S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1741
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 16, 2019
                                ___________
 
 Introduced by M. of A. ABINANTI -- read once and referred to the Commit-
   tee on Environmental Conservation
 
 AN ACT to amend the environmental conservation law, in relation to regu-
   lation of the extraction of natural gas by means of hydraulic fractur-
   ing; and to repeal subdivision 2 of section 23-0303 of such law relat-
   ing to exclusivity of state authority over mining
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Article 23 of the environmental conservation law is amended
 by adding two new titles 15 and 16 to read as follows:
                                 TITLE 15
                       DISCLOSURE OF COMPOSITION OF
                        HYDRAULIC FRACTURING FLUIDS
 SECTION 23-1501.  DEFINITIONS.
         23-1503.  INFORMATION SUBMITTED CONSIDERED  PUBLIC;  POSTING  ON
                     INTERNET WEBSITE.
         23-1505.  SERVICE COMPANY DISCLOSURES.
         23-1507.  OPERATOR DISCLOSURES.
         23-1509.  USE   OF  SERVICES  OF  NONCOMPLYING  SERVICE  COMPANY
                     PROHIBITED.
         23-1511. TRADE SECRET PROTECTION.
 § 23-1501. DEFINITIONS.
   AS USED IN THIS TITLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:
   1. "ADDITIVE" MEANS ANY SUBSTANCE OR COMBINATION OF  SUBSTANCES  FOUND
 IN  A HYDRAULIC FRACTURING FLUID, INCLUDING A PROPPANT, THAT IS ADDED TO
 A BASE FLUID IN THE CONTEXT OF A HYDRAULIC FRACTURING TREATMENT.
   2. "BASE FLUID" MEANS THE BASE FLUID TYPE, SUCH AS WATER  OR  NITROGEN
 FOAM, USED IN A PARTICULAR HYDRAULIC FRACTURING TREATMENT.
   3.  "CHEMICAL  ABSTRACTS SERVICE" OR "CAS" MEANS THE CHEMICAL REGISTRY
 THAT IS THE AUTHORITATIVE COLLECTION  OF  DISCLOSED  CHEMICAL  SUBSTANCE
 INFORMATION.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05056-01-9

 A. 1741                             2
 
   4.  "CHEMICAL  CONSTITUENT"  MEANS  A  DISCRETE  CHEMICAL WITH ITS OWN
 SPECIFIC NAME OR IDENTITY, SUCH AS A CAS NUMBER, THAT IS CONTAINED IN AN
 ADDITIVE.
   5.  "HYDRAULIC  FRACTURING  FLUID"  MEANS  THE FLUID USED TO PERFORM A
 PARTICULAR HYDRAULIC FRACTURING TREATMENT AND  INCLUDES  THE  APPLICABLE
 BASE FLUID AND ALL ADDITIVES.
   6. "HYDRAULIC FRACTURING TREATMENT" MEANS THE STIMULATION OF A WELL BY
 THE FORCEFUL APPLICATION OF HYDRAULIC FRACTURING FLUID INTO THE RELEVANT
 GEOLOGICAL FORMATION FOR THE PURPOSE OF CREATING FRACTURES IN THE FORMA-
 TION IN ORDER TO FACILITATE PRODUCTION OF HYDROCARBONS.
   7.  "OPERATOR"  MEANS THE PERSON OR ENTITY AUTHORIZED TO CONDUCT OPER-
 ATIONS ON A WELL.
   8. "PROPPANT" MEANS SAND OR ANOTHER NATURAL OR MAN-MADE INERT MATERIAL
 THAT IS USED IN A HYDRAULIC FRACTURING TREATMENT TO PREVENT ARTIFICIALLY
 CREATED OR  ENHANCED  FRACTURES  FROM  CLOSING  ONCE  THE  TREATMENT  IS
 COMPLETED.
   9.  "TRADE  SECRET"  MEANS ANY CONFIDENTIAL FORMULA, PATTERN, PROCESS,
 DEVICE, INFORMATION OR COMPILATION OF INFORMATION  THAT  IS  USED  IN  A
 PERSON'S  OR  ENTITY'S  BUSINESS AND THAT GIVES SUCH PERSON OR ENTITY AN
 OPPORTUNITY TO OBTAIN AN ADVANTAGE OVER COMPETITORS THAT DO NOT KNOW  OR
 USE IT.
   10. "WELL" MEANS A HYDROCARBON PRODUCTION WELL.
   11.  "WELL COMPLETION REPORT" MEANS THE REPORT AN OPERATOR IS REQUIRED
 TO FILE WITH THE COMMISSION FOLLOWING THE COMPLETION OR RECOMPLETION  OF
 A WELL, IF APPLICABLE.
 § 23-1503. INFORMATION  SUBMITTED CONSIDERED PUBLIC; POSTING ON INTERNET
              WEBSITE.
   NOTWITHSTANDING ANY OTHER PROVISIONS OF LAW, UNLESS THE INFORMATION IS
 OTHERWISE AUTHORIZED TO BE WITHHELD AS A TRADE SECRET PURSUANT  TO  THIS
 TITLE,  INFORMATION  SUBMITTED  TO  THE  DEPARTMENT  PURSUANT TO SECTION
 23-1505 OR 23-1507 OF THIS TITLE IS PUBLIC INFORMATION, AND THE  DEPART-
 MENT  SHALL  POST  THE  INFORMATION  ON ITS PUBLICLY ACCESSIBLE INTERNET
 WEBSITE.
 § 23-1505. SERVICE COMPANY DISCLOSURES.
   1.   AN OPERATOR WHICH AUTHORIZES ANY  PERSON  OR  ENTITY  TO  CONDUCT
 HYDRAULIC  FRACTURING  TREATMENTS  UPON  ANY OF SUCH OPERATOR'S WELLS IN
 THIS STATE SHALL DISCLOSE TO THE  DEPARTMENT  AND  MAINTAIN  AN  UPDATED
 MASTER LIST OF:
   A.  ALL  BASE  FLUIDS  TO  BE USED BY SUCH PERSON OR ENTITY DURING ANY
 HYDRAULIC FRACTURING TREATMENT IN THIS STATE;
   B. ALL ADDITIVES TO BE USED  BY  SUCH  PERSON  OR  ENTITY  DURING  ANY
 HYDRAULIC FRACTURING TREATMENT IN THIS STATE; AND
   C.  ALL  CHEMICAL  CONSTITUENTS TO BE USED BY SUCH PERSON OR ENTITY IN
 ANY HYDRAULIC FRACTURING TREATMENT IN THIS STATE  AND  THEIR  ASSOCIATED
 CAS NUMBERS.
   2. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH C OF SUBDIVISION ONE OF
 THIS SECTION, IF THE SPECIFIC IDENTIFY OF ANY CHEMICAL CONSTITUENT TO BE
 USED  IN ANY HYDRAULIC FRACTURING TREATMENT IN THIS STATE IS ENTITLED TO
 BE WITHHELD AS A TRADE SECRET PURSUANT TO THE CRITERIA  PROVIDED  BY  42
 U.S.C.  SECTION  11042(A)(2)  AND  SECTION  23-1511  OF  THIS TITLE, THE
 DEPARTMENT SHALL PROTECT AND HOLD CONFIDENTIAL THE IDENTITY OF THE CHEM-
 ICAL CONSTITUENT AND ITS ASSOCIATED CAS NUMBER.  TO  QUALIFY  FOR  TRADE
 SECRET PROTECTION, THE PERSON PERFORMING THE HYDRAULIC FRACTURING TREAT-
 MENT MUST SUBMIT TO THE DEPARTMENT ON AN APPROVED FORM A FORMAL CLAIM OF
 ENTITLEMENT TO THAT PROTECTION IN THE MANNER REQUIRED BY SECTION 23-1511
 OF THIS TITLE.

 A. 1741                             3
 
   3.  A  PERSON  OR ENTITY PERFORMING HYDRAULIC FRACTURING TREATMENTS IN
 THIS STATE SHALL PROVIDE TO THE OPERATOR OF  EACH  WELL  FOR  WHICH  THE
 PERSON OR ENTITY PERFORMS A HYDRAULIC FRACTURING TREATMENT:
   A.  THE MAXIMUM PUMP PRESSURE MEASURED AT THE SURFACE AND THE TYPE AND
 VOLUME OF BASE FLUID USED IN EACH  STAGE  OF  THE  HYDRAULIC  FRACTURING
 TREATMENT;
   B.  A  LIST  OF  ALL ADDITIVES USED IN THE HYDRAULIC FRACTURING FLUID,
 SPECIFIED BY GENERAL TYPE, SUCH AS  ACID,  BIOCIDE,  BREAKER,  CORROSION
 INHIBITOR,   CROSSLINKER,   DEMULSIFIER,  FRICTION  REDUCER,  GEL,  IRON
 CONTROL, OXYGEN SCAVENGER, PH ADJUSTING AGENT, PROPPANT, SCALE INHIBITOR
 AND SURFACTANT;
   C. FOR EACH ADDITIVE TYPE LISTED UNDER PARAGRAPH B  OF  THIS  SUBDIVI-
 SION,  THE  SPECIFIC  NAME  OF  THE ADDITIVE USED AND THE ACTUAL RATE OR
 CONCENTRATION OF EACH ADDITIVE, EXPRESSED AS POUNDS PER THOUSAND GALLONS
 OR GALLONS PER THOUSAND GALLONS AND EXPRESSED AS A PERCENTAGE BY  VOLUME
 OF THE TOTAL HYDRAULIC FRACTURING FLUID USED;
   D. A LIST OF ALL THE CHEMICAL CONSTITUENTS USED IN THE HYDRAULIC FRAC-
 TURING FLUID AND THEIR ASSOCIATED CAS NUMBERS, EXCEPT TO THE EXTENT THAT
 THE  SPECIFIC  IDENTITY  OF  ANY  CHEMICAL CONSTITUENT IS ENTITLED TO BE
 WITHHELD AS A TRADE SECRET  AS  PROVIDED  BY  SUBDIVISION  TWO  OF  THIS
 SECTION; AND
   E.  FOR EACH CHEMICAL CONSTITUENT IDENTIFIED UNDER PARAGRAPH D OF THIS
 SUBDIVISION,  THE  ACTUAL  RATE  OR  CONCENTRATION  OF  EACH   CHEMICAL,
 EXPRESSED AS POUNDS PER THOUSAND GALLONS OR GALLONS PER THOUSAND GALLONS
 AND  EXPRESSED AS A PERCENTAGE BY VOLUME OF THE TOTAL HYDRAULIC FRACTUR-
 ING FLUID USED.
   4. THE PROVISIONS OF SUBDIVISIONS TWO AND THREE OF THIS SECTION  SHALL
 NOT  BE  DEEMED  TO AUTHORIZE ANY OPERATOR, PERSON OR ENTITY TO WITHHOLD
 INFORMATION THAT FEDERAL OR STATE LAW, INCLUDING THIS SECTION,  REQUIRES
 TO BE PROVIDED TO ANY HEALTH CARE PROFESSIONAL WHO NEEDS THE INFORMATION
 FOR  DIAGNOSTIC OR TREATMENT PURPOSES. THE OPERATOR AND PERSON OR ENTITY
 PERFORMING A HYDRAULIC FRACTURING TREATMENT SHALL PROVIDE DIRECTLY TO  A
 HEALTH  CARE  PROFESSIONAL,  IMMEDIATELY  IN  REQUEST,  ALL  INFORMATION
 REQUIRED BY THE HEALTH  CARE  PROFESSIONAL,  INCLUDING  THE  PERCENT  BY
 VOLUME  OF  THE  CHEMICAL CONSTITUENTS OF THE HYDRAULIC FRACTURING FLUID
 AND THEIR ASSOCIATED CAS NUMBERS. IN A CASE THAT IS NOT A MEDICAL  EMER-
 GENCY,  THE  HEALTH CARE PROFESSIONAL SHALL PROVIDE THE OPERATOR AND THE
 PERSON OR ENTITY PERFORMING THE HYDRAULIC FRACTURING TREATMENT A WRITTEN
 STATEMENT OF NEED FOR THE INFORMATION BEFORE  THE  HEALTH  CARE  PROFES-
 SIONAL  IS  ENTITLED TO RECEIVE THE INFORMATION. IN A MEDICAL EMERGENCY,
 THE HEALTH CARE PROFESSIONAL SHALL PROVIDE THE OPERATOR AND  THE  PERSON
 OR ENTITY PERFORMING THE HYDRAULIC FRACTURING TREATMENT A WRITTEN STATE-
 MENT OF NEED FOR THE INFORMATION AS SOON AS CIRCUMSTANCES PERMIT.
   5.  A HEALTH CARE PROFESSIONAL TO WHOM INFORMATION IS DISCLOSED PURSU-
 ANT TO SUBDIVISION FOUR OF  THIS  SECTION  SHALL  HOLD  THE  INFORMATION
 CONFIDENTIAL, EXCEPT THAT THE HEALTH CARE PROFESSIONAL MAY, FOR DIAGNOS-
 TIC  OR  TREATMENT PURPOSES, DISCLOSE SUCH INFORMATION TO ANOTHER HEALTH
 CARE PROFESSIONAL, A LABORATORY OR A THIRD-PARTY TESTING FIRM. A  HEALTH
 CARE  PROFESSIONAL,  LABORATORY  OR  THIRD-PARTY  TESTING  FIRM TO WHICH
 INFORMATION IS DISCLOSED BY ANOTHER HEALTH CARE PROFESSIONAL SHALL  HOLD
 SUCH INFORMATION CONFIDENTIAL.
 § 23-1507. OPERATOR DISCLOSURES.
   1.  FOLLOWING  THE COMPLETION OF A HYDRAULIC FRACTURING TREATMENT ON A
 WELL, THE OPERATOR SHALL INCLUDE IN THE WELL  COMPLETION  REPORT,  ON  A
 FORM APPROVED BY THE DEPARTMENT:

 A. 1741                             4
 
   A.  THE MAXIMUM PUMP PRESSURE MEASURED AT THE SURFACE AND THE TYPE AND
 VOLUME OF BASE FLUID USED IN EACH  STAGE  OF  THE  HYDRAULIC  FRACTURING
 TREATMENT;
   B. A LIST OF ALL ADDITIVES USED IN THE HYDRAULIC FRACTURING TREATMENT,
 SPECIFIED  BY  GENERAL  TYPE,  SUCH AS ACID, BIOCIDE, BREAKER, CORROSION
 INHIBITOR,  CROSSLINKER,  DEMULSIFIER,  FRICTION  REDUCER,   GEL,   IRON
 CONTROL, OXYGEN SCAVENGER, PH ADJUSTING AGENT, PROPPANT, SCALE INHIBITOR
 AND SURFACTANT;
   C.  FOR  EACH  ADDITIVE TYPE LISTED UNDER PARAGRAPH B OF THIS SUBDIVI-
 SION, THE SPECIFIC NAME OF THE ADDITIVE USED  AND  THE  ACTUAL  RATE  OR
 CONCENTRATION OF EACH ADDITIVE, EXPRESSED AS POUNDS PER THOUSAND GALLONS
 OR  GALLONS PER THOUSAND GALLONS AND EXPRESSED AS A PERCENTAGE BY VOLUME
 OF THE TOTAL HYDRAULIC FRACTURING FLUID USED;
   D. THE INFORMATION PROVIDED PURSUANT TO SUBDIVISION THREE  OF  SECTION
 23-1505  OF  THIS  TITLE  TO  THE  OPERATOR  BY THE PERSON OR ENTITY WHO
 PERFORMED THE HYDRAULIC FRACTURING TREATMENT; AND
   E. IF THE OPERATOR CAUSED ANY ADDITIVES TO BE USED DURING THE  HYDRAU-
 LIC  FRACTURING TREATMENT THAT ARE NOT REQUIRED TO BE DISCLOSED PURSUANT
 TO SUBDIVISION THREE OF SECTION 23-1505 OF THIS TITLE TO THE OPERATOR BY
 THE PERSON OR ENTITY WHO PERFORMED THE HYDRAULIC FRACTURING TREATMENT:
   (1) A LIST OF THE ADDITIVES USED; AND
   (2) FOR EACH ADDITIVE LISTED, THE CHEMICAL CONSTITUENTS OF  THE  ADDI-
 TIVE  AND  THEIR  ASSOCIATED  CAS NUMBERS AND THE ACTUAL RATE OR CONCEN-
 TRATION OF EACH ADDITIVE OR CHEMICAL, EXPRESSED IN THE  MANNER  PROVIDED
 PURSUANT TO SUBDIVISION THREE OF SECTION 23-1505 OF THIS TITLE.
   2.  THE  OPERATOR  MAY SUPPLY FIELD SERVICE COMPANY TICKETS, EXCLUDING
 PRICING INFORMATION, AND  REPORTS  REGARDING  THE  HYDRAULIC  FRACTURING
 TREATMENT,  AS USED IN THE NORMAL COURSE OF BUSINESS, TO SATISFY SOME OR
 ALL OF THE REQUIREMENTS OF SUBDIVISION ONE OF THIS SECTION.
   3. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH E OF SUBDIVISION ONE OF
 THIS SECTION,  IF  THE  SPECIFIC  IDENTITY  OF  A  CHEMICAL  CONSTITUENT
 CONTAINED  IN  AN  ADDITIVE IS ENTITLED TO BE WITHHELD AS A TRADE SECRET
 PURSUANT TO THE CRITERIA PROVIDED BY 42 U.S.C  SECTION  11042(A)(2)  AND
 SECTION  23-1511  OF  THIS TITLE, THE DEPARTMENT  SHALL PROTECT AND HOLD
 CONFIDENTIAL THE IDENTITY OF THE CHEMICAL CONSTITUENT AND ITS ASSOCIATED
 CAS NUMBER. TO QUALIFY FOR TRADE SECRET PROTECTION, THE  OPERATOR  SHALL
 SUBMIT  TO THE DEPARTMENT ON AN APPROVED FORM A FORMAL CLAIM OF ENTITLE-
 MENT TO THAT PROTECTION IN THE MANNER REQUIRED  BY  SECTION  23-1511  OF
 THIS TITLE.
   4.  THE  PROVISIONS  OF SUBDIVISION THREE OF THIS SECTION SHALL NOT BE
 DEEMED TO AUTHORIZE AN OPERATOR TO WITHHOLD INFORMATION THAT FEDERAL  OR
 STATE LAW, INCLUDING THIS SECTION, REQUIRES TO BE PROVIDED TO ANY HEALTH
 CARE  PROFESSIONAL WHO NEEDS THE INFORMATION FOR DIAGNOSTIC OR TREATMENT
 PROPOSES. AN OPERATOR SHALL PROVIDE DIRECTLY TO A HEALTH   CARE  PROFES-
 SIONAL,  IMMEDIATELY  ON REQUEST, ALL INFORMATION REQUIRED BY THE HEALTH
 CARE PROFESSIONAL, INCLUDING THE  PERCENT  BY  VOLUME  OF  THE  CHEMICAL
 CONSTITUENTS  OF THE HYDRAULIC FRACTURING FLUID AND THEIR ASSOCIATED CAS
 NUMBERS. IN A CASE THAT IS NOT A  MEDICAL  EMERGENCY,  THE  HEALTH  CARE
 PROFESSIONAL  SHALL PROVIDE THE OPERATOR A WRITTEN STATEMENT OF NEED FOR
 THE INFORMATION BEFORE THE PERSON IS ENTITLED TO  RECEIVE  THE  INFORMA-
 TION. IN A MEDICAL EMERGENCY, THE HEALTH CARE PROFESSIONAL SHALL PROVIDE
 THE  OPERATOR A WRITTEN STATEMENT OF NEED FOR THE INFORMATION AS SOON AS
 CIRCUMSTANCES PERMIT.
   5. A HEALTH CARE PROFESSIONAL TO WHOM INFORMATION IS DISCLOSED  PURSU-
 ANT  TO  SUBDIVISION  FOUR  OF  THIS  SECTION SHALL HOLD THE INFORMATION
 CONFIDENTIAL, EXCEPT THAT THE HEALTH CARE PROFESSIONAL MAY, FOR DIAGNOS-

 A. 1741                             5
 
 TIC OR TREATMENT PROPOSES, DISCLOSE SUCH INFORMATION TO  ANOTHER  HEALTH
 CARE  PROFESSIONAL, A LABORATORY OR A THIRD-PARTY TESTING FIRM. A HEALTH
 CARE PROFESSIONAL, LABORATORY OR THIRD-PARTY TESTING FIRM TO WHICH  SUCH
 INFORMATION  IS DISCLOSED BY ANOTHER HEALTH CARE PROFESSIONAL SHALL HOLD
 THE INFORMATION CONFIDENTIAL.
 § 23-1509. USE OF SERVICES OF NONCOMPLYING SERVICE COMPANY PROHIBITED.
   AN OPERATOR SHALL NOT USE THE SERVICES OF ANOTHER PERSON OR ENTITY  IN
 PERFORMING  A  HYDRAULIC  FRACTURING  TREATMENT IN THIS STATE UNLESS THE
 OTHER PERSON OR ENTITY IS IN COMPLIANCE WITH THE REQUIREMENTS OF SECTION
 23-1505 OF THIS TITLE.
 § 23-1511. TRADE SECRET PROTECTION.
   1. A CLAIM OF ENTITLEMENT TO TRADE SECRET PROTECTION PURSUANT TO  THIS
 TITLE  SHALL INCLUDE SUBSTANTIATING FACTS IN THE FORM OF THE INFORMATION
 REQUIRED BY 40 C.F.R. SECTION 350.7(A). IF REQUESTED BY THE TRADE SECRET
 CLAIMANT, THE DEPARTMENT SHALL TREAT ANY SUCH  SUBSTANTIATING  FACTS  AS
 CONFIDENTIAL  AND  SHALL  NOT  DISCLOSE  THEM  TO ANY THIRD PARTY OR THE
 PUBLIC FOR ANY PURPOSE. UNTIL A FINAL DETERMINATION THAT THE INFORMATION
 IS NOT ENTITLED TO TRADE SECRET PROTECTION IS MADE UNDER  THIS  SECTION,
 THE  DEPARTMENT  SHALL  TREAT THE INFORMATION IMPLICATED BY THE CLAIM OF
 TRADE SECRET ENTITLEMENT AS A CONFIDENTIAL TRADE SECRET, AND THE  INFOR-
 MATION  IS  NOT  SUBJECT  TO  DISCLOSURE  PURSUANT TO ARTICLE SIX OF THE
 PUBLIC OFFICERS LAW.
   2. THE COMMISSION SHALL DETERMINE A  CLAIM  OF  ENTITLEMENT  TO  TRADE
 SECRET  PROTECTION  MADE  PURSUANT TO THIS TITLE TO BE SUFFICIENT IF THE
 INFORMATION SET FORTH IN THE CLAIM  SUPPORTS  ALL  THE  CONCLUSIONS  SET
 FORTH  IN  40 C.F.R. SECTION 350.13(A) AND THE SUPPORTING INFORMATION IS
 TRUE. IN MAKING A DETERMINATION  AS  TO  A  CLAIM,  THE  DEPARTMENT  MAY
 REQUIRE  THE  TRADE  SECRET  CLAIMANT  TO SUBMIT ADDITIONAL SUPPLEMENTAL
 INFORMATION IF THE INFORMATION IS NECESSARY FOR THE DEPARTMENT  TO  MAKE
 ITS  DETERMINATION  UNDER THIS SECTION. IF REQUESTED BY THE TRADE SECRET
 CLAIMANT,  THE  DEPARTMENT  SHALL  TREAT  ANY  SUPPLEMENTAL  INFORMATION
 PROVIDED  AS  CONFIDENTIAL  AND  MAY NOT DISCLOSE THE INFORMATION TO ANY
 THIRD PARTY OR THE PUBLIC FOR ANY PURPOSE.
   3. IF THE DEPARTMENT DETERMINES A CLAIM OF ENTITLEMENT TO TRADE SECRET
 PROTECTION TO BE INSUFFICIENT, THE DEPARTMENT  SHALL  NOTIFY  THE  TRADE
 SECRET  CLAIMANT  IN WRITING OF THE DETERMINATION BY CERTIFIED MAIL. NOT
 LATER THAN THE FIFTEENTH DAY AFTER THE DATE THE  TRADE  SECRET  CLAIMANT
 RECEIVES  NOTICE  OF THE DETERMINATION, THE CLAIMANT MAY REQUEST ANOTHER
 REVIEW OF THE CLAIM. THE TRADE SECRET CLAIMANT MUST SHOW GOOD CAUSE  FOR
 THE  ADDITIONAL REVIEW. WHAT CONSTITUTES GOOD CAUSE FOR PURPOSES OF THIS
 SUBDIVISION IS SOLELY WITHIN THE REASONABLE DISCRETION OF THE DEPARTMENT
 AND MAY INCLUDE THE AVAILABILITY OF NEW SUPPORTING INFORMATION OR A GOOD
 FAITH ERROR OR OMISSION ON THE PART OF THE TRADE SECRET CLAIMANT IN  THE
 ORIGINAL  CLAIM.  NOT  LATER  THAN  THE THIRTIETH DAY AFTER THE DATE THE
 DEPARTMENT RECEIVES THE REQUEST, THE DEPARTMENT  SHALL  PROVIDE  WRITTEN
 NOTICE  TO  THE  TRADE SECRET CLAIMANT OF THE DEPARTMENT'S ACCEPTANCE OR
 REJECTION OF THE REQUEST. IF A TRADE SECRET CLAIMANT MAKES A REQUEST FOR
 REVIEW UNDER THIS SUBDIVISION, THE DEPARTMENT SHALL TREAT  THE  INFORMA-
 TION  IMPLICATED BY THE CLAIM OF TRADE SECRET ENTITLEMENT AS A CONFIDEN-
 TIAL TRADE SECRET UNTIL THE DEPARTMENT MAKES A DETERMINATION WITH REGARD
 TO THE REVIEW REQUEST. IF THE DEPARTMENT REJECTS THE REVIEW REQUEST, THE
 DEPARTMENT SHALL CONTINUE TO TREAT THE  INFORMATION  AS  A  CONFIDENTIAL
 TRADE  SECRET  UNTIL THE EARLIER OF THE THIRTIETH DAY AFTER THE DATE THE
 TRADE SECRET CLAIMANT RECEIVES NOTICE THAT THE DEPARTMENT  HAS  REJECTED
 THE  REVIEW  REQUEST  OR  THE DATE THE CLAIMANT WITHDRAWS THE DISCLOSURE
 PURSUANT TO SUBDIVISION FIVE OF THIS SECTION.

 A. 1741                             6
 
   4. NOT LATER THAN THE THIRTIETH DAY AFTER THE DATE  THE  TRADE  SECRET
 CLAIMANT  RECEIVES  NOTICE  FROM  THE DEPARTMENT THAT THE DEPARTMENT HAS
 REJECTED THE CLAIM OF ENTITLEMENT TO TRADE SECRET PROTECTION, THE CLAIM-
 ANT MAY COMMENCE AN ACTION PURSUANT  TO  ARTICLE  SEVENTY-EIGHT  OF  THE
 CIVIL  PRACTICE LAW AND RULES. IF A TRADE SECRET CLAIMANT COMMENCES SUCH
 AN ACTION, THE DEPARTMENT SHALL TREAT THE INFORMATION IMPLICATED BY  THE
 CLAIM  OF  TRADE SECRET ENTITLEMENT AS A CONFIDENTIAL TRADE SECRET UNTIL
 SUCH ACTION AND ALL APPEALS THEREOF ARE RESOLVED. IF THE ACTION  AFFIRMS
 THE  DEPARTMENT'S  DETERMINATION  OF THE INSUFFICIENCY OF THE CLAIM, THE
 DEPARTMENT SHALL CONTINUE TO TREAT THE  INFORMATION  AS  A  CONFIDENTIAL
 TRADE  SECRET  UNTIL THE EARLIER OF THE THIRTIETH DAY AFTER THE DATE THE
 TRADE SECRET CLAIMANT RECEIVES NOTICE THAT THE ACTION HAS BEEN  RESOLVED
 OR  THE  DATE THE CLAIMANT WITHDRAWS THE DISCLOSURE PURSUANT TO SUBDIVI-
 SION FIVE OF THIS SECTION.
   5. NOT LATER THAN THE THIRTIETH DAY AFTER THE DATE  THE  TRADE  SECRET
 CLAIMANT  RECEIVES  NOTIFICATION  THAT  THE  DEPARTMENT HAS REJECTED THE
 CLAIM OF ENTITLEMENT TO TRADE SECRET PROTECTION  OR  THE  DATE  A  FINAL
 JUDGMENT  AFFIRMING  THE DEPARTMENT'S DETERMINATION OF THE INSUFFICIENCY
 OF THE CLAIM IS ENTERED, AS APPLICABLE, AND ONLY TO THE EXTENT THAT  THE
 RELEVANT  CHEMICAL  CONSTITUENT  HAS  NOT  BEEN USED BY OR FOR THE TRADE
 SECRET CLAIMANT IN ANY HYDRAULIC FRACTURING TREATMENT IN THIS STATE, THE
 TRADE SECRET CLAIMANT MAY FORMALLY WITHDRAW THE DISCLOSURE OF A CHEMICAL
 CONSTITUENT BY NOTIFYING THE DEPARTMENT OF ITS INTENT  TO  WITHDRAW  THE
 DISCLOSURE.  IF  THE TRADE SECRET CLAIMANT WITHDRAWS THE DISCLOSURE OF A
 CHEMICAL CONSTITUENT, THE DEPARTMENT SHALL PROTECT AND HOLD CONFIDENTIAL
 THE IDENTITY OF THE  CHEMICAL  CONSTITUENT  AND  ANY  CORRESPONDING  CAS
 NUMBER,  AND  THE  INFORMATION  IS NOT SUBJECT TO DISCLOSURE PURSUANT TO
 ARTICLE SIX OF THE PUBLIC OFFICERS LAW. AFTER THE WITHDRAWAL, THE CHEMI-
 CAL CONSTITUENT SHALL NOT BE USED BY OR FOR THE TRADE SECRET CLAIMANT IN
 ANY HYDRAULIC FRACTURING TREATMENT IN THIS STATE UNLESS THE TRADE SECRET
 CLAIMANT SATISFIES THE  REQUIREMENTS  OF  THIS  TITLE  RELATING  TO  THE
 DISCLOSURE OF INFORMATION REGARDING THE CHEMICAL CONSTITUENT.
   6. NOTWITHSTANDING ANY OTHER PROVISION OF THIS SECTION, THE DEPARTMENT
 MAY:
   A.  DISCLOSE  INFORMATION OTHERWISE SUBJECT TO TRADE SECRET PROTECTION
 UNDER THIS SECTION TO A THIRD-PARTY TESTING FIRM IN CONNECTION WITH  THE
 INVESTIGATION  OF A CLAIM OF CONTAMINATION OF SURFACE WATER OR GROUNDWA-
 TER IF THE FIRM AGREES IN WRITING TO KEEP THE INFORMATION  CONFIDENTIAL;
 AND
   B.  USE  THE RESULTS OF A TEST CONDUCTED BY A THIRD-PARTY TESTING FIRM
 IN CONNECTION WITH AN INVESTIGATION DESCRIBED IN  PARAGRAPH  A  OF  THIS
 SUBDIVISION  IN ANY MANNER THE DEPARTMENT CONSIDERS NECESSARY TO PROTECT
 PUBLIC HEALTH AND THE ENVIRONMENT.
                                 TITLE 16
                    REGULATION OF HYDRAULIC FRACTURING
 SECTION 23-1601. DEFINITIONS.
         23-1603. CONCESSION OF LIABILITY.
         23-1605. AGREEMENTS WITH REAL PROPERTY OWNERS.
         23-1607. DAMAGES.
 § 23-1601. DEFINITIONS.
   AS USED IN THIS TITLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:
   1. "HYDRAULIC FRACTURING" MEANS THE USE OF CHEMICALS, WATER AND  OTHER
 SUBSTANCES  INJECTED  OR PUMPED INTO A NATURAL GAS WELL TO STIMULATE THE
 EXTRACTION OF NATURAL GAS.

 A. 1741                             7
 
   2. "PRODUCER" MEANS ANY INDIVIDUAL OR ENTITY ENGAGED IN  THE  DRILLING
 FOR  OR  EXTRACTION  OF NATURAL GAS THROUGH THE UTILIZATION OF HYDRAULIC
 FRACTURING.
 § 23-1603. CONCESSION OF LIABILITY.
   1.  EVERY  PRODUCER,  PRIOR TO THE ISSUANCE OF ANY PERMIT, PURSUANT TO
 THIS ARTICLE, TO ENGAGE  IN  HYDRAULIC  FRACTURING,  SHALL  EXECUTE  AND
 DELIVER  TO  THE  DEPARTMENT A CONCESSION OF LIABILITY AND WAIVER OF ALL
 DEFENSES ARISING OUT  OF  ANY  CAUSE  OF  ACTION  RELATED  TO  PROPERTY,
 PERSONAL  AND  WRONGFUL  DEATH  DAMAGES  ALLEGED  TO HAVE BEEN CAUSED BY
 HYDRAULIC FRACTURING CONDUCTED BY SUCH  PRODUCER.  SUCH  CONCESSION  AND
 WAIVER  SHALL BE EXECUTED IN SUCH FORM AND MANNER AS SHALL BE DETERMINED
 BY THE ATTORNEY GENERAL, AND SHALL PROVIDE FOR STRICT LIABILITY  TO  THE
 PEOPLE  OF  THE  STATE OF NEW YORK AND EVERY PERSON WITHIN THE STATE FOR
 ANY AND ALL DAMAGES ARISING FROM THE CONDUCTING OF HYDRAULIC  FRACTURING
 WITHIN THIS STATE.
   2. EVERY PRODUCER WHICH ENTERS INTO AN AGREEMENT WITH AN OWNER OF REAL
 PROPERTY  IN THIS   STATE WHICH PROVIDES FOR THE LEASE, LICENSE OR GRANT
 OF AUTHORITY TO CONDUCT HYDRAULIC FRACTURING UPON  SUCH  REAL  PROPERTY,
 SHALL    INCLUDE A COPY OF ITS CONCESSION OF LIABILITY EXECUTED PURSUANT
 TO SUBDIVISION ONE OF THIS SECTION AND A SIMILAR CONCESSION OF LIABILITY
 EXECUTED IN FAVOR OF THE REAL PROPERTY OWNER. SUCH CONCESSION OF LIABIL-
 ITY IN FAVOR OF A REAL PROPERTY OWNER SHALL BE IN SUCH FORM AS SHALL  BE
 DETERMINED BY THE ATTORNEY GENERAL.
 § 23-1605. AGREEMENTS WITH REAL PROPERTY OWNERS.
   1.  NO  AGREEMENT  FOR  THE  LEASE,  LICENSE  OR GRANT OF AUTHORITY TO
 CONDUCT HYDRAULIC FRACTURING UPON REAL PROPERTY IN THIS STATE, SHALL  BE
 EXECUTED  UNTIL  THREE  INDEPENDENT APPRAISALS OF THE VALUE OF SUCH REAL
 PROPERTY HAVE BEEN CONDUCTED. SUCH APPRAISALS SHALL BE CONDUCTED AT  THE
 EXPENSE  OF  THE  PRODUCER  BY  APPRAISERS SELECTED BY THE REAL PROPERTY
 OWNER. UPON COMPLETION OF SUCH APPRAISALS A COPY OF EACH APPRAISAL SHALL
 BE PROVIDED TO THE REAL PROPERTY OWNER, THE PRODUCER AND THE DEPARTMENT,
 AND SHALL BE ATTACHED TO EVERY AGREEMENT PROVIDING FOR  HYDRAULIC  FRAC-
 TURING UPON SUCH REAL PROPERTY.
   2.  NO  AGREEMENT  FOR  THE  LEASE,  LICENSE  OR GRANT OF AUTHORITY TO
 CONDUCT HYDRAULIC FRACTURING UPON REAL PROPERTY IN THIS STATE, SHALL  BE
 EXECUTED  UNTIL  THE  DEPARTMENT  SHALL  HAVE  CONDUCTED  WATER AND SOIL
 CONTAMINATION TESTING UPON  SUCH  REAL  PROPERTY  FOR  THE  PRESENCE  OF
 HYDRAULIC  FRACTURING  FLUIDS.  A  REPORT OF THE RESULTS OF SUCH TESTING
 SHALL BE PROVIDED TO BOTH THE REAL PROPERTY OWNER AND THE PRODUCER.
   3. EACH PRODUCER SHALL INCLUDE IN EVERY AGREEMENT IT ENTERS INTO  WITH
 THE OWNER OF REAL PROPERTY IN THIS STATE FOR THE LEASE, LICENSE OR GRANT
 OF AUTHORITY TO CONDUCT HYDRAULIC FRACTURING UPON SUCH REAL PROPERTY:
   A.  A STATEMENT OF THE FINANCIAL, HEALTH AND ENVIRONMENTAL RISKS POSED
 BY OR POTENTIALLY POSED BY CONDUCT OF HYDRAULIC FRACTURING. SUCH  STATE-
 MENT  SHALL BE JOINTLY DEVELOPED AND PERIODICALLY UPDATED BY THE COMMIS-
 SIONER, THE ATTORNEY GENERAL AND THE COMMISSIONER OF HEALTH;
   B. A STATEMENT OF THE RISKS OF GROUND SOIL AND  GROUND  WATER  CONTAM-
 INATION  POSED BY OR POTENTIALLY POSED BY THE CONDUCT OF HYDRAULIC FRAC-
 TURING;
   C. A STATEMENT OF THE HEALTH RISKS POSED  BY  SPILLS  OF  AND  CONTAM-
 INATION BY HYDRAULIC FRACTURING FLUIDS; AND
   D.  A  STATEMENT  OF  THE  PRODUCER'S STRICT LIABILITY FOR ANY AND ALL
 DAMAGES RESULTING FROM THE CONDUCTING OF HYDRAULIC FRACTURING,  AND  THE
 DAMAGES THAT WILL BE AWARDED THEREFOR PURSUANT TO THIS TITLE.
 § 23-1607. DAMAGES.

 A. 1741                             8
 
   1.  NOTWITHSTANDING  ANY  OTHER PROVISION OF LAW TO THE CONTRARY, UPON
 THE CONTAMINATION OF GROUND SOIL AND/OR GROUND WATER  BY  ANY  PRODUCER,
 SUCH PRODUCER SHALL BE LIABLE FOR THE FOLLOWING DAMAGES:
   A. TO THE AFFECTED REAL PROPERTY OWNER, AN AMOUNT EQUAL TO ONE HUNDRED
 FIFTY  PERCENT  OF  THE  REAL  PROPERTY VALUE, AS DETERMINED PURSUANT TO
 SUBDIVISION ONE OF SECTION 23-1605 OF THIS TITLE, AND THE FULL  COST  OF
 REMEDIATING THE CONTAMINATED GROUND SOIL AND GROUND WATER; AND
   B.  TO  ANY  PERSON AFFECTED BY SUCH CONTAMINATION, AN AMOUNT EQUAL TO
 THE COST OF THE  DIAGNOSIS,  TREATMENT,  MONITORING  AND  CARE  OF  SUCH
 PERSON,  FOR  LIFE,  RELATED  TO ANY DISEASE OR CONDITION ARISING OUT OF
 SUCH CONTAMINATION.
   2. UNDER NO CIRCUMSTANCES SHALL ANY AMOUNT OF DAMAGES AWARDED OR  PAID
 PURSUANT TO THIS SECTION BE DEEMED TO BE INCOME TO ANY PERSON.  ALL SUCH
 DAMAGES  SHALL  BE  REIMBURSEMENT  FOR  LOSSES  ACTUALLY INCURRED BY THE
 RECIPIENT THEREOF.
   § 2. Subdivision 9 of section 8-0109 of the environmental conservation
 law, as added by chapter 219 of the laws of 1990, is amended to read  as
 follows:
   9.  An environmental impact statement shall be prepared for any action
 found to have a significant impact on the special groundwater protection
 area, as defined in section 55-0107 of this chapter OR FOR  ANY  NATURAL
 GAS  OR  OIL  DRILLING  INVOLVING THE USE OF HYDRAULIC FRACTURING FLUID.
 Such statement shall meet the requirements of the most detailed environ-
 mental impact statement required by this section or by any such rule  or
 regulation promulgated pursuant to this section.
   §  3.  Subdivision 2 of section 23-0303 of the environmental conserva-
 tion law is REPEALED and a  new  subdivision  2  is  added  to  read  as
 follows:
   2.  FOR  THE  PURPOSES STATED HEREIN, THIS SECTION SHALL SUPERSEDE ALL
 OTHER STATE AND LOCAL LAWS RELATING TO THE OIL, GAS AND SOLUTION  MINING
 INDUSTRIES;  PROVIDED,  HOWEVER,  THAT  NOTHING IN THIS SECTION SHALL BE
 CONSTRUED TO PREVENT ANY LOCAL GOVERNMENT FROM:
   A. ENACTING OR ENFORCING LOCAL LAWS OR ORDINANCES OF GENERAL  APPLICA-
 BILITY,  EXCEPT  THAT  SUCH  LOCAL LAWS OR ORDINANCES SHALL NOT REGULATE
 OIL, GAS AND SOLUTION MINING REGULATED BY STATE STATUTE,  REGULATION  OR
 PERMIT; OR
   B.  ENACTING OR ENFORCING LOCAL ZONING ORDINANCES OR LAWS WHICH DETER-
 MINE PERMISSIBLE USES IN ZONING DISTRICTS. WHERE OIL, GAS  AND  SOLUTION
 MINING  IS DESIGNATED A PERMISSIBLE USE IN A ZONING DISTRICT AND ALLOWED
 BY SPECIAL USE PERMIT, CONDITIONS PLACED ON  SUCH  SPECIAL  USE  PERMITS
 SHALL BE LIMITED TO THE FOLLOWING:
   (I) INGRESS AND EGRESS TO PUBLIC THOROUGHFARES CONTROLLED BY THE LOCAL
 GOVERNMENT;
   (II)  ROUTING  OF  DRILLING AND DRILLING-RELATED TRANSPORT VEHICLES ON
 ROADS CONTROLLED BY THE LOCAL GOVERNMENT;
   (III) REQUIREMENTS AND CONDITIONS AS SPECIFIED IN THE PERMIT ISSUED BY
 THE DEPARTMENT CONCERNING SETBACK FROM PROPERTY  BOUNDARIES  AND  PUBLIC
 THOROUGHFARE  RIGHTS-OF-WAY,  NATURAL  OR  MAN-MADE BARRIERS TO RESTRICT
 ACCESS, IF REQUIRED, DUST CONTROL AND HOURS OF OPERATION; AND
   (IV) CONFORMANCE TO ROAD CONSTRUCTION STANDARDS AS  MAY  BE  OTHERWISE
 PROVIDED FOR BY LOCAL LAW; OR
   C.  ENACTING OR ENFORCING LOCAL LAWS OR ORDINANCES REGULATING OIL, GAS
 AND SOLUTION MINING NOT REQUIRED TO BE PERMITTED BY THE STATE.
   § 4. This act shall take effect on the first of June  next  succeeding
 the  date  on  which  it  shall  have  become  a law; provided, that the
 provisions of title 16 of article 23 of the  environmental  conservation

 A. 1741                             9
 
 law,  as  added  by section one of this act, shall apply to every lease,
 license and grant of authority to conduct hydraulic fracturing which  is
 in  effect  on or after such effective date.  Effective immediately, the
 addition,  amendment  and/or  repeal of any rule or regulation necessary
 for the implementation of this act on its effective date are  authorized
 to be made and completed on or before such date.