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

                                  2534

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 16, 2013
                               ___________

Introduced by M. of A. CRESPO -- read once and referred to the Committee
  on Ways and Means

AN  ACT  to  amend the tax law, in relation to establishing the New York
  office of natural resource revenue

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The tax law is amended by adding a new article 42 to read
as follows:
                               ARTICLE 42
               NEW YORK OFFICE OF NATURAL RESOURCE REVENUE
SECTION 4000. NEW YORK OFFICE OF NATURAL RESOURCE REVENUE.
        4001. DEFINITIONS.
        4002. POWERS AND DUTIES OF THE OFFICE.
        4003. ANNUAL REPORT.
  S 4000. NEW YORK OFFICE OF NATURAL RESOURCE REVENUE. THERE  IS  HEREBY
CREATED  WITHIN  THE  DEPARTMENT THE NEW YORK OFFICE OF NATURAL RESOURCE
REVENUE. THE HEAD OF THE NEW YORK OFFICE  OF  NATURAL  RESOURCE  REVENUE
SHALL  BE  THE  COMMISSIONER.    SUCH  COMMISSIONER,  SUBJECT  TO  RULES
PRESCRIBED BY THE GOVERNOR, MAY ESTABLISH SUCH BUREAUS OR  DIVISIONS  IN
THE  NEW  YORK OFFICE OF NATURAL RESOURCE REVENUE, AS HE OR SHE MAY DEEM
NECESSARY AND MAY APPOINT SUCH DEPUTIES, DIRECTORS, ASSISTANTS AND OTHER
EMPLOYEES AS MAY BE NEEDED FOR THE PERFORMANCE OF HIS OR HER DUTIES  AND
MAY  PRESCRIBE THEIR POWERS AND DUTIES AND FIX THEIR COMPENSATION WITHIN
THE AMOUNT APPROPRIATED THEREFOR. SUCH OFFICE SHALL BE FULLY ESTABLISHED
WITHIN ONE HUNDRED TWENTY DAYS FROM THE EFFECTIVE DATE OF THIS ARTICLE.
  S 4001. DEFINITIONS. FOR PURPOSES OF THIS ARTICLE, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1. "ROYALTIES" SHALL MEAN THE AMOUNTS PAID BY A PRODUCER TO A LANDOWN-
ER FOR THE RIGHT TO DEVELOP LAND BY EXTRACTING OIL, NATURAL  GAS  AND/OR
OTHER  MINERALS,  FROM  THE  AMOUNTS THE PRODUCER ACTUALLY RECEIVES FROM
SALE OF SUCH OIL, NATURAL GAS AND/OR OTHER MINERALS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00972-01-3
              

A. 2534                             2

  2. "COMMISSIONER" SHALL MEAN THE COMMISSIONER OF TAXATION AND FINANCE.
  3.  "OFFICE" SHALL MEAN THE NEW YORK OFFICE OF NATURAL RESOURCE REVEN-
UE.
  4. "PRODUCER" SHALL MEAN ANY PERSON, PARTNERSHIP, CORPORATION OR OTHER
ASSOCIATION OR ENTITY OWNING, LEASING OR OPERATING THE WORKING  INTEREST
IN ANY PROPERTY USED FOR OIL, GAS AND/OR OTHER MINERAL EXTRACTION.
  5. "NATURAL RESOURCE" SHALL NOT INCLUDE RENEWABLE RESOURCES, INCLUDING
BUT NOT LIMITED TO WIND, GEOTHERMAL, SOLAR AND WAVE ENERGY.
  S  4002.  POWERS  AND  DUTIES OF THE OFFICE. THE OFFICE SHALL HAVE THE
FOLLOWING POWERS AND DUTIES:
  1. ESTABLISH AND MAINTAIN A PRINCIPAL OFFICE AND  SUCH  OTHER  OFFICES
WITHIN THE STATE AS IT MAY DEEM NECESSARY.
  2.  APPOINT  EMPLOYEES  AND AGENTS AS IT MAY DEEM NECESSARY, FIX THEIR
COMPENSATION WITHIN THE LIMITATIONS PROVIDED BY LAW, AND PRESCRIBE THEIR
DUTIES.
  3. ADOPT, PROMULGATE, AMEND AND RESCIND SUITABLE RULES AND REGULATIONS
TO CARRY OUT THE PROVISIONS AND PURPOSES OF THIS ARTICLE, PROVIDED THAT,
AT A MINIMUM, SUCH RULES AND REGULATIONS:
  A. SPECIFY THE AMOUNT OF SUCH ROYALTY FEES AND RATES AND THE METHOD OF
COLLECTION OF SUCH ROYALTY FEES AND RATES, PROVIDED  THAT  SUCH  ROYALTY
RATE  SHALL BE NO LESS THAN ONE-EIGHTH OF THE PROCEEDS RECEIVED FROM THE
SALE  OF  OIL,  NATURAL  GAS  AND/OR  OTHER  MINERALS  EXTRACTED,   LESS
DEDUCTIONS FOR POST PRODUCTION AND TRANSPORTATION COSTS;
  B. REQUIRE PRODUCERS TO:
  (I) PAY ROYALTIES WITHIN THIRTY DAYS OF PRODUCTION;
  (II) ADHERE TO ACCOUNTING STANDARDS PRESCRIBED BY THE COMMISSIONER;
  (III) MAINTAIN ADEQUATE RECORDS; AND
  (IV) FILE DETAILED MONTHLY REPORTS WITH THE OFFICE.
  4.  PUBLISH  GUIDANCE  MATERIALS  PRESCRIBING  THE  DETAILS OF ROYALTY
COMPLIANCE.
  5. INCREASE THE SET ROYALTY FEE DUE TO INFLATION AND/OR  AN  INCREASED
SALE  PRICE  OF  OIL, NATURAL GAS AND/OR OTHER MINERALS EXTRACTED DUE TO
NATURAL AND UNNATURAL EFFECTS ON THE  ENERGY  MARKET.  THE  COMMISSIONER
SHALL  NOT  AUTHORIZE A DECREASE IN THE SET ROYALTY FEE DUE TO INFLATION
AND/OR AN INCREASED SALE PRICE OF OIL, NATURAL GAS AND/OR OTHER MINERALS
EXTRACTED DUE TO NATURAL AND UNNATURAL EFFECTS ON THE ENERGY MARKET.
  6. MONITOR, COLLECT AND ENFORCE PAYMENT OF ANY ROYALTIES OWED  TO  THE
STATE  FOR  THE RIGHT TO DEVELOP LAND FOR THE EXTRACTION OF OIL, NATURAL
GAS AND/OR OTHER MINERALS.
  S 4003. ANNUAL REPORT. THE DEPARTMENT  SHALL,  ON  OR  BEFORE  JANUARY
FIRST IN EACH YEAR, SUBMIT A REPORT TO THE GOVERNOR, THE TEMPORARY PRES-
IDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEADER OF
THE  SENATE AND THE MINORITY LEADER OF THE ASSEMBLY, WHICH SHALL INCLUDE
THE DETAILS OF ALL REVENUE COLLECTED  FROM  ROYALTIES,  A  LIST  OF  THE
GEOGRAPHIC  LOCATIONS  OF LEASE AGREEMENTS FOR SUCH ROYALTIES, A LIST OF
ALL RULES AND REGULATIONS ISSUED REGARDING ROYALTY COLLECTIONS AND ACTU-
AL ROYALTY COLLECTIONS AND PROJECTED ROYALTY COLLECTIONS BASED ON FUTURE
DEVELOPMENT OF MINERALS, INCLUDING OIL AND/OR NATURAL GAS IN THE STATE.
  S 2. This act shall take effect immediately; provided,  however,  that
effective immediately, the addition, amendment and/or repeal of any rule
or regulation necessary for the implementation of this act on its effec-
tive  date  is  authorized  and  directed to be made and completed on or
before such effective date.