Governor Paterson took questions from the press today following an early Earth Day event in Albany (Earth Day is actually on Thursday).

He was asked about a wide variety of issues, including drilling the Marcellus Shale, where budget talks stand, property tax relief and the allegations against Senate Majority Leader Pedro Espada Jr.

Paterson punted on the Espada question, deferring to AG Andrew Cuomo and insisting he didn’t know anything about the investigation.

The DN’s Glenn Blain asked about a meeting the Governor had with his attorneys yesterday and whether he has been interviewed by the State Inspector General or Judith Kaye.

The IG is looking into the rescinded deal to grant Aqueduct Entertainment Group the rights to run VLTs at Aqueduct Race Course. Former Chief Judge Kaye is investigating whether the Governor inappropriately accepted free Yankees tickets and interfered in a domestic violence incident involving his former aide, David Johnson.

“I’m cooperating with both probes,” the governor replied. “I was interviewed by the Inspector General.”

In response to a question from Brendan Scott of the NY Post about revenue raisers, the Governor warned about the perils of imposing new state taxes on Wall Street.

Here’s part of this response:

“Just remember when you start going near Wall Street, the taxes that we impose there could come back to bite us because it’s an electronic industry. You do not have to be physically in New York to conduct it.”

“And unless you want to make some street in downtown Greenwich or some street in Jersey City or Edgewater the new Wall Street, I advise caution in that area. What you could do is have a national tax on profit making out of Wall Street, which would then protect New York and we could collect our fair share.”

Paterson also commented on the regulatory reforms to Wall Street being proposed by President Obama and supported some Congressional Democrats. The President will be in New York City on Thursday to tout the plan.

Here’s Governor Paterson’s response to a question from Nick Confessore of the New York Times about the reforms.