CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1440Introduced by Assembly Member LevineFebruary 22, 2019 An act to amend Section 6830.1 of the Public Resources Code, relating to public lands. LEGISLATIVE COUNSEL'S DIGESTAB 1440, as introduced, Levine. State-owned lands: oil and gas production.Existing law authorizes the State Lands Commission to make leases for the extraction and removal of oil and gas deposits from state-owned lands to the highest qualified bidder, or to joint bidders, as provided by law, and requires that a lease include all oil and gas deposits in the leased land and be for a term of 20 years and for so long thereafter as gas or oil is produced in paying quantities from the leased land, or that the lessee be diligently conducting production, drilling, deepening, repairing, redrilling, or other necessary lease or well maintenance operations on the leased land.Existing law establishes a finding and determination by the Legislature that the people of the State of California have a direct and primary interest in assuring the production of the optimum quantities of oil and gas from lands owned by the state, and that a minimum of oil and gas be left wasted and unrecovered in such lands.This bill would delete this finding and determination by the Legislature from these provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 6830.1 of the Public Resources Code is amended to read:6830.1. It is hereby found and determined by the Legislature of the State of California as follows:(a)That the people of the State of California have a direct and primary interest in assuring the production of the optimum quantities of oil and gas from lands owned by the state, and that a minimum of oil and gas be left wasted and unrecovered in such lands.(b)(a) That the state owns tide and submerged lands, which lands have been developed under oil and gas leases issued by the state to such an extent that it is desirable that secondary operations be undertaken within such those lands in an effort to obtain the maximum economic ultimate recovery of oil and gas from said the lands; and that it is desirable that the carrying on of secondary recovery operations in such the lands be encouraged, which operations the holders of such the leases may otherwise not undertake because certain of the leases covering such the lands provide for the payment of graduated royalties dependent upon daily per well rates of oil production (which, which, in the case of multiple completions, means the separately measured average daily production from each zone produced through a separate string of tubing or through casing which that is not in communication with any other zone), zone, which graduated royalties were established without contemplation of secondary recovery operations and the economics respecting such those operations. The(b) The definition relating to multiple completions set forth herein in this section shall apply to leases executed on or after the effective date of the amendments made to this section at the 1966 Second Extraordinary Session of the Legislature and may, with the approval of the commission, apply to oil produced from leased lands with respect to which the commission and the holder of the lease shall, on or after the effective date of such the amendments, enter into an amendatory agreement pursuant to Section 6830.2. It is not the intention of the Legislature in enacting this paragraph subdivision to declare the law relating to the computation of daily per well rates of oil production from multiple completions before the effective date of such the amendments or in the absence of such an amendatory agreement.
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 1440Introduced by Assembly Member LevineFebruary 22, 2019 An act to amend Section 6830.1 of the Public Resources Code, relating to public lands. LEGISLATIVE COUNSEL'S DIGESTAB 1440, as introduced, Levine. State-owned lands: oil and gas production.Existing law authorizes the State Lands Commission to make leases for the extraction and removal of oil and gas deposits from state-owned lands to the highest qualified bidder, or to joint bidders, as provided by law, and requires that a lease include all oil and gas deposits in the leased land and be for a term of 20 years and for so long thereafter as gas or oil is produced in paying quantities from the leased land, or that the lessee be diligently conducting production, drilling, deepening, repairing, redrilling, or other necessary lease or well maintenance operations on the leased land.Existing law establishes a finding and determination by the Legislature that the people of the State of California have a direct and primary interest in assuring the production of the optimum quantities of oil and gas from lands owned by the state, and that a minimum of oil and gas be left wasted and unrecovered in such lands.This bill would delete this finding and determination by the Legislature from these provisions.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: NO Local Program: NO
CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
Assembly Bill No. 1440
Introduced by Assembly Member LevineFebruary 22, 2019
Introduced by Assembly Member Levine
February 22, 2019
An act to amend Section 6830.1 of the Public Resources Code, relating to public lands.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 1440, as introduced, Levine. State-owned lands: oil and gas production.
Existing law authorizes the State Lands Commission to make leases for the extraction and removal of oil and gas deposits from state-owned lands to the highest qualified bidder, or to joint bidders, as provided by law, and requires that a lease include all oil and gas deposits in the leased land and be for a term of 20 years and for so long thereafter as gas or oil is produced in paying quantities from the leased land, or that the lessee be diligently conducting production, drilling, deepening, repairing, redrilling, or other necessary lease or well maintenance operations on the leased land.Existing law establishes a finding and determination by the Legislature that the people of the State of California have a direct and primary interest in assuring the production of the optimum quantities of oil and gas from lands owned by the state, and that a minimum of oil and gas be left wasted and unrecovered in such lands.This bill would delete this finding and determination by the Legislature from these provisions.
Existing law authorizes the State Lands Commission to make leases for the extraction and removal of oil and gas deposits from state-owned lands to the highest qualified bidder, or to joint bidders, as provided by law, and requires that a lease include all oil and gas deposits in the leased land and be for a term of 20 years and for so long thereafter as gas or oil is produced in paying quantities from the leased land, or that the lessee be diligently conducting production, drilling, deepening, repairing, redrilling, or other necessary lease or well maintenance operations on the leased land.
Existing law establishes a finding and determination by the Legislature that the people of the State of California have a direct and primary interest in assuring the production of the optimum quantities of oil and gas from lands owned by the state, and that a minimum of oil and gas be left wasted and unrecovered in such lands.
This bill would delete this finding and determination by the Legislature from these provisions.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 6830.1 of the Public Resources Code is amended to read:6830.1. It is hereby found and determined by the Legislature of the State of California as follows:(a)That the people of the State of California have a direct and primary interest in assuring the production of the optimum quantities of oil and gas from lands owned by the state, and that a minimum of oil and gas be left wasted and unrecovered in such lands.(b)(a) That the state owns tide and submerged lands, which lands have been developed under oil and gas leases issued by the state to such an extent that it is desirable that secondary operations be undertaken within such those lands in an effort to obtain the maximum economic ultimate recovery of oil and gas from said the lands; and that it is desirable that the carrying on of secondary recovery operations in such the lands be encouraged, which operations the holders of such the leases may otherwise not undertake because certain of the leases covering such the lands provide for the payment of graduated royalties dependent upon daily per well rates of oil production (which, which, in the case of multiple completions, means the separately measured average daily production from each zone produced through a separate string of tubing or through casing which that is not in communication with any other zone), zone, which graduated royalties were established without contemplation of secondary recovery operations and the economics respecting such those operations. The(b) The definition relating to multiple completions set forth herein in this section shall apply to leases executed on or after the effective date of the amendments made to this section at the 1966 Second Extraordinary Session of the Legislature and may, with the approval of the commission, apply to oil produced from leased lands with respect to which the commission and the holder of the lease shall, on or after the effective date of such the amendments, enter into an amendatory agreement pursuant to Section 6830.2. It is not the intention of the Legislature in enacting this paragraph subdivision to declare the law relating to the computation of daily per well rates of oil production from multiple completions before the effective date of such the amendments or in the absence of such an amendatory agreement.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 6830.1 of the Public Resources Code is amended to read:6830.1. It is hereby found and determined by the Legislature of the State of California as follows:(a)That the people of the State of California have a direct and primary interest in assuring the production of the optimum quantities of oil and gas from lands owned by the state, and that a minimum of oil and gas be left wasted and unrecovered in such lands.(b)(a) That the state owns tide and submerged lands, which lands have been developed under oil and gas leases issued by the state to such an extent that it is desirable that secondary operations be undertaken within such those lands in an effort to obtain the maximum economic ultimate recovery of oil and gas from said the lands; and that it is desirable that the carrying on of secondary recovery operations in such the lands be encouraged, which operations the holders of such the leases may otherwise not undertake because certain of the leases covering such the lands provide for the payment of graduated royalties dependent upon daily per well rates of oil production (which, which, in the case of multiple completions, means the separately measured average daily production from each zone produced through a separate string of tubing or through casing which that is not in communication with any other zone), zone, which graduated royalties were established without contemplation of secondary recovery operations and the economics respecting such those operations. The(b) The definition relating to multiple completions set forth herein in this section shall apply to leases executed on or after the effective date of the amendments made to this section at the 1966 Second Extraordinary Session of the Legislature and may, with the approval of the commission, apply to oil produced from leased lands with respect to which the commission and the holder of the lease shall, on or after the effective date of such the amendments, enter into an amendatory agreement pursuant to Section 6830.2. It is not the intention of the Legislature in enacting this paragraph subdivision to declare the law relating to the computation of daily per well rates of oil production from multiple completions before the effective date of such the amendments or in the absence of such an amendatory agreement.
SECTION 1. Section 6830.1 of the Public Resources Code is amended to read:
### SECTION 1.
6830.1. It is hereby found and determined by the Legislature of the State of California as follows:(a)That the people of the State of California have a direct and primary interest in assuring the production of the optimum quantities of oil and gas from lands owned by the state, and that a minimum of oil and gas be left wasted and unrecovered in such lands.(b)(a) That the state owns tide and submerged lands, which lands have been developed under oil and gas leases issued by the state to such an extent that it is desirable that secondary operations be undertaken within such those lands in an effort to obtain the maximum economic ultimate recovery of oil and gas from said the lands; and that it is desirable that the carrying on of secondary recovery operations in such the lands be encouraged, which operations the holders of such the leases may otherwise not undertake because certain of the leases covering such the lands provide for the payment of graduated royalties dependent upon daily per well rates of oil production (which, which, in the case of multiple completions, means the separately measured average daily production from each zone produced through a separate string of tubing or through casing which that is not in communication with any other zone), zone, which graduated royalties were established without contemplation of secondary recovery operations and the economics respecting such those operations. The(b) The definition relating to multiple completions set forth herein in this section shall apply to leases executed on or after the effective date of the amendments made to this section at the 1966 Second Extraordinary Session of the Legislature and may, with the approval of the commission, apply to oil produced from leased lands with respect to which the commission and the holder of the lease shall, on or after the effective date of such the amendments, enter into an amendatory agreement pursuant to Section 6830.2. It is not the intention of the Legislature in enacting this paragraph subdivision to declare the law relating to the computation of daily per well rates of oil production from multiple completions before the effective date of such the amendments or in the absence of such an amendatory agreement.
6830.1. It is hereby found and determined by the Legislature of the State of California as follows:(a)That the people of the State of California have a direct and primary interest in assuring the production of the optimum quantities of oil and gas from lands owned by the state, and that a minimum of oil and gas be left wasted and unrecovered in such lands.(b)(a) That the state owns tide and submerged lands, which lands have been developed under oil and gas leases issued by the state to such an extent that it is desirable that secondary operations be undertaken within such those lands in an effort to obtain the maximum economic ultimate recovery of oil and gas from said the lands; and that it is desirable that the carrying on of secondary recovery operations in such the lands be encouraged, which operations the holders of such the leases may otherwise not undertake because certain of the leases covering such the lands provide for the payment of graduated royalties dependent upon daily per well rates of oil production (which, which, in the case of multiple completions, means the separately measured average daily production from each zone produced through a separate string of tubing or through casing which that is not in communication with any other zone), zone, which graduated royalties were established without contemplation of secondary recovery operations and the economics respecting such those operations. The(b) The definition relating to multiple completions set forth herein in this section shall apply to leases executed on or after the effective date of the amendments made to this section at the 1966 Second Extraordinary Session of the Legislature and may, with the approval of the commission, apply to oil produced from leased lands with respect to which the commission and the holder of the lease shall, on or after the effective date of such the amendments, enter into an amendatory agreement pursuant to Section 6830.2. It is not the intention of the Legislature in enacting this paragraph subdivision to declare the law relating to the computation of daily per well rates of oil production from multiple completions before the effective date of such the amendments or in the absence of such an amendatory agreement.
6830.1. It is hereby found and determined by the Legislature of the State of California as follows:(a)That the people of the State of California have a direct and primary interest in assuring the production of the optimum quantities of oil and gas from lands owned by the state, and that a minimum of oil and gas be left wasted and unrecovered in such lands.(b)(a) That the state owns tide and submerged lands, which lands have been developed under oil and gas leases issued by the state to such an extent that it is desirable that secondary operations be undertaken within such those lands in an effort to obtain the maximum economic ultimate recovery of oil and gas from said the lands; and that it is desirable that the carrying on of secondary recovery operations in such the lands be encouraged, which operations the holders of such the leases may otherwise not undertake because certain of the leases covering such the lands provide for the payment of graduated royalties dependent upon daily per well rates of oil production (which, which, in the case of multiple completions, means the separately measured average daily production from each zone produced through a separate string of tubing or through casing which that is not in communication with any other zone), zone, which graduated royalties were established without contemplation of secondary recovery operations and the economics respecting such those operations. The(b) The definition relating to multiple completions set forth herein in this section shall apply to leases executed on or after the effective date of the amendments made to this section at the 1966 Second Extraordinary Session of the Legislature and may, with the approval of the commission, apply to oil produced from leased lands with respect to which the commission and the holder of the lease shall, on or after the effective date of such the amendments, enter into an amendatory agreement pursuant to Section 6830.2. It is not the intention of the Legislature in enacting this paragraph subdivision to declare the law relating to the computation of daily per well rates of oil production from multiple completions before the effective date of such the amendments or in the absence of such an amendatory agreement.
6830.1. It is hereby found and determined by the Legislature of the State of California as follows:
(a)That the people of the State of California have a direct and primary interest in assuring the production of the optimum quantities of oil and gas from lands owned by the state, and that a minimum of oil and gas be left wasted and unrecovered in such lands.
(b)
(a) That the state owns tide and submerged lands, which lands have been developed under oil and gas leases issued by the state to such an extent that it is desirable that secondary operations be undertaken within such those lands in an effort to obtain the maximum economic ultimate recovery of oil and gas from said the lands; and that it is desirable that the carrying on of secondary recovery operations in such the lands be encouraged, which operations the holders of such the leases may otherwise not undertake because certain of the leases covering such the lands provide for the payment of graduated royalties dependent upon daily per well rates of oil production (which, which, in the case of multiple completions, means the separately measured average daily production from each zone produced through a separate string of tubing or through casing which that is not in communication with any other zone), zone, which graduated royalties were established without contemplation of secondary recovery operations and the economics respecting such those operations.
The
(b) The definition relating to multiple completions set forth herein in this section shall apply to leases executed on or after the effective date of the amendments made to this section at the 1966 Second Extraordinary Session of the Legislature and may, with the approval of the commission, apply to oil produced from leased lands with respect to which the commission and the holder of the lease shall, on or after the effective date of such the amendments, enter into an amendatory agreement pursuant to Section 6830.2. It is not the intention of the Legislature in enacting this paragraph subdivision to declare the law relating to the computation of daily per well rates of oil production from multiple completions before the effective date of such the amendments or in the absence of such an amendatory agreement.