senate Bill S2779

Provides for the lapse of oil and gas interests located within Allegany state park if unused for 20 years prior to effective date of act

download pdf

Sponsor

Co-Sponsors

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
view actions

actions

  • 01 / Feb / 2011
    • REFERRED TO JUDICIARY
  • 01 / Jun / 2011
    • 1ST REPORT CAL.908
  • 02 / Jun / 2011
    • 2ND REPORT CAL.
  • 06 / Jun / 2011
    • ADVANCED TO THIRD READING
  • 13 / Jun / 2011
    • SUBSTITUTED BY A408

Summary

Provides for the lapse of oil and gas and interests located within Allegany state park if unused for 20 years prior to effective date of act unless a statement of claim is filed by the owner prior to the end of the 20 year period or within 2 years of the effective date of the act, whichever is later; provides upon such lapse ownership shall revert to New York state; procedures and definitions.

do you support this bill?

Bill Details

See Assembly Version of this Bill:
A408
Versions:
S2779
Legislative Cycle:
2011-2012
Law Section:
Real Property Law
Laws Affected:
Add §329-a, RP L
Versions Introduced in Previous Legislative Cycles:
2009-2010: S7170B, A9070B
2007-2008: A2312, S5213, A2312

Sponsor Memo

BILL NUMBER:S2779 REVISED 06/07/11

TITLE OF BILL:
An act
to amend the real property law, in relation to lapse of oil and gas
interests in Allegany state park

SUMMARY OF SPECIFIC PROVISIONS:
Amends the Real Property Law by adding a new section 329-a to provide
that oil and gas interests in Allegany State Park unused for 20 years
will lapse and revert to New York State unless a statement of claim
is filed in accordance with subdivision five of this section. Failure
to file a statement of claim will not result in lapse of such oil and
gas interest if a diligent effort to preserve such interest were made
with the period provided in subdivision five; or there was a failure
to provide a statement of claim through inadvertence, or if no such
notice was published within sixty days after receiving actual
knowledge that such oil and gas interest had been extinguished.

JUSTIFICATION:
Allegany State Park is home to 67,000 acres of outdoor recreational
opportunities for residents in Rochester and Buffalo and the
surrounding regions of the Niagara Frontier, Genesee Valley and
Finger Lakes: The park is an invaluable asset to the state's tourism
economy. It offers a hundred-year-old mixed hardwood forest, a
350-year-old old-growth-forest and one of the most botanically
diverse ecosystems in New York State.
Its incomparable beauty and unique ecological resources deserve a
level of protection at least equal too if not greater than that
afforded other New York State Parks. Oil and gas exploration in the
Park would create a tangle of roads and well heads that would ruin
its forests and render this amazing place unfit as a Park.

This bill will allow greater protection for Allegany State Park with
regard to the lapse of oil and gas interest on land underneath the
park.
This bill allows ownership of mineral rights underlying Allegany State
Park to revert to the state of NY if those rights are unused over a
twenty year span. Ownership of these rights are often extremely
difficult, if not impossible, to determine.

A new concern exists with the potential of natural gas exploration in
the Marcellus Shale formation that lies beneath much of Allegany
State Park. A drilling practice called hydraulic fracturing or
"hydrofracking" is necessary to extract natural gas from the 1-3 mile
deep Marcellus Shale: This process requires unprecedented 5 acre
wellheads and unprecedented volumes of water (2-9 million gallons).

Such activities could cause disruption to the vegetation and wildlife
of Allegany State Park. Any new oil or gas exploration in Allegany
State Park would be contrary to the recreational and ecological value
of the park.

The bill's intent is to inventory the dormant oil and gas rights in
Allegany State Park and to have those rights revert back to the state
if unused. The bill will limit the disruption of Allegany State


Park's recreational and ecological systems which could be threatened
by the exploitation of those privately held rights.

PRIOR LEGISLATIVE HISTORY:
1998: A.289A - Referred to Judiciary
2000: A.2436 - Reported and Referred to Ways and Means
2001-02: A.2212 - Reported and Referred to Ways and Means
2003-04: A.625 - Referred to Judiciary
2005-06: A.2569 - Referred to Judiciary, Passed Assembly,
Delivered to Senate
2009-10: S.7170B - Third Reading Calendar in Senate,
A.9070B - Passed Assembly

FISCAL IMPLICATIONS:
New York State would incur a nominal expense in complying with this
bill.

EFFECTIVE DATE:
Immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2779

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 1, 2011
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed 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:

  Section 1. Legislative declaration. The legislature finds and declares
that there exists within Allegany state park a unique situation  whereby
rights  to  oil and gas resources beneath the surface were severed at or
prior to the time of acquisition of lands of the park by  the  state  of
New York, and that currently such rights may remain in private ownership
under significant areas of the park. Many of these rights are of ancient
origin  and uncertain ownership and have never been exercised since such
acquisition, yet they complicate the state's  ownership  rights  in  the
park, and create the potential for future interference with the public's
right  to  full  enjoyment  of the park's unique and substantial natural
beauty and resources. The legislature  finds  that  where  oil  and  gas
rights  have not been used for twenty years, they may properly be viewed
as dormant, and it is reasonable and appropriate to  lapse  such  rights
unless  their  owners  assert  their  claims to them within a reasonable
period of two years. The provisions of this act provide ample notice  to
the  unknown  owners  of  the potential lapse of their rights as well as
ample opportunity to  assert  their  claims.  Thus,  this  act  provides
reasonable  protection  of  such  rights  while furthering the important
public policy of promoting the public's use and enjoyment  of  parklands
free from potential interference by dormant subsurface rights.
  S 2. The real property law is amended by adding a new section 329-a to
read as follows:
  S 329-A. LAPSE OF OIL AND GAS INTEREST WITHIN ALLEGANY STATE PARK. THE
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

S. 2779                             2

WERE PREVIOUSLY SEVERED FROM INTERESTS IN LANDS THAT ARE CURRENTLY OWNED
BY THE STATE WITHIN ALLEGANY STATE PARK.
  1. ANY INTEREST IN OIL AND GAS SHALL, IF UNUSED FOR A PERIOD OF TWENTY
YEARS IMMEDIATELY PRIOR TO THE EFFECTIVE DATE OF THIS SECTION, BE EXTIN-
GUISHED,  AND  THE OWNERSHIP THEREOF SHALL REVERT TO THE STATE, UNLESS A
STATEMENT OF CLAIM IS FILED WITHIN TWO YEARS AFTER THE EFFECTIVE DATE OF
THIS SECTION, IN ACCORDANCE WITH SUBDIVISION FIVE OF THIS SECTION.
  2. SUCH OIL AND GAS INTEREST SHALL MEAN THE INTEREST WHICH IS  CREATED
BY  AN INSTRUMENT TRANSFERRING, EITHER BY GRANT, ASSIGNMENT, OR RESERVA-
TION OR OTHERWISE, AN INTEREST OF ANY KIND, IN OIL AND GAS LOCATED ON OR
BENEATH LANDS OWNED BY THE STATE WITHIN ALLEGANY STATE  PARK;  PROVIDED,
HOWEVER, THAT SUCH INTEREST SHALL NOT INCLUDE A LEASE FOR A FIXED TERM.
  3.  SUCH OIL AND GAS INTEREST SHALL BE DEEMED TO BE USED WHEN: (A) OIL
AND GAS IS PRODUCED; (B) OPERATIONS ARE BEING CONDUCTED  FOR  INJECTION,
WITHDRAWAL, STORAGE OR DISPOSAL OF WATER, GAS OR OTHER FLUID SUBSTANCES;
(C)  RENTALS  OR  ROYALTIES  ARE BEING PAID BY THE OWNER THEREOF FOR THE
PURPOSE OF DELAYING OR ENJOYING THE USE OR EXERCISE OF SUCH RIGHTS;  (D)
ANY  SUCH  USE IS BEING CARRIED OUT ON ANY TRACT WITH WHICH SUCH OIL AND
GAS INTEREST IS BEING UNITIZED OR POOLED FOR PRODUCTION PURPOSES; OR (E)
TAXES ARE PAID ON SUCH OIL AND GAS INTEREST BY THE OWNER THEREOF.    ANY
USE  PURSUANT  TO  OR AUTHORIZED BY THE INSTRUMENT CREATING SUCH OIL AND
GAS INTEREST SHALL BE EFFECTIVE TO CONTINUE IN FORCE ALL RIGHTS  GRANTED
BY SUCH INSTRUMENT.
  4.  WITHIN  THIRTY  DAYS AFTER THE EFFECTIVE DATE OF THIS SECTION, THE
OFFICE OF PARKS, RECREATION AND HISTORIC PRESERVATION SHALL CAUSE TO  BE
PUBLISHED  IN  THREE  SUCCESSIVE  ISSUES  OF THREE NEWSPAPERS OF GENERAL
CIRCULATION PUBLISHED IN THE COUNTY OF CATTARAUGUS, A NOTICE  ANNOUNCING
THE  ENACTMENT  OF  THE  PROVISIONS OF THIS SECTION, INCLUDING A SUMMARY
THEREOF IN PLAIN ENGLISH.
  5. THE STATEMENT OF CLAIM PROVIDED IN SUBDIVISION ONE OF THIS  SECTION
SHALL  BE  FILED  BY  THE  OWNER OF SUCH OIL AND GAS INTEREST WITHIN TWO
YEARS IMMEDIATELY FOLLOWING THE EFFECTIVE DATE OF THIS SECTION AND SHALL
CONTAIN THE  NAME  AND  ADDRESS  OF  THE  OWNER  OF  SUCH  INTEREST  AND
DESCRIPTION  OF  THE LAND ON OR UNDER WHICH SUCH OIL AND GAS INTEREST IS
LOCATED. SUCH STATEMENT OF CLAIM SHALL BE ACCOMPANIED BY A COPY  OF  THE
INSTRUMENT CREATING OR RESERVING SUCH INTEREST AND SHALL BE FILED IN THE
OFFICE OF THE CLERK OF THE COUNTY OF CATTARAUGUS. WHERE SUCH AN INTEREST
IS CO-OWNED BY MORE THAN ONE PARTY, ANY ONE OWNER MAY FILE THE STATEMENT
OF CLAIM ON BEHALF OF ALL OWNERS.
  6.  FAILURE  TO  FILE A STATEMENT OF CLAIM WITHIN THE TIME PROVIDED IN
SUBDIVISION FIVE OF THIS SECTION SHALL NOT CAUSE AN OIL AND GAS INTEREST
TO BE EXTINGUISHED IF THE OWNER OF SUCH OIL AND GAS INTEREST:
  (A) MADE DILIGENT EFFORT TO PRESERVE ALL OF SUCH INTERESTS AS WERE NOT
BEING USED, AND DID WITHIN THE PERIOD PROVIDED IN  SUBDIVISION  FIVE  OF
THIS  SECTION  PRESERVE  OTHER OIL AND GAS INTERESTS, IN SAID COUNTY, BY
THE FILING OF STATEMENTS OF CLAIM AS REQUIRED BY THIS SECTION; AND
  (B) FAILED TO PRESERVE SUCH INTEREST THROUGH INADVERTENCE; AND
  (C) FILED THE STATEMENT OF CLAIM REQUIRED BY THIS SECTION WITHIN SIXTY
DAYS AFTER PUBLICATION OF NOTICE AS PROVIDED  IN  SUBDIVISION  SEVEN  OF
THIS SECTION OR, IF NO SUCH NOTICE IS PUBLISHED, WITHIN SIXTY DAYS AFTER
RECEIVING  ACTUAL  KNOWLEDGE  THAT  SUCH  OIL  AND GAS INTEREST HAD BEEN
EXTINGUISHED.
  7. AT ANY TIME FOLLOWING THE EXPIRATION  OF  THE  PERIOD  PROVIDED  IN
SUBDIVISION  FIVE  OF  THIS SECTION, THE OFFICE OF PARKS, RECREATION AND
HISTORIC PRESERVATION MAY GIVE NOTICE OF THE LAPSE OF ANY SUCH  OIL  AND
GAS  INTEREST  BY  PUBLISHING  THE SAME IN A NEWSPAPER OF GENERAL CIRCU-

S. 2779                             3

LATION IN THE COUNTY OF CATTARAUGUS, AND, IF THE ADDRESS OF SUCH OIL AND
GAS INTEREST OWNER IS SHOWN OF RECORD OR CAN BE DETERMINED UPON  REASON-
ABLE  INQUIRY,  BY MAILING WITHIN TEN DAYS AFTER SUCH PUBLICATION A COPY
OF  SUCH  NOTICE  TO  THE OWNER OF SUCH OIL AND GAS INTEREST. THE NOTICE
SHALL STATE THE NAME OF THE OWNER OF SUCH OIL AND GAS INTEREST AS  SHOWN
OF  RECORD  AND  A  DESCRIPTION  OF  THE LAND. IF A COPY OF SUCH NOTICE,
TOGETHER WITH AN AFFIDAVIT OF SERVICE THEREOF, SHALL BE  PROMPTLY  FILED
IN  THE  OFFICE OF THE CLERK IN THE COUNTY WHEREIN SUCH LAND IS LOCATED,
THE  RECORD  THEREOF  SHALL  BE  PRIMA  FACIE  EVIDENCE  IN  ANY   LEGAL
PROCEEDINGS THAT SUCH NOTICE WAS GIVEN.
  8.  UPON THE FILING OF THE STATEMENT OF CLAIM PROVIDED FOR IN SUBDIVI-
SION FIVE OF THIS SECTION OR THE PROOF OF SERVICE OF NOTICE AS  PROVIDED
IN SUBDIVISION SEVEN OF THIS SECTION IN THE CLERK'S OFFICE FOR THE COUN-
TY  OF CATTARAUGUS, THE CLERK SHALL RECORD THE SAME IN A BOOK TO BE KEPT
FOR THAT PURPOSE, WHICH SHALL BE KNOWN  AS  THE  "DORMANT  OIL  AND  GAS
INTEREST RECORD," AND SHALL INDICATE BY MARGINAL NOTATION ON THE INSTRU-
MENT CREATING THE ORIGINAL OIL AND GAS INTEREST THE FILING OF THE STATE-
MENT OF CLAIM OR AFFIDAVIT OF PUBLICATION AND SERVICE OF NOTICE.
  9. THE FILING OF THE STATEMENT OF CLAIM PROVIDED IN THIS SECTION SHALL
NOT BE EVIDENCE OF TITLE TO OR OWNERSHIP OF THE INTEREST CLAIMED THEREIN
FOR ANY PURPOSE OTHER THAN THAT PROVIDED IN THIS SECTION.
  S 3. This act shall take effect immediately.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.