STATE OF NEW YORK
________________________________________________________________________
2649
2019-2020 Regular Sessions
IN ASSEMBLY
January 24, 2019
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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:
1 Section 1. Subdivision 4 of section 23-1101 of the environmental
2 conservation law, as amended by chapter 707 of the laws of 1974 and as
3 renumbered by chapter 722 of the laws of 1977, is amended to read as
4 follows:
5 4. Any such oil, gas, or oil and gas lease or leases made and granted
6 pursuant to this section shall be awarded [to the highest responsible
7 bidder], after advertisement for sealed bids, to the best responsible
8 bidder as the department determines after considering bids which shall
9 include both a lease payment amount and a royalty payment amount. Such
10 advertisements for bids shall be published in the official newspaper or
11 newspapers, if any, or otherwise in a newspaper or newspapers designated
12 for such purpose. Such advertisement shall contain a statement of the
13 time and place where all bids received pursuant to such notice will be
14 publicly opened and read. All bids received shall be publicly opened and
15 read at the time and place specified. At least thirty days shall elapse
16 between the first publication of such advertisement and the date speci-
17 fied for the opening and reading of bids. Bids shall be submitted on
18 forms provided by the department, which forms shall indicate the method
19 or methods for computing compensation to the state for the lease,
20 including a separate component for lease payments and royalty payments,
21 and shall contain such other directions as may be appropriate to secure
22 comparability of bids submitted for any given lease. The department, in
23 its discretion, shall determine the highest bid after taking into
24 consideration the anticipated compensation to be returned to the state
25 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
1 payments, bonuses or other compensation or consideration, or by a combi-
2 nation of any or all of the same. In cases where two or more responsible
3 bidders submit identical bids, the department in its discretion, may
4 award the lease involved to any of such bidders. The department in its
5 discretion, may also reject any or all bids and readvertise for new
6 bids. The department may disallow any bid if the bidder upon request
7 fails to furnish satisfactory evidence of responsibility.
8 § 2. This act shall take effect on the one hundred twentieth day after
9 it shall have become a law. Effective immediately, the addition, amend-
10 ment and/or repeal of any rule or regulation necessary for the implemen-
11 tation of this act on its effective date is authorized to be made on or
12 before such effective date.
