Bill S6851-2013

Prohibits non-disclosure clauses in leases of real property to be used for hydraulic fracturing

Prohibits non-disclosure clauses in leases of real property to be used for hydraulic facturing.

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  • Mar 19, 2014: REFERRED TO JUDICIARY

Memo

BILL NUMBER:S6851

TITLE OF BILL: An act to amend the real property law, in relation to leases of real property for the purposes of hydraulic fracturing

PURPOSE OF THE BILL: Prohibits non-disclosure clauses in leases of real property to be used for hydraulic fracturing.

SUMMARY OF PROVISIONS: The bill would add a new Section 222-a to the Real Property Law to prohibit a lease of real property for the purpose of hydraulic fracturing to include any provision for or requiring the non-disclosure of any term or condition. Every lease for hydraulic fracturing activities must include all terms and conditions of the use of the property. Any lease which violates the provisions of this subdivision will be void as contrary to public policy.

JUSTIFICATION: As high-volume, hydraulic fracturing (HVHF) activity has increased, it has come to light that some leases of land for HVHF contain provisions that prohibit the landowner from releasing information contained in the lease, including information on toxic chemicals in drilling fluids and drilling wastes that are used, stored, and transported. HVHP activities can have significant impacts on public health and the environment, including contamination of ground and surface waters, and drinking water.

It is essential that this information be available both for landowners concerned about health impacts, contamination of their lands and water, and future uses of such lands, as well as legal action that might result from such exposures, contamination and spills.

PRIOR LEGISLATIVE HISTORY: Assembly Bill A8983/2014 (Englebright)

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.

EFFECTIVE DATE: This act shall take effect immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 6851 IN SENATE March 19, 2014 ___________
Introduced by Sen. AVELLA -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary AN ACT to amend the real property law, in relation to leases of real property for the purposes of hydraulic fracturing THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The real property law is amended by adding a new section 222-a to read as follows: S 222-A. PROPERTY LEASED FOR HYDRAULIC FRACTURING. 1. FOR THE PURPOSES OF THIS SECTION, "HYDRAULIC FRACTURING" MEANS THE USE OF CHEMI- CALS, WATER AND OTHER SUBSTANCES INJECTED OR PUMPED INTO A NATURAL GAS WELL TO STIMULATE THE EXTRACTION OF NATURAL GAS. 2. NO LEASE OF REAL PROPERTY SHALL PROVIDE FOR OR REQUIRE THE NON-DIS- CLOSURE OF ANY TERM OR CONDITION THEREOF, WHEN ANY PORTION OF SUCH REAL PROPERTY IS TO BE USED FOR HYDRAULIC FRACTURING. EVERY LEASE OF REAL PROPERTY USED FOR SUCH PURPOSES SHALL INCLUDE ALL TERMS AND CONDITIONS OF THE USE OF THE REAL PROPERTY. EVERY LEASE WHICH VIOLATES THE PROVISIONS OF THIS SUBDIVISION SHALL BE VOID AS CONTRARY TO PUBLIC POLI- CY. S 2. This act shall take effect immediately.

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