Home | Perspectives |Shale Energy Law Blog | New York Lifts 40-Year Ban on New Liquefied Natural Gas Facilities
Print Friendly, PDF & Email
New York Lifts 40-Year Ban on New Liquefied Natural Gas Facilities

This week the New York State Department of Environmental Conservation adopted regulations establishing a permitting program for the siting, construction and operation of liquefied natural gas (LNG) facilities in New York State.  The New York Legislature previously enacted a statewide moratorium on the construction of LNG storage facilities after the explosion of an LNG tank on Staten Island killed 40 workers in 1973.  The new regulations, which take effect on February 26, 2015, require owners and operators to obtain a permit prior to the preparation of a site for, construction of, or operation of facilities that store LNG or convert LNG into natural gas.  The regulations include a maximum storage capacity of 70,000 gallons of LNG at each permitted facility.  Intrastate transportation of LNG is prohibited unless the route has been certified by the New York State Department of Transportation.  The regulations do not affect the statutory moratorium prohibiting the siting of LNG facilities within New York City.  Furthermore, the regulations do not apply to compressed natural gas or liquefied petroleum gas, and LNG-fueled vehicles and vessels are exempt from the permitting requirements.