DiNapoli: make gas drillers pay for quick cleanups

New York State Comptroller Thomas DiNapoli has proposed an industry-supported fund to recover damages caused by accidents related to natural gas production. 

The proposed legislation would apply to current drilling operations as well as to proposed high-volume hydraulic fracturing.

"The only current remedy for private citizens who suffer damages to their property from natural gas production is to enter into litigation, which has the potential to be costly, difficult and slow," DiNapoli said.

"Preventing accidents and contamination should always be our first priority. But itís impossible to eliminate all risk. If an accident does occur, the state needs to be ready with a rapid response and a reliable mechanism to hold polluters responsible. New Yorkers should not have to bear the burden from contaminations that damage their air, water and property. Whatever final decisions are made regarding high-volume hydraulic fracturing, this program and [this] new fund will provide the necessary resources to respond to any accidents."

DiNapoli's program is modeled after the NYS Environmental Protection and Spill Compensation Fund (Oil Spill Fund), which draws on the expertise and collaborative efforts of the Department of Environmental Conservation, the attorney general and the comptroller. It would also create for the first time an online registry of all gas drilling related incidents in the state.

The proposed program would:

-impose strict liability on owners or operators of drilling sites that cause contamination;

-empower the DEC to order immediate cleanup by owner or operator or take over sites for immediate cleanup or;

-impose a surcharge on drilling permits to create the Natural Gas Damage Recovery Fund;

-require oil and natural gas companies to post surety bonds to cover any shortfall.

Like the Oil Spill Fund, the New York Natural Gas Production Contamination Damage Recovery and Remediation Fund (Natural Gas Damage Recovery Fund) would be administered by the comptroller.

DiNapoli's initiative calls for the fund to come from a surcharge on permit fees, cost recoveries and penalties, and surety bonds to be posted by gas well developers.