N.Y. Public Service Law § 66-g: Sale of indigenous natural gas for generation of electricity

§ 66-g. Sale of indigenous natural gas for generation of electricity.

1. The commission shall require an electric corporation to enter into

long-term contracts to purchase or wheel electricity produced from

indigenous natural gas supplies at the well site under such terms and

conditions as the commission shall find just and economically reasonable

to such corporation's customers, non-discriminatory to the producers of

electricity from indigenous natural gas supplies, and furthers the

public policy of this section and state energy policy; provided,

however, the minimum sales price shall be no lower than the electric

corporation's avoided cost. For the purpose of this section indigenous

natural gas shall mean natural gas produced from wells located within

the state.

2. Nothing contained in this section shall require an electric or gas

corporation to construct any additional facilities to satisfy its

obligations hereunder, unless such facilities are paid for in full by

the producer or producers of indigenous natural gas.

3. Notwithstanding any other provision of law, a producer of

indigenous natural gas whose natural gas activities are limited to the

production, sale and/or transportation of indigenous natural gas to a

gas corporation or a gas pipeline, the production, sale and/or

transportation of indigenous natural gas to the facilities of less than

twenty industrial or commercial users, the production, sale and/or

transportation of natural gas to a co-generation or electrical

generating facility, the production of electricity from indigenous

natural gas at the well site for sale to an electric corporation, or any

combination thereof, shall not be subject to the jurisdiction of the

commission except (a) with respect to the safety of the construction,

operation or maintenance of its gas plant and the certification of major

utility transmission facilities under article VII of this chapter and

(b) that such producer of indigenous natural gas that does not retain or

transport such gas for his own use but rather sells or transports such

gas to industrial or commercial users shall maintain a record of the

volumes of such gas sold or transported to such users. Such producer

shall submit these records annually to the commission on or before the

thirty-first day of March.