Assembly Bill A9070B

2009-2010 Legislative Session

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

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Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 01, 2010	recommitted to rules returned to senate repassed assembly
Jun 21, 2010	amended on third reading 9070b
Jun 21, 2010	vote reconsidered - restored to third reading returned to assembly committed to rules substitution reconsidered recalled from senate
Jun 09, 2010	starred on calendar
May 27, 2010	3rd reading cal.344 substituted for s7170a
May 26, 2010	recommitted to judiciary returned to senate repassed assembly
May 10, 2010	amended on third reading 9070a
May 10, 2010	vote reconsidered - restored to third reading returned to assembly recommitted to judiciary substitution reconsidered recalled from senate
Apr 14, 2010	3rd reading cal.344 substituted for s7170
Mar 15, 2010	referred to judiciary delivered to senate passed assembly
Mar 11, 2010	advanced to third reading cal.725
Mar 09, 2010	reported
Jan 06, 2010	referred to judiciary
Jul 10, 2009	referred to judiciary

Bill Amendments

2009-A9070 - Details

See Senate Version of this Bill:: S7170
Current Committee:: Senate Rules
Law Section:: Real Property Law
Laws Affected:: Add §329-a, RP L
Versions Introduced in 2011-2012 Legislative Session:: A408, S2779

2009-A9070 - 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.

2009-A9070 - Sponsor Memo

                                BILL NUMBER:A9070                REVISED 04/05/10

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 by the owner of the mineral interest prior to the end of the 20
year period prior to the effective date or within two years of the
effective date of this statute whichever is later. Failure to file a
statement of claim will not result in lapse if a statement is filed
within 60 days of the publication of notice of lapse by the original
owner or within 60 days of actual knowledge of the lapse.

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 diffi-
cult, 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. An environmentally disruptive 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 would cause disruption to the vegetation and
wildlife of Allegany State Park. Any new oil or gas exploration in Alle-
gany 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's recreational

and ecological systems which are now threatened by the exploitation of
those privately held rights.

PRIOR LEGISLATIVE HISTORY:
1998:    A289-A referred to judiciary
2000:    A2436 reported and referred to ways and means
2001-02: A2212 reported and referred to ways and means
2003-04: A625 referred to judiciary
2005-06: A2569 - referred to judiciary, passed Assembly, delivered to
Senate

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

EFFECTIVE DATE:
immediately.

2009-A9070 - Bill Text download pdf

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

                                  9070

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              July 10, 2009
                               ___________

Introduced  by  M. of A. HOYT -- 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:

  Section 1. 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.  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, UNLESS A STATEMENT OF CLAIM IS FILED IN ACCORDANCE WITH  SUBDI-
VISION  FOUR  OF  THIS  SECTION,  AND  THE OWNERSHIP SHALL REVERT TO THE
OWNERSHIP OF THE STATE OF NEW YORK.
  2. SUCH OIL AND GAS INTEREST SHALL BE TAKEN TO MEAN THE INTEREST WHICH
IS CREATED BY AN INSTRUMENT TRANSFERRING, EITHER BY  GRANT,  ASSIGNMENT,
OR  RESERVATION,  OR  OTHERWISE AN INTEREST, OF ANY KIND, IN OIL AND GAS
LOCATED WITHIN ALLEGANY STATE PARK.
  3. SUCH OIL AND GAS INTEREST SHALL BE DEEMED TO BE USED WHEN  OIL  AND
GAS  PRODUCED  THEREUNDER OR WHEN OPERATIONS ARE BEING CONDUCTED THEREON
FOR INJECTION, WITHDRAWAL, STORAGE OR DISPOSAL OF WATER,  GAS  OR  OTHER
FLUID  SUBSTANCES,  OR  WHEN  RENTALS OR ROYALTIES ARE BEING PAID BY THE
OWNER THEREOF FOR THE PURPOSE OF DELAYING OR ENJOYING THE USE  OR  EXER-
CISE  OF  SUCH  RIGHTS  OR WHEN 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  WHEN  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. THE STATEMENT OF CLAIM PROVIDED IN SUBDIVISION ONE OF THIS  SECTION
SHALL  BE  FILED  BY THE OWNER OF SUCH OIL AND GAS INTEREST PRIOR TO THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14509-01-9

A. 9070                             2

END OF THE TWENTY YEAR PERIOD SET  FORTH  IN  SUBDIVISION  ONE  OF  THIS
SECTION, OR WITHIN TWO YEARS IMMEDIATELY FOLLOWING THE EFFECTIVE DATE OF
THIS SECTION, WHICHEVER IS LATER, 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  FILED  IN THE OFFICE OF THE CLERK IN THE COUNTY IN WHICH SUCH
LAND IS LOCATED. UPON THE FILING OF THE STATEMENT OF  CLAIM  WITHIN  THE
TIME  PROVIDED,  IT  SHALL  BE DEEMED THAT SUCH OIL AND GAS INTEREST WAS
BEING USED ON THE DATE THE STATEMENT OF CLAIM WAS FILED.
  5. FAILURE TO FILE A STATEMENT OF CLAIM WITHIN THE  TIME  PROVIDED  IN
SUBDIVISION  FOUR OF THIS SECTION, SHALL NOT CAUSE AN OIL AND GAS INTER-
EST 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 A PERIOD OF TEN YEARS PRIOR TO THE EXPIRATION
OF THE PERIOD PROVIDED IN SUBDIVISION  FOUR  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 SIX OF
THIS SECTION, IF SUCH NOTICE IS PUBLISHED, AND  IF  NO  SUCH  NOTICE  IS
PUBLISHED,  WITHIN SIXTY DAYS AFTER RECEIVING ACTUAL KNOWLEDGE THAT SUCH
OIL AND GAS INTEREST HAD LAPSED.
  6. THE STATE UPON SUCCEEDING TO THE OWNERSHIP OF ANY SUCH OIL AND  GAS
INTEREST, UPON THE LAPSE THEREOF, SHALL GIVE NOTICE OF THE LAPSE OF SUCH
OIL  AND  GAS  INTEREST BY PUBLISHING THE SAME IN A NEWSPAPER OF GENERAL
CIRCULATION IN THE COUNTY IN WHICH SUCH OIL AND GAS INTEREST IS LOCATED,
AND, IF THE ADDRESS OF SUCH OIL AND  GAS  INTEREST  OWNER  IS  SHOWN  OF
RECORD  OR  CAN BE DETERMINED UPON REASONABLE 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.
  7. UPON THE FILING OF THE STATEMENT OF CLAIM, PROVIDED FOR IN SUBDIVI-
SION  FOUR OF THIS SECTION OR THE PROOF OF SERVICE OF NOTICE AS PROVIDED
IN SUBDIVISION SIX OF THIS SECTION, IN THE CLERK'S OFFICE FOR THE COUNTY
WHERE SUCH INTEREST IS LOCATED, 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  INSTRUMENT CREATING THE ORIGINAL OIL AND GAS INTEREST THE FILING OF
THE STATEMENT OF CLAIM  OR  AFFIDAVIT  OF  PUBLICATION  AND  SERVICE  OF
NOTICE.
  8.  THE PROVISIONS OF THIS SECTION MAY NOT BE WAIVED AT ANY TIME PRIOR
TO THE EXPIRATION OF THE TWENTY YEAR PERIOD PROVIDED IN SUBDIVISION  ONE
OF THIS SECTION.
  S 2. This act shall take effect immediately.

co-Sponsors

2009-A9070A - Details

See Senate Version of this Bill:: S7170
Current Committee:: Senate Rules
Law Section:: Real Property Law
Laws Affected:: Add §329-a, RP L
Versions Introduced in 2011-2012 Legislative Session:: A408, S2779

2009-A9070A - Summary

2009-A9070A - Sponsor Memo

                                BILL NUMBER:A9070A

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
their was a failure to provide a statement  of  claim  through  inadver-
tence,  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 ecolog-
ical  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  diffi-
cult, 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.  An  environmentally disruptive 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 would 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's  recreational

and  ecological  systems which are now threatened by the exploitation of
those privately held rights.

PRIOR LEGISLATIVE HISTORY:
1998 A289-A referred to judiciary 2000
A2436 reported and referred to ways and means
2001-02 A2212 reported and referred to ways and means
2003-04 A625 referred to judiciary
2005-06 A2569 - referred to judiciary, passed Assembly, delivered to
Senate.

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

EFFECTIVE DATE: Immediately

2009-A9070A - Bill Text download pdf

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

                                 9070--A
                                                        Cal. No. 725

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              July 10, 2009
                               ___________

Introduced  by  M.  of  A. HOYT, COLTON -- read once and referred to the
  Committee on Judiciary -- passed by  Assembly  and  delivered  to  the
  Senate,  recalled  from  the  Senate, vote reconsidered, bill amended,
  ordered reprinted, retaining its place on the order of third reading

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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14509-02-0

A. 9070--A                          2

  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
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 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

A. 9070--A                          3

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-
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.

co-Sponsors

2009-A9070B (ACTIVE) - Details

See Senate Version of this Bill:: S7170
Current Committee:: Senate Rules
Law Section:: Real Property Law
Laws Affected:: Add §329-a, RP L
Versions Introduced in 2011-2012 Legislative Session:: A408, S2779

2009-A9070B (ACTIVE) - Summary

2009-A9070B (ACTIVE) - Bill Text download pdf

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

                                 9070--B
                                                        Cal. No. 725

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              July 10, 2009
                               ___________

Introduced  by  M.  of  A.  HOYT,  COLTON,  ENGLEBRIGHT -- read once and
  referred to the Committee on  Judiciary  --  passed  by  Assembly  and
  delivered  to the Senate, recalled from the Senate, vote reconsidered,
  bill amended, ordered reprinted, retaining its place on the  order  of
  third  reading  --  passed  by  Assembly  and delivered to the Senate,
  recalled from the Senate, vote  reconsidered,  bill  amended,  ordered
  reprinted, retaining its place on the order of third reading

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.

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

                                                           LBD14509-07-0

A. 9070--B                          2

  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
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.

A. 9070--B                          3

  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-
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.

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