The NYT is reporting that New York Governor David Paterson has vetoed the proposed legislative moratorium on the use of hydraulic fracturing to develop the state's mineral resources. But the article goes on: "Instead, he [i.e., Gov. Paterson] issued an executive order instituting a longer moratorium that extended until July 1, 2011, but that more narrowly defined the types of drilling to be restricted." A copy of the Executive Order can be found here once it is posted (it has not been at the time of this writing).
Whether producers will exercise force majeure provisions in their leases remains an open question.