NYSDEC’s Proposed Regulations Provide Restrictions on Gas Well Locations; Guidelines for Water Well Usage

 

*This Alert us based in on the New York State Department of Environmental Conservation's (NYSDEC's) proposed regulation of Marcellus Shale natural gas development using high volume hydraulic fracturing (HVHF), as it appears in the draft Supplemental Generic Environmental Impact Statement (SGEIS) and NYSDEC's draft regulations issued in December 2011.

 

This area of the proposed regulations has created significant controversy. The NYSDEC has estimated 80% of developable locations are available under   proposed restrictions, and industry experts have countered with estimates  indicating that 40% to 60% of available developable land will be off limits. Moreover, the Independent Oil and Gas Association of New York (IOGANY), an industry group, in its comments on the SGEIS and draft regulations, stated that the proposed setbacks would cost the State over $27 billion in lost lease, royalty and tax revenue in just four of the primary Marcellus Shale counties of the State. No matter which of the estimates of lost development impacts is more accurate, there are significant restrictions on where NYS will permit HVHF. Proposed regulations include language that prohibits such development permanently, prohibits it for a period of time, with NYSDEC being permitted to reconsider the prohibition, or restricts development by requiring a permit applicant to file a site-specific environmental impact statement for the well pad site. The list of prohibitions and restrictions are as follows:

·       No permits within the NYC and Syracuse watersheds or within a 4000 foot buffer zone around these watersheds (note that there is no explanation by NYSDEC as to what constitutes these "watersheds").

·       No permits within a 1000 foot wide corridor surrounding a NYC water tunnel or aqueduct, unless NYC determines that drilling at the proposed well location will have no infrastructure impact. The permit applicant will have to demonstrate a lack of impact.

·       No permits within a primary aquifer (an aquifer used as a municipal water supply) or within a 500 foot buffer zone around the aquifer. This is subject to reconsideration by NYSDEC two years after the first HVHF permit is issued.

·       No permits for a well pad within 2000 feet of public wells, rivers or stream drinking water intakes and reservoirs. This is subject to reconsideration three years after the first permit is issued.

·       No permits within 500 feet of private drinking wells or domestic springs, unless waived by the owner.

·       No permits within a 100-year flood plain.