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Home Hot Topic New York law holds up drilling by small producers of oil and natural gas

New York law holds up drilling by small producers of oil and natural gas

by Celia
Alimony

In Portville, independent oil and gas producers voiced their concerns about the hindrance in obtaining new drilling permits for nearly a year due to a state law. U.S. Rep. Nick Langworthy, representing the 23rd District covering significant portions of the Southern Tiers oil and gas-producing counties, met with these producers to discuss their challenges.

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The impediment stems from the Climate Leadership and Community Protection Act (CLCPA), signed into law by former Gov. Andrew Cuomo in 2019. Envisioned to facilitate New York’s transition to clean energy and reduce pollution, the CLCPA has presented difficulties for small producers like Chip McCracken of McCracken Oil & Gas, operating over 200 oil wells in the town of Carrollton.

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McCracken highlighted the law’s requirement for producers, both large and small, to calculate the energy consumption of all their production equipment over 30 years—a complex task, he emphasized. The regulations have expanded from 10 pages to 100, creating hurdles for business operations and delaying planned expansions.

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In neighboring Chautauqua County, Steve Ford of Vertical Energy echoed the sentiment, expressing how CLCPA regulations have hampered their operations. Ford emphasized the need for support for an industry that has been a vital part of the region for 150 years, providing employment opportunities.

Producers from Cattaraugus, Chautauqua, Allegany, and Steuben counties criticized the regulations imposed by the state Department of Environmental Conservation, stating that they seem more politically motivated for downstate voters than practical for the industry. The ban on hydraulic fracturing methods for natural gas extraction in the Marcellus shale formation was also lamented, with Langworthy mentioning the ongoing practice in Pennsylvania.

Langworthy expressed skepticism about the state’s goals of eliminating fossil fuels, promoting electric vehicles, and transitioning to all-electric appliances in houses. He argued that such goals are unrealistic given the current state of the power grid, particularly for Southern Tier residents with daily commutes of 40-50 miles.

The challenges posed by the CLCPA were deemed more manageable for larger producers than for small producers, especially those with stripper wells producing minimal quantities daily. Steve Ford Jr. highlighted that New York’s carbon savings from adopting alternative energy goals pale in comparison to global energy usage, particularly when countries like China and India continue to heavily rely on coal.

Rep. Langworthy emphasized that energy would be a significant factor in the upcoming elections, asserting that most Upstate legislators have been supportive of increasing oil and gas production, citing economic benefits for landowners, operators, and employees.

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