BILL NUMBER: AB 1130	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Laird

                        FEBRUARY 23, 2007

   An act to add Article 4.5 (commencing with Section 6880) to
Chapter 3 of Part 2 of Division 6 of the Public Resources Code,
relating to state lands.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1130, as introduced, Laird. State lands: decommissioning of
offshore oil platforms.
   Existing law authorizes the State Lands Commission to lease
tidelands and submerged lands for the extraction of oil and gas.
   This bill would authorize an owner or operator of an offshore oil
platform to request, in writing, that the State Lands Commission
approve an alternative to the complete removal of an offshore oil
platform when the extraction of oil has become uneconomical. Upon
commitment by an owner or operator to pay the state's cost of
determining the advantages and disadvantages of complete removal of a
platform or alternatives to complete removal, the commission shall
initiate a process, in cooperation with the owner or operator, the
Department of Fish and Game, any affected counties, regulatory
agencies, and interested persons, to determine whether any of the
alternatives are preferred.
   The bill would create the Ocean Resources Fund in the State
Treasury to receive specified payments from an owner or operator.
Upon appropriation by the Legislature, moneys in the fund would be
required to be expended only for purposes of the act.
   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.  The Legislature finds and declares all of the
following:
   (a) There are 27 oil platforms off the California coast in federal
waters up to 1,200 feet deep.
   (b) Federal contracts typically provide that when oil extraction
from an oil platform becomes uneconomical, the oil wells must be
capped and the oil platform completely removed at the expense of the
owner or operator of the oil platform.
   (c) Removal of these large steel platforms is very complex and
very expensive.
   (d) Removal of an oil platform involves the destruction of much of
the sea life that has attached to the platform.
   (e) It is appropriate for the state to consider alternatives to
complete removal if requested by an owner or operator of an offshore
oil platform.
  SEC. 2.  Article 4.5 (commencing with Section 6880) is added to
Chapter 3 of Part 2 of Division 6 of the Public Resources Code, to
read:

      Article 4.5.   Decommissioning of Offshore Oil Platforms


   6880.  For the purposes of this article, the following definitions
apply:
   (a) "Alternative" means an alternative to complete removal of an
offshore oil platform.
   (b) "Commission" means the State Lands Commission.
   (c) "Fund" means the Ocean Resources Fund.
   (d) "Owner" or "operator" means the owner or operator of an
offshore oil platform.
   (e) "Platform" means an offshore oil platform.
   6881.  (a) It is the policy of the state that a platform be
completely removed after oil extraction has become uneconomical,
unless the commission has approved an alternative as provided in this
article.
   (b) The owner or operator may request, in writing, that the
commission approve an alternative to complete removal of a platform.
The application may be for one or more alternatives. An alternative
proposing to leave the platform in place shall include removal of the
top of the platform so that it is not visible from land and does not
interfere with surface craft. The application shall include
estimates of the cost of completely removing the platform, the cost
of the alternatives, and the cost savings by allowing an alternative.

   (c) Upon receipt of a request pursuant to subdivision (b), the
commission shall estimate the state's cost of determining advantages
and disadvantages of completely removing the platform and the
alternatives, submitted in the application. The determination shall
include financial considerations. The commission shall provide to the
owner or operator the estimate of the state's cost to make the
determination.
   (d) Upon commitment by the owner or operator to pay the state's
cost, the commission shall initiate the process to determine, in
cooperation with the owner or operator, the Department of Fish and
Game, any affected counties, regulatory agencies, and interested
persons, whether an alternative submitted in the application is
preferred.
   6882.  (a) The commission shall hold one or more public hearings
on the advantages and disadvantages of completely removing the
platform and the alternatives submitted in the application, including
financial considerations.
   (b) If the commission determines that an alternative may be
advantageous, the commission shall comply with the California
Environmental Quality Act (Division 13 (commencing with Section
21000)) and, subsequently, may select an alternative, provided the
Department of Fish and Game determines that the alternative, as
compared to complete removal, would be a benefit to marine biota.
   (c) For an alternative proposing to leave the platform in place,
the commission shall determine how much of the top of the platform
shall be removed, subject to the requirements that the top of the
platform not be visible from land and that the platform not interfere
with surface craft reasonably expected to use the waters in which
the platform is located.
   (d) If the commission selects an alternative, the commission and
the owner or operator may enter into an agreement to allow the
implementation of the alternative. The agreement shall include all of
the following provisions:
   (1) The owner or operator shall pay to the commission the cost
savings, less any payment by the owner or operator pursuant to
subdivision (d) of Section 6881. The commission shall deposit that
net sum into the fund.
   (2) The owner or operator shall cap any oil well and shall
continue to be responsible and liable for any oil leak.
   (3) The owner or operator shall continue to be responsible and
liable for any toxic materials that resulted from oil operations.
   (4) Upon completion of the alternative, the ownership of the
platform shall be transferred to the Department of Fish and Game
pursuant to Article 2 (commencing with Section 6420) of Chapter 5 of
Part 1 of Division 6 of the Fish and Game Code.
   (5) The owner or operator shall apply for, and receive, all
required permits issued by any governmental agency, including, but
not limited to, a permit issued by the United States Army Corps of
Engineers.
   (e) An alternative shall not be used or counted as mitigation for
any environmental impacts or natural resource damages.
   6883.  (a) A request under this article may be withdrawn at any
time, subject to the payment of costs incurred by the state in
accordance with subdivision (d) of Section 6881.
   (b) Nothing in this article is intended, and shall not be
construed, to limit or affect the authority or duties of any state or
local agency, including, but not limited to, the California Coastal
Commission.
   6884.  (a) An alternative transferred to the Department of Fish
and Game shall be maintained in a manner consistent with navigational
safety and all applicable state, federal, and international laws.
   (b) An alternative transferred to the Department of Fish and Game
shall be a marine no-take zone, where sport and commercial fishing
are prohibited for one-quarter mile from the platform, unless the
Department of Fish and Game, pursuant to the Marine Life Protection
Act (Chapter 10.5 (commencing with Section 2850) of Division 3 of the
Fish and Game Code), authorizes marine take.
   6885.  The Ocean Resources Fund is hereby created in the State
Treasury to receive payments from an owner or operator pursuant to
this article. Upon appropriation by the Legislature, moneys in the
fund shall be expended only for the purposes of this article.