S T A T E   O F   N E W   Y O R K
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                                  1820

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

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

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

                                                           LBD06275-01-3

A. 1820                             2

under any such lease by way of royalty payments,  delayed  lease  rental
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.
  S 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.