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April 22, 2013 Hon. Andrew M.

Cuomo Governor, State of New York State Capitol Albany, New York 12224 Dear Governor Cuomo: I write with deep concern for the future of natural gas development in this state. We are tremendously anxious that a profound misunderstanding and misrepresentation of the processes for indigenous natural gas production may now prevail in New York, rather than fair consideration based on science and realworld experience. More than anything, I write representing an industry and profession in crisis, with the livelihoods of the people we employ now imperiled. In 2008, the DEC issued roughly 550 permits for vertically drilled oil and gas wells. Last year that number dropped to 163. Our industry, which has operated in good faith and responsibly for decades in New York, is leaving; and so are the 5,000 direct and nearly 50,000 indirect jobs supported by our members. As all credible scientific research and demonstrated success has so often indicated, natural gas is the cleanest-burning fossil fuel. It is creating good, high-paying jobs, and it will continue to be in demand for decades to power business, vehicles and homes. Undeniably, it is fostering a manufacturing and economic resurgence across the country. In a recent interview, you challenged those who advance extreme arguments at the expense of the reasonable. It is our hope that the same standard is being applied to your determination regarding the exploration of natural gas reserves in New York State. Further, we ask that you consider that many regulators and elected officials are embracing natural gas as a source of clean, abundant and domestically available energy. Not here, though, and we need to know why. Earlier this month, General Electric Chairman & CEO Jeff Immelt said, The availability of shale in the United States and around the world has to be one of the biggest game-changers Ive seen in my career. President Obama, former President Clinton, many other national leaders, including Governors and Fortune 500 CEOs have all recognized and embraced the opportunity that natural gas presents for our economy and the environment. Real knowledge not rumor-mongering or pseudo-science regarding the scientific, highly technical process of natural gas exploration and hydraulic fracturing is readily available. Our state has had nearly five years to review and act on this knowledge. Five years to learn the following:

38 Lake Street Hamburg, New York 14075 Phone (716) 202-4688 Fax (716) 202-4689

MIT physicist Ern nest Moniz, President P Ob bamas energ gy secretary nominee, n said d a stunning g increa ase in produ uction of dom mestic natura al gas in rece ent years was nothing less s than a revo olution that has h led to red duced emissio ons of carbon dioxide and other gases s that cause global g warmi ing, accor rding to the Associated A Pr ress (AP). mer U.S. Envi ironmental Protection P Ad dministration n administrat tor Lisa Jacks son has testif fied there Form are no o known inst tances where e hydraulic fr racturing fluid d has ever co ommunicated d with groun ndwater. Mayo or Bloomberg g, in releasing g a 2012 stud dy, said natu ural gas is a lo ow-cost, low w-emissions fuel f that make es good econo omic and env vironmental sense. He wrote, w upgra ades to natur ral gas services are critica al for New York Y City to improve i air quality q and public health. With h proper regu ulation and enforcement, e , gas provides a very subs stantial health h benefit in reducing r air po ollution, said d Daniel Sch hrag, director of Harvard Universitys Center for th he Environm ment: March h 5, 2013. The U.S. U Energy Information I Administrati ion last year concluded th hat CO2 emi issions in Am merica are at a 20-year 2 low, primarily p due e to increased d natural gas use in electri ic generation n. A $1 million study y ordered by y the Fort Wo orth, Texas, City C Council in 2011 concluded natur ral gas devel lopment in th he Barnett Sh hale did not lead l to adver rse health eff fects in the ci ity. 75,00 00 oil and gas s wells have been b drilled in i New York k; nearly 14,000 remain ac ctive. Those wells have never contam minated grou undwater, acc cording to th he state DEC C. Royal lty payments to Pennsylv vania landown ners could top t $1.2 billio on for 2012, according to t an AP analys sis and the National N Asso ociation of Royalty R Owne ers. The association estim mated that 2010 natur ral gas royalty y payments were w $21 billion in gas-pro oducing state es.

The science is T i in. The pub blic can be as ssured that exploration fo or natural gas s in New York is and has h been safe, good for f our envir ronment and d for our econ nomy. Our New N New Yor rk must now w join the nati tion and e embrace the expansion of f responsible e natural gas development d t. We need your help. R Respectfully submitted on n behalf of IO OGA of NY Ys members.

Brad Gill B E Executive Di irector Oil & Gas Association I Independent A o New York of k

38 Lake Str reet Hamburg g, New York 14075 Phone (7 716) 202-4688 Fax (716) 20 02-4689