A moratorium on hydraulic fracturing in New York state appears to be coming to an end. Yet, if a proposed recommendation by the agency that governs New York's oil and gas industry is adopted, the current stranglehold on fracturing operations would yield to what the state classifies as "rigorous and effective" standards that operators would be required to follow.

The state's Department of Environmental Conservation (DEC) on July 1 released the proposal, which has the support of Gov. Andrew Cuomo. The plan, if adopted, would establish recommendations for managing, but not abolishing, hydraulic fracturing. New York placed a moratorium on high-volume fracturing in late 2010, and the policy is still in effect.

However, the major components of the plan spell out some distinct regulations that operators would have to follow. The major components of the DEC plan include:

  • Prohibiting high-volume hydraulic fracturing in the New York City and Syracuse watersheds, including a buffer zone. The recommendation reverses the DEC's 2009 draft law that would have allowed drilling in the two watersheds.
  • Banning drilling within primary aquifers and within 500 feet of their boundaries.
  • Prohibiting surface drilling on state-owned land, including parks, forest areas and wildlife-management areas.
  • Enforcing controls for fracing operations on private land.
  • Rules for acquiring permits under the plan would mean more specific and stricter standards for operators. Some of the proposed compliance areas include:
  • Identifying chemicals used in fracing: Applicants must disclose to the DEC all products used in high-volume fracturing. Applicants must agree to publicly disclose the names of additives, subject to protections for proprietary information.
  • Protecting drinking water: In most cases, an additional third cemented well casing would be required. The three required casings would be a surface casing, a new intermediate casing and a production casing. For flow-back water, water-tight tanks within a secondary containment would be necessary. No open containers could be used. Secondary containers would be required for all fracturing additive containers, additive staging areas and flow-back tanks. In addition, a new permit process would require strict stormwater-control measures.
  • Protecting the air: Air-pollution controls on engines used at well pads would be subject to DEC monitoring.
  • Informing communities: The DEC would notify local governments about each well-permit application. An applicant would be required to certify that a proposed activity is consistent with local land-use laws and zoning standards.
  • Handling flow-back water: Applicants would need to have DEC-approved plans for the disposal of flow-back water and production brine. The DEC would monitor disposal of drilling waste in a manner akin to handling medical waste. An analysis and approval under state and federal laws would be required before a water-treatment facility could accept flow-back water.

According to the DEC's website, the plan -- if its original wording is maintained and its recommendations advance to become law -- would "protect the state's environmentally sensitive areas while realizing the economic development and energy benefits of the state's natural gas resources."

The DEC maintains that 85% of the Marcellus shale would be accessible to natural gas production under the plan's recommendations.

Beginning in August, the agency will have a 60-day public-comment period. By law, no permits will be issued until the DEC has enforcement capabilities in place. Upon final adoption of rules governing permitting standards, the DEC will implement procedures for oversight, monitoring and enforcement.

The complete version of the DEC's recommendations can be viewed on the agency's website beginning July 8.

Contact the author, Mike Madere, at mmadere@hartenergy.com.