As contradictory opinions go, the following two are at the opposite ends of the spectrum as far as gas drilling in New York is concerned:
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An industry economist expresses displeasure over the proposal to place large areas as off-limits to gas drilling and says that it is overly restrictive, while on the other hand, an environmental lawyer says that the proposed protections are nowhere near enough.
The Marcellus Shale region is economically lucrative and therefore industries cannot wait to commence gas drilling in the area. After the Department of Environmental Conservation website published the 700-plus-page blueprint for hydraulic fracturing in the region, both industry and environmental groups have been discussing and debating on the plan. Gas drilling has been put on hold in the area since 2008.
Since 2005, more than 3300 gas wells have been drilled across the Pennsylvania border. This activity has brought both economic benefits and environmental concerns in abundant measure. New York State regulators are conducting reviews on environmental impact of drilling activities and drafting new regulations. The proposed plan includes a section that describes accidents related to gas-drilling in several areas of Pennsylvania and also outlines the measures adopted to mitigate these risks.
The chief economist for American Petroleum Institute, John Felmy, is concerned about the new restrictions that have been added, particularly the Syracuse and New York City watersheds, and restricting access to the big state lands. According to Felmy, the economically depressed Southern Tier could benefit a lot from natural gas development, because it will then create thousands of jobs and bring in tax revenues as well as billions of dollars in economic activity. But health and environmental groups demand a state-wide ban on hydraulic fracturing saying that it poses unacceptable environmental risks.
The state lands and the watersheds that are now off-limits for gas-drilling comprise 15% of land in Marcellus Shale that forms part of New York. This is the largest known natural gas reservoir of the country and the formation extends to southern New York, a large part of Pennsylvania, and some parts of West Virginia and Ohio.
The Natural Resources Defense Council attorney, Kate Sinding, says that the proposed limits are too less because it does not sufficiently protect the ancient underground tunnels that are used to carry water from the upstate reservoirs to New York.
The ban on drilling in the watersheds may not be challenged in courts because those areas are not as gas-rich as the others. Penn State geologist, Terry Engelder, says that Marcellus development will be initially along the Interstate86, near the Millennium Pipeline, from Binghamton through Chemung and Tioga counties.
Attempts by the municipal governments to regulate natural gas activities through zoning or local ordinances are likely to spur more lawsuits. The New York environmental conservation law in its current form pre-empts the municipality from enacting laws or ordinances. Local authority issues must be resolved by state Legislature or the courts. The law is ambiguous enough for persuasive arguments to be made for opposing conclusions.
The state lawmakers may pass home rule laws that support municipalities’ rights to enact such bans if the local gas-drilling bans end up in the court and industry wins. There are also other legal questions, such as whether DEC has the authority to ban drilling as such and whether it is tantamount to illegal taking of mineral rights.
The government is trying to strike a balance and open up the state as much as possible, while trying to offer extra protection to those areas that need it.
The proposed regulations and the environmental review will be officially open to 60 days of public comment, starting August after a section of community and economic impacts are added. Permits are likely to be issued only in 2012 after the regulations are finished.
