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Assemblywoman Barbara Lifton spoke at the 2011 New York State County Clerks’ Association annual meeting in Lake Placid, New York today. In her speech to about 150 people, Lifton outlined her motivation for her fight against hydraulic fracturing, and a number of bills she had introduced around the topic of gas leasing. Two of her bills, one of which would require that executed leases be filed with in 30 days and another which would require the signatures of both the drilling company and the property owner, are of particular interest to the clerks.

"We should, as a state, establish policies that protect and support our citizens, not ones that confuse and obfuscate the leasing process, aiding only the out-of-state gas companies, with severe economic and quality-of-life costs to New Yorkers," she said.

Among the bills she mentioned were one that would require mandatory notification for landowners when parts of their lease were reassigned to other companies, and another, which would require plain language on leases that would warn of the serious risks involved.

"It is established practice to send mandatory notification when a mortgage on one’s property is reassigned, so why do we not do the same for oil and gas leases?" she asked.

Another challenge she addressed was the implication that leases had for the secondary mortgage market. Calling it a “a brewing crisis in our communities,” Lifton warned of differences in “setback requirements” that hamper local banks’ ability to sell mortgages into the secondary market. These differences mean that banks will no longer offer mortgages to leased property, and that leased landowners are rendered virtually unable to sell their homes.

Lifton believed that despite the challenges ahead, protection of New York State landowners is still possible.

"We can now reform the leasing and recording process in New York State, and provide the protections that landowners across the state need and deserve," she said.

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