What's happening
This bill requires all co-owners of land to sign oil, gas, or mineral leases for them to be valid or enforceable.
Why it matters
Strengthens property rights for co-owners. By requiring the signature of every co-owner (tenant in common, joint tenant, or tenant by the entirety), the bill ensures that no one can lease shared land for oil, gas, or minerals without the full consent of all parties involved, protecting individuals from having their interests leased without their approval.
Makes partial leases invalid. If even one co-owner does not sign the lease, the entire lease is void and unenforceable for surface rights, and also unenforceable for the sub-surface interests of any non-signing co-tenant. This prevents companies or individuals from bypassing holdout co-owners or forcing minority stakeholders into unwanted agreements.
Adds consumer protection for ratifications. Any attempt to ratify an existing lease must now include a specific notice of cancellation provision, enhancing transparency and giving co-owners clear information about their rights to withdraw from or cancel a lease.
Applies only to future leases. The new requirements only affect leases signed after the law takes effect, so existing leases remain governed by prior rules, providing clarity for both landowners and industry as to which leases are impacted.
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Who cares
Headline styles
Require All Co-Owners' Signatures
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
2 Multi-sponsors
History
- Referred to judiciary
- Referred to judiciary
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4062
2017-2018 Regular Sessions
IN ASSEMBLY
February 1, 2017
Introduced by M. of A. ROSENTHAL, JAFFEE, M. G. MILLER, TITONE -- Multi-Sponsored by -- M. of A. GLICK, GOTTFRIED -- read once and referred to the Committee on Judiciary
AN ACT to amend the general obligations law, in relation to signatures required on oil, gas or mineral leases
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 5 of section 5-333 of the general obligations law is renumbered subdivision 5-a and a new subdivision 5 is added to read as follows:
5. Notwithstanding any other law, rule or regulation to the contrary, any oil, gas or mineral lease concerning oil, gas or mineral rights owned by tenants in common, joint tenants or tenants by the entirety shall be signed by each such tenant owning an interest in the subject land or rights as of the date the lease is signed. Any lease which contains less than every signature of all such tenants shall be void and unenforceable in its entirety as to any surface rights, and void and unenforceable as to any sub-surface interest of any co-tenant who has not signed a lease. No ratification of any lease shall be effective unless it contains the notice of cancellation provisions set forth in subdivision 5-a of this section.
§ 2. Subdivision 6 of section 5-333 of the general obligations law, as added by chapter 386 of the laws of 2005, is amended to read as follows:
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] five-a of this section shall apply to leases entered into on or after January first, two thousand six and the provisions of subdivision five of this section shall apply to leases entered into on or after the effective date of subdivision five of this section.
§ 3. This act shall take effect on the thirtieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04957-01-7
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.