§ 23-0305. Powers and duties of the commissioner and the department.

1. The provisions of this section shall apply only to rules,
regulations, orders and hearings made or conducted in the administration
of this article.

2. No rule, regulation, order or amendment thereof, except in an
emergency, shall be made by the department without a public hearing upon
at least ten days' notice, exclusive of the date of service. The public
hearing shall be held at such time and place as may be prescribed by the
department and any interested person shall be entitled to be heard.

3. When an emergency requiring immediate action is found to exist, the
department may make an emergency order without notice or hearing, which
shall be effective when made. No emergency order shall be effective for
more than fifteen days.

4. Any notice required by this article shall be given by the
department by any one or more of the following methods: (a) personal
service, (b) publication in one or more issues of a newspaper of general
circulation in the county where the land affected or some part thereof
is situated, or (c) by registered or certified mail addressed, postage
prepaid, to the last known mailing address of the person or persons
affected. The date of service shall be the date on which service was
made in the case of personal service, the date of first publication in
the case of notice by publication, and the date of mailing in the case
of notice by mail. The notice shall specify the style and number of the
proceeding, the time and place of the hearing, and shall briefly state
the purpose of the proceeding. Should the department elect to give
notice by personal service, such service may be made by any officer
authorized to serve process, or by any agent of the department in the
same manner as is provided by law for the service of process in civil
actions in the courts of the state.

5. All rules, regulations and orders made by the department shall be
in writing, shall be entered in full and indexed in books to be kept by
the department for that purpose, and shall be public records open for
inspection at all times during reasonable office hours. A copy of any
department rule or regulation shall be received in evidence in all
courts of this state with the same effect as the original, if certified
by a member or duly authorized employee of the department.

6. The department may act upon its own motion or upon the application
of any interested person. On the filing of an application concerning any
matter within the jurisdiction of the department, pursuant to this
article, the department shall promptly fix a date for a hearing thereon,
and shall cause notice of the hearing to be given. The hearings shall be
held without undue delay after the filing of the petition. The
department shall make its order within sixty days after the conclusion
of the hearing.

7. To aid in the administration of this article, the commissioner may
issue subpoenas in his name requiring the attendance and giving of
testimony by witnesses and the production of books, papers and other
documentary evidence for any hearing, proceeding or investigation
conducted or to be conducted by or before the department. Service of
such a subpoena, enforcement of obedience thereto, and punishment for
disobedience thereof shall be had as and in the manner provided by the
Civil Practice Law and Rules relating to enforcement of a subpoena
issued by a board or committee except that in the case of hearings,
proceedings or investigations before or conducted by the department
neither the holder of a permit or lease issued pursuant to this article,
nor an employee of such permit holder or lessee, nor an officer or
stockholder in a permittee or lessee corporation, when required to
attend as a witness, shall be entitled to any subpoena fee or mileage.
Any member of the department or any person who may be designated by the
department to hold hearings may administer oaths to witnesses. The
department also may provide for the taking of depositions of witnesses
for the purpose of any such hearing. In such case such officer, employee
or other person may administer oaths to the witnesses whose depositions
are to be taken. Each deposition shall be reduced to writing and
subscribed by the deponent. The provisions of this subdivision shall
apply only to the administration of this article.

8. With respect to oil pools or fields and natural gas pools or
fields, the department shall have power to:

a. Make such investigations as it deems proper to determine whether
waste exists or is imminent.

b. Require identification of ownership of producing leases, tanks,
plants, structures and facilities for the transportation and refining of
oil and gas.

c. 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.

d. Require the drilling, casing, operation, plugging and replugging of
wells and reclamation of surrounding land in accordance with rules and
regulations of the department in such manner as to prevent or remedy the
following, including but not limited to: the escape of oil, gas, brine
or water out of one stratum into another; the intrusion of water into
oil or gas strata other than during enhanced recovery operations; the
pollution of fresh water supplies by oil, gas, salt water or other
contaminants; and blowouts, cavings, seepages and fires.

e. 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.
Such plugging or replugging by the department shall be at the expense of
the owner or operator whose duty it may be to plug the well and who
shall hold harmless the state of New York for all accounts, damages,
costs and judgments arising from the plugging or replugging of the well
and the surface restoration of the affected land. Primary liability for
the expense of such plugging or replugging and first recourse for the
recovery thereof shall be to the operator unless a contract for the
production, development, exploration or other working of the well, to
which the lessor or other grantor of the oil and gas rights is a party,
shall place such liability on the owner or on the owner of another
interest in the land on which the well is situated. When an operator
violates any provision of this article, any rule or regulation
promulgated thereunder, or any order issued pursuant thereto in
reference to plugging or replugging an abandoned well, the operator may
not transfer the operator's responsibility therefor by surrendering the
lease. Prior to the commencement of drilling of any well, the operator
shall be required to furnish to the department, and continuously
maintain, a bond acceptable to it conditioned upon the performance of
said operator's plugging responsibilities with respect to said well.
Upon the approval of the department, in lieu of such bond, the operator
may deposit cash or negotiable bonds of the United States Government of
like amount in an escrow account conditioned upon the performance of
said operator's plugging responsibilities with respect to said well. Any
interest accruing as a result of the aforementioned escrow deposit shall
be the exclusive property of the operator. The aforementioned bonding
requirements shall remain the obligation of the original operator
regardless of changes in operators unless a subsequent operator has
furnished the appropriate bond or substitute as herein provided
acceptable to the department and approval for the transfer of the well
plugging responsibilities to the subsequent operator has been granted by
the department. The failure of any operator to maintain a bond or other
financial security as prescribed herein shall be deemed a breach of
plugging responsibilities and entitle the department to claim the
proceeds of the bond or other financial security. The cost of plugging
or replugging any well, where such action is necessary or incident to
the commencing or carrying on of storage operations pursuant to section
23-1103 or 23-1301 shall be borne by the operator of the storage
facility.

f. 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 in this state shall keep and maintain complete and
accurate records of the quantities thereof. Quantities of associated
fluids injected or produced may be reported as estimated volumes. True
copies or duplicates shall be kept or made available for examination
within this state by the department or its agents at all reasonable
times and every such person shall file with the department such reports
concerning production, sales, purchases, acquisitions, injection,
transportation or storage on a form provided by the department or
approved by the department prior to submittal.

g. In addition to the powers provided for in titles 1, 3, 5 and 13 of
article 71, order an immediate suspension of drilling or production
operations whenever such operations are being carried on in violation of
this article or any rule or regulation promulgated thereunder or order
issued pursuant thereto. Any order issued pursuant to this paragraph may
be reviewed upon application of an aggrieved party by means of an order
to show cause which order shall be issued by any justice of the supreme
court in the judicial district in which any order applies and shall be
returnable on the third succeeding business day following the issuance
of such order. Service of such show cause order shall be made upon the
regional office of the department for the region in which such order
applies, and upon the attorney general by delivery of such order to an
assistant attorney general at an office of the attorney general in the
county in which venue of the proceeding is designated, or if there is no
office of the attorney general within such county, at the office of the
attorney general nearest such county. Except as hereinabove specified,
the proceeding to review an order under this paragraph shall be governed
by article seventy-eight of the civil practice law and rules.

h. Require the immediate reporting of any non-routine incident
including but not limited to casing and drill pipe failures, casing
cement failures, fishing jobs, fires, seepages, blowouts and other
incidents during drilling, completion, producing, plugging or replugging
operations that may affect the health, safety, welfare or property of
any person. The department may require the operator, or any agent
thereof, to record any data which the department believes may be of
subsequent use for adequate evaluation of a non-routine incident.

i. 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 this article. Upon the request of the state geologist,
the department shall cause such duplicate samples or copies of records
and reports as may be required pursuant to this article to be furnished
to him.

j. 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. Rules and regulations promulgated under this
article shall specify the distance from underground mining operations
within which such notice shall be given and shall contain such other
provisions as in the judgment of the department shall be necessary in
the interest of safety. The department shall not be required to furnish
any notice required by this paragraph unless the person or persons
engaged in underground mining operations or having rights in mining
properties have notified the department of the existence and location of
such underground mining operations or properties.

k. (1) Except as to production of gas from lands under the waters of
Lake Erie, in order to satisfy the financial security requirements
contained in paragraph e of this subdivision for wells less than six
thousand feet in depth for which the department either shall have issued
or shall issue permits to drill such wells or, on or after June fifth,
nineteen hundred seventy-three, shall have issued acknowledgements of
notices of intention to drill such wells, without any way affecting any
obligations to plug such wells, the operator shall provide a bond or
other financial security acceptable to the department in the following
amount:

(i) for wells less than two thousand five hundred feet in depth:

(a) twenty-five hundred dollars per well, provided that the operator
shall not be required to provide financial security under this item
exceeding twenty-five thousand dollars for up to twenty-five wells;

(b) for twenty-six to fifty wells, twenty-five thousand dollars, plus
twenty-five hundred dollars per well in excess of twenty-five wells,
provided that the operator shall not be required to provide financial
security under this item exceeding forty thousand dollars;

(c) for fifty-one to one hundred wells, forty thousand dollars, plus
twenty-five hundred dollars per well in excess of fifty wells, provided
that the operator shall not be required to provide financial security
under this item exceeding seventy thousand dollars;

(d) for over one hundred wells, seventy thousand dollars, plus
twenty-five hundred dollars per well in excess of one hundred wells,
provided that the operator shall not be required to provide financial
security under this item exceeding one hundred thousand dollars.

(ii) for wells between two thousand five hundred feet and six thousand
feet in depth:

(a) five thousand dollars per well, provided that the operator shall
not be required to provide financial security under this item exceeding
forty thousand dollars for up to twenty-five wells;

(b) for twenty-six to fifty wells, forty thousand dollars, plus five
thousand dollars per well in excess of twenty-five wells, provided that
the operator shall not be required to provide financial security under
this item exceeding sixty thousand dollars;

(c) for fifty-one to one hundred wells, sixty thousand dollars, plus
five thousand dollars per well in excess of fifty wells, provided that
the operator shall not be required to provide financial security under
this item exceeding one hundred thousand dollars;

(d) for over one hundred wells, one hundred thousand dollars, plus
five thousand dollars per well in excess of one hundred wells, provided
that the operator shall not be required to provide financial security
under this item exceeding one hundred fifty thousand dollars.

(2) In the event that an operator shall have wells described in
clauses (i) and (ii) of subparagraph (1) of this paragraph, in lieu of
providing financial security under the provisions of each such clause,
such operator may file financial security as if all such wells were
between two thousand five hundred feet and six thousand feet in depth.

(3) For wells greater than six thousand feet in depth, the operator
may be required to provide additional financial security consistent with
criteria contained in rules and regulations to be adopted to implement
this subparagraph.

8-a. The department shall include consideration of future physical
climate risk due to sea level rise, and/or storm surges and/or flooding,
based on available data predicting the likelihood of extreme weather
events, including hazard risk analysis data if applicable, to permits
issued pursuant to title five of this article.

9. With respect to solution mining areas the department shall have the
power to:

a. Require identification of ownership of producing leases and
solution mining equipment such as structures, tanks, gathering systems
and facilities for the transportation of salt brine.

b. Require the drilling, casing, operation and plugging of wells in
accordance with rules and regulations of the department in such a manner
as to prevent the loss or escape of oil or gas reserves to the surface
or to other strata; the intrusion of brine or water into commercial oil
or gas reserves; the pollution of fresh water supplies by oil, gas or
salt water, and to facilitate the efficient use of ground and surface
waters in solution mining.

c. Give notice to persons engaging in underground mining operations of
the commencing of any phase of solution mining well operations which may
affect the safety of such underground mining operations or of the mining
properties involved. Rules and regulations of the department adopted
pursuant hereto shall specify the distance from such underground mining
operations within which such notice shall be given and shall contain
such other provisions as in the judgment of the department shall be
necessary in the interest of safety. The department shall not be
required to furnish any notice pursuant hereto unless the person or
persons engaged in underground mining operations or having rights in
mining properties have notified the department of the existence and
location of such underground mining operations or properties.

d. Require metering or other measuring of brine produced by solution
mining, and the maintenance of the records from each cavity or group of
interconnected cavities until the wells in a cavity have been plugged
and abandoned. These records shall be given to the department on
request.

e. Enter, take temporary possession of, plug or replug any abandoned
well as provided in the rules and regulations, whenever any operator
neglects or refuses to comply with such rules and regulations. Such
plugging or replugging by the department shall be at the expense of the
owner or operator whose duty it shall be to plug the well and who shall
hold harmless the state of New York for all accounts, damages, costs and
judgments arising for the plugging or replugging of the well and the
surface restoration of the affected land. Primary liability for the
expense of such plugging or replugging and first recourse for the
recovery thereof shall be to the operator unless a contract for the
production, development, exploration or other working of the well, to
which the lessor or other grantor of the solution salt rights is a
party, shall place such liability on the owner or on the owner of
another interest in the land on which the well is situated. When an
operator violates any provision of this article, any rule or regulation
promulgated thereunder, or any order issued pursuant thereto in
reference to plugging or replugging an abandoned well, the operator may
not transfer the operator's responsibility therefor by surrendering the
lease. Prior to the commencement of drilling of any well to which this
subdivision applies, the operator shall be required to furnish to the
department, and continuously maintain, a bond acceptable to it
conditioned upon the performance of said operator's plugging
responsibilities with respect to said well. Upon the approval of the
department, in lieu of such bond, the operator may deposit cash or
negotiable bonds of the United States Government of like amount in an
escrow account conditioned upon the performance of said operator's
plugging responsibilities with respect to said well. Any interest
accruing as a result of aforementioned escrow deposit shall be the
exclusive property of the operator. The aforementioned bonding
requirements shall remain the obligation of the original operator
regardless of changes in operators unless a subsequent operator has
furnished the appropriate bond or substitute as herein provided
acceptable to the department and approval for the transfer of the well
plugging responsibility to the subsequent operator has been granted by
the department. The failure of any operator to maintain a bond or other
financial security as prescribed herein shall be deemed a breach of
plugging responsibilities and entitle the department to claim the
proceeds of the bond or other financial security. Any order issued
pursuant to this paragraph may be reviewed upon application of an
aggrieved party by means of an order to show cause which order shall be
issued by any justice of the supreme court in the judicial district in
which any such order applies and shall be returnable on the third
succeeding business day following the issuance of such order. Service of
such show cause order shall be made upon the regional office of the
department for the region in which such order applies, and upon the
attorney general by delivery of such order to an assistant attorney
general at an office of the attorney general in the county in which
venue of the proceeding is designated, or if there is no office of the
attorney general within such county, at the office of the attorney
general nearest such county. Except as hereinabove specified, the
proceeding to review an order under this paragraph shall be governed by
article seventy-eight of the civil practice law and rules.

f. (1) In order to satisfy the financial security requirements
contained in paragraph e of this subdivision for all wells for which the
department either shall have issued or shall issue permits to drill such
wells or, on or after June fifth, nineteen hundred seventy-three, shall
have issued acknowledgements of notices of intention to drill such
wells, without in any way affecting any obligation to plug such wells,
the operator shall provide a bond or other financial security acceptable
to the department in the following amount:

(i) for wells less than two thousand five hundred feet in depth:

(a) twenty-five hundred dollars per well, provided that the operator
shall not be required to provide financial security under this item
exceeding twenty-five thousand dollars for up to twenty-five wells;

(b) for twenty-six to fifty wells, twenty-five thousand dollars, plus
twenty-five hundred dollars per well in excess of twenty-five wells,
provided that the operator shall not be required to provide financial
security under this item exceeding forty thousand dollars;

(c) for fifty-one to one hundred wells, forty thousand dollars, plus
twenty-five hundred dollars per well in excess of fifty wells, provided
that the operator shall not be required to provide financial security
under this item exceeding seventy thousand dollars;

(d) for over one hundred wells, seventy thousand dollars, plus
twenty-five hundred dollars per well in excess of one hundred wells,
provided that the operator shall not be required to provide financial
security under this item exceeding one hundred thousand dollars.

(ii) for wells between two thousand five hundred feet and six thousand
feet in depth:

(a) five thousand dollars per well provided that the operator shall
not be required to provide financial security under this item exceeding
forty thousand dollars for up to twenty-five wells;

(b) for twenty-six to fifty wells, forty thousand dollars, plus five
thousand dollars per well in excess of twenty-five wells, provided that
the operator shall not be required to provide financial security under
this item exceeding sixty thousand dollars;

(c) for fifty-one to one hundred wells, sixty thousand dollars, plus
five thousand dollars per well in excess of fifty wells, provided that
the operator shall not be required to provide financial security under
this item exceeding one hundred fifty thousand dollars;

(d) for over one hundred wells, one hundred thousand dollars, plus
five thousand dollars per well in excess of one hundred wells, provided
that the operator shall not be required to provide financial security
under this item exceeding one hundred fifty thousand dollars.

(2) In the event that an operator shall have wells described in
clauses (i) and (ii) of subparagraph (1) of this paragraph, in lieu of
providing financial security under the provisions of each such clause,
such operator may file financial security as if all such wells were
between two thousand five hundred feet and six thousand feet in depth.

(3) For wells greater than six thousand feet in depth, the operator
may be required to provide additional financial security consistent with
criteria contained in rules and regulation to be adopted to implement
this subparagraph.

10. In the case of any well legally plugged pursuant to subdivision
nine hereof, the responsibility for the cost of replugging or
reinforcing the plugging of any well, whenever such replugging or
reinforcing is made necessary by reason of the commencement or expansion
of storage operations, shall be borne by the operator of the storage
facility.

11. The department may use any of its powers for the purpose of
cooperating with any other state or jurisdiction in regulating or
otherwise affecting the development or production of oil, gas or salt at
any location where such development or production may have a physical
effect on development or production in such other state or jurisdiction.

12. With respect to the production of gas from lands under the waters
of Lake Erie:

a. This state shall indemnify all municipalities adjacent to Lake Erie
within the state of New York for expenses of restoration of fresh water
supplies, cleanup of beaches, piers and similar facilities, and for
liability claims arising from any discharge or spill occasioned by
exploration, drilling or production of operations.

b. If any oil or other hazardous substance is discharged in the course
of drilling for or piping natural gas so as to pollute the waters or
endanger other natural resources of the state, the department shall
immediately act to remove or arrange for the removal of such substance
and to terminate or arrange for the termination of such discharge,
unless the department determines that such removal or termination will
be done properly and expeditiously by the lessee, owner or operator of
the drilling or piping operation.

c. Whenever the department acts to remove or arrange for the removal
of any substance, or terminates or arranges for the termination of any
discharge, the department may draw upon moneys that may be set aside for
the department for such purposes from the governmental emergency fund,
under such terms and conditions as the governor and the legislature have
established for use of such moneys.

d. No action taken by any person to contain or remove a discharge
shall be construed as an admission of liability for said discharge.
Provided that any person who undertakes removal or cleanup operations
shall, at the request of the department or an appropriate federal
agency, coordinate his actions with ongoing state or federal operations.
No person who renders assistance in containing or removing a discharge
shall be liable for any civil damages to third parties resulting solely
from acts or omissions in rendering such assistance except for acts or
omissions of gross negligence or willful misconduct. In the course of
cleanup operations, no person shall discharge any detergent into the
waters of this state without prior authorization of the commissioner.

13. Every person granted a permit to drill pursuant to this section
shall give notice by certified mail to any local government affected of
the location of the drilling site prior to the commencement of drilling
operations. Such prior notice shall also be given by certified mail to
any landowner whose surface rights will be affected by drilling
operations.

14. With respect to wells drilled deeper than five hundred feet below
the earth's surface for the purpose of conducting stratigraphic tests,
for finding or producing hot water or steam, for injecting fluids to
recover heat from the surrounding geologic materials, which shall not
include closed-loop boreholes installed for the purpose of facilitating
a geothermal heating or cooling system, or for the disposal of brines,
the department shall have the power to:

a. Require all exploration, drilling and development operations to be
conducted in accordance with standards promulgated by the department in
rules and regulations.

b. Conduct investigations to determine the extent of compliance with
this section and all rules, regulations and orders issued pursuant
thereto.

c. Classify a well as one subject to this section and require its
identification as a geothermal, stratigraphic or brine disposal well.

d. Require the drilling, casing, operation, plugging and replugging of
wells subject to this section and reclamation of surrounding land in
accordance with rules and regulations of the department.

e. Enter, take temporary possession of, plug or replug any abandoned
well subject to this section as provided in the rules and regulations,
whenever the well's owner or operator neglects or refuses to comply with
such rules and regulations. Such plugging or replugging by the
department shall be at the expense of the owner or operator whose duty
it shall be to plug the well and who shall hold harmless the state of
New York for all accounts, damages, costs and judgments arising from the
plugging or replugging of the well and the surface restoration of the
affected land.

f. Require that the operator furnish to the department, and
continuously maintain, a bond or other financial security conditioned
upon the satisfactory performance of the operator's plugging
responsibilities with respect to said well. The failure of any operator
to maintain a bond or other financial security as prescribed herein
shall be deemed a breach of plugging responsibilities and entitle the
department to claim the proceeds of the bond or other financial
security. Such bond or other financial security shall be for an amount
as determined pursuant to the provisions of paragraph k of subdivision
eight of this section.

g. In addition to the powers provided for in titles one, three, five
and thirteen of article seventy-one of this chapter, order an immediate
suspension of operations carried on in violation of the oil, gas and
solution mining law or any rule or regulation promulgated thereunder or
order issued pursuant thereto.

h. Require the immediate reporting of any non-routine incident,
including but not limited to casing and drill pipe failures, casing
cement failures, fishing jobs, fires, seepages, blowouts and other
incidents during drilling, completion, producing, plugging or replugging
operations that may affect the health, safety, welfare or property of
any person or which may be injurious to plants or animals. The
department may require the operator or any agent thereof to record and
provide any data which the department believes may be of use for
adequate evaluation of a non-routine incident.

i. Require the taking and making of logs, samples, directional surveys
and reports on locations, elevations, drilling and production, and
further require filing of such information pursuant to the provisions of
the oil, gas and solution mining law. Upon the request of the state
geologist, the department shall cause such samples or copies of records
and reports to be furnished to the state geologist.

j. Give notice to persons engaged in underground mining operations of
the commencement of any phase of geothermal, stratigraphic and brine
disposal well operations which may affect the safety of such underground
mining operations or of the mining properties involved. The department
shall not be required to furnish any notice required by this paragraph
unless the person or persons engaged in underground mining operations or
having rights in mining properties have notified the department of the
existence and location of such underground mining operations or
properties.

15. The department is authorized to regulate for the purposes of
protecting natural resources and the environment or public health and
safety, closed-loop boreholes deeper than five hundred feet below the
earth's surface installed for the purpose of facilitating a geothermal
heating or cooling system and no later than December thirty-first, two
thousand twenty-four shall promulgate regulations relating to such
boreholes, and may update such regulations from time to time. When
regulating such closed-loop boreholes, the department shall consider
relevant prevailing industry standards.