Ottawa keeping an eye on ‘fracking’ procedure
June 17, 2011
Six new bills introduced by Assemblywoman Lifton 6/15/2011
June 16, 2011
Six Bills Submitted by Lifton to NYS Assembly on 6/15/2011
1. Require filing within 30 days
2. Require lease filing in entirety
3. Plain language phrases
4. Notice when leases are assigned
5. Establish clearinghouse
6. Require signatures of both parties
1. TITLE OF BILL: Requires oil, gas or mineral land lease to be recorded within thirty days of execution.
PURPOSE: To amend the real property law, in relation to requiring oil, gas or mineral land leases to be recorded within thirty days of execution.
SUMMARY OF PROVISIONS: The bill amends section 291 of the real property law, requiring that any conveyance of real property within New York State which is an oil, gas, or mineral land lease shall be recorded within thirty days from execution of the lease.
EXISTING LAW: Section 291 of the real property law.
JUSTIFICATION: Faced with increasing amounts of real estate property in New York that is subject to an oil, gas or mineral land lease, the housing and mortgage markets depend more than ever on timely and accurate information about lease agreements. Proper assessment and valuation of property is integral to the mortgage lending process, and for selling one’s home. However, reports from assessors and real estate agents indicate that gas companies which hold a lease interest have been delaying in recording their lease agreements with the relevant county clerk’s offices. Often the delays in filing have been upwards of six months to a year after execution of an agreement. Lack of information about a parcel’s lease terms, and the possibility of a lease on neighboring properties, have already been gravely impacting the mortgage and real estate markets. Establishing a thirty day requirement for recording of such lease agreements provides ample time for a leaseholder to comply without arbitrarily and capriciously impacting the housing market.
2. TITLE OF BILL: Relates to excluding oil, gas or mineral land leases from leases that may be recorded by memorandum of lease.
PURPOSE: To amend the real property law, in relation to excluding oil, land or mineral land leases from leases that may be recorded by memorandum of lease.
SUMMARY OF PROVISIONS: The bill excludes oil, gas, and mineral leases from the option to record a memorandum of lease at a county clerk’s office, requiring that a lease, in its entirety, be filed and available for public review.
EXISTING LAW: Section 291-c of the real property law.
JUSTIFICATION: Often, after executing an oil, gas, or mineral lease in New York State, the lessee will record a “memorandum of lease” with the relevant county clerk’s office. Such a memorandum provides only the bare minimum of information for public review about each specific lease agreement. Accordingly, the real estate industry in counties that have many oil and gas leases, which have increased exponentially over the past several years due to the possibility of shale gas extraction in the Marcellus play, has been greatly affected. Residential property valuation can be heavily dependent upon the specific terms of an oil, gas, or mineral lease. Notably, the duration of a lease, any easements or surface rights granted to a lessee, among other concerns, can directly impact a property’s value. Also, the existence of a lease on one’s land, or even on neighboring property given the lending institutions’ setback requirements, can impair the viability of a home to be eligible for title insurance or a mortgage. This is critical information for valuation of real property; therefore, the exact terms of a lease must be available to both assessors and lending institutions.
3. TITLE OF BILL: Requires a certain statement to be included in all oil, gas or mineral leases.
PURPOSE: To amend the general obligations law, in relation to requiring a certain statement to be included in all oil, gas or mineral leases.
SUMMARY OF PROVISIONS: The bill adds subdivision 5-a to section 5-333 of the general obligations law, requiring that a plain language phrase explaining the possible risks to property value and to the ability to obtain a mortgage on a home with an oil or gas lease appear in all oil and gas leases executed on or after January 1, 2012.
EXISTING LAW: Section 5-333 of the general obligations law.
JUSTIFICATION: New York State is experiencing exponential growth in the amount of land that is leased for oil, gas or mineral extraction, due to the possibility of hydrofracking in the Marcellus Shale play. An issue that has recently come to light, with the increasing frequency of leases across upstate NY, is the potential impact of a lease upon one’s property value and upon the ability to obtain a mortgage. Most landowners are unaware at the time they sign a lease that long-term impacts to their property interests could result. This legislation seeks to provide consumer protection for landowners, providing notice of possible adverse impacts.
4. TITLE OF BILL: Relates to notice requirements for assigning oil, gas or mineral land leases.
PURPOSE: To amend the general obligations law, in relation to notice requirements for assigning oil, gas or mineral land leases.
SUMMARY OF PROVISIONS: The bill amends general obligations law, requiring that after January 1st 2012, the lessee or assignee must provide written notice to the landowner of any such assignment, and provide the names and addresses of such assignees to the current landowner.
EXISTING LAW: Subdivisions 5 and 6 of section 5-333 of the general obligations law.
5. TITLE OF BILL: Relates to establishing an oil, gas or mineral land leases clearinghouse.
PURPOSE: To amend the executive law and the real property law, in relation to establishing an oil, gas or mineral land leases clearinghouse.
SUMMARY OF PROVISIONS: The bill amends executive and real property law in relation to establishing an oil, gas or mineral land leases clearinghouse within the Department of State, to allow for the collection and maintenance of all such leases in physical and/or electronic form.
EXISTING LAW: Section 291-cc of the real property law; section 100-a of the executive law.
JUSTIFICATION: New York State is experiencing exponential growth in the amount of land that is leased for oil, gas or mineral extraction, due to the possibility of hydrofracking in the Marcellus Shale play. As the number and density of leases increase, the complexity of navigating the implications for real estate assessment, and the effect upon the ability of a landowner to obtain a mortgage, also becomes much more difficult to gauge. Knowing what properties have leases, the specific terms of a lease, and whether New York citizens are able to buy and sell homes in our state is of compelling state and integral to the establishment of a state regulatory program for oil, gas and mineral extraction. Since the state takes the position that it is the sole regulator of natural resource extraction industries they ought to have clear and uniform records with regard to the mortgage lending industy, local assessments, and New Yorkers’ property value.
6. TITLE OF BILL: Requires signatures of both parties to record a modification, extension or renewal of an oil, gas or mineral land lease.
PURPOSE: To amend the real property law, in relation to requiring signatures of both parties to a lease to record a modification, extension or renewal of an oil, gas or mineral land lease.
SUMMARY OF PROVISIONS: The bill adds a new provision to real property law in relation to the recording of a modification, extension or renewal of an oil, gas, or mineral lease, requiring that such modification, extension or renewal be duly acknowledged by both parties to a lease.
EXISTING LAW: Section 291-cc of the real property law.
JUSTIFICATION: County clerks across New York State have increasingly, over the past year or so, been presented with oil, gas and mineral lease extensions which bear only the signature of a representative of the lessee company which has acquired a mineral interest. The unilateral extensions are delivered by couriers who operate on behalf of the lessee company who report that the landowners at issue have been notified of their lease extension. However, without a duly-acknowledged signature of both parties to a lease, there is no way for a county clerk to verify that a landowner has knowledge of the extension. In fact, landowners have reported that they were unaware of lease extension on their property. This legislation will clarify that a valid lease extension or modification must require the signature of both parties.
Assembly vote on 1 year moratorium A07400
June 10, 2011
An FYI. Note the ones that voted against even a one year moratorium.
Jeanne
· A07400 Votes:
· BILL: A07400 DATE: 06/06/2011 MOTION: YEA/NAY: 96/46
·
· Abbate Y Castell Y Galef Y Katz NO McKevit NO Rabbitt NO Stevens Y · Abinant Y Castro Y Gantt Y Kavanag Y McLaugh NO Raia NO Sweeney Y · Amedore NO Ceretto NO Gibson Y Kellner Y Meng Y Ramos Y Tedisco NO · Arroyo Y Clark Y Giglio NO Kirwan ER Mill D NO Reilich NO Tenney NO · Aubry Y Colton ER Glick Y Kolb NO Mill JM NO Reilly Y Thiele Y · Barclay NO Conte NO Goodell NO Lancman Y Mill MG Y Rive J Y Titone Y · Barron Y Cook Y Gottfri Y Latimer Y Millman Y Rive N Y Titus Y · Benedet Y Corwin NO Graf NO Lavine Y Molinar Y Rive PM Y Tobacco NO · Bing Y Crespo Y Gunther Y Lentol Y Montesa NO Roberts Y Weinste Y · Blanken NO Crouch NO Hanna NO Lifton Y Morelle Y Robinso Y Weisenb Y · Boyland ER Curran Y Hawley NO Linares Y Moya Y Rodrigu Y Weprin Y · Boyle NO Cusick Y Hayes NO Lope PD Y Murray NO Rosenth Y Wright Y · Braunst Y Cymbrow Y Heastie Y Lope VJ Y Nolan Y Russell Y Zebrows Y · Brennan Y DenDekk Y Hevesi Y Losquad NO Oaks NO Saladin NO Mr Spkr Y · Bronson Y Dinowit Y Hikind NO Lupardo NO O'Donne Y Sayward NO · Brook-K Y Duprey NO Hooper Y Magee Y Ortiz Y Scarbor Y · Burling NO Englebr Y Hoyt Y Magnare Y Palmesa NO Schimel Y · Butler Y Farrell Y Jacobs Y Maisel Y Paulin Y Schimmi NO · Cahill Y Finch NO Jaffee Y Malliot Y Peoples Y Schroed NO · Calhoun NO Fitzpat NO Jeffrie Y Markey ER Perry Y Simotas Y · Camara Y Friend NO Johns Y McDonou NO Pretlow Y Smardz NO · Canestr Y Gabrysz Y Jordan NO McEneny Y Ra Y Spano Y
Oneonta Common Council bans gas drilling » Local News » The Daily Star, Oneonta, NY –
June 8, 2011
Oneonta Common Council bans gas drilling » Local News » The Daily Star, Oneonta, NY June 8, 2011
Oneonta Common Council bans gas drilling
By Jake Palmateer Staff Writer
ONEONTA _ The Common Council voted Tuesday to ban all forms of natural gas drilling in city limits.
One alderman said he will work to see the city takes even more steps.
The vote was not unanimous. With Third Ward Alderman Erik Miller absent, Seventh Ward Alderman Liz Shannon abstained.
After the meeting, she said she supports the concept of banning natural gas drilling, but said the draft ordinance was poorly written.
Several members of the public spoke out in favor of the measure, including Colleen Blacklock, who submitted a petition with 1,888 signatures.
The measure makes it unlawful for any person or corporation to drill for natural gas within the city. Under the proposed ordinance, violators are subject to a maximum fine of $250 for each day a violation occurs.
“I am fully supportive of the ordinance,” Eighth Ward Alderman Kevin Hodne said.
Hodne said hydraulic fracturing would be an economic disaster for the area because the high concentration of drilling rigs and equipment would affect tourism and the service industry.
“I think we are taking a good stand here,” he said.
No one spoke against it.
In response to call for further action from Hartwick College professor Mark Davies, Fourth Ward Alderman Mike Lynch, who worked with Alderman Miller on the draft, said he would be looking at additional steps the city may take. These include regulating the staging areas used to store chemicals used in the hydraulic fracturing process or equipment used in the drilling.
The Common Council also voted unanimously to approve an amendment to the zoning code overhaul they passed May 17.
An area near Silver Creek that under the draft zoning code was zoned for apartment complexes, was changed to a more restrictive zone.
A mayor’s public hearing on the amendment was set for June 21. Mayor Dick Miller said the zoning code overhaul passed May 17 will get his signature.
“I will be signing the new zoning code,” Miller said. “I suspect that comes as no surprise to anyone.”
DEC PEF Supports 1 year Moratorium
June 6, 2011
New York State
PUBLIC EMPLOYEES FEDERATION AFL-CIO
LEGISLATIVE DEPARTMENT 1-800-724-4997
100 State Street, Suite 1070 1-518-432-4003
Albany, NY 12207 Fax: 1-518-432-7739
Kenneth Brynien, President; Arlea Igoe, Secretary Treasurer
June 1, 2011
A7400\Sweeney
The New York State Public Employees Federation, representing 56,000
Professional, Scientific, and Technical workers of New York State, supports
this legislation.
This bill suspends the issuance of new permits for the drilling of wells
that utilize hydraulic fracturing until June 1, 2012.
The use of hydraulic fracturing to harvest natural gas in the Marcellus and
Utica shale formations should not proceed until the environmental impact
and state’s ability to ensure the safety of its citizens has been fully
determined.
PEF represents employees at the Department of Environmental Conservation
(DEC). It must be noted that DEC has 800 less staff than it did in 2009,
severely inhibiting the agency’s ability to oversee extraction properly,
from the permit process through remediation should a spill occur.
The state would be well served by deferring hydraulic fracturing permitting
while the US Environmental Protection Agency finalizes its study and until
the revised draft Supplemental Generic Environmental Impact Statement has
been fully reviewed. This time should be used to identify funding to ensure
that DEC is appropriately staffed and can effectively regulate the process.
For these reasons, the Public Employees Federation urges you to support
this legislation.
For more information, please contact:
Brian F. Curran, Legislative Director and Counsel
A.G. SCHNEIDERMAN TO SUE FEDERAL GOVERNMENT TODAY FOR FAILURE TO STUDY “FRACKING”
May 31, 2011
A.G. SCHNEIDERMAN TO SUE FEDERAL GOVERNMENT TODAY FOR FAILURE TO STUDY “FRACKING”.
A.G. SCHNEIDERMAN TO SUE FEDERAL GOVERNMENT TODAY FOR FAILURE TO STUDY “FRACKING”
Demand For Fracking Study In Delaware River Basin Ignored – Even Though Drilling Would Affect NY Watershed And Portions Of 8 New York Counties
Feds Abandon Legally Required Responsibility To Assess Environmental & Public Health Impacts Of Natural Gas Drilling
Schneiderman: Feds Have An Obligation To Protect Public Health & Safety – We Will Force Them To Do So
NEW YORK – Attorney General Eric T. Schneiderman announced he will file a lawsuit today against the federal government for its failure to commit to a full environmental review of proposed regulations that would allow natural gas drilling – including the potentially harmful “fracking” technique – in the Delaware River Basin. Last month, the Attorney General notified the federal government that if it did not commit to conducting an environmental review before the regulations authorizing gas drilling are finalized, he would take legal action to compel such a study.
“Before any decisions on drilling are made, it is our responsibility to follow the facts and understand the public health and safety effects posed by potential natural gas development,” Attorney General Schneiderman said. “The federal government has an obligation to undertake the necessary studies, and as I made clear last month, this office will compel it to do so. The welfare of those living near the Delaware River Basin, as well as the millions of New Yorkers who rely on its pure drinking water each day, will not be ignored.”
In April, just one day before a blowout at a Pennsylvania natural gas drilling site caused gallons of chemical-laced water to spill over neighboring land and into a stream, the Attorney General demanded that the federal government comply with the National Environmental Policy Act (NEPA). The law requires federal agencies to conduct a full review of actions that may cause significant environmental impacts.
Despite the legal requirement, the Delaware River Basin Commission (DRBC) – with the approval of its supporting federal agencies – proposed regulations allowing natural gas development in the Basin without undertaking any such review. Represented by U.S. Army Corps of Engineers Brigadier General Peter A. DeLuca, the involved federal agencies include the Army Corps, the National Park Service, the U.S. Fish and Wildlife Service and the Environmental Protection Agency.
Schneiderman called on the federal government to comply with its NEPA obligations by suspending its consideration of the proposed regulations and undertaking a full review of all public health and safety risks posed by natural gas development in the Basin. At that time, Schneiderman further called for this review to include an evaluation of the cumulative impacts of widespread fracking within the Basin as well as the alternative of not authorizing natural gas development within the portion of the Basin that includes New York City’s West-of-Hudson watershed.
While the federal agencies determined that natural gas drilling in the Basin would potentially result in significant environmental impacts and that the study of those impacts should be performed, the DRBC’s lead agency, the U.S. Army Corps of Engineers, responded last week and made clear that it and the other member agencies would make no such commitment. The determination undermines the NEPA requirement.
As a result, Schneiderman announced today that he is filing a lawsuit in federal District Court in Brooklyn, where General DeLuca’s office is located, to compel an environmental review before regulations authorizing gas drilling are finalized.
The proposed natural gas development regulations allow high-volume hydraulic fracturing combined with horizontal drilling (a technique commonly referred to as “fracking”) – within the Basin. Unless studied and subject to strict controls, fracking poses risks to the environment, health, and communities, including the withdrawal of large volumes of water from creeks and streams, potential contamination of drinking water supplies, waste generation, increased noise, dust and air pollution, and potential harms to community infrastructure and character from increased industrial activity. Due to the potential for significant impacts from gas fracking within the Basin, the relevant federal agencies are obligated to comply with NEPA by performing a full review of the impact of the DRBC proposed natural gas development regulations.
The Delaware River Basin includes a portion of the New York City watershed and parts of Broome, Chenango, Delaware, Schoharie, Green, Ulster, Orange and Sullivan Counties. The federally designated Upper Delaware Scenic and Recreational River (and its tributaries), is a nationally significant fishing, boating and recreational destination. In addition, roughly 58 percent of the land area of New York City’s West-of-Hudson watershed is within the Basin. That portion of the watershed provides most of the drinking water used by over nine million New York residents and visitors.
The DRBC estimates that its proposed regulations would allow 15,000 to 18,000 gas wells to be drilled within the Basin, most of which are expected to be developed by fracking. The regulations were proposed without first conducting an assessment of the environmental impacts related to allowing fracking in the Basin.
The DRBC is a federal-interstate body created through a compact agreed to by the President, Congress, state Legislators and governors of New York, New Jersey, Pennsylvania and Delaware. The Commission has legal authority to approve or disapprove activities that may have a substantial effect on the water resources within the 13,500 square mile Delaware River Basin — including over 2,300 square miles in New York. Under federal law, the DRBC and the federal agencies involved in formulating its policies and regulations are subject to NEPA.
This matter is being handled by New York City Watershed Inspector General Philip Bein, New York City Watershed Inspector General Scientist Charles Silver, Ph.D., and Assistant Attorneys General Michael J. Myers, Morgan Costello and Adam Dobson under the supervision of the Attorney General’s Environmental Protection Bureau Chief Lemuel M. Srolovic.
Otsego Town Board Asserts Local Control of Land Use
May 30, 2011
PRESS RELEASE/PRESS RELEASE/PRESS RELEASE
Fly Creek, NY, 11 May 2010–The Otsego Town Board voted 4-1 tonight to
clarify a long-standing prohibition against heavy industry, including
fracking for natural gas, in the town’s land use law. By this vote the town,
which includes most of the Village of Cooperstown, reaffirmed its home rule
right to prohibit uses not permitted by local ordinances.
Though many towns in New York State have similar limitations on permitted
uses on the books, pro-drilling advocates, pointing out that the gas
industry is exempt from local regulation, have argued that towns have no
authority at all over natural gas extraction.
The Town of Otsego action leaves it to the state’s DEC to regulate gas
drilling when and where it may occur, but reserves the home rule right to
determine in the first place whether such a use should be allowed or
prohibited in the town. In this case the answer was a resounding NO.
It is the first rural town in New York State to explicitly invoke its home
rule authority to block gas drilling as a type of undesirable heavy industry
incompatible with the town’s comprehensive plan. The town acted in response
to the overwhelming sentiment of the enrolled voters in the town opposed to
gas drilling and heavy industry, documented through petitions and surveys as
well as testimony at privilege of the floor and at a public hearing.
A number of other towns in Otsego county and across the state are
contemplating taking similar steps. This grassroots resistance to natural
gas extraction is a remarkable phenomenon. Local citizens are saying no to
fracking for natural gas directly in their communities as too dangerous and
costly and destructive to be tolerated. It is time for state and federal
officials to take notice.
From Jim Endicott
GDACC 
