Bill > A04397

This bill amends the environmental conservation law to provide special protections for municipalities that choose to become "integrated non-participating owners" in gas and oil wells. In this context, an integrated non-participating owner is a landowner who agrees to reimburse a well operator for their proportionate share of initial well costs and accepts a risk penalty, but receives their full share of production after the operator recoups these costs. The bill specifically stipulates that when a New York municipality elects this status, they will have no financial obligations for taxes, charges, or fees related to the well's operation. Furthermore, the municipality will be completely shielded from liability for any personal injury or property damage claims arising from the well's drilling and operation. In fact, the well operator is required to defend, hold harmless, and indemnify the municipality in any legal actions related to the well. The bill also clarifies that the municipality will be treated as a lessee for the purpose of calculating royalty payments, ensuring they receive appropriate compensation from the well's production. The legislation takes effect immediately upon passage.

Agriculture and Natural Resources

https://www.nysenate.gov/legislation/bills/2025/A4397