BILL NUMBER: AB 368	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 23, 2009
	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 any required abandonment of all facilities and 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 lease
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. 
   This bill would also require a lessee's request for commission
approval of a quitclaim or relinquishment of all rights under a lease
or portion of a lease of land to be heard at the next regularly
scheduled commission meeting for which the request can be properly
noticed. 
   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.   (a)    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
any required abandonment of all facilities and any required
reclamation of the lease premises as approved by the commission,
subject to the continued obligation of the lessee and the lessee's
surety to make payment of all rentals and royalties that have
 accrued. Upon commission approval, and contingent upon
 accrued. 
    (b)     Upon completion of any required
abandonment or reclamation, a lessee's request for commission
approval of a quitclaim or relinquishment of all rights under a lease
or a portion of a lease of land shall be heard at the next regularly
scheduled commission meeting for which the request can be properly
noticed. 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 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 approval
of the quitclaim or relinquishment.