§ 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 OF

(name 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.