Groups want dibs on New York's shale gas

ALBANY, N.Y., Dec. 30 (UPI) -- An oil and gas trade group in New York complained to state officials they need to work to expand exploration of natural gas locked in Marcellus shale deposits.

The Independent Oil & Gas Association of New York called on Democratic Gov. David Paterson to back a draft state energy plan that calls for expanded exploration of shale gas.

The trade group in a letter to state environmental regulators said the "extremely stringent requirements" proposed by New York means exploration of Marcellus shale will avert damage to the environment, the online Oil & Gas Journal reports.

"We believe that New York cannot afford to turn away or postpone the tremendous opportunity for economic resurgence and a clean energy supply presented by the Marcellus shale," IOGA said.

New York City regulators, however, said exploration of shale gas in its watershed would harm the quality of the drinking water. That complaint prompted several gas explorers to look elsewhere for natural gas.

The IOGA statement follows a decision by Spectra Energy Corp. to sign agreements with Chesapeake Energy Corp., Consolidated Edison and Statoil Natural Gas for gas transmission in the area.

The Spectra deal calls for expansion of the existing Texas Eastern Transmission and Algonquin Gas Transmission pipeline systems to deliver gas from other Marcellus deposits to New Jersey and New York consumers.