S T A T E O F N E W Y O R K
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5381
2015-2016 Regular Sessions
I N A S S E M B L Y
February 20, 2015
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Introduced by M. of A. LIFTON, JAFFEE, ROSENTHAL, ENGLEBRIGHT, ABINANTI,
TITONE -- Multi-Sponsored by -- M. of A. DINOWITZ, GLICK, GOTTFRIED --
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:
Section 1. Subdivisions 5 and 6 of section 5-333 of the general obli-
gations law, as added by chapter 386 of the laws 2005, are amended to
read as follows:
5. (A) On or after January first, two thousand six, any oil or gas
lease shall contain the following statement printed in at least ten
point bold type:
THIS IS A LEASE OF OIL AND GAS RIGHTS, NOT A SALE, CONTAINING TERMS
THAT MAY BE NEGOTIATED BY YOU. YOU HAVE THE RIGHT TO CANCEL THIS LEASE
WITHIN THREE BUSINESS DAYS AFTER EXECUTION OF THE LEASE BY NOTIFYING THE
LESSEE THAT YOU HAVE CANCELED THIS CONTRACT. IN ORDER TO CANCEL THIS
LEASE, YOU MUST EXECUTE A NOTICE OF CANCELLATION IN THE FORM PROVIDED
BELOW, MAIL IT TO THE LESSEE AND REFUND ALL AMOUNTS PAID TO YOU BY THE
LESSEE WITHIN THE THREE-DAY CANCELLATION PERIOD. THE MAILING MUST BE
POSTMARKED WITHIN THE THREE-DAY CANCELLATION PERIOD TO BE EFFECTIVE.
NOTICE OF CANCELLATION
I/WE HEREBY CANCEL THIS LEASE.
DATED: _______________________
SIGNATURE(S): _________________________
THE PERSON PRESENTING THIS LEASE TO YOU IS [ ] NOT [ ] A MEMBER OF
(name of organization) AND THEREFORE IS [ ] IS NOT [ ] SUBJECT
TO A CODE OF CONDUCT. IF THE PERSON PRESENTING THIS LEASE TO YOU IS
SUBJECT TO A CODE OF CONDUCT, A COPY OF THE CODE OF CONDUCT MUST BE
PRESENTED TO YOU WITH THIS LEASE. IF APPLICABLE, THE CODE OF CONDUCT
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.
LBD03965-01-5
A. 5381 2
HAVE REGARDING THE MANNER BY WHICH THIS LEASE WAS PRESENTED TO YOU. IF
YOU HAVE ANY SUCH DISPUTE, YOU MAY INVOKE THE DISPUTE RESOLUTION MECH-
ANISM OF THE CODE OF CONDUCT BY CONTACTING THE PERSON OR PERSONS DESIG-
NATED IN THE CODE OF CONDUCT. THE FAILURE OF THE LESSEE TO PAY ANY
ROYALTIES TO YOU AS REQUIRED UNDER THE TERMS OF THE LEASE FOR A PERIOD
OF FOUR CONSECUTIVE MONTHS OR MORE SHALL BE A DEFAULT UNLESS OTHERWISE
PROVIDED BY LAW, AND WILL RESULT IN CANCELLATION OF THE LEASE APPLICABLE
TO THE TARGET FORMATION OF THE WELL WITHIN THE SPACING UNIT, FOLLOWING
WRITTEN NOTIFICATION TO THE LESSEE OF YOUR INTENT TO CANCEL AND SIXTY
DAYS FOR THE LESSEE TO CURE THE DEFAULT. IF THE LESSEE HAS A BONA FIDE
DISPUTE REGARDING THE GROUNDS FOR CANCELLATION, SUCH DISPUTE AND THE
REASONS THEREFOR MUST BE PROVIDED TO YOU IN WRITING OR THE DEFAULT MUST
BE CURED WITHIN SUCH SIXTY DAY PERIOD, OTHERWISE THE LEASE SHALL BE
CANCELLED.
(B) ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN, THE LESSEE, OR
WHERE THE LESSEE HAS ASSIGNED ITS INTEREST, THE ASSIGNEE, SHALL, WITHIN
THIRTY DAYS AFTER THE DATE OF SUCH ASSIGNMENT, PROVIDE WRITTEN NOTICE OF
SUCH ASSIGNMENT AND THE NAMES AND ADDRESSES OF SUCH ASSIGNEES TO THE
CURRENT OWNER OF THE LAND WHICH IS SUBJECT TO THE LEASE.
6. The provisions of subdivisions one, two, three and four of this
section shall apply to leases entered into on or after January first,
nineteen hundred eighty-five [and], the provisions of PARAGRAPH (A) OF
subdivision five of this section shall apply to leases entered into on
or after January first, two thousand six AND THE PROVISIONS OF PARAGRAPH
(B) OF SUBDIVISION FIVE OF THIS SECTION SHALL APPLY TO LEASES ENTERED
INTO ON OR AFTER JANUARY FIRST, TWO THOUSAND SIXTEEN.
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.