New York Laws
Article 4 - Provisions Relating to Gas and Electric Corporations; Regulation of Price of Gas and Electricity
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.

Structure New York Laws