CITIZEN POWER ALLIANCE

NEW YORK, Jan 5 (Reuters) - Chesapeake Energy (CHK.N) has called proposed New York state regulations for the shale gas drilling industry unnecessarily onerous and likely to scare energy companies out of state, depriving New York of badly needed revenue.

The sentiment was supported by competitor Fortuna Energy, a subsidiary of Canada's Talisman Energy (TLM.TO), which said it was shifting its focus to Pennsylvania because uncertainties in New York threatened to undermine its investments there.

"The measures proposed ... will be more burdensome than any of those placed on our industry throughout the United States," Chesapeake said in public comments made available to Reuters on Tuesday.

As a result, "some operators may elect to focus their risk capital in other states," the company said, which would mean New York would lose potential tax revenue from gas production at a time when the state is looking to close a $3.2 billion budget deficit.

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