BILL NUMBER:  S2902

 TITLE OF BILL :  An act to amend the real property law, in relation
to recordation of certain lease modifications

 PURPOSE :

To provide a mechanism for verification for natural resource lease
modifications

 SUMMARY OF PROVISIONS :

Section 1 amends § 291-cc of the Real Property Law by adding a new
subdivision providing that a modification of a lease agreement
involving the rights or interest in oil, gas, minerals, or similar
like natural resources shall be recorded with the clerk of the county
where such real property is located. Such modification shall contain,
in addition the information specified in subdivision two of this
section, the signature of both the lessee and lessor. It shall be the
obligation of the lessee to record the modification pursuant to this
subdivision. Failure to record such modification within 30 days of the
execution of such agreement shall result in a civil penalty.

Section 2 provides the effective date.

 EXISTING LAW :
              

Article 9 of the Real Property Law relates to recording instruments
affecting real property. Section 2291-cc of this Article provides the
requirements for recording modifications of leases. These requirements
include the names of the parties and the addresses, if any, set forth
in the agreement; a reference to the agreement with its date of
execution; a brief description of the leased premises in form
sufficient to identify the same; any changes made by the agreement in
the term of the lease and the date of the termination of the lease as
modified, and any changes in the provisions of the lease as to the
rights of extension or renewal.

 JUSTIFICATION :

Increasingly, county clerks are presented with energy and mineral
lease extensions with only the signature of the representative of the
lessee company which has acquired a mineral interest as well as other
defects or issues. The unilateral extensions are delivered by couriers
who operate on behalf of the lessee who report that landowners at
issue have been notified of their lease extension.  However, without
the signatures of both parties to a lease there is no way for a county
clerk to verify that a landowner is aware of the lease extension.

This legislation rectifies the verification problem by requiring: (1)
the signature of both parties to protect the interests of all
involved; (2) that all leases and assignment of leases be recorded at
the county clerk's office within 30 days or be subject to a civil
penalty; (3) that all recording text requirements are consistent with
the recoding requirements of deeds; and (4) all leases and assignment
of leases are kept to a maximum of 10 assignments per document.

 LEGISLATIVE HISTORY :

2016: S.6980 Referred to Judiciary.

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect immediately and shall apply to modification
agreement entered into on or after such date.