New York oil and gas laws can be found in Article 23 of New York Consolidated Laws. Pursuant to NY CLS ECL § 23-0301, the statute intends to regulate the development, production, and utilization of natural resources of oil and gas in this state in such a manner as will prevent waste.
Powers and Jurisdiction of the Department
Pursuant to NY CLS ECL § 23-0305, the department has the following powers to:
- Make such investigations as it deems proper to determine whether waste exists or is imminent.
- Require identification of ownership of producing leases, tanks, plants, structures and facilities for the transportation and refining of oil and gas.
- Classify and reclassify pools as oil or gas pools, or wells as oil or gas wells, including the delineation of boundaries for purposes material to the interpretation or administration of this article.
- Require the drilling, casing, operation, plugging and replugging of wells and reclamation of surrounding land in accordance with rules and regulations of the department
- Enter, take temporary possession of, plug or replug any abandoned well as provided in the rules and regulations, whenever any owner or operator neglects or refuses to comply with such rules and regulations.
- Require that every person who produces, sells, purchases, acquires, stores or injects oil or gas and associated fluids and every person who transports oil or gas must keep and maintain complete and accurate records of the quantities.
- Order an immediate suspension of drilling or production operations whenever such operations are being carried on in violation of the statute or any rule or regulation promulgated or order issued.
- Require the taking and making of well logs, well samples, directional surveys and reports on well locations and elevations, drilling and production, and further require their filing pursuant to the provisions of the statute
- Give notice to persons engaged in underground mining operations of the commencement of any phase of oil or gas well operations which may affect the safety of such underground mining operations or of the mining properties involved.
Underground Storage Permit
Pursuant to NY CLS ECL § 23-1301, no underground reservoir will be devoted to the storage of gas, or liquefied petroleum gas unless the prospective operator of such storage reservoir will have received from the department, after approval in writing of the state geologist, an underground storage permit.
Penalties
Pursuant to NY CLS ECL § 23-1715, if the holder of an environmental safety permit fails to comply with the terms or the provisions of the rules and regulations, the department may revoke said permit or certificate and impose upon the holder of such permit or certificate a civil penalty of up to one thousand dollars for each day.
In addition to any civil penalty assessed by the department, any person who knowingly violates any provision of the statute, any permit or certificate granted under this title, or any order, rule, or regulation issued will be guilty of a class A misdemeanor[i].
Leases
Pursuant to NY CLS ECL § 23-1101, the department may make leases on behalf of this state, upon such terms and conditions including consideration as to the department seem just and proper for the exploration, development, and production of gas in state-owned lands.
[i] NY CLS ECL § 23-1715.
