Substitute Senate Bill 165 - Oil and Gas Law Revision

• Establishes comprehensive setback requirements for new oil and gas wells in urbanized areas, including 100-150 feet from occupied dwellings and property lines, with provisions for written consent to reduce distances.

• Creates new permitting timeline and fee structure: 18-30 days for urbanized area wells (vs. 10-21 days for other areas), with additional $5,000 fee for mandatory pooling applications.

• Introduces temporary inactive well status allowing owners to maintain wells for future development instead of immediate plugging, subject to inspection requirements and annual fees.

• Establishes oil and gas regulatory cost recovery assessment on owners ($15 per well minimum, or per-barrel assessment based on production) with amounts deposited into the oil and gas well fund.

• Requires enhanced well construction standards to protect underground drinking water sources, including fluid drilling in urbanized areas before penetrating Onondaga limestone and isolation of sour gas zones through approved cementing and casing practices.