S T A T E O F N E W Y O R K ________________________________________________________________________ 408 2011-2012 Regular Sessions I N A S S E M B L Y (PREFILED) January 5, 2011 ___________ Introduced by M. of A. HOYT, COLTON, ENGLEBRIGHT -- read once and referred to the Committee on Judiciary AN ACT to amend the real property law, in relation to lapse of oil and gas interests in Allegany state park THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Legislative declaration. The legislature finds and declares 2 that there exists within Allegany state park a unique situation whereby 3 rights to oil and gas resources beneath the surface were severed at or 4 prior to the time of acquisition of lands of the park by the state of 5 New York, and that currently such rights may remain in private ownership 6 under significant areas of the park. Many of these rights are of ancient 7 origin and uncertain ownership and have never been exercised since such 8 acquisition, yet they complicate the state's ownership rights in the 9 park, and create the potential for future interference with the public's 10 right to full enjoyment of the park's unique and substantial natural 11 beauty and resources. The legislature finds that where oil and gas 12 rights have not been used for twenty years, they may properly be viewed 13 as dormant, and it is reasonable and appropriate to lapse such rights 14 unless their owners assert their claims to them within a reasonable 15 period of two years. The provisions of this act provide ample notice to 16 the unknown owners of the potential lapse of their rights as well as 17 ample opportunity to assert their claims. Thus, this act provides 18 reasonable protection of such rights while furthering the important 19 public policy of promoting the public's use and enjoyment of parklands 20 free from potential interference by dormant subsurface rights. 21 S 2. The real property law is amended by adding a new section 329-a to 22 read as follows: 23 S 329-A. LAPSE OF OIL AND GAS INTEREST WITHIN ALLEGANY STATE PARK. THE 24 PROVISIONS OF THIS SECTION SHALL APPLY TO OIL AND GAS INTERESTS THAT EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01154-01-1 A. 408 2 1 WERE PREVIOUSLY SEVERED FROM INTERESTS IN LANDS THAT ARE CURRENTLY OWNED 2 BY THE STATE WITHIN ALLEGANY STATE PARK. 3 1. ANY INTEREST IN OIL AND GAS SHALL, IF UNUSED FOR A PERIOD OF TWENTY 4 YEARS IMMEDIATELY PRIOR TO THE EFFECTIVE DATE OF THIS SECTION, BE EXTIN- 5 GUISHED, AND THE OWNERSHIP THEREOF SHALL REVERT TO THE STATE, UNLESS A 6 STATEMENT OF CLAIM IS FILED WITHIN TWO YEARS AFTER THE EFFECTIVE DATE OF 7 THIS SECTION, IN ACCORDANCE WITH SUBDIVISION FIVE OF THIS SECTION. 8 2. SUCH OIL AND GAS INTEREST SHALL MEAN THE INTEREST WHICH IS CREATED 9 BY AN INSTRUMENT TRANSFERRING, EITHER BY GRANT, ASSIGNMENT, OR RESERVA- 10 TION OR OTHERWISE, AN INTEREST OF ANY KIND, IN OIL AND GAS LOCATED ON OR 11 BENEATH LANDS OWNED BY THE STATE WITHIN ALLEGANY STATE PARK; PROVIDED, 12 HOWEVER, THAT SUCH INTEREST SHALL NOT INCLUDE A LEASE FOR A FIXED TERM. 13 3. SUCH OIL AND GAS INTEREST SHALL BE DEEMED TO BE USED WHEN: (A) OIL 14 AND GAS IS PRODUCED; (B) OPERATIONS ARE BEING CONDUCTED FOR INJECTION, 15 WITHDRAWAL, STORAGE OR DISPOSAL OF WATER, GAS OR OTHER FLUID SUBSTANCES; 16 (C) RENTALS OR ROYALTIES ARE BEING PAID BY THE OWNER THEREOF FOR THE 17 PURPOSE OF DELAYING OR ENJOYING THE USE OR EXERCISE OF SUCH RIGHTS; (D) 18 ANY SUCH USE IS BEING CARRIED OUT ON ANY TRACT WITH WHICH SUCH OIL AND 19 GAS INTEREST IS BEING UNITIZED OR POOLED FOR PRODUCTION PURPOSES; OR (E) 20 TAXES ARE PAID ON SUCH OIL AND GAS INTEREST BY THE OWNER THEREOF. ANY 21 USE PURSUANT TO OR AUTHORIZED BY THE INSTRUMENT CREATING SUCH OIL AND 22 GAS INTEREST SHALL BE EFFECTIVE TO CONTINUE IN FORCE ALL RIGHTS GRANTED 23 BY SUCH INSTRUMENT. 24 4. WITHIN THIRTY DAYS AFTER THE EFFECTIVE DATE OF THIS SECTION, THE 25 OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION SHALL CAUSE TO BE 26 PUBLISHED IN THREE SUCCESSIVE ISSUES OF THREE NEWSPAPERS OF GENERAL 27 CIRCULATION PUBLISHED IN THE COUNTY OF CATTARAUGUS, A NOTICE ANNOUNCING 28 THE ENACTMENT OF THE PROVISIONS OF THIS SECTION, INCLUDING A SUMMARY 29 THEREOF IN PLAIN ENGLISH. 30 5. THE STATEMENT OF CLAIM PROVIDED IN SUBDIVISION ONE OF THIS SECTION 31 SHALL BE FILED BY THE OWNER OF SUCH OIL AND GAS INTEREST WITHIN TWO 32 YEARS IMMEDIATELY FOLLOWING THE EFFECTIVE DATE OF THIS SECTION AND SHALL 33 CONTAIN THE NAME AND ADDRESS OF THE OWNER OF SUCH INTEREST AND 34 DESCRIPTION OF THE LAND ON OR UNDER WHICH SUCH OIL AND GAS INTEREST IS 35 LOCATED. SUCH STATEMENT OF CLAIM SHALL BE ACCOMPANIED BY A COPY OF THE 36 INSTRUMENT CREATING OR RESERVING SUCH INTEREST AND SHALL BE FILED IN THE 37 OFFICE OF THE CLERK OF THE COUNTY OF CATTARAUGUS. WHERE SUCH AN INTEREST 38 IS CO-OWNED BY MORE THAN ONE PARTY, ANY ONE OWNER MAY FILE THE STATEMENT 39 OF CLAIM ON BEHALF OF ALL OWNERS. 40 6. FAILURE TO FILE A STATEMENT OF CLAIM WITHIN THE TIME PROVIDED IN 41 SUBDIVISION FIVE OF THIS SECTION SHALL NOT CAUSE AN OIL AND GAS INTEREST 42 TO BE EXTINGUISHED IF THE OWNER OF SUCH OIL AND GAS INTEREST: 43 (A) MADE DILIGENT EFFORT TO PRESERVE ALL OF SUCH INTERESTS AS WERE NOT 44 BEING USED, AND DID WITHIN THE PERIOD PROVIDED IN SUBDIVISION FIVE OF 45 THIS SECTION PRESERVE OTHER OIL AND GAS INTERESTS, IN SAID COUNTY, BY 46 THE FILING OF STATEMENTS OF CLAIM AS REQUIRED BY THIS SECTION; AND 47 (B) FAILED TO PRESERVE SUCH INTEREST THROUGH INADVERTENCE; AND 48 (C) FILED THE STATEMENT OF CLAIM REQUIRED BY THIS SECTION WITHIN SIXTY 49 DAYS AFTER PUBLICATION OF NOTICE AS PROVIDED IN SUBDIVISION SEVEN OF 50 THIS SECTION OR, IF NO SUCH NOTICE IS PUBLISHED, WITHIN SIXTY DAYS AFTER 51 RECEIVING ACTUAL KNOWLEDGE THAT SUCH OIL AND GAS INTEREST HAD BEEN 52 EXTINGUISHED. 53 7. AT ANY TIME FOLLOWING THE EXPIRATION OF THE PERIOD PROVIDED IN 54 SUBDIVISION FIVE OF THIS SECTION, THE OFFICE OF PARKS, RECREATION AND 55 HISTORIC PRESERVATION MAY GIVE NOTICE OF THE LAPSE OF ANY SUCH OIL AND 56 GAS INTEREST BY PUBLISHING THE SAME IN A NEWSPAPER OF GENERAL CIRCU- A. 408 3 1 LATION IN THE COUNTY OF CATTARAUGUS, AND, IF THE ADDRESS OF SUCH OIL AND 2 GAS INTEREST OWNER IS SHOWN OF RECORD OR CAN BE DETERMINED UPON REASON- 3 ABLE INQUIRY, BY MAILING WITHIN TEN DAYS AFTER SUCH PUBLICATION A COPY 4 OF SUCH NOTICE TO THE OWNER OF SUCH OIL AND GAS INTEREST. THE NOTICE 5 SHALL STATE THE NAME OF THE OWNER OF SUCH OIL AND GAS INTEREST AS SHOWN 6 OF RECORD AND A DESCRIPTION OF THE LAND. IF A COPY OF SUCH NOTICE, 7 TOGETHER WITH AN AFFIDAVIT OF SERVICE THEREOF, SHALL BE PROMPTLY FILED 8 IN THE OFFICE OF THE CLERK IN THE COUNTY WHEREIN SUCH LAND IS LOCATED, 9 THE RECORD THEREOF SHALL BE PRIMA FACIE EVIDENCE IN ANY LEGAL 10 PROCEEDINGS THAT SUCH NOTICE WAS GIVEN. 11 8. UPON THE FILING OF THE STATEMENT OF CLAIM PROVIDED FOR IN SUBDIVI- 12 SION FIVE OF THIS SECTION OR THE PROOF OF SERVICE OF NOTICE AS PROVIDED 13 IN SUBDIVISION SEVEN OF THIS SECTION IN THE CLERK'S OFFICE FOR THE COUN- 14 TY OF CATTARAUGUS, THE CLERK SHALL RECORD THE SAME IN A BOOK TO BE KEPT 15 FOR THAT PURPOSE, WHICH SHALL BE KNOWN AS THE "DORMANT OIL AND GAS 16 INTEREST RECORD," AND SHALL INDICATE BY MARGINAL NOTATION ON THE INSTRU- 17 MENT CREATING THE ORIGINAL OIL AND GAS INTEREST THE FILING OF THE STATE- 18 MENT OF CLAIM OR AFFIDAVIT OF PUBLICATION AND SERVICE OF NOTICE. 19 9. THE FILING OF THE STATEMENT OF CLAIM PROVIDED IN THIS SECTION SHALL 20 NOT BE EVIDENCE OF TITLE TO OR OWNERSHIP OF THE INTEREST CLAIMED THEREIN 21 FOR ANY PURPOSE OTHER THAN THAT PROVIDED IN THIS SECTION. 22 S 3. This act shall take effect immediately.