A report titled “Economic Assessment Report for the Supplemental Generic Environmental Impact Statement on New York State’s Oil, Gas, and Solution Mining Regulatory Program,” commissioned by the New York Department of Environmental Conservation (DEC) and researched and written by Ecology and Environment Engineering, P.C.

1. 002911_EG04_03-B3371
Economic Assessment Report
for the
Supplemental Generic
Environmental Impact Statement on
New York State’s Oil, Gas, and
Solution Mining Regulatory Program
August 2011
Prepared for:
NEW YORK STATE DEPARTMENT
OF ENVIRONMENTAL CONSERVATION
Prepared by:
ECOLOGY AND ENVIRONMENT, INC.
368 Pleasant View Drive
Lancaster, New York 14086
©2011 Ecology and Environment, Inc.

3. Table of Contents
T able of Contents
Section Page
1 Introduction ..............................................................................1-1
2 Background ..............................................................................2-1
3 Existing Conditions..................................................................3-1
3.1 Economy, Employment, and Income ............................................................... 3-1
3.1.1 New York State .................................................................................... 3-2
3.1.2 Representative Regions ...................................................................... 3-13
3.1.2.1 Region A .............................................................................. 3-13
3.1.2.2 Region B .............................................................................. 3-20
3.1.2.3 Region C .............................................................................. 3-25
3.2 Population....................................................................................................... 3-33
3.2.1 New York State .................................................................................. 3-33
3.2.2 Representative Regions ...................................................................... 3-36
3.2.2.1 Region A .............................................................................. 3-36
3.2.2.2 Region B .............................................................................. 3-39
3.2.2.3 Region C .............................................................................. 3-43
3.3 Housing .......................................................................................................... 3-46
3.3.1 New York State .................................................................................. 3-46
3.3.2 Representative Regions ...................................................................... 3-48
3.3.2.1 Region A .............................................................................. 3-48
3.2.2.2 Region B .............................................................................. 3-51
3.3.2.3 Region C .............................................................................. 3-54
3.4 Government Revenues and Expenditures ...................................................... 3-56
3.4.1 New York State .................................................................................. 3-56
3.4.2 Representative Regions ...................................................................... 3-60
3.4.2.1 Region A .............................................................................. 3-60
3.4.2.2 Region B .............................................................................. 3-63
3.4.2.3 Region C .............................................................................. 3-65
4 Socioeconomic Impacts ..........................................................4-1
4.1 Assumptions ..................................................................................................... 4-1
4.1.1 Study Area............................................................................................ 4-1
4.1.2 Development Scenarios........................................................................ 4-2
4.1.3 Production Projections ....................................................................... 4-11
4.2 Economy, Employment, and Income ............................................................. 4-18
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4. Table of Contents (cont.)
Section Page
4.2.1 New York State .................................................................................. 4-18
4.2.1.1 Employment......................................................................... 4-18
4.2.1.2 Income.................................................................................. 4-25
4.2.2 Representative Regions ...................................................................... 4-30
4.2.2.1 Employment......................................................................... 4-30
4.2.2.2 Income.................................................................................. 4-46
4.3 Population....................................................................................................... 4-59
4.3.1 New York State .................................................................................. 4-60
4.3.2 Representative Regions ...................................................................... 4-73
4.3.2.1 Region A .............................................................................. 4-82
4.3.2.2 Region B .............................................................................. 4-89
4.3.2.3 Region C .............................................................................. 4-96
4.4 Housing ........................................................................................................ 4-104
4.4.1 New York State ................................................................................ 4-104
4.4.1.1 Temporary Housing ........................................................... 4-105
4.4.1.2 Permanent Housing............................................................ 4-106
4.4.2 Representative Regions .................................................................... 4-107
4.4.2.1 Temporary Housing ........................................................... 4-108
4.4.2.2 Permanent Housing............................................................ 4-110
4.4.3 Cyclical Nature of the Natural Gas Industry.................................... 4-111
4.4.4 Property Values ................................................................................ 4-112
4.5 Government Revenues and Expenditures .................................................... 4-114
4.5.1 New York State ................................................................................ 4-114
4.5.2 Representative Regions .................................................................... 4-116
5 References................................................................................5-1
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5. List of Tables
L ist of Tables
Table Page
3-1 New York State: Area Employment, by Industry (2009) .......................................... 3-2
3-2 New York State: Wages by Industry (2009).............................................................. 3-3
3-3 New York State: Labor Force Statistics (2000 and 2010) ......................................... 3-3
3-4 New York State: Income Statistics (1999 and 2009)................................................. 3-4
3-5 New York State: Employment in Travel and Tourism (2009) .................................. 3-4
3-6 New York State: Wages in Travel and Tourism (2009) ............................................ 3-5
3-7 New York State: Agricultural Data (2007)................................................................ 3-5
3-8 New York: Impact of a $1 Million Dollar Increase in the Final Demand in the
Output of the Oil and Gas Extraction Industry on the Value of the Output of
Other Industries.......................................................................................................... 3-6
3-9 New York State: Employment in the Oil and Gas Extraction Industry (2000-
2010) .......................................................................................................................... 3-7
3-10 Most Common Occupations in the U.S. Oil and Gas Extraction Industry
(2008)......................................................................................................................... 3-8
3-11 New York State: Wages (2006 and 2009) ................................................................. 3-9
3-12 New York State: Natural Gas Production (1985-2009)........................................... 3-10
3-13 New York State: Number of Well Permits Granted, the Number of Wells
Completed, and the Number of Active Wells (1994-2009)..................................... 3-11
3-14 New York State: Average Natural Gas Wellhead Price (1994-2009) ..................... 3-11
3-15 New York State: Market Value of Natural Gas Production (1994-2009) .............. 3-12
3-16 Region A: Area Employment by Industry (2009).................................................... 3-13
3-17 Region A: Labor Force Statistics (2000 and 2010) ................................................. 3-14
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6. List of Tables (cont.)
Table Page
3-18 Region A: Wages (2006, 2009) ............................................................................... 3-15
3-19 Region A: Income Statistics (1999 and 2009) ......................................................... 3-15
3-20 Region A: Employment in Travel and Tourism (2009)........................................... 3-16
3-21 Region A: Wages in Travel and Tourism ( 2007, 2009).......................................... 3-17
3-22 Region A: Agricultural Data (2007) ........................................................................ 3-17
3-23 Region A: Number of Active Natural Gas Wells (1994-2009) ............................... 3-19
3-24 Region A: Production of Natural Gas and the Number of Active Wells (2009) ..... 3-19
3-25 Region B: Area Employment, by Industry (2009)................................................... 3-20
3-26 Region B: Labor Force Statistics (2000 and 2010).................................................. 3-21
3-27 Region B: Wages (2006, 2009)................................................................................ 3-22
3-28 Region B: Income Statistics (1999 and 2009) ......................................................... 3-22
3-29 Region B: Employment in Travel and Tourism (2009) ........................................... 3-23
3-30 Region B: Employment and Wages Statistics for the Tourism Industry (2007,
2009) ........................................................................................................................ 3-23
3-31 Region B: Agricultural Data (2007) ........................................................................ 3-24
3-32 Region C: Area Employment, by Industry (2009)................................................... 3-25
3-33 Region C: Labor Force Statistics (2000 and 2010).................................................. 3-26
3-34 Region C: Wages (2006, 2009)................................................................................ 3-26
3-35 Region C: Income Statistics (1999 and 2009) ......................................................... 3-27
3-36 Region C: Travel and Tourism, by Industrial Group (2009) ................................... 3-28
3-37 Region C: Employment and Wages Statistics for the Tourism Industry (2007,
2009) ........................................................................................................................ 3-28
3-38 Region C: Income Statistics (1999, 2009) ............................................................... 3-29
3-39 Region C: Agricultural Data (2007) ....................................................................... 3-29
3-40 Region C: Number of Active Natural Gas Wells (1994-2009)................................ 3-31
3-41 Region C: Production of Natural Gas and the Number of Active Wells (2009) ..... 3-32
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7. List of Tables (cont.)
Table Page
3-42 New York State: Historical and Current Population Levels (1990, 2000, 2010) .... 3-33
3-43 New York State: Racial and Ethnicity Characteristics (2010)................................. 3-34
3-44 New York State: Ten Largest Population Centers (2010) ....................................... 3-35
3-45 New York State: Projected Population (2015 to 2030) ........................................... 3-36
3-46 Region A: Historical and Current Population (1990, 2000, 2010) .......................... 3-36
3-47 Region A: Racial and Ethnicity Characteristics (2010)........................................... 3-37
3-48 Region A: Ten Largest Population Centers ............................................................. 3-38
3-49 Region A: Population Projections (2015 to 2030).................................................. 3-39
3-50 Region B: Historical and Current Population (1990, 2000, 2010) .......................... 3-39
3-51 Region B: Racial and Ethnicity Characteristics (2010) ........................................... 3-40
3-52 Region B: Ten Largest Population Centers ............................................................. 3-42
3-53 Region B: Population Projections (2015 to 2030) .................................................. 3-43
3-54 Region C: Historical and Current Population (1990, 2000, 2010) .......................... 3-43
3-55 Region C: Racial and Ethnicity Characteristics (2010) ........................................... 3-44
3-56 Region C: Ten Largest Population Centers ............................................................. 3-45
3-57 Region C: Population Projections (2015 to 2030) .................................................. 3-46
3-58 New York State: Total Housing Units (1990, 2000, 2010) .................................... 3-46
3-59 New York State: Type of Housing Units (2009) ..................................................... 3-46
3-60 New York State: Number of Sales and Annual Median Sale Price of Single-
Family Homes Sold (2008-2010)............................................................................. 3-47
3-61 New York State: Housing Characteristics (2010).................................................... 3-47
3-62 Region A: Total Housing Units (1990, 2000, 2010)................................................ 3-48
3-63 Region A: Total Housing Units by Type of Structure (2009) ................................. 3-48
3-64 Region A: Number of Sales and Annual Median Sale Price of Single-Family
Homes Sold (2008-2010)......................................................................................... 3-49
3-65 Region A: Housing Characteristics (2010) .............................................................. 3-50
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8. List of Tables (cont.)
Table Page
3-66 Region A: Short-Term Accommodations (Hotels/Motels) (2011) .......................... 3-50
3-67 Region B: Total Housing Units (1990, 2000, 2010)................................................ 3-51
3-68 Region B: Total Housing Units by Type of Structure (2009)................................. 3-51
3-69 Region B: Number of Sales and Annual Median Sale Price of Single-Family
Homes Sold (2008-2010)......................................................................................... 3-52
3-70 Region B: Housing Characteristics (2010) .............................................................. 3-53
3-71 Region B: Short-Term Accommodations (Hotels/Motels) ...................................... 3-53
3-72 Region C: Total Housing Units (1990, 2000, 2010)................................................ 3-54
3-73 Region C: Total Housing Units by Type of Structure (2009)................................. 3-54
3-74 Region C: Number of Sales and Annual Median Sale Price of Single-Family
Homes Sold (2008-2010)......................................................................................... 3-55
3-75 Region C: Vacancy Rate (2010) .............................................................................. 3-55
3-76 Region C: Short-Term Accommodations (Hotels/Motels) ...................................... 3-56
3-77 New York State: Revenues Collected for FY Ending March 31, 2010 ................... 3-57
3-78 New York State: Number of Leases and Acreage of State Land Leased for Oil
and Natural Gas Development (2010) ..................................................................... 3-57
3-79 New York State: Leasing Revenue by Payment Type (2000-2010)....................... 3-58
3-80 New York State: Summary of Local Government Entities ..................................... 3-58
3-81 Region A: Total Revenue for FY Ending December 31, 2009 ($ millions) ............ 3-60
3-82 Region A: Local Tax Revenue for FY Ending December 31, 2009 ($ millions) .... 3-61
3-83 Region A: Gas Economic Profile for Medina Region 3 and State Equalization
and Millage Rates (2010)......................................................................................... 3-62
3-84 Region A: Expenditures for FY Ending December 31, 2009 ($ millions) .............. 3-62
3-85 Region B: Total Revenue for FY Ending December 31, 2009 ($ millions) ............ 3-63
3-86 Region B: Local Tax Revenue for FY Ending December 31, 2009 ($ millions) .... 3-64
3-87 Region B: Gas Economic Profile for Medina Region 3 and State Equalization
and Millage Rates (2010)......................................................................................... 3-64
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9. List of Tables (cont.)
Table Page
3-88 Region B: Expenditures for FY Ending December 31, 2009 ($ millions)............... 3-65
3-89 Region C: Total Revenue for FY Ending December 31, 2009 ($ millions) ............ 3-66
3-90 Region C: Local Tax Revenue for FY Ending December 31, 2009 ($ millions) .... 3-66
3-91 Region C: Gas Economic Profile for Medina Region 2 and State Equalization
and Millage Rates (2010)......................................................................................... 3-67
3-92 Region C: Expenditures for FY Ending December 31, 2009 ($ millions)............... 3-67
4-1 Major Development Scenarios................................................................................... 4-2
4-2 Major Development Scenario Assumptions for Each Representative Region .......... 4-6
4-3 Projected Natural Gas Production in Region A ....................................................... 4-13
4-4 Projected Natural Gas Production in Region B ....................................................... 4-15
4-5 Projected Natural Gas Production in Region C ....................................................... 4-16
4-6 Maximum Direct and Indirect Employment Impacts on New York State under
Each Development Scenario .................................................................................... 4-20
4-7 Total Direct Construction and Production Employment in New York State
Under Each Development Scenario for Years 1 to 60............................................. 4-21
4-8 Indirect and Total Employment in New York State Under Each Development
Scenario for Years 1 to 60 ....................................................................................... 4-23
4-9 Maximum Direct and Indirect Annual Employee Earnings Impacts on New
York State under Each Development Scenario........................................................ 4-26
4-10 Total Direct Construction and Production Earnings in New York State Under
Each Development Scenario for Years 1 to 60........................................................ 4-27
4-11 Total Indirect Construction and Production Earnings in New York State Under
Each Development Scenario for Years 1 to 60........................................................ 4-29
4-12 Maximum Direct and Indirect Employment Impacts on Each Representative
Region Under Each Development Scenario ............................................................ 4-31
4-13 Total Direct Construction and Production Employment in Region A Under
Each Development Scenario for Years 1 to 60........................................................ 4-34
4-14 Total Direct Construction and Production Employment in Region B Under
Each Development Scenario for Years 1 to 60........................................................ 4-35
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10. List of Tables (cont.)
Table Page
4-15 Total Direct Construction and Production Employment in Region C Under
Each Development Scenario for Years 1 to 60........................................................ 4-37
4-16 Indirect and Total Employment in Region A Under Each Development
Scenario for Years 1 to 60 ....................................................................................... 4-41
4-17 Indirect and Total Employment in Region B Under Each Development
Scenario for Years 1 to 60 ....................................................................................... 4-43
4-18 Indirect and Total Employment in Region C Under Each Development
Scenario for Years 1 to 60 ....................................................................................... 4-44
4-19 Maximum Direct and Indirect Earnings Impacts on Each Representative
Region Under Each Development Scenario ............................................................ 4-47
4-22 Total Direct Construction and Production Earnings in Region A Under Each
Development Scenario for Years 1 to 60................................................................. 4-48
4-21 Total Direct Construction and Production Earnings in Region B Under Each
Development Scenario for Years 1 to 60................................................................. 4-50
4-22 Total Direct Construction and Production Earnings in Region C Under Each
Development Scenario for Years 1 to 60................................................................. 4-51
4-23 Indirect and Total Construction and Production Earnings in Region A Under
Each Development Scenario for Years 1 to 60........................................................ 4-53
4-24 Indirect and Total Construction and Production Earnings in Region B Under
Each Development Scenario for Years 1 to 60........................................................ 4-55
4-25 Indirect and Total Construction and Production Earnings in Region C Under
Each Development Scenario for Years 1 to 60........................................................ 4-56
4-26 Transient, Permanent and Total Construction Employment Under the Low
Development Scenario: New York State ................................................................ 4-62
4-27 Transient, Permanent, and Total Construction Employment Under the
Average Development Scenario: New York State.................................................. 4-63
4-28 Transient, Permanent, and Total Construction Employment Under the High
Development Scenario: New York State ................................................................ 4-64
4-29 Estimated Population Associated with Transient Employment: New York
State.......................................................................................................................... 4-65
4-30 Estimated Population Associated with Permanent Employment: New York
State.......................................................................................................................... 4-68
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11. List of Tables (cont.)
Table Page
4-31 Maximum Temporary and Permanent Impacts Associated with Well
Construction and Production: New York State........................................................ 4-73
4-32 Transient, Permanent, and Total Construction Employment Under the Low
Development Scenario: Region A .......................................................................... 4-73
4-33 Transient, Permanent, and Total Construction Employment Under the
Average Development Scenario: Region A............................................................ 4-74
4-34 Transient, Permanent, and Total Construction Employment Under the High
Development Scenario: Region A .......................................................................... 4-75
4-35 Transient, Permanent, and Total Construction Employment Under the Low
Development Scenario: Region B........................................................................... 4-76
4-36 Transient, Permanent, and Total Construction Employment Under the
Average Development Scenario: Region B ............................................................ 4-77
4-37 Transient, Permanent, and Total Construction Employment Under the High
Development Scenario: Region B........................................................................... 4-78
4-38 Transient, Permanent, and Total Construction Employment Under the Low
Development Scenario: Region C........................................................................... 4-79
4-39 Transient, Permanent, and Total Construction Employment Under the
Average Development Scenario: Region C ............................................................ 4-80
4-40 Transient, Permanent, and Total Construction Employment Under the High
Development Scenario: Region C........................................................................... 4-81
4-41 Maximum Temporary and Permanent Impacts Associated with Well
Construction and Production.................................................................................... 4-82
4-42 Estimated Population Impacts Associated with Transient Employment:
Region A .................................................................................................................. 4-83
4-43 Estimated Population Impacts Associated with Permanent Employment:
Region A .................................................................................................................. 4-85
4-44 Estimated Population Associated with Transient Employment: Region B ............ 4-90
4-45 Estimated Population Associated with Permanent Employment: Region B ........... 4-92
4-46 Estimated Population Associated with Transient Employment: Region C ............ 4-97
4-47 Estimated Population Impacts Associated with Permanent Employment:
Region C ................................................................................................................ 4-100
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12. List of Tables (cont.)
Table Page
4-48 Estimated Employment, by Development Scenario, for New York State for
Year 30................................................................................................................... 4-105
4-49 New York State Rental Housing Stock (2010) ...................................................... 4-106
4-50 Availability of Owner-Occupied Housing Units (2010)........................................ 4-107
4-51 Maximum Transient and Permanent Employment by Development Scenario
and Region ............................................................................................................. 4-107
4-52 Availability of Rental Housing Units .................................................................... 4-109
4-53 Availability of Housing Units................................................................................ 4-110
4-54 Region A: Example of the Real Property Tax Payments From a Typical
Horizontal Well...................................................................................................... 4-119
4-55 Region B: Example of the Real Property Tax Payments From a Typical
Horizontal Well...................................................................................................... 4-120
4-56 Region C: Example of the Real Property Tax Payments From a Typical
Horizontal Well...................................................................................................... 4-121
4-57 Region A: Example of the Real Property Tax Payments From a Typical
Vertical Well.......................................................................................................... 4-123
4-58 Region B: Example of the Real Property Tax Payments From a Typical
Vertical Well.......................................................................................................... 4-123
4-59 Region C: Example of the Real Property Tax Payments From a Typical
Vertical Well.......................................................................................................... 4-124
4-60 Projected Change in Total Assessed Value and Property Tax Receipts at Peak
Production (Year 30), by Region ........................................................................... 4-125
4-61 Projected Property Tax Receipts Under Each Development Scenario: Broome
County.................................................................................................................... 4-125
4-62 Projected Property Tax Receipts Under Each Development Scenario:
Chemung County ................................................................................................... 4-127
4-63 Projected Property Tax Receipts Under Each Development Scenario: Tioga
County.................................................................................................................... 4-128
4-64 Projected Property Tax Receipts Under Each Development Scenario:
Delaware County ................................................................................................... 4-130
4-65 Projected Property Tax Receipts Under Each Development Scenario: Otsego
County.................................................................................................................... 4-131
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13. List of Tables (cont.)
Table Page
4-66 Projected Property Tax Receipts Under Each Development Scenario: Sullivan
County.................................................................................................................... 4-133
4-67 Projected Property Tax Receipts Under Each Development Scenario:
Cattaraugus County................................................................................................ 4-134
4-68 Projected Property Tax Receipts Under Each Development Scenario:
Chautauqua County................................................................................................ 4-136
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15. List of Figures
L ist of Figures
Figure Page
1-1 Representative Regions within the Marcellus Shale Extent in New York ................ 1-3
1-2a Representative Region A ........................................................................................... 1-5
1-2b Representative Region B............................................................................................ 1-7
1-2c Representative Region C............................................................................................ 1-9
2-1 Indices of National Natural Gas Consumption, Proved Reserves and Price
(2001=100)................................................................................................................. 2-2
2-2 Baker Hughes, Inc., Count of Active Gas Drilling Rigs, by Quarter (2001 Q1
to 2011 Q2) ................................................................................................................ 2-3
2-3 U.S. Natural Gas Production, 1990-2035 (trillion cubic feet per year) ..................... 2-4
3-1 Region A: Natural Gas Production (1994 to 2009) ................................................. 3-18
3-2 Region C: Natural Gas Production (1994-2009) ..................................................... 3-30
4-1 Annual Number of Wells Completed in New York State Under Each
Development Scenario ............................................................................................... 4-3
4-2 Cumulative Number of Wells Drilled Under Each Development Scenario .............. 4-3
4-3 Annual Number of New Wells Constructed in Region A Under Each
Development Scenario ............................................................................................... 4-8
4-4 Annual Number of New Wells Constructed in Region B Under Each
Development Scenario ............................................................................................... 4-8
4-5 Annual Number of New Wells Constructed in Region C Under Each
Development Scenario ............................................................................................... 4-9
4-6 Cumulative Number of Wells Drilled in Region A Under Each Development
Scenario...................................................................................................................... 4-9
4-7 Cumulative Number of Wells Drilled in Region B Under Each Development
Scenario.................................................................................................................... 4-10
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16. List of Figures (cont.)
Figure Page
4-8 Cumulative Number of Wells Drilled in Region C Under Each Development
Scenario.................................................................................................................... 4-10
4-9 Total Number of Wells in Production...................................................................... 4-11
4-10 Production Profile Based on IOGANY’s “Low Estimate”...................................... 4-12
4-11 Projected Direct Employment in New York State Resulting from Each
Development Scenario ............................................................................................. 4-21
4-12 Projected Total Employment in New York State Resulting from Each
Development Scenario ............................................................................................. 4-26
4-13 Projected Direct Employment in Region A Resulting from Each Development
Scenario.................................................................................................................... 4-32
4-14 Projected Direct Employment in Region B Resulting from Each Development
Scenario.................................................................................................................... 4-33
4-15 Projected Direct Employment in Region C Resulting from Each Development
Scenario.................................................................................................................... 4-33
4-16 Projected Total Employment in Region A Under Each Development Scenario ..... 4-40
4-17 Projected Total Employment in Region B Under Each Development Scenario ..... 4-40
4-18 Projected Total Employment in Region C Under Each Development Scenario ..... 4-41
4-19 Percentage of Construction Jobs Assumed to be Held by Permanent Workers ...... 4-62
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17. List of Abbreviations and Acronyms
L ist of Abbreviations and Acronyms
BCIDA Broome County Industrial Development Agency
Btu British thermal unit
CDP census-designated place
EIA Energy Information Administration
EMT emergency medical technician
FTE full-time equivalent
FY fiscal year
GDP gross domestic product
IOGA-NY Independent Oil & Gas Association of New York
MCF 1,000 cubic feet
MSA Metropolitan Statistical Area
NYSDAM New York State Department of agriculture and Markets
NYSDEC New York State Department of Environmental Conservation
NYSDOL New York State Department of Labor
NYSDTF New York State Department of Taxation and Finance
ORPTS Office of Real Property Tax Service
QCEW quarterly census of employment and wages
RIMS II Regional Input-Output Modeling System II
SEQRA State Environmental Quality Review Act
SGEIS Supplemental Generic Environmental Impact Statement
USBEA U.S. Bureau of Economic Analysis
USCB U.S. Census Bureau
USDA U.S. Department of Agriculture
USDOC U.S. Department of Commerce
VSB Valuation Services Bureau
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19. 1 Introduction
The Economic Assessment Report was prepared to support the New York State
Department of Environmental Conservation’s (“Department” or “NYSDEC”)
Supplemental Generic Environmental Impact Statement (SGEIS) on the Oil, Gas
and Solution Mining Regulatory Program.
The Department is preparing an SGEIS to evaluate the potential impacts associ-
ated with the development and production of natural gas resources in the Marcel-
lus Shale and other low-permeability gas reservoirs in New York State using hori-
zontal and vertical high-volume hydraulic-fracturing techniques. The Depart-
ment’s evaluation supplements the original GEIS on the Oil, Gas, and Solution
Mining Regulatory Program, which was prepared in 1992, prior to the advent of
high-volume hydraulic-fracturing techniques. The development and production
of natural gas resources using high-volume hydraulic-fracturing is distinct from
other types of well development that were evaluated in the 1992 GEIS due to the
much larger volumes of water and additives used to conduct hydraulic fracturing
operations. The supplement to the 1992 SGEIS is needed in order to identify
measures to protect the environment specifically for this new type of well devel-
opment. The SGEIS, together with the 1992 GEIS, will be used to direct pro-
grammatic actions undertaken by NYSDEC.
A draft of the SGEIS was released for public review and comment consistent with
the State Environmental Quality Review Act (SEQRA) in September 2009.
Commenters raised a number of concerns about high-volume hydraulic-fracturing
and the impacts of well development and production on the natural and socioeco-
nomic environment that required NYSDEC to conduct additional research and
analysis. This technical report provides additional analysis of the potential im-
pacts on the socioeconomic environment from development and production of the
natural gas resources of the Marcellus Shale and other low-permeability reservoirs
in the state. Information from this technical report will support the Department’s
preparation of a revised draft SGEIS.
As an SGEIS, NYSDEC is evaluating the environmental effects of a program
having wide application. The Marcellus and Utica Shales are the most prominent
shale formations in New York State. The prospective region for the extraction of
natural gas from these formations generally extends from Chautauqua County
eastward to Greene, Ulster, and Sullivan counties, and from the Pennsylvania
border north to the approximate location of the east-west portion of the New York
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20. 1 Introduction
State Thruway between Schenectady and Auburn (see Figure 1-1). This region
covers all or parts of 30 counties. Fourteen Counties are entirely within the Mar-
cellus and Utica Shale area, and 16 counties are partially within the area.
Due to the broad extent of the prospective region for the extraction of natural gas
from the Marcellus and Utica Shales, the socioeconomic analysis in this report is
based on an evaluation of potential impacts at the state level and for three distinct
representative regions (see Figures 1-2a, 1-2b, and 1-2c). As described in more
detail below, the three regions were selected to evaluate differences between areas
with a high, average, and low production potential; areas that have experienced
gas development in the past and areas that have not experienced gas development
in the past; and differences in land use patterns. Selection of these three regions is
intended to provide a range of potential impacts at the local and regional level
since no specific proposals or permit applications are being analyzed in this
SGEIS. The three representative regions and the respective counties within each
region are:
■ Region A: Broome County, Chemung County, and Tioga County
■ Region B: Delaware County, Otsego County, and Sullivan County
■ Region C: Cattaraugus County and Chautauqua County
Region A is defined as a high-potential production area. Wells in Broome, Che-
mung, and Tioga counties are expected to yield some of the highest production of
shale gas, based on the geology, thermal maturity of the organic matter, and other
geochemical factors of the Marcellus and Utica Shale formations. Due to the
proximity to active gas drilling in these counties, and neighboring counties in
Pennsylvania, the associated infrastructure (pipelines) has already been devel-
oped. With the associated infrastructure in place, developers are expected to be-
gin development of wells in this area if development in New York State is ap-
proved. Region A encompasses urban/suburban land uses associated with the lar-
ger cities of Binghamton and Elmira, as well as rural settings. In addition, con-
ventional natural gas development has occurred in this area.
Region B is defined as an average-potential production area. High-volume hy-
draulic-fracturing development is expected to occur, but the production of shale
gas is not anticipated to reach the levels expected in Region A. Region B is
largely rural and encompasses part of the Catskill Mountains. To date, no con-
ventional natural gas development has occurred in this region. Development in
this region would be limited by the moratorium on drilling in the New York City
watershed and state-owned lands in the Catskill Mountains (i.e., the Forest Pre-
serve). To date, only exploratory natural gas well development has occurred in
this region.
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21. Path: L:BuffaloMarcellus_NYMapsMXDReportDEISSocioeconomicJuly26_2011Overview_Map_072611.mxd
ME
Clinton
C A N A D A St.
Franklin
Lawrence
Jefferson
Essex
VT
Wat ertown
Lewis
Lake Ontario
NH
Herkimer
Hamilton
Warren
NY
Oswego
Washington
Oneida
Orleans
Niagara Niagara Rochest er
81
Rome
Falls Wayne Utica Saratoga
Monroe Syracuse Fulton
North Tonawanda Genesee
290 Sarat oga
Buffalo Cheekt owaga
90
Springs
Ontario Auburn Onondaga Madison Montgomery
CDP Schenectady
Livingston
Cayuga
Erie Wyoming Seneca Schenectady Troy
Yates Otsego Albany
ie
Cortland Chenango Rensselaer
Er Tompkins Schoharie Albany
e
ak
MA
390
L Schuyler
It haca 88
Chautauqua Cattaraugus Allegany Steuben
86 Greene
Chemung Tioga Delaware
Broome Columbia
Jamestown
Elmira Binghamt on 587
Ulster
RI
Dutchess
Sullivan
87
Poughkeepsie CT
Newburgh
PA Orange Putnam
Middletown
Westchester
Rockland
White Plains
Spring Valley
Port Chester
Yonkers New Rochelle
NJ Mount Vernon
Hempst ead
Suffolk
New York Lindenhurst
0 12.5 25 50 Valley Freeport
Miles Stream Long Beach
Representative Regions Place with Year 2010 Tribal Lands Boundary
Population Greater than 25,000 Figure 1-1: Representative Regions
Region A Marcellus Shale Extent
Region B
Major Water Bodies in New York State within the Marcellus and
Region C
County Boundary Utica Shale Extent in New York State Utica Shale Extent in New York
State Boundary
CDP = Census Designated Place Source: ESRI, 2010; USGS, 2002
Marcellus and Utica Shales in New York State

22. 1 Introduction
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23. Path: L:BuffaloMarcellus_NYMapsMXDReportDEISSocioeconomicJuly26_2011Region_A_072611.mxd
Lodi Cortland McGraw New
Groton ts e
er ic
Seneca Riv
Berlin
l
Munsons
222 23
34B
O
Ludlowville Corners
ill a r
Yates Trumansburg
54
Cincinnatus e
ad
13
Dundee Norwich
R iv
Un
Freeville
Cortland
14 89
South New
122
Dryden
Chenango
14A 392
Lansing Berlin
51
227
41
Cayuga Height s Forest Home
Ithaca
8
Gilbert sville
228 221
Oxford
Burdett Marat hon
366
13A
Slat erville Mount
East
226
Watkins South Upton
Springs
327
Glen Hill It haca 12
Montour
Otsego
11
Falls Tompkins ve
r
Schuyler Lisle
79
Odessa go
en a n
Ri
Whitney Ch
Alpine 96B
Greene Unadilla
414
Berkshire Point io u
g Sidney
T
206 Bainbridge
Millport
hn
224
io g
38
13
Pine
aR
235
Newark
81 7
Valley Candor
i
ve
Steuben Valley Aft on
r
Van Spencer 26 369
Etten
96
Painted
34
Post Horseheads Chenango
Broome
88
Big
38B
Bridge
415 Corning Flats Elmira Delaware
Riverside
Chemung Tioga
86
C h e mu Height s Johnson
7B
41
352
South R Endwell City Port Dickinson
ng
iv er Elmira n a Owego Endicott
Corning ha n
West que e r Bingha mton
79
Riv
Elmira Windsor
s
434
Apalachin
Su
86
Southport New York 17 Vestal
Deposit 10
Vestal Conklin
We s w
Wellsburg Nichols
17C 17
D e la
Waverly Center B ra n
17
ar c
e Ri v h
t
282
7A
e
r
Pennsylvania
0 2.5 5 10
Miles
Representative Region A River/Stream
County Boundary Highway/Major Road Figure 1-2a: Representative Region A
State Boundary Secondary Road
Urban Area
Source: ESRI, 2010; USGS, 2002

24. 1 Introduction
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