SUMMARY OF GOVERNMENT JURISDICTION OVER NATURAL GAS DRILLING OPERATIONS IN NEW YORK STATE

(Please note: this document was not drafted by any attorneys and therefore is being provided for informational purposes only. We recommend that you carefully review local laws or proposals for local laws with local counsel and make whatever modifications are necessary to address your individual town concerns and to assure compliance with current State and Federal law.)

The Article 23, Title 3 of the Environmental Conservation Law (ECL) delegates all authority to regulate natural gas drilling to the NYS DEC. The ECL specifies that local governments retain jurisdiction over local roads and their rights under the Real Property Tax Law.

Towns wishing to exert jurisdiction over local roads in an attempt to mitigate potential impacts have several options under Section 1660 of the Vehicle Traffic Laws. Strategies towns may employ include:

1. Establishing truck routes for through traffic

2. Posting roads and establishing weight limits

3. Issuing hauling permits for local roads (this may be a simple as accepting the NYS DOT hauling permit as the local permit)

4. Controlling curb cuts through highway work permits

5. Establishing a Road Preservation Local Law that requires haulers to establish bonds

6. Adopting a highway work permit with special permit conditions that apply to seismic testing

7. Noise Ordinances to regulate noise from temporary noise sources (drill rigs), portable noise sources (portable generators and compressors), permanent non-portable noise sources (large generators and compressors at well heads and on transmission lines), mobile equipment (earth moving equipment, seismic testing trucks), etc.

Any towns or villages wishing to exercise any of the above strategies should contact the Association of Towns (518-465-7933) or the Cornell Local Roads Program (607-255-8033) and the town/village attorney.

OTHER CONSIDERATIONS FOR LOCAL GOVERNMENTS

NYS DEC routinely requires natural gas companies to notify local governments via certified mail at the time a drilling permit is issued. The drilling permit will contain a condition that the natural gas company comply with all applicable regulations and required permits, however, it is unlikely that the permit will specifically mention specific laws, such as a road preservation law or noise ordinance.

The Town should notify the drilling company of the local laws pertaining to roads and noise and any requirements the town has, such as truck routes, hauling permits and bonds immediately upon receiving the required notification from the company. In addition, the Town may want to request that NYS DEC include as a specific permit condition that requires drillers to comply with the local laws.

Example

ROAD PRESERVATION LAW

TOWN OF ___________

ROAD PRESERVATION LOCAL LAW

JANUARY 1, 2010

Section I Purpose

Section II Applicability

Section III Definitions

Section IV General Provisions

Section V: Seismic Testing Special Conditions

Section VI: Other Special Conditions

Section VII Fees

Section VIII Appeals

Section IX Request for Variance

Section X Invalid Segment

Section XI Effective Date

Attachment A Road Preservation Local Law Worksheet

Attachment B – Fee Schedule

SECTION I: PURPOSE

The purpose of this law is to maintain the safety and general welfare of Town residents by regulating commercial activities that have the potential to adversely affect road right-of-ways. Well maintained roads are important to the economic well being of the Town. Commercial endeavors, such as timber harvesting, mining, and natural gas drilling, are also economically beneficial. This law is not intended to regulate such business: the intent is to protect the public right-of-ways from damage. The Town Board of the Town of ________ hereby enacts the following Road Preservation Local Law pursuant to the provisions of the Municipal Home Rule Law.

SECTION II: APPLICABILITY

The _______ Town Board delegates to the _______ Highway Superintendent the oversight of assuring commercial activities do not have an adverse impact on public right-of-ways.

SECTION III: DEFINITIONS

1. High Frequency, High Impact Truck Traffic: Traffic to and from a single project site that generates more than ten truck trips per day for more than four consecutive days, involving trucks that exceed 20 tons (truck and load combined) that could impact Town road right-of- ways. Any seismic testing by vibrasise trucks (aka "thumper trucks") is considered high frequency, high impact truck traffic.

2. Bond: A commercial bond to ensure that the condition of the town roads impacted by

high frequency, high impact truck traffic is left in as good or better condition at the completion of the project as they were at the start of the project.

3. Road Preservation Local Law Worksheet (Appendix A): Worksheet is to be completed

by hauling contractor or project sponsor, summarizing the project, project location, start and completion dates, expected max gross vehicle weight used for the project, proposed truck routes, and any other items that the Town Highway Superintendent deems necessary.

4. Preliminary Bond Release: A bond release given by the Town Highway

Superintendent based on satisfactory road conditions at project completion.

5. Final Bond Release: Final release of the Bond by the ______ Town Board.

SECTION IV: GENERAL PROVISIONS

1. Prior to the start of any project that involves high frequency, high impact truck traffic that could have an impact on Town right-of-ways, a permit must be obtained. A bond amount shall be determined by the Town Board and will be listed on the fee schedule on file with the _______ Town Clerk. The amount of the bond may be changed by the Town Board by Resolution. A completed Road Preservation Local Law (RPLL) Worksheet (Attachment A), available from the Town Clerk or Town Highway Superintendent, must be submitted to the Highway Superintendent.

2. The Highway Superintendent will decide if the scope of work is such that a Bond is required. If no Bond is needed, the RPLL worksheet is approved by the Superintendent and becomes the Work Permit.

3. If the Highway Superintendent determines that a Bond is required, the bond must be paid to the Town of _______ and remitted to the Town Supervisor. The Worksheet will then be approved by the Highway Superintendent and becomes the Work Permit.

4. Upon issuance of the Work Permit and prior to commencement of the work, the hauling contractor or project sponsor will arrange for video documentation of condition of the roads, shoulders, and all structures (culverts, bridges, etc.) that will be traversed by the permitted traffic. The video documentation will be conducted by an independent third party and will be submitted to the Town Supervisor prior to commencement of the work. Video documentation will also occur monthly and within two weeks of the conclusion of the permitted work. All video documentation will be submitted to the Town Supervisor within one week of recording. Failure to submit the required video documentation will result in immediate revocation of the Work Permit.

4. Upon completion of the project, the hauling contractor or project sponsor will apply to the Highway Superintendent for a Preliminary Bond Release. Upon inspection of the work site, as necessary, the Highway Superintendent may approve the release of the Bond. If the release is not approved, the Superintendent will specifically document the tasks that must be accomplished in order for the Bond to be released. In this case, the the

hauling contractor or project sponsor will remedy the specified problem(s) items and then reapply for a Bond Release. Final Bond Release must be approved by the Town Board for repayment of the Bond funds.

5. If the hauling contractor or project sponsor does not comply and operates outside the parameters as specified on the worksheet, any law enforcement officer or Code Enforcement Officer has the authority to shut down the project.

6. The hauling contractor or project sponsor will be responsible for the repair of any damages that occur to the Town of ______ road right-of- ways, when a project proceeds without a proper permit.

SECTION V: SEISMIC TESTING SPECIAL CONDITIONS

The hauling contractor or project sponsor shall supply proof of insurance co-naming the Town of ______ with a minimum of $3 million liability insurance coverage. The Town shall be notified 30 days prior by the insurance company of termination of such coverage.

SECTION VI: OTHER SPECIAL CONDITIONS

1. In no event shall vehicles or equipment be parked or located outside the roadway boundaries nor block access by neighboring landowners.

 

2. Traffic will be maintained in accordance with the Uniform Traffic Control Manual.

 

3. No ATVs or Four-wheelers will be allowed to operate in or on the Town road or right-of-way.

 

4. The hauling contractor or project sponsor shall be responsible for any and all repairs of damages caused by their operation to any Town property.

 

5. This law applies to the entire duration of any project that induces high frequency high impact traffic, as defined above, for any single five day interval of the project duration.

 

6. If any of these conditions are not met, the permit is automatically voided and all work shall cease.

 

SECTION VII: FEE

A non-refundable processing fee as depicted in the Town of _______ Fee Schedule, payable to the Town of ________, must accompany each Worksheet submitted to the Highway Superintendent.

SECTION VIII: APPEALS

Contractor has the right to appeal to _______ Town Board.

SECTION IX: REQUEST FOR VARIANCE

Request for a variance from the standards set forth in this Local Law shall be made to the _______Town Board in writing and shall contain the grounds on which the appellant relies for requesting the variance, including allegations on any facts on which the appellant will rely. Where the _______ Town Board finds that due to special circumstances of the particular case a waiver of certain requirements as stated in Section IV is justified, then a variance may be granted. No variance shall be granted, however, unless the Town Board finds and records in its minutes that: (a) granting the variance would be keeping the intent and spirit of this Local Law and is in the best interests of the community, (b) there are special circumstances involved in the particular case; (c) denying the variance would result in undue hardship to the applicant, provided that such hardship has not been self-imposed; (d) the variance is the minimum necessary to accomplish the purpose.

SECTION X: INVALID SEGMENT

Should any section or provision of this Local Law contained herein or as amended hereafter be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the Local Law as a Whole or any part thereof-other than the part declared to be invalid.

SECTION XI: EFFECTIVE DATE

This Local Law shall take effect upon filing with the State of New York.

ATTACHMENT A

ROAD PRESERVATION LAW WORKSHEET

1- Hauler/Project Sponsor:

Address: ________________________________________________________________

Phone:

2-Work Description (logging, gravel mining, natural gas drilling etc.):

________________________________________________________________________

Work Location:

Proposed Truck Routes (include miles to be traveled on each road):

3- Landowner: ___________________________

Address: ___________________________

Phone: _________________________

4-Start Date: _____________

Completion Date: _____________

Expect maximum gross vehicle weight :

Maximum truck trips per day:

5-Bond Amount: Date Paid:

Approval Date:

Hwy Superintendent

6-Preliminary Bond Release Application Date: __________

7-Defincies to be repaired:

________________________________________________

________________________________________________

8-Final Bond Release Application Date: _________________

9-Final Bond Release: ____________________ Date:____________

Town Supervisor

ATTACHMENT A

FEE SCHEDULE

Road Type

Dirt and/or

Gravel

Chip Seal

(gravel with tar)

Asphalt with base >7"

Asphalt with base <7"

Bond per mile traveled

$3500

$15,000

$54,570

$94,200

Multiply by

Number of miles

Multiply by

Number of vehicles on the peak travel day of the project

ROAD TOTALS:

Structures (bridges and/or culverts by diameter)

60" up to 19’-11"

20’ and greater*

Bond per structure

$ 500,000

$1,500,000

Multiply by number of structures

STRUCTURE TOTALS:

BOND TOTAL: