S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1966
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 17, 2017
                                ___________
 
 Introduced by M. of A. CROUCH -- read once and referred to the Committee
   on Environmental Conservation
 
 AN  ACT to amend the environmental conservation law, in relation to bids
   for oil and gas production leases on state lands
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Subdivision  4  of  section  23-1101 of the environmental
 conservation law, as amended by chapter 707 of the laws of 1974  and  as
 renumbered  by  chapter  722  of the laws of 1977, is amended to read as
 follows:
   4. Any such oil, gas, or oil and gas lease or leases made and  granted
 pursuant  to  this  section shall be awarded [to the highest responsible
 bidder], after advertisement for sealed bids, TO  THE  BEST  RESPONSIBLE
 BIDDER  AS  THE DEPARTMENT DETERMINES AFTER CONSIDERING BIDS WHICH SHALL
 INCLUDE BOTH A LEASE PAYMENT AMOUNT AND A ROYALTY PAYMENT  AMOUNT.  Such
 advertisements  for bids shall be published in the official newspaper or
 newspapers, if any, or otherwise in a newspaper or newspapers designated
 for such purpose. Such advertisement shall contain a  statement  of  the
 time  and  place where all bids received pursuant to such notice will be
 publicly opened and read. All bids received shall be publicly opened and
 read at the time and place specified. At least thirty days shall  elapse
 between  the first publication of such advertisement and the date speci-
 fied for the opening and reading of bids. Bids  shall  be  submitted  on
 forms  provided by the department, which forms shall indicate the method
 or methods for computing  compensation  to  the  state  for  the  lease,
 INCLUDING  A SEPARATE COMPONENT FOR LEASE PAYMENTS AND ROYALTY PAYMENTS,
 and shall contain such other directions as may be appropriate to  secure
 comparability  of bids submitted for any given lease. The department, in
 its discretion, shall  determine  the  highest  bid  after  taking  into
 consideration  the  anticipated compensation to be returned to the state
 under any such lease by way of royalty payments,  delayed  lease  rental
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04638-01-7

 A. 1966                             2
 
 payments, bonuses or other compensation or consideration, or by a combi-
 nation of any or all of the same. In cases where two or more responsible
 bidders  submit  identical  bids,  the department in its discretion, may
 award  the  lease involved to any of such bidders. The department in its
 discretion, may also reject any or all  bids  and  readvertise  for  new
 bids.  The  department  may  disallow any bid if the bidder upon request
 fails to furnish satisfactory evidence of responsibility.
   § 2. This act shall take effect on the one hundred twentieth day after
 it shall have become a law. Effective immediately, the addition,  amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of this act on its effective date is authorized to be made on or
 before such effective date.