California Assembly Bill AB368 Introduced / Bill

 BILL NUMBER: AB 368INTRODUCED 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.