Section 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.