N.Y. General Obligations Law § 15-304: Forfeiture and cancellation of oil, gas or mineral land leases

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

leases. 1. When any oil, gas or mineral land lease given on land

situated in any county of New York state and recorded therein becomes

forfeited, terminates or expires by its own terms, the lessee, or where

the lessee has assigned its interest, the assignee, within thirty days

after the date of the forfeiture, termination or expiration, shall

provide to the current owner of the land which is subject to the lease,

without cost to such owner, a document in recordable form cancelling the

lease as of record in the county where the leased land is situated.

2. If any lessee, or its assignee fails to cancel a lease, as provided

for in subdivision one of this section, the current owner of the land

which is subject to the lease may:

(a) serve notice upon the lessee, and if actual or record notice of

their identity exists, to its assignee, that such lease be cancelled as

of record, and stating that if such release is not executed within

thirty days of the service of such notice, the lease will be terminated

and no longer of any effect. Such notice shall also state;

(i) the names and addresses of the lessor and lessee if contained in

the lease;

(ii) the name and address of the person giving notice and a statement

as to his interest;

(iii) the state, county and city or town where the leased premises is

located along with the location and a general description of the

property as contained in the lease;

(iv) if located in a unit, the name or description of the unit if

known;

(v) if there is a well on the leased land, the name or number of the

well if known;

(vi) the date of the execution of the lease; and

(vii) the date of termination of the lease and the basis of such

termination.

(b) service of such notice demanding a release shall be effected

either personally, by certified mail to the lessee's, and where the

lease has been assigned, the assignee's, last known business address,

or, if service cannot be made with due diligence by the prior two

methods, by publication once a week for three weeks in a newspaper of

general circulation in the county where the leased land is situated;

(c) If the lessee or its assignee claims that the lease is still in

full force and effect, either of these parties shall, within thirty days

of the service of such notice of demand to cancel the lease, file an

affidavit with the recording offices of the county wherein the land is

situated. Such affidavit shall state that the lease is in full force and

effect and a copy of such affidavit shall be delivered to the person

serving the demand within ten days of the filing of the affidavit;

(d) If such affidavit is not filed within the required time, the

current landowner may file a copy of the original notice to the lessee

or assignee and an affidavit of service thereof with the recording

officer of the county in which the leased land is situated, and by such

filing the lease shall be cancelled and of no further effect.

4. For 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. For the purposes of this section, where the landowner is not the

owner of the oil, gas or mineral rights, the reference to "landowner"

shall be deemed to mean the owner of such oil, gas or mineral rights.

6. This section shall apply to all leases entered into before, on or

after the effective date of this section.