For over two years, New York has awaited results from a natural gas study commissioned by Governor Andrew Cuomo. The study examined the effects of the hydrofracturing method of drilling for natural gas on the environment. Last week, Cuomo announced that the Health Department would issue its results by years’ end — in other words, after election day early next month.
“Our governor has decided to sit on his hands for his entire four-year term,” Scott Kurkowski, attorney for the pro-hydrofracturing Southern Tier Joint Landowners’ Association, told the New York Post. He added, “The issue has become a political decision — not one based on science or facts.”
New York State, once an engine of economic growth, has faltered in the 21st century, ranking consistently among the worst states for business. Since 2000 well over two million people have moved out of the Empire State, driven out by high taxes and over regulation. Those moving in to replace them have less wealth, fewer skills, and lower production potential. Even worse, New York State has the second highest public debt in the nation, owing nearly $390 million.
Certainly, increased natural gas production can take a bite out of the state’s budget and economic woes while expanding opportunities for jobs and entrepreneurs. A Manhattan Institute study from 2013 — not held until after an important election — contrasted Pennsylvania and New York’s rural economies. It concluded that natural gas production spurred jobs and growth for the Commonwealth while the Empire State’s economy languished.
In Pennsylvania counties with over 200 wells, per capita income rose by almost 20 percent. Even in areas with less drilling, under 20 wells, incomes rose by 12 percent. When Pennsylvania data is applied to similar counties in New York, “we find that the income of residents in the 28 New York counties above the Marcellus Shale has the potential to expand by 15 percent or more over the next four years — if the state’s moratorium is lifted.”
Pennsylvania’s success is no fluke. West Virginia’s drilling in the Marcellus and Utica Shale regions helped boost its growth to 3rd best in the nation in 2013.
Experts also agree that expanded gas production produces a ripple effect in spinoff industries. Many gas producing areas also have facilities that recycle water used in the drilling process. This saves drilling companies money, uses fewer resources for water transport, and puts less used resources back into the environment. Not incidentally, such businesses employ locals and pump revenue into rural economies.
Interestingly enough, excerpts of the report still officially kept secret by state officials were published in the New York Times last year. The Health Department’s report concludes that drilling posed little threat to people or the environment if done within the regulations already developed by the state.
“By implementing the proposed mitigation measures,” the report says, “the Department expects that human chemical exposures during normal HVHF operations will be prevented or reduced below levels of significant health concern.” While state officials contend that revisions to the study will occur, the statement appears fairly definitive.
Likely, in Cuomo’s perfect world, New York continues buying cheap Appalachian natural gas while keeping support from both the well-funded, celebrity backed anti-energy crowd and rural areas that desperately need development. But sitting on his hands until after the election has only enraged all sides and encouraged his opposition. Cuomo’s pledge to follow the lead of the report has made the Health Department’s determination politically problematic for him, especially if it still indicates little environmental impact.
With election day looming, however, the voters need answers. Energy policy and its impact remains a vital part of the campaign season conversation. Andrew Cuomo needs to put his hydrofracturing cards on the table and let the state decide.
Jason Stverak is the President of the Franklin Center for Government & Public Integrity
