BILL NUMBER:  SB 550
  VETOED	DATE: 09/29/2010




To the Members of the California State Senate:

I am returning Senate Bill 550 without my signature.

This bill requires an oil and gas operator to provide to the surface
owner a 10-day written notice of the intent to enter the surface
owner's property for the purpose of the extraction of underlying oil,
gas, or minerals.  This bill also requires the operator to provide
to the surface owner a copy of the applicable recorded short form or
memorandum of oil, gas, or minerals lease within 10 days prior to
entering the property.

The Department of Conservation (Department) does not currently
resolve mineral rights or surface rights disputes.  But this bill
would create an expectation on the part of the landowner that the
Department will now regulate in this arena.  This means that
violations of the provisions of the bill could be subject to the
imposition of penalties by the Department.  In essence, this bill
creates a regulatory program in search of a problem.  These disputes
should be resolved in the courts, not through the Department's
enforcement processes.

For this reason, I am unable to sign this bill.

Sincerely,



Arnold Schwarzenegger