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 real-world 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 cleanestburning 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 I’ve seen in my career.” President Obama, former President Clinton, many other national leaders, including Governors and Fortune 500 CEO’s 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:  MIT physicist Ernest Moniz, President Obama’s energy secretary nominee, said “a stunning increase” in production of domestic natural gas in recent years was nothing less than a “revolution” that has led to reduced emissions of carbon dioxide and other gases that cause global warming, according to the Associated Press (AP).
38 Lake Street • Hamburg, New York 14075 • Phone (716)202-4688 • Fax (716)202-4689

 

Former U.S. Environmental Protection Administration administrator Lisa Jackson has testified there are no known instances where hydraulic fracturing fluid has ever communicated with groundwater. Mayor Bloomberg, in releasing a 2012 study, said “natural gas is a low-cost, low-emissions fuel that makes good economic and environmental sense.” He wrote, “upgrades to natural gas services are critical for New York City to improve air quality and public health.” “With proper regulation and enforcement, gas provides a very substantial health benefit in reducing air pollution,” said Daniel Schrag, director of Harvard University’s Center for the Environment: March 5, 2013. The U.S. Energy Information Administration last year concluded that CO2 emissions in America are at a 20-year low, primarily due to increased natural gas use in electric generation. A $1 million study ordered by the Fort Worth, Texas, City Council in 2011 concluded natural gas development in the Barnett Shale did not lead to adverse health effects in the city. 75,000 oil and gas wells have been drilled in New York; nearly 14,000 remain active. Those wells have never contaminated groundwater, according to the state DEC. Royalty payments to Pennsylvania landowners “could top $1.2 billion for 2012,” according to an AP analysis and the National Association of Royalty Owners. The association estimated that 2010 natural gas royalty payments were $21 billion in gas-producing states.

    

The science is in. The public can be assured that exploration for natural gas in New York is – and has been – safe, good for our environment and for our economy. Our New New York must now join the nation and embrace the expansion of responsible natural gas development. We need your help. Respectfully submitted on behalf of IOGA of NY’s members.

Brad Gill Executive Director Independent Oil & Gas Association of New York
Devin Barron Christine Dickinson Richard Nyahay Mark Wendaur 84 Lumber Co. (84 Energy Services) AECOM Technical Services, Inc. Airline Hydraulics Corp AJAX Integrated, LLC AJAX Wireline Allegro Development Alpha Geoscience American Refining Group Inc Anderson Equipment Co. Anschutz Exploration Corp Appalachian Production Services Aqua-Clear, Inc ARM Group Inc. Atlantic Greenfuels Atlas Resource Partners, LP Axco Energy Inc Baker Hughes BakerCorp Barber & DeLine Energy Serv. Barrett Paving Materials Inc. Billman Geologic Consultants Inc Biltekoff & Pullen, LLP Bituminous Insurance Co. Blue Dot Services Inc. Blue Rock Energy Bond, Schoeneck & King, PLLC Bradford Energy Capital, LLC Brico Technologies Inc.

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

Bulwark Protective Apparel Burleson LLP C.T. Male Associates, PC Cable Services Co Inc CAMERON Cardno ENTRIX Casella Waste Management Chautauqua Energy, Inc. Chautauqua Utilities, Inc. Chenango Contracting Chesapeake Energy Corp Christopher B Wallace Attny at Law Civil & Environmental Consultants Clark Patterson Lee Cleveland Brothers CAT Conestoga-Rovers & Associates Conrad Geoscience-Div PVE Sheffler Cotton Well Drilling Co., Inc. Cotton-Hanlon Inc. Crown Drilling LLC Crown Energy Services, Inc Cushman & Wakefield D.A. Collins Companies Damon Morey LLP Danzer Forestland, Inc. Dawood Engineering, Inc. Directional Drilling Contractors DLH Energy Service, LLC DTE Energy Earth Energy Consultants, LLC East Management Services, LP Ecology and Environment, Inc. Elexco Land Services, Inc. Emkey Energy, LLC Empire Energy E&P, LLC Empirica Energy Transfer Company EnergyMark, LLC EnerVest Operating LLC Environmental Resources Mgmt. EnviroTrac Ltd. Epsilon Energy USA, Inc. Erdman Anthony Fagan Engineers Fairmont Supply Oil & Gas FESCO Fisher Associates PE LS PC Gas Field Specialists, Inc. Gerard Law Firm GFS Energy, Inc. Goose Creek Drilling, Inc GPI / Greenman-Pederson Inc. Greenridge Oil Company, LLC Groundwater & Environmental Svs GSL, Inc. GTM Sales East, Inc. Halliburton Hanover Engineering Assoc Inc Harris Beach PLLC Hart Energy Publishing Harter Secrest & Emery LLP Hendricks Exploration Herbert, Rowland & Grubic, Inc.

Hess Corporation High Country Exploration Hiscock & Barclay, LLP Hodgson Russ LLP Hogan Energy Consulting Huntley & Huntley, Inc. Hydrocarbon Generation, Inc Inflection Energy LLC J. Robert Folchetti & Associates Jim Bourbeau Land Service Inc. JM Resources Inc John H. Heyer, Attorney at Law Kessel Construction Inc. LaBella Associates PC Lake Erie Energy Partners, LLC Lancaster Tanks & Steel Products Lang Surveying Larson Design Group Law Office of Adam J Schultz PC Leatherwood Land & Energy Srvs Lenape Resources, Inc. Lion Energy Company LLC LJ Stein & Co., Inc. Long Consulting Group, LLC Lopke Rock Products Lumsden & McCormick, LLP Mansfiled Crane Service Corp. McFarland-Johnson Inc. McJunkin Red Man Corp McTish, Kunkel & Associates Millennium Pipeline Co., LLC Miller Environmental Group Milton CAT Minard Run Oil Co. Moody & Associates Inc Nathan Petroleum Corp. National Fuel Gas Distribution Corp National Fuel Gas Midstream Corp National Fuel Gas Supply Corp National Fuel Resources, Inc. New Pig Energy New Prospect Company Nixon Peabody LLP Norse Energy Holding, Inc. Nussbaumer & Clarke, Inc. NYS Petroleum Council Oakridge Engineering, PC O'Brien & Gere Otis Eastern Service, Inc. P&C Gas Measurement Srv Inc P.W. Grosser Consulting, Inc. Palmerton Group "A Division of GZA" Patton Forest Products Penn Gold Well Service Inc. Pennsylvania General Energy Co. Phillips Lytle LLP Plants & Goodwin, Inc Precision Geophysical, Inc. Precision Industrial Maintenance R.L. Laughlin & Co., Inc. Read and Laniado, LLP Reserve Energy Exploration Rexel Electrical & Datacom Supplies

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

Richardson Management RITEC Shell Oil Company Southern Tier Economic Growth Inc SPEC Consulting, LLC Spectra Environmental Group Statewide Aquastore, Inc. Stedman Energy, Inc Steuben Co. Industrial Dev. Agency Subsea Oil & Gas, Inc. Taum Sauk Investments LLC Tectonic Engineering & Surveying Terrestrial Environmental Specialists Tesla Exploration Inc. Texas Keystone, Inc The Pike Company The West Firm, PLLC TMC Services, Inc. TRC Environmental Corporation

Triana Energy, LLC U.S. Energy Development Corp. Union Drilling, Inc United States Gypsum Co. Universal Well Services, Inc. URS Corporation-New York USA Compression Van Tyne Consulting Vemek Ventura Energy Inc. Vertical Energy, Inc. Vineyard Oil & Gas Co. Walking Ridge Development LLC Weatherford Weatherford Engineered Chemistry Westerman Companies XRM, LLC XTO Energy Inc. ZMK Construction, Inc.

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