BILL NUMBER: AB 368	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MAY 28, 2009

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 amended, 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  and  would instead refer
to land. The bill would make the quitclaim or relinquishment
effective upon the completion of  the   any
required  abandonment of all facilities and  the
  any required  reclamation of the lease premises
as approved by the commission. Commission approval  , contingent
upon any other agreement between the lessee and the commission, 
would be required for the lessee to be released from all obligations
accruing under the lease with respect to the lands.
    Existing law prohibits the quitclaim or relinquishment from
releasing the lessee or the lessee's surety from liability for the
breach of an obligation of the lease with respect to which the lea
  se   is in default at the time of the filing of
the quitclaim or relinquishment. 
    This bill instead would prohibit the quitclaim or
relinquishment from releasing the lessee or the lessee's surety from
liability for the breach of an obligation of the lease if the lessee
is in default at the time of the approval, rather than the filing, of
the quitclaim or relinquishment. 
   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 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 a lease or
a portion of a lease of land. The quitclaim or relinquishment shall
be effective upon the completion of  the  any
required  abandonment of all facilities and  the
  any required  reclamation of the lease premises
as approved by the commission, subject to the continued obligation of
the lessee and  his or her   the lessee's 
surety to make payment of all rentals and royalties that have
accrued. Upon commission approval,  and contingent upon any other
agreement between the lessee and the commission,  the lessee
shall be released from all obligations accruing under the lease with
respect to the lands quitclaimed or relinquished, but the quitclaim
or relinquishment shall not release the lessee or  his or her
  the lessee's  surety from liability for the
breach of an obligation of the lease with respect to which the lessee
is in default at the time of the  filing  
approval  of the quitclaim or relinquishment.