N.Y. PBS Law § 66-G

§ 66-g. Sale of indigenous natural gas for generation of electricity.\n1. The commission shall require an electric corporation to enter into\nlong-term contracts to purchase or wheel electricity produced from\nindigenous natural gas supplies at the well site under such terms and\nconditions as the commission shall find just and economically reasonable\nto such corporation's customers, non-discriminatory to the producers of\nelectricity from indigenous natural gas supplies, and furthers the\npublic policy of this section and state energy policy; provided,\nhowever, the minimum sales price shall be no lower than the electric\ncorporation's avoided cost. For the purpose of this section indigenous\nnatural gas shall mean natural gas produced from wells located within\nthe state.\n 2. Nothing contained in this section shall require an electric or gas\ncorporation to construct any additional facilities to satisfy its\nobligations hereunder, unless such facilities are paid for in full by\nthe producer or producers of indigenous natural gas.\n 3. Notwithstanding any other provision of law, a producer of\nindigenous natural gas whose natural gas activities are limited to the\nproduction, sale and/or transportation of indigenous natural gas to a\ngas corporation or a gas pipeline, the production, sale and/or\ntransportation of indigenous natural gas to the facilities of less than\ntwenty industrial or commercial users, the production, sale and/or\ntransportation of natural gas to a co-generation or electrical\ngenerating facility, the production of electricity from indigenous\nnatural gas at the well site for sale to an electric corporation, or any\ncombination thereof, shall not be subject to the jurisdiction of the\ncommission except (a) with respect to the safety of the construction,\noperation or maintenance of its gas plant and the certification of major\nutility transmission facilities under article VII of this chapter and\n(b) that such producer of indigenous natural gas that does not retain or\ntransport such gas for his own use but rather sells or transports such\ngas to industrial or commercial users shall maintain a record of the\nvolumes of such gas sold or transported to such users. Such producer\nshall submit these records annually to the commission on or before the\nthirty-first day of March.\n