How to Lease Land in N.Y. State for Mineral Rights
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Many New York farmers have gas wells on their landBiogasanlage image by J??rg Stumpf from Fotolia.com
Check local zoning laws to determine if mining is automatically allowed on your land or if a zoning board of appeals requires a review of the proposed mining use before a permit is issued. Some communities may differentiate mining from rock quarries or natural gas wells, and not allow all three in mining zones. There might also be provisions for "grandfathered" properties that were mined before zoning laws took affect. - 2). Contact the state Department of Environmental Conservation to learn more about the state-required review process for mining, natural gas extraction and rock quarries. The state DEC usually has a say over anything that comes out of the ground, and has the authority to issue heavy fines if its reguations are not followed.
- 3). Meet with an representative of the energy or mining company interested in leasing your land after you are aware of the local and state regulations for mining. According to the DEC, you, as the land owner, can enter into an agreement as a "participating owner" if you choose to pay a share of the well costs, or as a "non participating owner" if you opt not to pay a portion of the well costs. In the latter case, you must wait until gas revenues have paid for the well three times over before you can receive any revenues. Establish whether the land can still be used for farming or other purposes while the lease is in effect and after drilling and/or mine construction work takes place. It is also important to be clear if the payment amount remains the same whether the land is excavated or not, and if the property owner would receive a share of revenues after gas or minerals are removed from the land and sold.
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