§ 15-304 — Forfeiture and cancellation of oil, gas or mineral land leases

New York § 15-304

• Jurisdiction: New York
• Law GOB: General Obligations
• Title 3: Requirements For Effectiveness or Enforceability of Modification or Discharge
• Art. 15: Modification and Discharge of Obligations

Text

§ 15-304. Forfeiture and cancellation of oil, gas or mineral land\nleases. 1. When any oil, gas or mineral land lease given on land\nsituated in any county of New York state and recorded therein becomes\nforfeited, terminates or expires by its own terms, the lessee, or where\nthe lessee has assigned its interest, the assignee, within thirty days\nafter the date of the forfeiture, termination or expiration, shall\nprovide to the current owner of the land which is subject to the lease,\nwithout cost to such owner, a document in recordable form cancelling the\nlease as of record in the county where the leased land is situated.\n 2. If any lessee, or its assignee fails to cancel a lease, as provided\nfor in subdivision one of this section, the current owner of the land\nwhich is subject to the lease may:\n (a) serve notice upon the lessee, and if actual or record notice of\ntheir identity exists, to its assignee, that such lease be cancelled as\nof record, and stating that if such release is not executed within\nthirty days of the service of such notice, the lease will be terminated\nand no longer of any effect. Such notice shall also state;\n (i) the names and addresses of the lessor and lessee if contained in\nthe lease;\n (ii) the name and address of the person giving notice and a statement\nas to his interest;\n (iii) the state, county and city or town where the leased premises is\nlocated along with the location and a general description of the\nproperty as contained in the lease;\n (iv) if located in a unit, the name or description of the unit if\nknown;\n (v) if there is a well on the leased land, the name or number of the\nwell if known;\n (vi) the date of the execution of the lease; and\n (vii) the date of termination of the lease and the basis of such\ntermination.\n (b) service of such notice demanding a release shall be effected\neither personally, by certified mail to the lessee's, and where the\nlease has been assigned, the assignee's, last known business address,\nor, if service cannot be made with due diligence by the prior two\nmethods, by publication once a week for three weeks in a newspaper of\ngeneral circulation in the county where the leased land is situated;\n (c) If the lessee or its assignee claims that the lease is still in\nfull force and effect, either of these parties shall, within thirty days\nof the service of such notice of demand to cancel the lease, file an\naffidavit with the recording offices of the county wherein the land is\nsituated. Such affidavit shall state that the lease is in full force and\neffect and a copy of such affidavit shall be delivered to the person\nserving the demand within ten days of the filing of the affidavit;\n (d) If such affidavit is not filed within the required time, the\ncurrent landowner may file a copy of the original notice to the lessee\nor assignee and an affidavit of service thereof with the recording\nofficer of the county in which the leased land is situated, and by such\nfiling the lease shall be cancelled and of no further effect.\n 4. For purposes of this section, the term "mineral" shall not include\nsalt, as defined by subdivision eighteen of section 23-0101 of the\nenvironmental conservation law.\n 5. For the purposes of this section, where the landowner is not the\nowner of the oil, gas or mineral rights, the reference to "landowner"\nshall be deemed to mean the owner of such oil, gas or mineral rights.\n 6. This section shall apply to all leases entered into before, on or\nafter the effective date of this section.\n