What's happening
This bill requires that modifications to leases involving oil, gas, or mineral rights be recorded, signed by both parties, and limits such filings to ten parcels.
Why it matters
Strengthens transparency and accountability. By requiring both parties’ signatures and official recording of lease modifications involving natural resources, the bill helps prevent secret or unilateral changes that could adversely affect property owners or lessees.
Protects landowners and communities. Limiting each filing to ten parcels reduces the risk that large-scale mineral rights transfers or modifications could be bundled together without clear notice or consent, which is especially important for rural or multi-owner properties.
Creates enforceable timelines and consequences. The bill imposes a 30-day deadline for recording modifications, with civil penalties for non-compliance. This encourages prompt action and deters delays that could lead to confusion or disputes over mineral or resource rights.
May impact negotiations and market activity. Clearer, stricter rules around lease modifications could influence how companies and individuals negotiate mineral, oil, or gas rights, potentially increasing legal costs or changing the pace of transactions in New York’s energy and resource sectors.
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Who cares
Headline styles
Require Recording Lease Changes
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to judiciary
- Referred to judiciary
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2902
2017-2018 Regular Sessions
IN SENATE
January 18, 2017
Introduced by Sen. RITCHIE -- read twice and ordered printed, and when printed to be committed to the Committee on Judiciary
AN ACT to amend the real property law, in relation to recordation of certain lease modifications
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 291-cc of the real property law is amended by adding a new subdivision 2-a to read as follows:
2-a. A modification of a lease agreement involving rights or interests in oil, gas, minerals or similar natural resources shall be recorded with the clerk of the county where such real property is located. Such modification shall contain, in addition to the information specified in subdivision two of this section, the signature of both the lessee and lessor.
It shall be the obligation of the lessee to record the modification pursuant to this subdivision. Failure to record such modification within thirty days of execution of such agreement shall result in a civil penalty.
In no case shall a modification filed pursuant to this subdivision assign rights or interests for more than ten distinct parcels of real property.
§ 2. This act shall take effect immediately and shall apply to modification agreements entered into on and after such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08235-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the real property law, in relation to recordation of certain lease modifications
Purpose
To provide a mechanism for verification for natural resource lease modifications
Summary of provisions
Section 1 amends § 291-cc of the Real Property Law by adding a new subdivision providing that a modification of a lease agreement involving the rights or interest in oil, gas, minerals, or similar like natural resources shall be recorded with the clerk of the county where such real property is located. Such modification shall contain, in addition the information specified in subdivision two of this section, the signature of both the lessee and lessor. It shall be the obligation of the lessee to record the modification pursuant to this subdivision. Failure to record such modification within 30 days of the execution of such agreement shall result in a civil penalty.
Section 2 provides the effective date.
Existing law
Article 9 of the Real Property Law relates to recording instruments affecting real property. Section 2291-cc of this Article provides the requirements for recording modifications of leases. These requirements include the names of the parties and the addresses, if any, set forth in the agreement; a reference to the agreement with its date of execution; a brief description of the leased premises in form sufficient to identify the same; any changes made by the agreement in the term of the lease and the date of the termination of the lease as modified, and any changes in the provisions of the lease as to the rights of extension or renewal.
Justification
Increasingly, county clerks are presented with energy and mineral lease extensions with only the signature of the representative of the lessee company which has acquired a mineral interest as well as other defects or issues. The unilateral extensions are delivered by couriers who operate on behalf of the lessee who report that landowners at issue have been notified of their lease extension. However, without the signatures of both parties to a lease there is no way for a county clerk to verify that a landowner is aware of the lease extension.
This legislation rectifies the verification problem by requiring: (1) the signature of both parties to protect the interests of all involved; (2) that all leases and assignment of leases be recorded at the county clerk's office within 30 days or be subject to a civil penalty; (3) that all recording text requirements are consistent with the recoding requirements of deeds; and (4) all leases and assignment of leases are kept to a maximum of 10 assignments per document.
Legislative history
2016: S.6980 Referred to Judiciary.
Fiscal implications
None.
Effective date
This act shall take effect immediately and shall apply to modification agreement entered into on or after such date.
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