§ 368 — Exploration, development and production of natural gas fields by school districts

§ 368. Exploration, development and production of natural gas fields\nby school districts. 1. "Natural gas producing facility" as used in this\narticle shall mean all real estate, fixtures, and personal property\noperated, owned, used or to be used for or in connection with or to\nfacilitate the production, conveyance, transportation, distribution, or\nfurnishing of natural gas.\n 2. Notwithstanding any general or special law to the contrary, any\nschool district may engage in the exploration and development of natural\ngas fields, and further, may construct, lease, purchase, own, acquire,\nuse and/or operate any natural gas producing facility which is situated\non real property owned by the school district for the purpose of\nproducing, conveying, transporting and furnishing natural gas for school\ndistrict purposes. A school district producing natural gas in excess of\nthe amount required for school district purposes may convey, transport,\nfurnish, sell or transfer such excess.\n 3. No school district, other than a city school district, may perform\nany of the acts authorized under the provisions of this section unless\nand until the provisions of the education law relating to voter approval\nof such acts have been complied with.\n 4. Any school district may acquire the necessary rights to extend\npipes across public highways or other lands for the purpose of\ntransporting natural gas from the natural gas producing facility to\nother real property owned by the school district.\n 5. Any school district may finance the cost of exploration,\ndevelopment and production of natural gas and the cost of the natural\ngas producing facility in whole or in part by levying taxes in the\nmanner authorized by the education law, or the same may be financed in\nwhole or in part pursuant to the local finance law.\n 6. The exploration, development and production of such natural gas and\nthe purchase, acquisition, leasing and construction of such natural gas\nproducing facility shall be effected by such school district in the same\nmanner as other contracts, purchases and leases are effected by and for\nsuch school districts and shall be governed by all laws applicable\nthereto.\n 7. All of the provisions of article four of the public service law and\narticle twenty-three of the environmental conservation law, so far as\nthe same are applicable, shall apply to a school district which\nfurnishes to itself natural gas under this section except that a school\ndistrict need not apply to or obtain from the public service commission\na certificate of authority.\n 8. Nothing herein shall be construed to authorize the sale or transfer\nof natural gas by a school district to any other person except as\nprovided in subdivision two hereof.\n 9. For the purposes of this section, school district shall be defined\nto include a board of cooperative educational services, provided\nhowever, that the provisions of subdivision three of this section shall\nnot apply to such boards of cooperative educational services, and\nprovided further that:\n a. No board of cooperative educational services may perform any of the\nacts authorized under the provisions of this section unless and until\n(i) a proposition is submitted to the voters of any such board of\ncooperative educational services in accordance with the provisions of\nsubdivision two of section nineteen hundred fifty-one of the education\nlaw and (ii) any such board of cooperative educational services and all\nof its component school districts enter into an agreement or agreements\nproviding for the performance of any such acts.\n b. No such component school district shall enter into an agreement or\nagreements unless such agreement or agreements have been approved by a\nmajority vote of the entire voting strength of the board of education of\nsuch a component school district.\n c. Any such agreement or agreements shall also provide for the sharing\nof the cost of exploring, developing or producing natural gas and the\ncost of the natural gas producing facility among each component school\ndistrict. Such agreement or agreements in addition to providing for all\nother matters deemed necessary and proper shall (i) set forth the cost\nof such exploration, development or production of natural gas and the\ncost of the natural gas producing facility and costs incidental thereto\nand (ii) provide for an allocation and apportionment of such costs among\nthe component school districts on such equitable basis as the parties\nthereto shall determine and agree, and the proportion of the total cost\nto be provided by each such district in accordance with such allocation\nand apportionment. Such agreement or agreements shall be executed by all\nthe component school districts of such board of cooperative educational\nservices and such board of cooperative educational services. Such\nagreement or agreements may provide that each component school district\nof such a board of cooperative educational services shall issue an\nagreed upon amount of its obligations in a total amount sufficient to\nacquire or construct such facilities, or that all component districts of\nsuch board shall together issue joint obligations pledging the full\nfaith and credit for all component districts jointly and that each such\ndistrict shall pay a specified share of annual debt service on such\njoint obligations in accordance with the provisions of article five-g of\nthis chapter and applicable provisions of the local finance law.\n d. Each such component school district is authorized to finance its\nshare of the cost of exploring, developing or producing natural gas and\nthe cost of the natural gas producing facility together with the costs\nincidental to such financing, including, but not limited to legal fees,\nprinting, engraving and publication of notices, either from any current\nfunds legally available therefor, or by the issuance of obligations\npursuant to the local finance law; provided, however, that (i) no\napproval of the voters of such component school district shall be\nrequired, (ii) the voting of a special tax or a tax to be collected in\ninstallments shall not be a condition precedent to the adoption of a\nbond resolution for such object or purpose, (iii) a majority vote of the\nentire voting strength of the board of education shall be sufficient for\nadoption of such a bond resolution, which bond resolution may be adopted\nat a regular meeting, or a special meeting of the board of education\ncalled on not less than twelve hours oral or written notice, which may\nbe held either within or outside of such district, (iv) any such bond\nresolution shall be adopted prior to the execution by the board of\ncooperative educational services and the component school districts of\nsuch board of cooperative educational services of the agreement required\nby paragraph b of this subdivision.\n e. Such agreement shall further provide that title to the natural gas\nproducing facility shall vest in the board of cooperative educational\nservices which title shall be held by the board of cooperative\neducational services for the benefit and on behalf of all the component\nschool districts of such board executing such agreement.\n f. Nothing herein contained shall be construed to permit any school\ndistrict in a city as defined in subdivision two-b of section 2.00 of\nthe local finance law to contract indebtedness for such specific object\nor purpose in excess of the limitation prescribed by subdivision b of\nsection 104.00 of such law, without complying with the provisions of\nsubdivision c thereof. A school district, other than a school district\nin a city, may not issue bonds or bond anticipation notes for such\nspecific object or purpose in excess of the limitation prescribed by\nsubdivision d of section 104.00 of such law, without complying with the\nrequirements of paragraphs one through three of such subdivision.\n