SOUTHERN TIER, N.Y. -- Governor Paterson has placed a moratorium on drilling Marcellus shale in New York until the DEC completes a study to see how it will impact the environment. But one local company says it's a study that should be conducted in practice.

"There has been no horizontal Marcellus wells done in New York which is one of the issues we have. How can a state evaluate something in its own boundaries when it's never occurred there?" said Mark Scheuerman, a spokesperson for Fortuna Energy Inc., based in Chemung County.

Drilling Marcellus Shale is different than other types of natural gas drilling previously done in New York. Companies drill horizontally and use water and sand to break apart the rock. Evaluating its impact on the environment isn't an easy task. The DEC expected to have the preliminary report done by this spring, but that's changed to later this summer.

"We're trying to do it as thoroughly as possible initially and then go through the next step. So it's just important because it's a very lengthy document and a very involved process," said Lori Severiano, a spokesperson for the New York DEC.

In the meantime, companies like Fortuna are moving resources elsewhere to Pennsylvania where drilling Marcellus is already permitted.

"We have spent hundreds of millions of dollars in Pennsylvania and create a good number of jobs down there that otherwise might have been created here in New York," said Scheuerman.

Fortuna officials aren't against the DEC's study, but they're calling on Governor Paterson to do it in a way that doesn't prevent the state from losing out on the benefits.

Scheuerman says Pennsylvania has found a good balance.

"They've found a way to work with the industry, honor their interest of preserving the environment and in the interest of all land owners and citizens haven't shut down operations," Scheuerman said.

He says there's a lot of uncertainty regarding the company's future in New York State and although they'd like stay, they have do whatever is best for their business.

Representative Maurice Hinchey says it is vital that before any drilling is done, the time is taken to evaluate its impact on people and the environment. He commends the DEC for giving the matter the scrutiny it needs and deserves.