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A02499 Summary:

BILL NOA02499
 
SAME ASNo Same As
 
SPONSORLifton
 
COSPNSRRosenthal L, Jaffee, Englebright, Abinanti, Titone
 
MLTSPNSRDinowitz, Glick, Gottfried, Magee
 
Amd 5-333, Gen Ob L; amd 291-c & 291-cc, RP L
 
Requires signatures of all owners of leased premises for a lease of oil, gas or mineral rights, and for any modification, renewal or extension thereof.
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A02499 Actions:

BILL NOA02499
 
01/20/2017referred to judiciary
01/03/2018referred to judiciary
02/13/2018reported
02/15/2018advanced to third reading cal.672
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A02499 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A2499
 
SPONSOR: Lifton (MS)
  TITLE OF BILL: An act to amend the general obligations law and the real property law, in relation to requiring the signatures of all owners of leased premises for every lease for oil, gas or mineral rights, and any modification, extension or renewal thereof   PURPOSE: To amend the general obligations law and real property law, in relation to requiring the signatures of all owners of leased premises for every lease for oil, gas or mineral rights, and any modification, extension or renewal thereof.   SUMMARY OF PROVISIONS: The bill adds two new subdivisions, 3-a and 5-a, to subdivision 6 of section 5-333 of the general obligations law, requiring that any oil gas or mineral lease concerning oil, gas or mineral rights shall be signed by all owners of the leased premises as of the date the lease is signed, and requiring notice of cancellation provisions for any lease modifica- tion, including extensions and renewals of any oil, gas or mineral lease. Sections 291-c and 291-cc of the real property law are amended to require that any recording of a memorandum of lease, including any modification, extension or renewal, shall be signed by all owners of the leased premises.   EXISTING LAW: Subdivision 6 of section 5-333 of the general obligations law, and sections 291-c and 291-cc of the real property law.   JUSTIFICATION: New York State landowners who possess real property interests in joint tenancy are currently subject to the ability of one joint tenant to unilaterally sign a binding lease agreement for oil, gas and mineral rights. Unfortunately, this practice has pitted family member against family member, if such a lease was signed without knowledge of the other owner. This legislation seeks to protect landowners by requiring that an oil, gas and mineral lease agreement be signed by all landowners. Additionally, county clerks across New York State have increasingly, over the past year or so, been presented with oil, gas and mineral lease extensions which bear only the signature of a representative of the lessee company which has acquired a mineral interest. The unilateral extensions are delivered by couriers who operate on behalf of the lessee company who report that the landowners at issue have been notified of their lease extension. However, without a duly-acknowledged signature of both parties to a lease, there is no way for a county clerk to verify that a landowner has knowledge of the extension. In fact, landowners have reported that they were unaware of lease extension on their proper- ty. This legislation will clarify that a valid lease extension or modification must require the signature of both parties, and all owners of the leased premises.   LEGISLATIVE HISTORY: 2012: A8481-A; ordered to 3rd reading rules calendar 100 2013: A641; passed Assembly 2014: A841; ordered to third reading cal. 49 2015-16: A5377; referred to Judiciary   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect January 1, 2019.
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A02499 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          2499
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 20, 2017
                                       ___________
 
        Introduced by M. of A. LIFTON, ROSENTHAL, JAFFEE, ENGLEBRIGHT, ABINANTI,
          TITONE  --  Multi-Sponsored by -- M. of A. DINOWITZ, GLICK, GOTTFRIED,
          MAGEE -- read once and referred to the Committee on Judiciary
 
        AN ACT to amend the general obligations law and the real  property  law,
          in  relation to requiring the signatures of all owners of leased prem-
          ises for every lease for oil, gas or mineral rights, and any modifica-
          tion, extension or renewal thereof
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 
     1    Section  1.  Subdivision 6 of section 5-333 of the general obligations
     2  law, as added by chapter 386 of the laws of 2005, is amended and two new
     3  subdivisions 3-a and 5-a are added to read as follows:
     4    3-a.  Notwithstanding any other provision of law, rule  or  regulation
     5  to  the  contrary,  any oil, gas or mineral lease concerning oil, gas or
     6  mineral rights shall be signed by all owners of the leased  premises  as
     7  of  the  date  the  lease  is signed. Any lease which contains less than
     8  every signature of all owners of the leased permits shall  be  void  and
     9  unenforceable  in  its  entirety  as to any surface rights, and void and
    10  unenforceable as to any sub-surface interest.
    11    5-a. No modifications, including extensions and renewals, of any lease
    12  shall be  effective  unless  it  contains  the  notice  of  cancellation
    13  provisions set forth in subdivision five of this section.
    14    6.  The  provisions  of  subdivisions one, two, three and four of this
    15  section shall apply to leases entered into on or  after  January  first,
    16  nineteen  hundred  eighty-five [and], the provisions of subdivision five
    17  of this section shall apply to leases entered into on or  after  January
    18  first,  two thousand six, and the provisions of subdivisions three-a and
    19  five-a of this section shall apply to leases entered into  on  or  after
    20  January first, two thousand nineteen.
    21    § 2. Section 291-c of the real property law is amended by adding a new
    22  closing paragraph to read as follows:
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD07911-01-7

        A. 2499                             2
 
     1    For  any  oil,  gas  or  mineral  lease concerning oil, gas or mineral
     2  rights signed on or after January  first,  two  thousand  nineteen,  any
     3  recording  of  a memorandum of lease, including any modification, exten-
     4  sion or renewal, shall be signed by all owners of the  leased  premises.
     5  Any  memoranda  not  signed by all owners of the leased premises is void
     6  and unenforceable.
     7    § 3. Section 291-cc of the real property law, as added by chapter  472
     8  of the laws of 1962, is amended to read as follows:
     9    §  291-cc. [1.] Recording modifications of leases. 1. Where a lease or
    10  memorandum of such lease has  been  recorded,  an  unrecorded  agreement
    11  modifying  such  lease  or  memorandum  is  void as against a subsequent
    12  purchaser in good faith  and  for  a  valuable  consideration,  and  the
    13  possession of the tenant shall not be deemed notice of the modification,
    14  unless the agreement of modification or a memorandum thereof is recorded
    15  prior  to  the  recording  of  the  instrument  by  which the subsequent
    16  purchaser acquires his estate or interest.
    17    2. A memorandum of an agreement modifying a  lease  shall  contain  at
    18  least the following information with respect to the agreement: the names
    19  of  the parties and the addresses, if any, set forth in the agreement; a
    20  reference  to  the  agreement  with  its  date  of  execution;  a  brief
    21  description  of  the  leased premises in form sufficient to identify the
    22  same; any changes made by the agreement in the term of the lease and the
    23  date of the termination of the lease as modified, and any changes in the
    24  provisions of the lease as to the rights of extension or renewal.
    25    3. For the purpose of this section the  word  "purchaser"  includes  a
    26  person who purchases or acquires by exchange or contracts to purchase or
    27  acquire  by  exchange  the leased premises or the real property of which
    28  the leased premises are part or  any  estate  or  interest  therein,  or
    29  acquires by assignment the rent to accrue from tenancies or subtenancies
    30  thereof in existence at the time of the assignment.
    31    4.  For  any  oil, gas or mineral lease concerning oil, gas or mineral
    32  rights signed on or after January  first,  two  thousand  nineteen,  any
    33  recording  of  a  modification  of  a  lease, including any extension or
    34  renewal, shall be signed by all  owners  of  the  leased  premises.  Any
    35  modifications  not  signed  by all owners of the leased premises is void
    36  and unenforceable.
    37    § 4. This act shall take effect January 1, 2019.
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