Quick answer
| Topic | What the statute says | Citation |
|---|---|---|
| First payment deadline | No statute found | — |
| Later payments | No statute found | — |
| Minimum payment and aggregation | No statute found | — |
| Interest on late payments | No statute found | — |
| Suspense and withheld payments | Compulsory integration: unknown owner's royalty held in an interest-bearing account | N.Y. Envtl. Conserv. Law § 23-0901(3)(c); N.Y. Envtl. Conserv. Law § 23-0901(3)(c)(1)(ii)(D) |
| Division orders | Only: a unit order does not terminate an existing division order | N.Y. Envtl. Conserv. Law § 23-0901(11) |
| Owner remedies, notice and attorney fees | Leases from 2006: four months' nonpayment is a default | N.Y. Gen. Oblig. Law § 5-333(5); N.Y. Gen. Oblig. Law § 5-333(5), (6) |
| Check-stub disclosures | No statute found | — |
| Unclaimed royalties (escheat) | No statute found | — |
We found no New York statute setting a deadline for the first royalty payment.
What we read: Read ECL § 23-0901 in full and GOL § 5-333 in full; ran searches of the NY Senate Open Legislation index (via a government-law search tool) for oil and gas royalty payment, deadline, interest and statement provisions across ECL art. 23, the General Obligations Law and the Real Property Law. No royalty payment-timing provision found. GOL § 5-333(2) sets a 180-day deadline only for the first DELAY RENTAL payment, not royalties. Sources read: N.Y. Environmental Conservation Law § 23-0901 (Compulsory integration and unitization in oil and natural gas pools and fields); NY Senate Open Legislation shows most recent revision 2014-09-22; N.Y. General Obligations Law § 5-333 (Validity of oil, gas or mineral land leases).
We found no New York statute setting a deadline for ongoing royalty payments. (The required lease statement in GOL § 5-333(5) treats four consecutive months of nonpayment as a default; see owner remedies.)
What we read: Same as the first payment: ECL § 23-0901 and GOL § 5-333 read in full; Open Legislation searches for royalty payment timing returned no other provision. Sources read: N.Y. Environmental Conservation Law § 23-0901 (Compulsory integration and unitization in oil and natural gas pools and fields); NY Senate Open Legislation shows most recent revision 2014-09-22; N.Y. General Obligations Law § 5-333 (Validity of oil, gas or mineral land leases).
We found no New York statute on minimum payments or accumulation of small royalty amounts.
What we read: Read ECL § 23-0901 and GOL § 5-333 in full; Open Legislation searches found no minimum-payment / aggregation provision. Sources read: N.Y. Environmental Conservation Law § 23-0901 (Compulsory integration and unitization in oil and natural gas pools and fields); NY Senate Open Legislation shows most recent revision 2014-09-22; N.Y. General Obligations Law § 5-333 (Validity of oil, gas or mineral land leases).
We found no New York statute providing interest specifically on late royalty payments. General statutes on interest in contract litigation are not covered by this page.
What we read: Read ECL § 23-0901 and GOL § 5-333 in full; Open Legislation searches found no late-royalty interest provision. (ECL § 23-0901 requires interest-bearing accounts only for funds held for unlocated integrated royalty owners and for plugging funds.) Sources read: N.Y. Environmental Conservation Law § 23-0901 (Compulsory integration and unitization in oil and natural gas pools and fields); NY Senate Open Legislation shows most recent revision 2014-09-22; N.Y. General Obligations Law § 5-333 (Validity of oil, gas or mineral land leases).
Only in compulsory integration: where an owner cannot be determined after diligent efforts and is integrated as an integrated royalty owner, the well operator must hold that owner's royalty in an interest-bearing account until the owner is located or the property is deemed abandoned. Integration orders must also give the well operator a first lien on an integrated owner's production and the right to withhold and set off revenue owed to that owner for outstanding costs, expenses or claims. No general suspense statute for leased royalty owners was found.
For an integrated royalty owner who cannot be determined after diligent efforts, the operator must hold the royalty in an interest-bearing account until the owner is located or the property is deemed abandoned. (N.Y. Envtl. Conserv. Law § 23-0901(3)(c))
Statute text “To the extent an owner cannot be determined after diligent efforts by the well operator and such owner is integrated as an integrated royalty owner, the well operator shall hold the royalty percentage payable to such integrated royalty owner in an interest bearing account for such integrated royalty owner until the owner is located or the property is deemed abandoned, whichever comes first.”
Integration orders give the well operator a first lien on the owner's production and a right to withhold and set off revenue owed to the owner under the order. (N.Y. Envtl. Conserv. Law § 23-0901(3)(c)(1)(ii)(D))
Statute text “The well operator shall have a first lien on the production of the owner to pay any outstanding costs, expenses or claims and the well operator shall be entitled to withhold and retain for the purposes of set off any revenue or production owed or due to the owner under an order of integration.”
No general division-order statute was found. The only provision found is in the unit-operations part of ECL § 23-0901: an order providing for unit operations does not terminate an existing division order, which stays in force for production allocated to the tract until terminated under its own terms.
A unit-operations order does not terminate a division order; the division order remains in force for oil and gas allocated to the tract until terminated under its own provisions. (N.Y. Envtl. Conserv. Law § 23-0901(11))
Statute text “No division order or other contract relating to the sale or purchase of production from a separately owned tract shall be terminated by the order providing for unit operations, but shall remain in force and apply to oil and gas allocated to such tract until terminated in accordance with the provisions thereof.”
For oil or gas leases entered into on or after January 1, 2006, the statute requires the lease to contain a bold-type statement that the lessee's failure to pay royalties required by the lease for four consecutive months or more is a default (unless otherwise provided by law) and will result in cancellation of the lease as to the target formation of the well within the spacing unit, after written notice of intent to cancel and sixty days for the lessee to cure; a lessee with a bona fide dispute must state it in writing or cure within the sixty days. No statutory interest, penalty or attorney-fee remedy for unpaid royalties was found.
Every oil or gas lease entered into on or after January 1, 2006 must contain a statement that four or more consecutive months of unpaid royalties is a default resulting in cancellation as to the target formation after written notice and a sixty-day cure period. (N.Y. Gen. Oblig. Law § 5-333(5))
Statute text “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.”
A lessee with a bona fide dispute about the grounds for cancellation must provide the dispute and reasons in writing, or cure within the sixty days, or the lease is cancelled. (N.Y. Gen. Oblig. Law § 5-333(5))
Statute text “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.”
The statement requirement is in subdivision 5, which applies to leases entered into on or after January 1, 2006. (N.Y. Gen. Oblig. Law § 5-333(5), (6))
Statute text “the provisions of subdivision five of this section shall apply to leases entered into on or after January first, two thousand six.”
We found no New York statute specifying what a royalty payment statement or check stub must show.
What we read: Read ECL § 23-0901 and GOL § 5-333 in full; Open Legislation searches for royalty statement / check stub / payment information found no provision. Sources read: N.Y. Environmental Conservation Law § 23-0901 (Compulsory integration and unitization in oil and natural gas pools and fields); NY Senate Open Legislation shows most recent revision 2014-09-22; N.Y. General Obligations Law § 5-333 (Validity of oil, gas or mineral land leases).
We found no New York abandoned-property provision or Comptroller property type specific to oil and gas royalties or mineral proceeds, so we do not state a dormancy period for them.
What we read: Read Abandoned Property Law § 1315 (miscellaneous unclaimed property: gift certificates 5 years; outstanding checks for goods or services, unclaimed amounts for undelivered goods/services and escrow amounts 3 years; lottery prizes; state checks) and the Comptroller's Property Type Table (all industries), which lists no mineral-proceeds or royalty property type. Reviewed the Abandoned Property Law article list (arts. I-XV) in Open Legislation search results. ECL § 23-0901(3)(c) refers to an unlocated integrated royalty owner's property being 'deemed abandoned' but does not set a period. Sources read: N.Y. Abandoned Property Law § 1315 (Miscellaneous unclaimed property); Office of Unclaimed Funds, Property Type Table (holder guidance; undated).
Official unclaimed property search: Office of the New York State Comptroller, Office of Unclaimed Funds.
We found no New York statute setting a deadline for the first royalty payment.
We found no New York statute setting a deadline for ongoing royalty payments. (The required lease statement in GOL § 5-333(5) treats four consecutive months of nonpayment as a default; see owner remedies.)
We found no New York statute on minimum payments or accumulation of small royalty amounts.
We found no New York statute providing interest specifically on late royalty payments. General statutes on interest in contract litigation are not covered by this page.
Only in compulsory integration: where an owner cannot be determined after diligent efforts and is integrated as an integrated royalty owner, the well operator must hold that owner's royalty in an interest-bearing account until the owner is located or the property is deemed abandoned. Integration orders must also give the well operator a first lien on an integrated owner's production and the right to withhold and set off revenue owed to that owner for outstanding costs, expenses or claims. No general suspense statute for leased royalty owners was found. (N.Y. Envtl. Conserv. Law § 23-0901(3)(c); N.Y. Envtl. Conserv. Law § 23-0901(3)(c)(1)(ii)(D))
No general division-order statute was found. The only provision found is in the unit-operations part of ECL § 23-0901: an order providing for unit operations does not terminate an existing division order, which stays in force for production allocated to the tract until terminated under its own terms. (N.Y. Envtl. Conserv. Law § 23-0901(11))
For oil or gas leases entered into on or after January 1, 2006, the statute requires the lease to contain a bold-type statement that the lessee's failure to pay royalties required by the lease for four consecutive months or more is a default (unless otherwise provided by law) and will result in cancellation of the lease as to the target formation of the well within the spacing unit, after written notice of intent to cancel and sixty days for the lessee to cure; a lessee with a bona fide dispute must state it in writing or cure within the sixty days. No statutory interest, penalty or attorney-fee remedy for unpaid royalties was found. (N.Y. Gen. Oblig. Law § 5-333(5); N.Y. Gen. Oblig. Law § 5-333(5), (6))
We found no New York statute specifying what a royalty payment statement or check stub must show.
We found no New York abandoned-property provision or Comptroller property type specific to oil and gas royalties or mineral proceeds, so we do not state a dormancy period for them.
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Educational only — not legal advice; statutes change, so confirm the current version and consult a qualified attorney for your situation. For a question about a specific payment, consult an attorney licensed in New York.
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