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
                               ___________

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.