S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2649
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 24, 2019
                                ___________
 
 Introduced  by  M.  of A. CROUCH, MORINELLO -- 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.
              

                                                            LBD02770-01-9

 A. 2649                             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.