2023 New York Laws › GOB - General Obligations › Article 5 - Creation, Definition and Enforcement of Contractual Obligations › Title 3 - Certain Prohibited Contracts and Provisions of Contracts › 5-333 - Validity of Oil, Gas or Mineral Land Leases.

§ 5-333. Validity  of oil, gas or mineral land leases. 1. Any oil, gas
or mineral land lease given on land situated  in  this  state  shall  be
deemed to incorporate subdivisions two and three of this section and any
provisions to the contrary shall be void and unenforceable.
2.  Any oil, gas or mineral land lease which provides for delay rental
payments, such payments being periodic payments to the  lessor  for  the
right  to  delay  drilling or excavation upon the leased property, shall
provide that the first such payment shall be due and  payable  no  later
than  one hundred eighty days after the effective date of the lease. Any
bonus or up front payment made by the lessee equal to  or  greater  than
the  first  delayed rental payment shall constitute compliance with this
subdivision.
3. Any oil, gas or  mineral  land  lease  shall  contain  a  statement
advising the lessor of the provisions of section 15-304 of this chapter.
Such  statement  shall  be  printed  in at least ten point bold type and
shall read as follows:
IF THIS LEASE BECOMES FORFEITED, TERMINATED OR EXPIRES, THE LESSEE, OR
IF THE LEASE HAS BEEN ASSIGNED, THE ASSIGNEE IS REQUIRED  TO  PROVIDE  A
DOCUMENT  CANCELLING  THE  LEASE AS OF RECORD, AT NO COST TO THE CURRENT
LANDOWNER. IF THE LESSEE OR ASSIGNEE FAILS  TO  CANCEL  THE  LEASE,  THE
CURRENT  LANDOWNER  MAY COMPEL A CANCELLATION PURSUANT TO SECTION 15-304
OF THE GENERAL OBLIGATIONS LAW.
4. For the purposes of this section,  the  term  "mineral"  shall  not
include  salt,  as defined by subdivision eighteen of section 23-0101 of
the environmental conservation law.
5. On or after January first, two thousand six, any oil or  gas  lease
shall contain the following statement printed in at least ten point bold
type:
THIS  IS  A  LEASE OF OIL AND GAS RIGHTS, NOT A SALE, CONTAINING TERMS
THAT MAY BE NEGOTIATED BY YOU. YOU HAVE THE RIGHT TO CANCEL  THIS  LEASE
WITHIN THREE BUSINESS DAYS AFTER EXECUTION OF THE LEASE BY NOTIFYING THE
LESSEE  THAT  YOU  HAVE  CANCELED THIS CONTRACT. IN ORDER TO CANCEL THIS
LEASE, YOU MUST EXECUTE A NOTICE OF CANCELLATION IN  THE  FORM  PROVIDED
BELOW,  MAIL  IT TO THE LESSEE AND REFUND ALL AMOUNTS PAID TO YOU BY THE
LESSEE WITHIN THE THREE-DAY CANCELLATION PERIOD.  THE  MAILING  MUST  BE
POSTMARKED WITHIN THE THREE-DAY CANCELLATION PERIOD TO BE EFFECTIVE.
NOTICE OF CANCELLATION
I/WE HEREBY CANCEL THIS LEASE.
DATED:
SIGNATURE(S):
THE PERSON PRESENTING THIS LEASE TO YOU IS [ ] NOT [ ] A MEMBER OFname  of organization)        AND THEREFORE IS [ ] IS NOT [ ] SUBJECT
TO A CODE OF CONDUCT. IF THE PERSON PRESENTING  THIS  LEASE  TO  YOU  IS
SUBJECT  TO  A  CODE  OF  CONDUCT, A COPY OF THE CODE OF CONDUCT MUST BE
PRESENTED TO YOU WITH THIS LEASE. IF APPLICABLE,  THE  CODE  OF  CONDUCT
PROVIDES  A  DISPUTE  RESOLUTION  MECHANISM FOR ANY DISPUTE THAT YOU MAY
HAVE REGARDING THE MANNER BY WHICH THIS LEASE WAS PRESENTED TO  YOU.  IF
YOU  HAVE  ANY  SUCH  DISPUTE,  YOU  MAY  INVOKE  THE DISPUTE RESOLUTION
MECHANISM OF THE CODE OF CONDUCT BY CONTACTING  THE  PERSON  OR  PERSONS
DESIGNATED  IN THE CODE OF CONDUCT. THE FAILURE OF THE LESSEE TO PAY ANY
ROYALTIES TO YOU AS REQUIRED UNDER THE TERMS OF THE LEASE FOR  A  PERIOD
OF  FOUR  CONSECUTIVE MONTHS OR MORE SHALL BE A DEFAULT UNLESS OTHERWISE
PROVIDED BY LAW, AND WILL RESULT IN CANCELLATION OF THE LEASE APPLICABLE
TO THE TARGET FORMATION OF THE WELL WITHIN THE SPACING  UNIT,  FOLLOWING
WRITTEN  NOTIFICATION  TO  THE LESSEE OF YOUR INTENT TO CANCEL AND SIXTY
DAYS FOR THE LESSEE TO CURE THE DEFAULT. IF THE LESSEE HAS A  BONA  FIDE
DISPUTE  REGARDING  THE  GROUNDS  FOR CANCELLATION, SUCH DISPUTE AND THE
REASONS THEREFOR MUST BE PROVIDED TO YOU IN WRITING OR THE DEFAULT  MUST

BE  CURED  WITHIN  SUCH  SIXTY  DAY PERIOD, OTHERWISE THE LEASE SHALL BE
CANCELLED.
6.  The  provisions  of  subdivisions one, two, three and four of this
section shall apply to leases entered into on or  after  January  first,
nineteen  hundred  eighty-five and the provisions of subdivision five of
this section shall apply to leases entered  into  on  or  after  January
first, two thousand six.