STATE OF NEW YORK
________________________________________________________________________
6546
2015-2016 Regular Sessions
IN ASSEMBLY
March 26, 2015
___________
Introduced by M. of A. CRESPO -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to establishing the New York
office of natural resource revenue
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The tax law is amended by adding a new article 42 to read
2 as follows:
3 ARTICLE 42
4 NEW YORK OFFICE OF NATURAL RESOURCE REVENUE
5 Section 4000. New York office of natural resource revenue.
6 4001. Definitions.
7 4002. Powers and duties of the office.
8 4003. Annual report.
9 § 4000. New York office of natural resource revenue. There is hereby
10 created within the department the New York office of natural resource
11 revenue. The head of the New York office of natural resource revenue
12 shall be the commissioner. Such commissioner, subject to rules
13 prescribed by the governor, may establish such bureaus or divisions in
14 the New York office of natural resource revenue, as he or she may deem
15 necessary and may appoint such deputies, directors, assistants and other
16 employees as may be needed for the performance of his or her duties and
17 may prescribe their powers and duties and fix their compensation within
18 the amount appropriated therefor. Such office shall be fully established
19 within one hundred twenty days from the effective date of this article.
20 § 4001. Definitions. For purposes of this article, the following terms
21 shall have the following meanings:
22 1. "Royalties" shall mean the amounts paid by a producer to a landown-
23 er for the right to develop land by extracting oil, natural gas and/or
24 other minerals, from the amounts the producer actually receives from
25 sale of such oil, natural gas and/or other minerals.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD05738-01-5
A. 6546 2
1 2. "Commissioner" shall mean the commissioner of taxation and finance.
2 3. "Office" shall mean the New York office of natural resource reven-
3 ue.
4 4. "Producer" shall mean any person, partnership, corporation or other
5 association or entity owning, leasing or operating the working interest
6 in any property used for oil, gas and/or other mineral extraction.
7 5. "Natural resource" shall not include renewable resources, including
8 but not limited to wind, geothermal, solar and wave energy.
9 § 4002. Powers and duties of the office. The office shall have the
10 following powers and duties:
11 1. Establish and maintain a principal office and such other offices
12 within the state as it may deem necessary.
13 2. Appoint employees and agents as it may deem necessary, fix their
14 compensation within the limitations provided by law, and prescribe their
15 duties.
16 3. Adopt, promulgate, amend and rescind suitable rules and regulations
17 to carry out the provisions and purposes of this article, provided that,
18 at a minimum, such rules and regulations:
19 a. specify the amount of such royalty fees and rates and the method of
20 collection of such royalty fees and rates, provided that such royalty
21 rate shall be no less than one-eighth of the proceeds received from the
22 sale of oil, natural gas and/or other minerals extracted, less
23 deductions for post production and transportation costs;
24 b. require producers to:
25 (i) pay royalties within thirty days of production;
26 (ii) adhere to accounting standards prescribed by the commissioner;
27 (iii) maintain adequate records; and
28 (iv) file detailed monthly reports with the office.
29 4. Publish guidance materials prescribing the details of royalty
30 compliance.
31 5. Increase the set royalty fee due to inflation and/or an increased
32 sale price of oil, natural gas and/or other minerals extracted due to
33 natural and unnatural effects on the energy market. The commissioner
34 shall not authorize a decrease in the set royalty fee due to inflation
35 and/or an increased sale price of oil, natural gas and/or other minerals
36 extracted due to natural and unnatural effects on the energy market.
37 6. Monitor, collect and enforce payment of any royalties owed to the
38 state for the right to develop land for the extraction of oil, natural
39 gas and/or other minerals.
40 § 4003. Annual report. The department shall, on or before January
41 first in each year, submit a report to the governor, the temporary pres-
42 ident of the senate, the speaker of the assembly, the minority leader of
43 the senate and the minority leader of the assembly, which shall include
44 the details of all revenue collected from royalties, a list of the
45 geographic locations of lease agreements for such royalties, a list of
46 all rules and regulations issued regarding royalty collections and actu-
47 al royalty collections and projected royalty collections based on future
48 development of minerals, including oil and/or natural gas in the state.
49 § 2. This act shall take effect immediately; provided, however, that
50 effective immediately, the addition, amendment and/or repeal of any rule
51 or regulation necessary for the implementation of this act on its effec-
52 tive date is authorized and directed to be made and completed on or
53 before such effective date.
