What's happening
This bill changes the process for awarding oil and gas leases on state lands to consider both lease and royalty payments, selecting the best responsible bidder rather than just the highest.
Why it matters
Broadens evaluation criteria. for oil and gas leases, meaning that the state will now consider both upfront lease payments and ongoing royalty payments when awarding leases, potentially leading to higher overall returns for public resources.
Empowers the Department of Environmental Conservation. to select the "best responsible bidder" rather than just the one offering the highest bid, allowing for a more nuanced assessment that may factor in bidder reliability, financial stability, and long-term value.
Could increase transparency and standardization. in the bidding process by requiring forms that break out lease and royalty components, making it easier to compare offers and potentially reducing the risk of undervaluing state assets.
May impact the types of companies that can win leases. prioritizing experience, financial responsibility, and willingness to offer stronger long-term compensation, which could benefit the state's fiscal health and resource management.
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Who cares
Headline styles
Change Oil Lease Bidding Rules
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Held for consideration in environmental conservation
- Referred to environmental conservation
- Referred to environmental conservation
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1966
2017-2018 Regular Sessions
IN ASSEMBLY
January 17, 2017
Introduced by M. of A. CROUCH -- 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 Assembly, do enact as follows:
Section 1. Subdivision 4 of section 23-1101 of the environmental conservation law, as amended by chapter 707 of the laws of 1974 and as renumbered by chapter 722 of the laws of 1977, is amended to read as follows:
4. Any such oil, gas, or oil and gas lease or leases made and granted pursuant to this section shall be awarded [to the highest responsible bidder], after advertisement for sealed bids, to the best responsible bidder as the department determines after considering bids which shall include both a lease payment amount and a royalty payment amount. Such advertisements for bids shall be published in the official newspaper or newspapers, if any, or otherwise in a newspaper or newspapers designated for such purpose. Such advertisement shall contain a statement of the time and place where all bids received pursuant to such notice will be publicly opened and read. All bids received shall be publicly opened and read at the time and place specified. At least thirty days shall elapse between the first publication of such advertisement and the date specified for the opening and reading of bids. Bids shall be submitted on forms provided by the department, which forms shall indicate the method or methods for computing compensation to the state for the lease, including a separate component for lease payments and royalty payments, and shall contain such other directions as may be appropriate to secure comparability of bids submitted for any given lease. The department, in its discretion, shall determine the highest bid after taking into consideration the anticipated compensation to be returned to the state 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.
LBD04638-01-7
A. 1966 2
payments, bonuses or other compensation or consideration, or by a combination of any or all of the same. In cases where two or more responsible bidders submit identical bids, the department in its discretion, may award the lease involved to any of such bidders. The department in its discretion, may also reject any or all bids and readvertise for new bids. The department may disallow any bid if the bidder upon request fails to furnish satisfactory evidence of responsibility.
§ 2. This act shall take effect on the one hundred twentieth day after it shall have become a law. Effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date is authorized to be made on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.