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NY gas lawyer: Drilling unlikely before late 2013

Published on NewsOK Modified: December 5, 2012 at 2:33 pm •  Published: December 5, 2012

SARATOGA SPRINGS, N.Y. (AP) — An environmental review and new regulations for shale gas development are likely to be finished by the end of February, but additional obstacles will delay production until late next year even if Gov. Andrew Cuomo gives drillers a green light, an industry lawyer said Wednesday.

"We think we see a light at the end of the tunnel," Tom West told members of the state Association of General Contractors at their annual meeting, noting that the Department of Environmental Conservation filed for a 90-day extension on completing new drilling regulations last week rather than letting proposed regulations expire.

The agency had until Nov. 29 to finalize regulations proposed a year before. Environmental groups urged the Cuomo administration to let the deadline pass and restart the process, which would add many more months to an environmental review process that started in 2008. The state has had a moratorium on shale development since the review began, while thousands of wells have brought an economic boost to Pennsylvania communities in the gas-rich Marcellus Shale region that also underlies southern New York and parts of Ohio and West Virginia.

West said low gas prices, the high cost of complying with New York's stringent new regulations and fear of litigation are likely to dampen industry enthusiasm in the state, at least for the short term. He noted that environmental groups have vowed to challenge the state's environmental review in court and seek a stay on issuance of permits while the litigation progresses.

A DEC spokeswoman didn't immediately comment Wednesday.

West urged the contractors' group to intervene in the litigation and oppose a stay on permits.

Mike Elmendorf, president of the contractors' group, said members are frustrated by the slow pace and repeated delays in DEC's regulatory process for shale gas development.

"We have members who have a large part of their workforce going to Pennsylvania because there are jobs there when there aren't jobs in New York," Elmendorf said. "Businesses in the Southern Tier have benefited from the shale gas boom across the border in Pennsylvania, but we shouldn't be eating the leftovers. We should be at the table."

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