BILL NUMBER: AB 368	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Skinner

                        FEBRUARY 23, 2009

   An act to amend Section 6804.1 of the Public Resources Code,
relating to state lands.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 368, as introduced, Skinner. State lands: oil, gas, and mineral
leases.
   Existing law requires the State Lands Commission to regulate oil,
gas, and mineral leases on public lands. Existing law authorizes a
lessee to make and file with the commission a quitclaim or
relinquishment of all rights under a lease or a portion of a lease
comprising a 10-acre parcel or multiple parcels in a compact form, or
of a separate or distinct zone or geological horizon or portion
underlying a 10-acre parcel or multiple parcels. The quitclaim or
relinquishment is effective as of the date of filing and the
fulfilling of certain conditions.
   This bill would delete provisions referring to zones and
geographical horizons of a parcel would instead refer to land. The
bill would make the quitclaim or relinquishment effective upon the
completion of the abandonment of all facilities and the reclamation
of the lease premises as approved by the commission. Commission
approval would be required for the lessee to be released from all
obligations accruing under the lease with respect to the lands.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 6804.1 of the Public Resources Code is amended
to read:
   6804.1.  Notwithstanding any  provisions  
other provision  of this code to the contrary, a lessee may at
any time make and file with the commission a written quitclaim or
relinquishment of all rights under  any   a
 lease or  of any   a  portion
 thereof comprising a 10-acre parcel or multiple thereof in a
compact form, or of any separate or distinct zone or geological
horizon or portion thereof underlying such 10-acre parcel or multiple
thereof. Such   of a lease of land. The  quitclaim
or relinquishment shall be effective  as of the date of its
filing   upon the completion of the abandonment of all
facilities and the reclamation of the lease premises as approved by
the commission  , subject to the continued obligation of the
lessee and his  or her  surety to make payment of all
rentals and royalties  theretofore accrued and to place all
wells on the lands or in the zones or horizons to be quitclaimed or
relinquished, in condition for suspension or abandonment in
accordance with the applicable lease terms and regulations; thereupon
  that have accrued. Upon commission approval, 
the lessee shall be released from all obligations  thereafter
 accruing under  said   the 
lease with respect to the lands  , zones or horizons
 quitclaimed or relinquished, but  no such 
 the  quitclaim or relinquishment shall  not 
release  such   the  lessee or his  or
her  surety from  any  liability for  the
 breach of  any   an  obligation of
the lease with respect to which  such   the
 lessee is in default at the time of the filing of  such
  the  quitclaim or relinquishment.