UK Budget: Decom Tax Relief Welcomed by Oil, Gas Sector

Measures announced by the UK Chancellor in his 2013 Budget to guarantee tax relief on the decommissioning of oilfields on the UK Continental Shelf have been welcomed by the UK oil industry.

Oil & Gas UK Chief Executive Malcolm Webb commented in a statement:

"The industry has been working closely with the Treasury since the 2011 Budget to resolve the long-standing problem of uncertainty on decommissioning tax relief. The measures announced today will for the first time ever give companies the certainty they need over the tax treatment of decommissioning.

"At no cost to the Government, it will speed up asset sales and free up capital for companies to use for investment, extending the productive life of the UK continental shelf."

Decom North Sea (DNS), a forum specializing in UK decommissioning, said the new measures will boost the sector by giving increased certainty, in turn leading to new jobs and investment in new technology. DNS pointed out that decommissioning expenditure in the North Sea is forecast to top $1.5 billion (GBP 1 billion) within a few years.

"The Chancellor's confirmation of tax relief through Decommissioning Relief Deeds will help ease one of the greatest concerns facing the North Sea industry and lead to investment and ultimately more jobs," DNS Chief Executive Brian Nixon said.

"Once assets have been recognized as nearing the end of their economic lives, we believe the Budget will lead to operators being able to move forward with their decommissioning plans, which will in turn help to reassure the hundreds of supply chain companies and encourage them to consider investment in new equipment or tooling or to attract new staff."

Meanwhile, Derek Leith – head of oil and gas taxation at Ernst & Young in Aberdeen, Scotland – pointed out that the announcement would act as a gateway to greater investment in the North Sea, creating an active market that is attractive to companies across the oil and gas industry, from super majors to niche operators.

"Cementing the promise of contracts that guarantee tax relief on costs associated with deactivating and dismantling oilfields during the lifetime of this, and future parliaments, removes another layer of fiscal uncertainty from the UK Continental Shelf and should facilitate the transfer of assets," Leith said.

"Smaller companies that had previously been priced out of potential deals will now be in a position to maximise recovery from existing infrastructure, while larger players will be able to free up capital to fund further exploration and production."

In his Budget, the Chancellor also announced that he would introduce a "generous" new tax regime designed to stimulate early investment in the UK's burgeoning shale gas sector.

The new shale gas tax regime will include a field allowance. Meanwhile, new planning guidance on shale gas projects, along with specific proposals to help local communities to benefit from shale drilling, would follow later in 2013, he said.

"Shale gas is part of the future and we will make it happen," Osborne said in his Budget statement to Parliament.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

UK Budget: Decom Tax Relief Welcomed by Oil, Gas Sector

Measures announced by the UK Chancellor in his 2013 Budget to guarantee tax relief on the decommissioning of oilfields on the UK Continental Shelf have been welcomed by the UK oil industry.

Oil & Gas UK Chief Executive Malcolm Webb commented in a statement:

"The industry has been working closely with the Treasury since the 2011 Budget to resolve the long-standing problem of uncertainty on decommissioning tax relief. The measures announced today will for the first time ever give companies the certainty they need over the tax treatment of decommissioning.

"At no cost to the Government, it will speed up asset sales and free up capital for companies to use for investment, extending the productive life of the UK continental shelf."

Decom North Sea (DNS), a forum specializing in UK decommissioning, said the new measures will boost the sector by giving increased certainty, in turn leading to new jobs and investment in new technology. DNS pointed out that decommissioning expenditure in the North Sea is forecast to top $1.5 billion (GBP 1 billion) within a few years.

"The Chancellor's confirmation of tax relief through Decommissioning Relief Deeds will help ease one of the greatest concerns facing the North Sea industry and lead to investment and ultimately more jobs," DNS Chief Executive Brian Nixon said.

"Once assets have been recognized as nearing the end of their economic lives, we believe the Budget will lead to operators being able to move forward with their decommissioning plans, which will in turn help to reassure the hundreds of supply chain companies and encourage them to consider investment in new equipment or tooling or to attract new staff."

Meanwhile, Derek Leith – head of oil and gas taxation at Ernst & Young in Aberdeen, Scotland – pointed out that the announcement would act as a gateway to greater investment in the North Sea, creating an active market that is attractive to companies across the oil and gas industry, from super majors to niche operators.

"Cementing the promise of contracts that guarantee tax relief on costs associated with deactivating and dismantling oilfields during the lifetime of this, and future parliaments, removes another layer of fiscal uncertainty from the UK Continental Shelf and should facilitate the transfer of assets," Leith said.

"Smaller companies that had previously been priced out of potential deals will now be in a position to maximise recovery from existing infrastructure, while larger players will be able to free up capital to fund further exploration and production."

In his Budget, the Chancellor also announced that he would introduce a "generous" new tax regime designed to stimulate early investment in the UK's burgeoning shale gas sector.

The new shale gas tax regime will include a field allowance. Meanwhile, new planning guidance on shale gas projects, along with specific proposals to help local communities to benefit from shale drilling, would follow later in 2013, he said.

"Shale gas is part of the future and we will make it happen," Osborne said in his Budget statement to Parliament.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

UK Budget: Decom Tax Relief Welcomed by Oil, Gas Sector

Measures announced by the UK Chancellor in his 2013 Budget to guarantee tax relief on the decommissioning of oilfields on the UK Continental Shelf have been welcomed by the UK oil industry.

Oil & Gas UK Chief Executive Malcolm Webb commented in a statement:

"The industry has been working closely with the Treasury since the 2011 Budget to resolve the long-standing problem of uncertainty on decommissioning tax relief. The measures announced today will for the first time ever give companies the certainty they need over the tax treatment of decommissioning.

"At no cost to the Government, it will speed up asset sales and free up capital for companies to use for investment, extending the productive life of the UK continental shelf."

Decom North Sea (DNS), a forum specializing in UK decommissioning, said the new measures will boost the sector by giving increased certainty, in turn leading to new jobs and investment in new technology. DNS pointed out that decommissioning expenditure in the North Sea is forecast to top $1.5 billion (GBP 1 billion) within a few years.

"The Chancellor's confirmation of tax relief through Decommissioning Relief Deeds will help ease one of the greatest concerns facing the North Sea industry and lead to investment and ultimately more jobs," DNS Chief Executive Brian Nixon said.

"Once assets have been recognized as nearing the end of their economic lives, we believe the Budget will lead to operators being able to move forward with their decommissioning plans, which will in turn help to reassure the hundreds of supply chain companies and encourage them to consider investment in new equipment or tooling or to attract new staff."

Meanwhile, Derek Leith – head of oil and gas taxation at Ernst & Young in Aberdeen, Scotland – pointed out that the announcement would act as a gateway to greater investment in the North Sea, creating an active market that is attractive to companies across the oil and gas industry, from super majors to niche operators.

"Cementing the promise of contracts that guarantee tax relief on costs associated with deactivating and dismantling oilfields during the lifetime of this, and future parliaments, removes another layer of fiscal uncertainty from the UK Continental Shelf and should facilitate the transfer of assets," Leith said.

"Smaller companies that had previously been priced out of potential deals will now be in a position to maximise recovery from existing infrastructure, while larger players will be able to free up capital to fund further exploration and production."

In his Budget, the Chancellor also announced that he would introduce a "generous" new tax regime designed to stimulate early investment in the UK's burgeoning shale gas sector.

The new shale gas tax regime will include a field allowance. Meanwhile, new planning guidance on shale gas projects, along with specific proposals to help local communities to benefit from shale drilling, would follow later in 2013, he said.

"Shale gas is part of the future and we will make it happen," Osborne said in his Budget statement to Parliament.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Iraqi Budget Deepens Oil Dispute with Kurds

AMMAN, Jordan - The Iraqi parliament Thursday passed a budget for 2013 that allocated to Kurdistan just a fraction of the oil revenue requested by the semi-autonomous region, a move that deepens a dispute that has disrupted oil exports from the north of the country.

The parliament agreed that the Iraqi central government should make $650 million in payments to the Kurdish government, which would be used to pay companies operating in the region for oil exports, said Ibrahim al-Mutlaq, a member of the parliamentary finance committee. The Kurdish government had asked for $3.5 billion, he said.

The budget decision adds to existing tensions between the Kurdish region and Baghdad over oil exploration rights, trade with Turkey and the redevelopment of oil fields in a disputed territory. The dispute over the payment of oil revenues has already led to the suspension of crude oil exports from the Kurdish region since December.

Kurdish lawmakers boycotted the session which led to the passing of the budget, Mr. al-Mutlaq said. Kurdish officials weren't immediately available to comment.

The Kurdish government says the $3.5 billion it requested includes outstanding payments covering all exports between 2010 and 2013. The Baghdad government collects the oil revenues because it controls the export pipeline.

The central government in Baghdad made one payment of around $550 million in October for the companies operating in Kurdistan, but Iraqi officials later said that they wouldn't pay a second portion of around $300 million because the Kurdistan Regional Government failed to reach an oil production level of 250,000 barrels a day agreed in September.

Iraqi Prime Minister Nouri al-Maliki's bloc in parliament, the State of the Law, is arguing that the Kurds should pay Baghdad for their failure to produce the promised amount since November, Mr. al-Mutlaq said.

The allocation of oil revenues has been a significant sticking point in the Iraqi parliament's vote on the 2013 budget, which is $118.6 billion in total. The vote was delayed many times because lawmakers differed on whether Baghdad should allocate money to companies working in Kurdistan.

The Kurdish government further annoyed Baghdad when it started unilateral exports of more than 15,000 barrels a day of oil and natural gas condensate in trucks to Turkey at the beginning of January. It has pledged to increase these exports gradually and even plans to set up its own pipeline, bypassing the Baghdad-controlled export route.

The two sides are also locked in a dispute over who has the right to award oil exploration licenses in the region. Baghdad considers scores of oil deals signed with companies, including Exxon Mobil Corp., Total SA and Gazprom Neft as null and void because they haven't been approved by the central government. The Kurds argue that they are legal according to the new constitution.

Another war of words broke out in January, when the oil ministry in Baghdad said it was considering signing a contract with BP PLC to redevelop the Kirkuk oil field, which is in a disputed territory bordering the Kurdish region. 

Copyright (c) 2012 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Iraq 2013 Budget Allocates $650M to Firms Working in Kurdistan

The Iraqi parliament Thursday passed the country's 2013 budget, allocating some $650 million to central government payments to companies working in Kurdistan, a leading Iraqi lawmaker said.

Ibrahim al-Mutlaq, a member of the parliamentary finance committee, said Kurds boycotted the session which led to the passing of the budget. They had asked for 4.2 trillion Iraqi dinars ($3.5 billion) to be paid to companies producing oil and gas in Kurdistan.

Kurdish officials weren't immediately available to comment.

The Iraqi parliament postponed a vote on the 2013 budget, running at $118.6 billion, many times because lawmakers differ on whether Baghdad should allocate money to companies working in Kurdistan, in the north of the country.

The Kurds have suspended crude oil exports via the Baghdad-controlled export pipeline since December last year, protesting against delays in payment to producing companies in the region. Even in November, the Kurds didn't reach export levels of 250,000 barrels a day, as agreed with Baghdad.

The Kurds want the budget to include some IQD4.2 trillion Iraqi dinars as payments due to oil companies working in the Kurdish region. The Kurds said this amount would cover retroactive payments from 2010 up to 2013.

Meanwhile, Iraqi Prime Minister Nouri al-Maliki's bloc in parliament, the State of the Law, is arguing that the Kurds should first pay for the 250,000 barrels a day they have failed to export from November up to now, Mr. al-Mutlaq said.

The central government in Baghdad has made one payment to companies, but Iraqi officials said last year that they wouldn't pay oil firms a second portion because the Kurdistan Regional Government has failed to reach agreed production under an agreement reached in September.

The KRG further annoyed Baghdad when it started unilateral exports of more than 15,000 barrels a day of oil and condensate via trucks to Turkey at the beginning of January and pledged to increase them gradually. The Kurds also plan to set up their own export pipeline away from the Baghdad-controlled one.

Baghdad paid some IQD650 billion last year to companies but decided to suspend payment of another portion of IQD350 billion because the Kurds suspended exports.

The KRG and Baghdad are locked in a dispute over who should control oil in the Kurdistan region. Baghdad considers scores of oil deals signed with companies, such as Exxon Mobil Corp., Total SA, Gazprom Neft, DNO International ASA and Genel Energy PLC, as null and void because they haven't been approved by the central government, while the Kurds argue that they are legal according to the new constitution.

Copyright (c) 2012 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Total to Spend 80% of $28B Budget on Upstream in 2013

Total reported Wednesday that it will spend more than 80 percent of its organic investment budget for 2013 of $28 billion on its upstream activities.

The French major said it expected to achieve production growth targets of 3 percent per year, on average, through to 2015 and that it would potentially achieve 3 million barrels of oil equivalent per day (boepd) by 2017. In 2012, the company produced an average of 2.3 million boepd compared with 2.35 million boepd in 2011.

Total said its production growth should be fueled by 2012 start ups as well as anticipated 2013 start ups, including Anguille in Gabon, Angola LNG, Kashagan in Kazakhstan and the extension of OML 58 in Nigeria.

Meanwhile, the firm said that it is continuing to work in cooperation with the UK authorities towards "a safe and progressive" restart of the Elgin-Franklin field during the first quarter of 2013. Total confirmed that it suffered a three percent decline in its total production due to the Elgin gas leak incident in the North Sea as well as flooding affecting its Nigeria operations.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Iraq Postpones Budget on Account of Kurdistan Dispute

The Iraqi parliament has postponed a vote on the country's 2013 budget, running at $117.5 billion, as lawmakers differ on whether Baghdad should allocate money for companies working in the country's Kurdistan region in the north, lawmakers said Tuesday.

The Kurds have suspended crude oil exports via the Baghdad-controlled export pipeline since December last year, protesting delays in payment to producing companies in the region. Even in November, the Kurds didn't reach the level of 250,000 barrels a day in exports as agreed upon with Baghdad.

"There is no agreement and the vote on the budget has been postponed to an indefinite time," Mahmoud Othman, a leading parliamentarian from the Kurdistan alliance in the federal parliament, told Dow Jones Newswires. The main reason is that the budget hasn't allocated enough money for paying companies exploring for oil and gas in Kurdistan, Mr. Othman added.

The Kurds want the budget to include some 4.2 trillion Iraqi dinars ($3.5 billion) as payments due to oil companies working in the Kurdish region. The Kurds said that this amount would cover retroactive payments from 2010 up to 2013.

Meanwhile the Iraqi Prime Minister Nouri al-Maliki's bloc in the parliament, the State of the Law, is arguing that the Kurds should first pay for the 250,000 barrels a day they have failed to export from November up to now, said Ibrahim al-Mutlaq, a member of the parliament's finance committee.

The central government in Baghdad has made one payment to companies, but Iraqi officials said last year that they wouldn't pay oil firms a second portion because the Kurdistan Regional Government has failed to reach agreed production under an agreement reached in September.

The KRG further annoyed Baghdad when it started unilateral exports of more than 15,000 barrels a day of oil and condensate via trucks to Turkey at the beggining of January and pledged to increase them gradually. The Kurds also plan to set up their own export pipeline away from the Baghdad-controlled one.

Baghdad paid some IQD650 billion last year to companies but decided to suspend payment of another portion of IQD350 billion because the Kurds suspended exports.

Mr. Othman also said there is disagreement over what percentage of the budget should be allocated to Kurdistan spending. Over the last few years, the national budget has allocated some 17% of spending to Kurdistan assuming that the population in the region makes up some 17% of Iraq's total population.

"Many lawmakers argue that some 17% of budget to Kurdistan is too much and should be made less," Mr. Othman said, adding that the Kurds would accept a fresh population census to determine the percentage but not now as it would delay the budget further.

The KRG and Baghdad are locked on dispute over who should control oil in the Kurdistan region. Baghdad considers scores of oil deals signed with companies such as Exxon Mobil Corp., Total SA, Gazprom Neft, DNO International ASA and Genel Energy PLC as null and void because they haven't been approved by the central government, while the Kurds argue that they are legal according to the new constitution.

Also there is disagreement over the defense ministry budget, said Mr. al-Mutlaq, a member of the Al-Iraqiya bloc led by former prime minister Ayad Allawi, an opponent of Mr. Maliki.

"The Al-Iraqiya bloc has also asked to deduct some IQD2 trillion from the defense ministry budget and transfer it to families who were affected by recent floods along the river Tigris," Mr. Ibrahim said. "We think that the defense budget is too much," he added.

Copyright (c) 2012 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Ecuador's Petroamazonas to Operate With $3.58B Budget

QUITO, Ecuador - Ecuador's state-run oil company, Petroamazonas, will operate with a $3.58 billion budget this year, the company said Wednesday.

Of that amount, about 60% will be used for investment projects for exploration and the production of crude oil and natural gas. The remaining amount will be allocated for operating costs and debt payments, among other things.

As part of its growth strategy, Petroamazonas plans to carry out five pilot projects of oil-enhanced recovery, aiming to increase reserves and production.

Petroamazonas, which in January merged with state-run Petroecuador, operates 14 oil blocks, including the Amistad gas field. Petroecuador, meanwhile, controls sales, refining and transportation activities.

Petroamazonas produces about 313,000 barrels of crude oil a day, about 62% of the Ecuador's oil output.

Copyright (c) 2012 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Total to Spend 80% of $28B Budget on Upstream in 2013

Total reported Wednesday that it will spend more than 80 percent of its organic investment budget for 2013 of $28 billion on its upstream activities.

The French major said it expected to achieve production growth targets of 3 percent per year, on average, through to 2015 and that it would potentially achieve 3 million barrels of oil equivalent per day (boepd) by 2017. In 2012, the company produced an average of 2.3 million boepd compared with 2.35 million boepd in 2011.

Total said its production growth should be fueled by 2012 start ups as well as anticipated 2013 start ups, including Anguille in Gabon, Angola LNG, Kashagan in Kazakhstan and the extension of OML 58 in Nigeria.

Meanwhile, the firm said that it is continuing to work in cooperation with the UK authorities towards "a safe and progressive" restart of the Elgin-Franklin field during the first quarter of 2013. Total confirmed that it suffered a three percent decline in its total production due to the Elgin gas leak incident in the North Sea as well as flooding affecting its Nigeria operations.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Total to Spend 80% of $28B Budget on Upstream in 2013

Total reported Wednesday that it will spend more than 80 percent of its organic investment budget for 2013 of $28 billion on its upstream activities.

The French major said it expected to achieve production growth targets of 3 percent per year, on average, through to 2015 and that it would potentially achieve 3 million barrels of oil equivalent per day (boepd) by 2017. In 2012, the company produced an average of 2.3 million boepd compared with 2.35 million boepd in 2011.

Total said its production growth should be fueled by 2012 start ups as well as anticipated 2013 start ups, including Anguille in Gabon, Angola LNG, Kashagan in Kazakhstan and the extension of OML 58 in Nigeria.

Meanwhile, the firm said that it is continuing to work in cooperation with the UK authorities towards "a safe and progressive" restart of the Elgin-Franklin field during the first quarter of 2013. Total confirmed that it suffered a three percent decline in its total production due to the Elgin gas leak incident in the North Sea as well as flooding affecting its Nigeria operations.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Ecuador's Petroamazonas to Operate With $3.58B Budget

QUITO, Ecuador - Ecuador's state-run oil company, Petroamazonas, will operate with a $3.58 billion budget this year, the company said Wednesday.

Of that amount, about 60% will be used for investment projects for exploration and the production of crude oil and natural gas. The remaining amount will be allocated for operating costs and debt payments, among other things.

As part of its growth strategy, Petroamazonas plans to carry out five pilot projects of oil-enhanced recovery, aiming to increase reserves and production.

Petroamazonas, which in January merged with state-run Petroecuador, operates 14 oil blocks, including the Amistad gas field. Petroecuador, meanwhile, controls sales, refining and transportation activities.

Petroamazonas produces about 313,000 barrels of crude oil a day, about 62% of the Ecuador's oil output.

Copyright (c) 2012 Dow Jones & Company, Inc.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

NY Budget Hearing Draws Fracking Opponents as Feb. Deadline Approaches

New York's Department of Environmental Conservation Commissioner Joe Martens met with state lawmakers for a budget hearing, which turned into a three-hour hydraulic fracturing discussion. The commissioner suggested Monday that the state may miss a Feb. 27 deadline to complete its proposed fracking regulations, further delaying the four-year review process.

If the Health Department recommends significant changes, the DEC process will be delayed by months. And if not finalized by the February deadline, DEC's proposed rules expire and would have to be reissued and subjected to another round of public comment.

At the hearing, Martens told legislators that there isn't a timetable for the Supplemental Generic Environmental Impact Statement's (SGEIS) environmental review of fracking, reported the Albany Times Union. Martens said that DEC is still waiting for the Department of Health to finalize its public health review.

"Everybody was under the understanding that the SGEIS would be done in February. So are you saying that is not happening?" Senator Tony Avella (Queens Democrat) asked Martens at the hearing.

"I have to wait until I get the health report until we make any decisions about whether we move forward or not," Martens replied.

The room that housed the hearing was filled with fracking opponents holding signs and openly commenting to Martens testimony, as well as politicians that have long opposed the drilling technique.

Assemblywoman Barbara Lifton, from Ithaca, stated, "people are extremely unsusceptible, to say the least, about the ability of New York state or any other state … that this industry can be adequately regulated … It is in fact dirty – it isn't a clean fuel. New York shouldn't be another guinea pig."

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

NY Budget Hearing Draws Fracking Opponents as Feb. Deadline Approaches

New York's Department of Environmental Conservation Commissioner Joe Martens met with state lawmakers for a budget hearing, which turned into a three-hour hydraulic fracturing discussion. The commissioner suggested Monday that the state may miss a Feb. 27 deadline to complete its proposed fracking regulations, further delaying the four-year review process.

If the Health Department recommends significant changes, the DEC process will be delayed by months. And if not finalized by the February deadline, DEC's proposed rules expire and would have to be reissued and subjected to another round of public comment.

At the hearing, Martens told legislators that there isn't a timetable for the Supplemental Generic Environmental Impact Statement's (SGEIS) environmental review of fracking, reported the Albany Times Union. Martens said that DEC is still waiting for the Department of Health to finalize its public health review.

"Everybody was under the understanding that the SGEIS would be done in February. So are you saying that is not happening?" Senator Tony Avella (Queens Democrat) asked Martens at the hearing.

"I have to wait until I get the health report until we make any decisions about whether we move forward or not," Martens replied.

The room that housed the hearing was filled with fracking opponents holding signs and openly commenting to Martens testimony, as well as politicians that have long opposed the drilling technique.

Assemblywoman Barbara Lifton, from Ithaca, stated, "people are extremely unsusceptible, to say the least, about the ability of New York state or any other state … that this industry can be adequately regulated … It is in fact dirty – it isn't a clean fuel. New York shouldn't be another guinea pig."

With more than 10 years of journalism experience, Robin Dupre specializes in the offshore sector of the oil and gas industry. Email Robin at rdupre@rigzone.com.

Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

View the original article here

Budget Armageddon is Nearing

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