N.Y. PBS Law § 66-F

§ 66-f. Purchase and procurement of natural gas at lowest available\nprice. 1. The commission shall have the authority to direct any gas\ncorporation subject to the jurisdiction of the commission to purchase or\nprocure natural gas at the lowest available price as determined by the\ncommission.\n 2. A gas corporation shall be required to purchase supplies of natural\ngas whenever a natural gas producer provides the gas corporation with at\nleast six months prior notice of the availability of such gas, and the\ndelivered cost of such gas is equal to or less than the highest\ndelivered cost of natural gas produced outside the state which the gas\ncorporation would otherwise purchase or acquire, adjusted to reflect\nsubstantive differences, if any, in the terms and conditions applicable\nto the sale of such gas over the period of availability of the natural\ngas; provided, however, that no gas corporation shall be required to\npurchase natural gas where it can demonstrate such purchase would have\nan adverse impact upon its ratepayers, which cannot be reasonably\nmitigated.\n 3. A gas corporation shall respond to a notice of availability of\nsupplies of natural gas at a specified delivered cost provided by a\nproducer of such gas within one month of the receipt of such notice,\nand, if it indicates its intent not to purchase such supplies, shall\nprovide in detail its reasons therefor. A natural gas producer may\npetition the public service commission, within fifteen days of the\nreceipt of a gas corporation's response, to order such gas corporation\nto comply with subdivision one of this section. Such petition shall\ncontain sufficient information to demonstrate the petitioner's ability\nto provide the supplies of natural gas offered for sale to the gas\ncorporation. A copy of such petition shall also be served upon such gas\ncorporation. Within twenty-one days of the receipt of such a petition, a\ngas corporation shall file such information as is necessary to\ndemonstrate that the purchase of natural gas during the period of\navailability at the specified delivered cost of such gas would have an\nadverse impact upon its ratepayers. The petitioner and others shall have\nthe opportunity to comment upon the filing by the gas corporation within\ntwenty-one days of such filing. The commission shall take final action\non any such petition within forty days after the date upon which the\npetitioner's comments are due. The commission may require a gas\ncorporation to purchase all or a portion of the supplies of natural gas\noffered by the petitioner during the period of availability at the\nspecified delivered cost, or at such other cost as will not result in an\nadverse impact upon such gas corporation's ratepayers. Nothing in this\nsection shall require a producer of natural gas to sell such gas to a\ngas corporation at a cost other than that specified in its notice of\navailability.\n