binghamton Chamber of Commerce
Greater Syracuse Chamber of Commerce
Independent Power Producers of NY
Manufacturers Association of Central New York
New York State Pipe Trades Association
National Federation of Independent Business
New York Construction Materials Association
New York State Economic Development Council
New York State Petroleum Council
New York State Motor Truck Association
Railroads of New York, Inc.
Southern Tier Economic Group
The Business Council of New York State, Inc.
Unshackle Upstate
Finger Lakes Railway
The New York, Susquehanna & Western Railway Corporation
Owego Harford Railway
Delaware & Hudson Railway/Canadian Pacific Railway
Clarendon & Pittsford Railroad Company
New York & Ogdensburg Railroad Company
Northeast Gas Association
Joint Landowners Coalition of New York, Inc.
B & H Rail Corporation/Livonia, Avon, Lakeville Railroad Corporation
Western New York & Pennsylvania Railroad Company
Chesapeake Energy Corporation
Energy In Depth
New York & Atlantic Railway
New York Building Congress
Associated General Contractors of NYS
New York & Lake Erie Railroad
Marcellus Shale Coalition

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June 21, 2010

"Gasland" Nothing but Hot Air
Outrageous inaccuracies are prominently featured in this new anti-drilling documentary.

Those planning to tune in to HBO tonight to view the anti-drilling film "Gasland" should know this: it is a fairy tale; pure fiction and poorly disguised as a factual documentary.

Independent filmmaker Josh Fox misleads his audience and takes enormous liberties with history and fact in his new, sensationalized "documentary," in which he chronicles his cross-country trip to find incidences of pollution by oil and gas operators. Energy In Depth, a respected industry trade group, broke down the movie minute-by-minute to counter the false claims, assumptions and ridiculous conclusions Fox made during his journey. Energy In Depth set the record straight.

"I'm certain that Mr. Fox never thought his film would get so much attention, so he probably wasn't concerned about being exposed for his deceitful and sloppy work," said IOGA of New York spokesman Jim Smith. "But no one should get a free pass to lie to the American people. I commend Energy in Depth for shining a light on the absurd and irresponsible claims Mr. Fox makes in his project."

Mr. Fox misrepresents the laws governing drilling, and the processes involved in natural gas exploration; he reiterates myths that have long been discredited and, in many cases, rewrites history. The following examples from Energy in Depth demonstrate his recklessness with the facts:

Fox states that the 2005 energy bill exempts the oil and natural gas industries from the Clean Water Act, the Clean Air Act, the Safe Drinking Water Act, the Superfund law, and about a dozen other environmental and Democratic regulations. This entire statement is false. The industry is regulated under every one of these laws under provisions of each that are relevant to its operations.

The film claims there is no way to monitor what chemicals and materials oil and gas industries are using. This is blatantly false. Environmental regulations from Pennsylvania, which can be found on the Pennsylvania Department of Environmental Conservation's website, state that "drilling companies must disclose the names of all chemicals to be stored and used at a drilling site." New York's DEC website also lists the ingredients. In addition, law requires the fracturing fluid ingredients be posted at drill sites.

In order to frack, you need some fracking fluid ... a mix of over 596 chemicals." According to a U.S. Department of Energy/Ground Water Protection Council report, "any single fracturing job would use a few of the available additives." The most prominent of these additives, besides sand, is a substance known as guar gum, an emulsifier commonly found in ice cream.

"A typical hydraulic fracturing job will use 10 to 12 ingredients other than water and sand," Smith said.

View the full text of the analysis at www.energyindepth.org/2010/06/debunking-gasland.

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June 14, 2010

Press Release: New Gas-drilling Moratorium Bill Unnecessary

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

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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June 3, 2010

Press Release: Bad Bills Would Kill Progress on Natural Gas Exploration

IOGA implores Assembly members to withdraw support for ten counterintuitive and unfair bills.

The Independent Oil & Gas Association of New York urgently called on lawmakers to reject any and all bills that would further delay or halt the expansion of natural gas exploration in New York State.

The Assembly Environmental Conservation Committee today is taking up ten bills that New York's oil and gas industry asserts are either already addressed in current law or permitting processes, based on false assumptions and misinformation, or would put an unnecessary and unfair burden on operators and landowners.

"These bills would be a major setback and detriment to the industry," said Brad Gill, executive director of IOGA of NY. "They are premised in fear and false information spread by the organized obstructionists who routinely and adamantly oppose progress of all kinds, and who have very little understanding of our industry."

At issue is the Marcellus Shale formation, which is believed to be America's largest natural gas deposit. It carries the potential to greatly increase both New York's and the nation's energy independence, while vastly improving economic recovery and job creation. Horizontal drilling and hydraulic fracturing are currently on hold in the Marcellus Shale while the state Department of Environmental Conservation rewrites the rules governing natural gas exploration. Those rules, known as the Supplemental Generic Environmental Impact Statement, have been under review for more than two years and are expected to be released in the fall.

Legislation currently under consideration in the Assembly could potentially delay or kill the New York's natural gas industry and prohibit landowners from maximizing the value of their land.

Specifically, IOGA of NY opposes the following:

A.8748: Establishes additional prohibitions, liability and fees to domestic natural gas production. The bill is overlapping and unbalanced, and it fails to recognize the long standing and safe history of natural gas drilling in New York State.

A.9414: Would extend to landowners liability from damages resulting from natural gas operations. This bill would severely inhibit landowners' willingness to leases lands and retroactively affect wells already in production and their landowners. This bill would result in an unusual standard of liability, under which no other similar industry in the state is currently subject.

A.10088: Regarding the on-site storage and removal of flowback water. The issues raised in this bill are already regulated by state and federal law. New technology allows some flowback to be reused. Removing it from the site on an expedited basis will defeat the goal of minimizing the use of freshwater.

A.10090-A: Would prohibit the on-site storage, for more than 45 days, or the on-site disposal or burial of drill cuttings and drill cutting samples from natural gas wells. Current state regulation, which includes state permitting requirements and enforcement proceedings, covers the disposal of drill cuttings. The pending SGEIS will include a new series of requirements.

A.10091: Regarding the use and disclosure of hydraulic fracturing fluids. Ingredients used in hydraulic fracturing fluids already are made public and the DEC draft SGEIS would require it.

A.10092: Would require an environmental impact statement for any natural gas or oil drilling involving the use of hydraulic fracturing fluid. This bill presumes hydraulic fracturing is new to New York. It is not. In addition, the EPA has concluded the process poses no threat to water sources.

A.10490-A: Establishes a moratorium on hydraulic fracturing pending the issuance of a report by the U.S. Environmental Protection Agency. This is an unnecessary bill that creates further delays in the SGEIS. The EPA has already studied hydraulic fracturing and has deemed it safe.

A.10641: Prohibiting fracturing and horizontal drilling to extract oil or natural gas on state park, recreation and historic lands. A.10641 would debilitate the purpose of Article 23, which was enacted "to promote the growth, development and proper regulation of oil and natural gas resourced in New York State.

A.10633: Would allow local governments to enact or enforce certain laws and ordinances. Existing state Environmental Conservation Law capably protects the public interests.

A.10956: Pertaining to the altering of compensation to integrated royalty owners in the Marcellus Shale. This bill would result in a disincentive for landowners to lease their land.

The economic potential of natural gas extraction in New York is extremely promising. A Petro Enterprises, Inc. study compared the ongoing economic benefits of natural gas exploration in the Barnett Shale region in Texas to the potential benefits in New York's portion of the Marcellus Shale. According to Petro, activity in the Barnett through 2007 brought upwards of $8 billion in economic uplift to the region. This amounts to approximately $1.14 billion for every 1,000 wells drilled. Using the same ratio of annual economic benefit to wells drilled, projected uplift for New York State would amount to about $92 billion over a 30 year period.

Additionally, an updated Penn State study stated that activity in the Marcellus in Pennsylvania is expected to create 212,000 jobs by 2020 and $1.8 billion in state and local tax revenues over the next 18 months.

"New York and New Yorkers will have similar success, but only if legislators do not stop progress. It's clear these bills must not be moved from committee to a full vote of the Assembly," Gill added. "They are ill-conceived and unfair at best, and potentially devastating to landowners and operators at worst."

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May 26, 2010

Press Release: New Studies Reaffirm Economic Benefits of Natural Gas Exploration

Two new studies, one by Petro Enterprises, Inc. and another from Penn State University, highlight the extensive economic benefits that future natural gas exploration would have in New York State. The studies strengthen the Independent Oil & Gas Association of New York's position that the state risks losing a tremendous economic opportunity as it delays the expansion of natural gas development.

"The studies only further emphasize the vast economic benefits that natural gas exploration in the Marcellus Shale will provide to New York State and local communities and governments," said Brad Gill, IOGA of NY executive director. "New York State can only expect to experience significant losses of economic opportunities as lawmakers act to delay the expansion of the state's long-standing natural industry."

The Petro Enterprises, Inc. study, released earlier this month, compares the ongoing economic benefits of natural gas exploration in the Barnett Shale region in Texas to the potential benefits in New York's portion of the Marcellus Shale. According to Petro Enterprises, activity in the Barnett through 2007 brought upwards of $8 billion in economic uplift to the region. This amounts to approximately $1.14 billion for every 1,000 wells drilled. Using the same ratio of annual economic benefit to wells drilled, projected uplift for New York State would amount to about $92 billion over a 30 year period.

Additionally, the newly updated Penn State study, which was originally published in July 2009, states that activity in the Marcellus in Pennsylvania is expected to create 212,000 jobs by 2020, in conjunction with the thousands currently being generated. Other significant benefits of natural gas exploration in the Marcellus Shale region of Pennsylvania include the following:

Over the next year and a half, these activities are expected to create $1.8 billion in state and local tax revenues.

For every $1 invested in the state by Marcellus Shale producers, $1.90 of total economic output is generated.

Marcellus Shale has the potential to provide an amount of energy for the American consumer equivalent to the energy content of 87 billion barrels of oil. The United State currently consumes about seven billion barrels of oil per year.

"New Yorkers can expect similar success, but only if legislators stop obstructing progress and realize that natural gas exploration and environmental protection can, indeed have, co-existed in New York for more than a century," Gill said.

For further information on the economic benefits of natural gas exploration, please visit the links to both the Petro Enterprises, Inc. study and the Penn State study, respectively:

http://www.bcnys.org/whatsnew/2010/nysupliftstudyR.pdf

http://marcelluscoalition.org/wp-content/uploads/2010/05/PA-Marcellus-Updated-Economic-Impacts-5.24.10.3.pdf

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May 25, 2010

Proposed Moratorium on Natural Gas Exploration is Short-Sighted and Ill-Informed

The Independent Oil & Gas Association of New York is calling on lawmakers to reject bills in both the Senate and Assembly that would establish a moratorium on natural gas until a federal study is complete. The bills are unnecessary and would prohibit the growth of the upstate economy, the group says.

Assemblyman Steven Englebright (D-Setauket) and Senator Joseph Addabbo (D-Howard Beach) are sponsoring legislation that would halt natural gas exploration using hydraulic fracturing until the conclusion of a study recently launched by the U.S. Environmental Protection Agency (EPA), examining hydraulic fracturing's potential impact on water quality and public health.

"This is an unnecessary bill that would add further delays while New York's economy continues to fail and industry jobs leave New York for other states," said Brad Gill, executive director of the Independent Oil & Gas Association of New York. "The EPA has already concluded on more than one occasion that hydraulic fracturing - a 60-year-old technology - is safe. What's more, 14,000 wells have already been 'fracked' in New York over the past 60 years without a single case of water contamination."

Evidence already demonstrates the safety of hydraulic fracturing:

A study by the Ground Water Protection Council concluded "there was no threat to underground sources of drinking water from oil and gas operations."
A 2004 EPA study concluded hydraulic fracturing did not pose a realistic threat to water sources.
In a Feb. 15 Dow Jones Newswire report, Steve Heare, director of EPA's Drinking Water Protection Division, said despite claims by environmental organizations, he hadn't seen any documented cases that the hydro-fracking process was contaminating water supplies.

In a December 2009 Senate hearing, EPA Compliance Administrator Cynthia Giles and EPA Director for Water Matthew Larsen said they were not aware of any cases of water contamination resulting from hydraulic fracturing.

"New York leads the nation in environmental protections, and we expect there will be much greater oversight still to come before horizontal drilling is allowed to begin here,"Gill said. "The pending draft Supplemental Generic Environmental Impact Statement (SGEIS) would also impose new requirements in hydraulic fracturing processes in New York, so unnecessary and redundant regulatory and legislative hurdles will do nothing but send jobs and economic hope outside of the state.

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April 23, 2010

IOGA of NY: DEC's Decision to Exclude NYC and Syracuse Watersheds is Excessive and Unnecessary


The following statement is attributable to Brad Gill, executive director of the Independent Oil & Gas Association of New York.

"We respect the work of the DEC and the challenges it faces dealing with unsubstantiated fears associated with horizontal drilling and hydraulic fracturing, but today's announcement by the Department of Environmental Conservation is disturbing in that it adds another layer of regulation on an industry that is already over-regulated.

It is hard to understand why the state would make such broad assumptions about the potential environmental impact and then pile more burdensome regulations on an industry with such an outstanding record of safety.

New York is in a severe economic crisis, and exploring the Marcellus will provide enormous relief to New York's fiscally devastated landowners, communities, local governments and, indeed, the entire state. While the DEC's announcement does not constitute a drilling ban, the result will be the same. It will do irreversible fiscal harm to the local communities that would benefit from tax revenues through drilling, and it will harm landowners who want nothing more than to safely develop their land in a way that's in the best interest of their families and future generations."

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April 15, 2010

Statement from Brad Gill, Executive Director of the Independent Oil & Gas Association of New York

Note: The following is in response to claims by opponents of natural gas exploration that industry's recommendation to expedite the auction of state land leases to save the state from closing parks and historic sites is disingenuous. Marcellus Shale exploration could yield $200 million for New York State in fiscal year 2010-11.

"Irresponsible and inflammatory statements made by opponents of natural gas exploration suggest New York's oil and gas operators would forsake the health of the environment for the right to drill in the Marcellus Shale. IOGA of New York continues to be committed to the people, the ecosystem and the biodiversity of New York State, and we are well aware that economic decline has historically been a major contributor to environmental degradation. It's why IOGA of NY is committed to the economic well-being of our state. We are an industry not in the search of a handout, but one that is willing to be part of the solution - both to the state's economic crisis and to the future of the environment, including state parks and historic sites.

We fully endorse and support continued safe drilling in New York. The oil and gas industry has a strong and long track record of working safely in local communities and within New York's stringent regulatory regime. The time for street theater is over; we need to bring some hope for growth and prosperity to local communities that need it."

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April 15, 2010
Natural Gas Industry Proposes Rescue of Environmental and Parks Budgets

New York State could raise more than $200 million in fiscal year 2010-11 alone by expediting the auction of state land leases and the application approval process under a proposal being advanced by the Independent Oil & Gas Association of New York.

The industry recommends funds from the proposal be used to help restore cuts to the Department of Environmental Conservation's Environmental Protection Fund (EPF), and enable the Office of Parks, Recreation and Historic Preservation to open state parks and preserves this year. In addition, the funds raised could support additional staffing at several state agencies to oversee the review, approval and enforcement/oversight processes for Marcellus Shale applications and operations.

"New York is in a major fiscal crisis, including a budget deficit of more than $8 billion," said IOGA of NY Executive Director Brad Gill. "The oil and gas industry is offering to be part of the solution. Our industry wants to expand in New York and, unlike other industries and corporations, we are not looking for handouts from the state."

The governor and Legislature are nearing an agreement on the 2010-11 state budget, which will likely include significant budget reductions. The governor's spending proposal alone recommends the closure of 41 parks and 14 historic sites, and reducing the EPF by $69 million (from $212 million to $143 million). Complicating matters further, the National Parks Service has threatened to withhold millions of dollars in federal funding to New York is the state closes parks this year.

It would be the first time ever that New York parks would have to close, and the most significant proposed cuts to the EPF since its creation in 1993. The EPF is used to protect water and air quality, update sewage treatment facilities, support working farms, preserve historic heritage and revitalize waterfronts, monitor pesticide use, and more.

The DEC is poised to release a new environmental impact statement to regulate expanded natural gas exploration in the Marcellus Shale formation, which extends from New York's Western Catskills and Southern Tier into Pennsylvania and West Virginia. The Marcellus is America's largest natural gas deposit, and it carries the potential to greatly increase New York's energy independence, while vastly improving economic recovery and job creation.

IOGA's proposal is not unprecedented. In September 2008, the state sold land for oil and gas development and attracted an average bid of about $2,000 per acre from 18 energy companies for a total of 74,000 acres. A recent auction of natural gas lease rights on Pennsylvania's state land holdings raised $128.5 million - more than twice the amount anticipated. Sixteen energy companies bid an average of $4,020 an acre for access to six parcels totaling 32,000 acres.

IOGA estimates the state could receive at least $217 million in new revenue from the lease of less than 30 percent of leaseable land. Future proceeds from royalty payments could also be dedicated to fully fund the State Parks and EPF. IOGA's proposal also includes a recommendation to convene a committee of natural resources experts to identify potential sustainable locations.

The economic opportunities for New York are enormous. A report issued by the State Asset Maximization Commission in June 2009 determined that from 1999 to 2009, New York had collected $30.8 million in land, oil and gas leasing. Fully $16 million of this revenue was from energy industry bonus bids on DEC-managed lands in competitive lease sales held in 1999, 2003 and 2006, according to the SAM Commission.

New York State's leasing potential totals about 180,300 acres, with the possibility of receiving bids for its holdings at a range of $1,000 to $3,000 per acre. Possible leasing revenues could amount to between $180 and $540 million in future leasing revenues. The state also could collect revenue from royalty payments, the SAM Commission wrote. "We are urging state lawmakers to appreciate the economic and environmental potential that a more robust natural gas exploration and extraction program would have on New York and its residents," Gill said. "They should not author or support any bills that stand in the way of progress."

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March 26, 2010
Oil and Gas Industry: Marcellus Shale Development Will Bolster Senate Majority Jobs Program

Note: On March 25, the New York State Senate Majority released a proposal to create jobs and spur economic development through a series of new initiatives, including loans, tax credits and community restoration projects.

"One of the solutions to New York's economic and employment crisis is staring New York's elected leaders squarely in the eyes. It's the exploration and extraction of natural gas in the Marcellus Shale," said Brad Gill, executive director of the Independent Oil & Gas Association of New York.

Read the full statement here.

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March 9, 2010
New York's Oil and Gas Producers to Meet with Lawmakers

Members of the Independent Oil & Gas Association of New York on Wednesday will gather in Albany to ask lawmakers to reject legislation that would further delay natural gas exploration in the Marcellus Shale formation.

More than 75 industry professionals will arrive from all corners of the state to share their regional stories of economic hardship and describe the tremendous economic opportunity facing New York.

Additionally, the delegation will ask lawmakers to reject a proposed second production - or severance - tax on the natural gas industry. The tax could put thousands of low-volume producing wells across New York out of operation. The industry, which already pays an ad valorem tax, believes the tax is poorly timed, will inhibit future natural gas exploration, and exclusively affect Upstate New York communities.

Producers would not be the only victims. If these companies fail, state and local governments would lose property taxes, landowners would lose royalty payments and companies would be forced to lay off workers.

WHO: IOGA of NY Members
WHAT: Legislative Visits
WHEN: Wednesday, March 10, 2010

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January 26, 2010
Seven Hundred Advocates Rally in Albany to Support Natural Gas Exploration


Landowner coalitions from New York's Southern Tier and Catskills representing 23 landowner groups and 17,500 families held a rally and news conference near the Capitol in Albany today. These volunteer advocates were here in support of safe natural gas exploration and to debunk the misrepresentations being spread by obstructionist groups.

View the full release here.

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January 21, 2010
Advocates for Natural Gas Exploration to Rally in Albany to Expose the Lies of the Opponents


Landowner Coalitions from New York's Southern Tier will hold a rally and news conference in Albany in support of the safe exploration for natural gas and to debunk the misrepresentations and outright lies being spread by obstructionist groups.

WHO: Advocates for National Gas Exploration
WHAT: "Say YES to Marcellus! Stop the Frackin' Lies!" Rally
WHERE: Lafayette Park, located on Washington Avenue, across from the NYS Capitol
WHEN: Monday, January 25, 2010 - 10 a.m.: Rally begins - 10:30 a.m.: News conference

Busloads of landowners, business leaders and scientists will appeal to Albany lawmakers to focus on the facts about natural gas exploration in the Marcellus Shale, specifically the safe process of hydraulic fracturing. Hydraulic fracturing - or "fracking" - releases gas locked in shale by injecting pressurized fluid into the formation to shatter the rock. This process, which occurs deep underground and far from groundwater and surface water, has been performed safely in New York for decades. It will produce efficient, abundant and environmentally clean fuel, increase New York's energy independence and bring thousands of jobs and billions of dollars to New York.

Download the "Say YES to Marcellus! Stop the Frackin' Lies!" rally flyer and map here.

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January 19, 2010
Oil and Gas Operators Oppose Yet Another Tax on Natural Gas Production


1/19/10 - The Independent Oil & Gas Association of New York today voiced opposition to a proposal by the Paterson Administration to impose a "severance tax" on oil and natural gas production in New York State.

In his just-released Executive Budget for 2010-11, Governor Paterson has proposed a 3-percent severance tax on the market value of natural gas harvested - or severed - from a gas pool in the Marcellus or Utica Shale formations. The tax would apply to horizontal wells, which have the potential to produce greater volumes of natural gas. There is already a production tax on the existing 14,000 wells in New York that are producing natural gas - through a real property tax assessment - which primarily stays in local communities, so an additional tax is unnecessary.

Read the full statement here.

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January 6, 2010
Oil and Gas Industry Applauds Governor Paterson's Stance on Natural Gas Exploration

1/6/10 - "As Governor Paterson charts a path to rebuild New York's economy, we applaud him for continuing to appreciate the significance of developing in-state energy supplies, including the exploration of natural gas in the Marcellus Shale," said Brad Gill, executive director of IOGA of NY. "IOGA of NY members remain committed to protecting New York's natural resources as it explores for - and extracts - natural gas."

Read the full statement here.

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December 31, 2009
New York's Oil and Gas Industry Submits Formal Comments on Future Natural Gas Exploration

The Independent Oil & Gas Association of New York (IOGA of NY) formally asked state regulators to make certain technical revisions and clarifications to the official set of rules that will govern natural gas exploration in the Marcellus Shale. At the same time, the association called on regulators to hasten the review and approval process or risk continued and significant economic loss for New York.

Read the full press release here.

Read IOGA of NY's dSGEIS comments here.

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December 29, 2009
Groups to Governor: Stay Committed to Natural Gas Exploration

A coalition of business and economic development groups, led by the Independent Oil & Gas Association of New York, today urged Governor Paterson to remain committed to his draft State Energy Plan, in which he supports the expansion of natural gas exploration in New York.

Read the full press release here.

Read the letter in support here.

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October 15, 2009
IOGA of NY Addresses NYS Assembly EnCon Committee
The Independent Oil and Gas Association (IOGA of NY) today presented the industry's scientific and objective perspective on the prospect of expanded natural gas exploration in New York to the state Assembly Committee on Environmental Conservation in Albany.

For more information and a copy of the testimony, please visit our Marcellus Facts blog using the link below on this page or www.marcellusfacts.com.

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For Immediate Release:

September 30, 2009

Statement from IOGA of NY Executive Director Brad Gill regarding the State's SGEIS on Natural Gas Exploration in the Marcellus Shale

Lake View, NY - "IOGA of New York has begun a review of the SGEIS and remains optimistic that the state DEC has found a balance that continues to protect New York's environment and allows responsible exploration for natural gas in the Marcellus Shale," said Brad Gill, IOGA of NY executive director. "Oil and gas producers have an outstanding record of environmental and operational safety in New York. A regulatory structure that is tough but fair will allow this state to realize this tremendous economic opportunity."

"Natural gas is a clean, abundant and affordable fuel," Gill added. "Increasing production here in New York will help improve our economy, increase tax revenues and jobs, and bring our nation closer to energy independence."

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