senate Bill S4879

Relates to excluding oil, gas or mineral land leases from leases that may be recorded by memorandum of lease

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Bill Status


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

  • 29 / Apr / 2013
    • REFERRED TO JUDICIARY
  • 08 / Jan / 2014
    • REFERRED TO JUDICIARY

Summary

Relates to excluding oil, gas and mineral land leases from leases that may be recorded by memorandum of lease.

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Bill Details

See Assembly Version of this Bill:
A842
Versions:
S4879
Legislative Cycle:
2013-2014
Current Committee:
Senate Judiciary
Law Section:
Real Property Law
Laws Affected:
Amd §291-c, RP L
Versions Introduced in 2011-2012 Legislative Cycle:
A8480, A8480

Sponsor Memo

BILL NUMBER:S4879

TITLE OF BILL: An act to amend the real property law, in relation to
excluding oil, gas or mineral land leases from leases that may be
recorded by memorandum of lease

PURPOSE: To provide more information to persons purchasing real
property regarding oil, gas or mineral land leases.

SUMMARY OF PROVISIONS: This legislation would amend Real Property law
to require more detailed information on oil, gas, and mineral leases
be filed with property deeds, instead of the current provisions, which
only requires filing of a memorandum of lease.

EXISTING LAW: Section 291-c of the real property law.

JUSTIFICATION: Often, after executing an oil, gas, or mineral lease in
New York State, the lessee will record a "memorandum of lease" with
the relevant county clerk's office. Such a memorandum provides only
the bare minimum of information for public review about each specific
lease agreement. Accordingly, the real estate industry in counties
that have many oil and gas leases, which have increased exponentially
over the past several years due to the possibility of shale gas
extraction in the Marcellus play, has been greatly affected.
Residential property valuation can be heavily dependent upon the
specific terms of an oil, gas, or mineral lease. Notably, the duration
of a lease, any easements or surface rights granted to a lessee, among
other concerns, can directly impact a property's value. Also, the
existence of a lease on one's land, or even on neighboring property
given the lending institutions' setback requirements, can impair the
viability of a home to be eligible for title insurance or a mortgage.
This is critical information for valuation of real property;
therefore, the exact terms of a lease must be available to both
assessors and lending institutions.

LEGISLATIVE HISTORY: 2013 A.842 (Similar) Lifton - Referred to
Judiciary. 2011 - 2012 A.8480 (Similar) Lifton - Died in Judiciary.

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE: Immediately.

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

                                  4879

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             April 29, 2013
                               ___________

Introduced  by  Sens.  TKACZYK,  ADDABBO, DILAN, KRUEGER, PARKER -- 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 excluding oil, gas
  or  mineral land leases from leases that may be recorded by memorandum
  of lease

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

  Section 1. Section 291-c of the real property law, as added by chapter
602 of the laws of 1957, is amended to read as follows:
  S 291-c. Recording memoranda of leases.  In lieu of the recording of a
lease  for a term exceeding three years, pursuant to section two hundred
ninety-one of this [chapter] ARTICLE, there may be  recorded  with  like
effect  a  memorandum  of  such  lease,  executed by all persons who are
parties to the lease, and acknowledged or proved, and certified, in  the
manner  to  entitle  a conveyance to be recorded; PROVIDED, HOWEVER, THE
PROVISIONS OF THIS SECTION SHALL NOT APPLY TO THE RECORDING OF OIL,  GAS
OR  MINERAL  LAND  LEASES.  A  memorandum  of  lease thus entitled to be
recorded shall contain at least the following information  with  respect
to  the lease: the name of the lessor and the name of the lessee and the
addresses, if any, set forth in the lease as addresses of such  parties;
a  reference  to the lease, with its date of execution; a description of
the leased premises in the form contained in the lease; the term of  the
lease, with the date of commencement and the date of termination of such
term, and if there is a right of extension or renewal, the maximum peri-
od for which or date to which the lease may be extended or the number of
times or date to which it may be renewed, and the date or dates on which
such rights of extension or renewal are exercisable.
  Whenever  a  memorandum of lease is presented for recording, the lease
shall also be submitted to the recording  officer  for  the  purpose  of
examination  to  determine  whether  or  not such memorandum of lease is

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02503-01-3

S. 4879                             2

subject to the tax on mortgages provided by article eleven  of  the  tax
law.
  S  2.  This  act  shall take effect immediately and shall apply to all
agreements,  leases  and  contracts  entered  into,   issued,   renewed,
extended, altered or modified on or after such effective date.

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