Bill Text: NY A08482 | 2011-2012 | General Assembly | Introduced

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Bill Title: Relates to notice requirements for assigning oil, gas or mineral land leases.

Spectrum: Partisan Bill (Democrat 11-0)

Status: (Introduced - Dead) 2012-01-04 - referred to judiciary [A08482 Detail]

Download: New_York-2011-A08482-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         8482
                              2011-2012 Regular Sessions
                                 I N  A S S E M B L Y
                                     June 17, 2011
                                      ___________
       Introduced  by  M.  of A. LIFTON, P. RIVERA, JAFFEE, ROSENTHAL -- Multi-
         Sponsored by -- M. of A.  DINOWITZ, GLICK, GOTTFRIED,  NOLAN  --  read
         once and referred to the Committee on Judiciary
       AN  ACT  to  amend  the  general  obligations law, in relation to notice
         requirements for assigning oil, gas or mineral land leases
         THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section  1. Subdivisions 5 and 6 of section 5-333 of the general obli-
    2  gations law, as added by chapter 386 of the laws 2005,  are  amended  to
    3  read as follows:
    4    5.  (A)  On  or  after January first, two thousand six, any oil or gas
    5  lease shall contain the following statement  printed  in  at  least  ten
    6  point bold type:
    7    THIS  IS  A  LEASE OF OIL AND GAS RIGHTS, NOT A SALE, CONTAINING TERMS
    8  THAT MAY BE NEGOTIATED BY YOU. YOU HAVE THE RIGHT TO CANCEL  THIS  LEASE
    9  WITHIN THREE BUSINESS DAYS AFTER EXECUTION OF THE LEASE BY NOTIFYING THE
   10  LESSEE  THAT  YOU  HAVE  CANCELED THIS CONTRACT. IN ORDER TO CANCEL THIS
   11  LEASE, YOU MUST EXECUTE A NOTICE OF CANCELLATION IN  THE  FORM  PROVIDED
   12  BELOW,  MAIL  IT TO THE LESSEE AND REFUND ALL AMOUNTS PAID TO YOU BY THE
   13  LESSEE WITHIN THE THREE-DAY CANCELLATION PERIOD.  THE  MAILING  MUST  BE
   14  POSTMARKED WITHIN THE THREE-DAY CANCELLATION PERIOD TO BE EFFECTIVE.
   15                     NOTICE OF CANCELLATION
   16           I/WE HEREBY CANCEL THIS LEASE.
   17    DATED:
   18    SIGNATURE(S):
   19    THE PERSON PRESENTING THIS LEASE TO YOU IS [ ] NOT [ ] A MEMBER OF
   20    (name  of organization)        AND THEREFORE IS [ ] IS NOT [ ] SUBJECT
   21  TO A CODE OF CONDUCT. IF THE PERSON PRESENTING  THIS  LEASE  TO  YOU  IS
   22  SUBJECT  TO  A  CODE  OF  CONDUCT, A COPY OF THE CODE OF CONDUCT MUST BE
   23  PRESENTED TO YOU WITH THIS LEASE. IF APPLICABLE,  THE  CODE  OF  CONDUCT
   24  PROVIDES  A  DISPUTE  RESOLUTION  MECHANISM FOR ANY DISPUTE THAT YOU MAY
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11798-01-1
       A. 8482                             2
    1  HAVE REGARDING THE MANNER BY WHICH THIS LEASE WAS PRESENTED TO  YOU.  IF
    2  YOU  HAVE  ANY SUCH DISPUTE, YOU MAY INVOKE THE DISPUTE RESOLUTION MECH-
    3  ANISM OF THE CODE OF CONDUCT BY CONTACTING THE PERSON OR PERSONS  DESIG-
    4  NATED  IN  THE  CODE  OF  CONDUCT.  THE FAILURE OF THE LESSEE TO PAY ANY
    5  ROYALTIES TO YOU AS REQUIRED UNDER THE TERMS OF THE LEASE FOR  A  PERIOD
    6  OF  FOUR  CONSECUTIVE MONTHS OR MORE SHALL BE A DEFAULT UNLESS OTHERWISE
    7  PROVIDED BY LAW, AND WILL RESULT IN CANCELLATION OF THE LEASE APPLICABLE
    8  TO THE TARGET FORMATION OF THE WELL WITHIN THE SPACING  UNIT,  FOLLOWING
    9  WRITTEN  NOTIFICATION  TO  THE LESSEE OF YOUR INTENT TO CANCEL AND SIXTY
   10  DAYS FOR THE LESSEE TO CURE THE DEFAULT. IF THE LESSEE HAS A  BONA  FIDE
   11  DISPUTE  REGARDING  THE  GROUNDS  FOR CANCELLATION, SUCH DISPUTE AND THE
   12  REASONS THEREFOR MUST BE PROVIDED TO YOU IN WRITING OR THE DEFAULT  MUST
   13  BE  CURED  WITHIN  SUCH  SIXTY  DAY PERIOD, OTHERWISE THE LEASE SHALL BE
   14  CANCELLED.
   15    (B) ON OR AFTER JANUARY FIRST, TWO THOUSAND  TWELVE,  THE  LESSEE,  OR
   16  WHERE  THE LESSEE HAS ASSIGNED ITS INTEREST, THE ASSIGNEE, SHALL, WITHIN
   17  THIRTY DAYS AFTER THE DATE OF SUCH ASSIGNMENT, PROVIDE WRITTEN NOTICE OF
   18  SUCH ASSIGNMENT AND THE NAMES AND ADDRESSES OF  SUCH  ASSIGNEES  TO  THE
   19  CURRENT OWNER OF THE LAND WHICH IS SUBJECT TO THE LEASE.
   20    6.  The  provisions  of  subdivisions one, two, three and four of this
   21  section shall apply to leases entered into on or  after  January  first,
   22  nineteen  hundred  eighty-five [and], the provisions of PARAGRAPH (A) OF
   23  subdivision five of this section shall apply to leases entered  into  on
   24  or after January first, two thousand six AND THE PROVISIONS OF PARAGRAPH
   25  (B)  OF  SUBDIVISION  FIVE OF THIS SECTION SHALL APPLY TO LEASES ENTERED
   26  INTO ON OR AFTER JANUARY FIRST, TWO THOUSAND TWELVE.
   27    S 2. This act shall take effect immediately and  shall  apply  to  all
   28  agreements,   leases   and  contracts  entered  into,  issued,  renewed,
   29  extended, altered or modified on or after such effective date.