ALBANY - Gov. David Paterson on Saturday vetoed a bill to temporarily ban natural-gas drilling in New York, but issued an executive order to prohibit the hydraulic fracturing process until at least July 1.

In doing so, Paterson sought to find a middle ground between environmentalists concerned about the potential harm of the so-called hydrofracking and business groups critical that the moratorium bill would impact all gas drilling in the state.

Both sides praised Paterson for his decision - a rare sign of agreement in the contentious battle over natural-gas drilling.

The executive order requires the state Department of Environmental Conservation to continue its review of the effects of hydraulic fracturing in the Marcellus Shale, a formation that stretches across the Southern Tier.

The order would essentially ban high-volume, horizontal hydraulic fracturing until at least July 1, the outgoing Democratic governor said.

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