reglab/statecodes huggingface dataset:
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 2 - Development and Improvement of Granted Tide and Submerged Lands › Section 6706.

6706. If on the effective date of any revocation of a grant of tide or submerged lands, there are in effect any leases, contracts, or other instruments to which the provisions of Section 6701 are applicable, the state may at its option, exercised by, and evidenced by appropriate action on the part of, the State Lands Commission, succeed to the interest in any such instrument of the grantee named in such grant; otherwise, the interest of such grantee in any such instrument then in effect shall continue during the term or other period of time during which such instrument shall remain in effect, or until such time as the commission exercises the option set forth in this section. The grantee shall furnish the commission with all such instruments within 30 days after the effective date of any such revocation, or any longer period mutually agreed upon between the commission and the grantee, and the commission may exercise the option at any time within six months from the date such instruments were submitted to it.
(Added by Stats. 1970, Ch. 1451.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 1 - Provisions Relating to All State Lands › Section 6801.

6801. A lease or prospecting permit under this chapter shall be issued only to and held by:
(a) Persons or associations of persons who are citizens of the United States or who have declared their intention of becoming such, or who are citizens of any country, dependency, colony, or province, the laws, customs, and regulations of which permit the grant of similar or like privileges to citizens of the United States.
(b) Any corporation or corporations organized and existing under and by virtue of the laws of the United States or of any state or territory thereof; or any corporation or corporations 90 percent or more of the shares of which are owned by persons eligible to hold a lease or permit under subdivision (a) or (c) of this section; or any corporation or corporations 90 percent or more of the shares of which are owned either by a corporation eligible to hold a lease or permit hereunder, or by any combination of such eligible persons or corporations, or both.
(c) Any person who is not a citizen or national of the United States entitled thereto by virtue of any treaty between the United States and the nation or country of which that person is a citizen or subject.
(d) In every case of joint bidding, the names of all persons, firms, or corporations interested in a particular joint bid shall be specified.
(Amended by Stats. 2021, Ch. 296, Sec. 57. (AB 1096) Effective January 1, 2022.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 1 - Provisions Relating to All State Lands › Section 6802.

6802. Any interest held in violation of this chapter shall be forfeited to the State by appropriate proceedings for that purpose brought by the State in the superior court for the county in which the property or some part thereof is located, except that any ownership or interest forbidden in this chapter which is acquired by descent, will, judgment, or decree may be held for two years and not longer after its acquisition.
(Added by Stats. 1941, Ch. 548.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 1 - Provisions Relating to All State Lands › Section 6803.

6803. The commission, in issuing any lease under this chapter, may reserve to the State the right to lease, sell, or otherwise dispose of the surface of the lands embraced within the lease, in so far as the surface is not required by the lessee. If such a reservation is to be made, however, it shall be so determined before the offering of the lease.
(Added by Stats. 1941, Ch. 548.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 1 - Provisions Relating to All State Lands › Section 6804.1.

6804.1. Notwithstanding any provisions 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 lease or of any 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 quitclaim or relinquishment shall be effective as of the date of its filing, subject to the continued obligation of the lessee and his 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 the lessee shall be released from all obligations thereafter accruing under said lease with respect to the lands, zones or horizons quitclaimed or relinquished, but no such quitclaim or relinquishment shall release such lessee or his surety from any liability for breach of any obligation of the lease with respect to which such lessee is in default at the time of the filing of such quitclaim or relinquishment.
(Added by Stats. 1955, Ch. 1724.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 1 - Provisions Relating to All State Lands › Section 6805.

6805. The commission shall reserve and may exercise the authority to cancel any prospecting permit or lease upon which a commercially valuable deposit of minerals or geothermal resources other than oil or gas has not been discovered or upon which oil or gas has not been discovered in paying quantities upon failure of the permittee or lessee (after 30 days’ written notice and demand for performance) to exercise due diligence and care in the prosecution of the prospecting or development work in accordance with the terms and conditions of the permit or lease. After discovery of a commercially valuable deposit of minerals or geothermal resources other than oil or gas on lands subject to any permit or lease issued pursuant to this chapter, or after discovery of oil or gas in paying quantities on lands subject to any lease, the permit or lease may be forfeited and canceled only upon failure of the lessee after 90 days’ written notice and demand to comply with any of the provisions of the permit or lease or of the regulations applicable thereto and in force at the date of the permit or lease. However, in the event of any cancellation the lessee under any oil or gas lease or the permittee or lessee under any geothermal resource permit or lease shall have the right to retain under the permit or lease any and all drilling or producing wells as to which no default exists, together with a parcel of land surrounding any well or wells and any rights-of-way through the lands, under permit or lease, as may be reasonably necessary to enable the permittee or lessee to drill and operate the retained well or wells. In the event of the cancellation of any permit or lease the permittee or lessee shall have a reasonable time within which to remove any and all property, equipment and facilities owned or used by the permittee or lessee in connection with operations under the permit or lease. The commission shall insert in every permit or lease issued under this chapter appropriate provisions for its cancellation in accordance with the provisions of this section.
(Amended by Stats. 1980, Ch. 676, Sec. 276.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 1 - Provisions Relating to All State Lands › Section 6806.

6806. Any permit or lease under this chapter shall reserve to the commission the right to allow, upon such terms as the commission may determine to be just, the joint or several use of such easements or rights of way, including easements in tunnels, upon, through, or in the lands leased or permitted, as may be necessary or appropriate for the working of such lands or of other lands containing the deposits described in this chapter.
(Added by Stats. 1941, Ch. 548.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 1 - Provisions Relating to All State Lands › Section 6807.

6807. The commission, in the name of the State, may purchase or receive by donation or lease any right of way or easement in real property, or any real property in fee simple, necessary or proper for sites for drilling operations, storage of oil, dehydration plants, absorption plants, or other operations necessary or proper under this chapter.
(Added by Stats. 1941, Ch. 548.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 1 - Provisions Relating to All State Lands › Section 6808.

6808. The commission, if it deems such action for the best interests of the state, may condemn, acquire, and possess in the name of the state any right-of-way or easement, including surface rights, for any operation authorized or contemplated under this chapter, that may be necessary for the development and production of oil and gas from state-owned land and for their removal, transportation, storage, and sale.
(Amended by Stats. 1975, Ch. 1239.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 1 - Provisions Relating to All State Lands › Section 6809.

6809. Any interests in lands, or lands in fee simple, acquired by the commission by purchase, donation, lease, condemnation, or otherwise, may be made available to any lessee of the State for the purposes contained in this chapter and upon such terms and conditions as may be determined by the commission.
(Added by Stats. 1941, Ch. 548.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 1 - Provisions Relating to All State Lands › Section 6810.

6810. The provisions of this chapter authorizing the commission to acquire interests in real property include the acquisition of structures and improvements situated on lands sold by the State subject to the reservations provided herein. Such structures and improvements shall be acquired, however, only upon the written request of a lessee under this chapter, to whom the State has granted the right to extract the oil and gas or other minerals from such lands, and only upon the agreement by the lessee to reimburse the State for the cost and expense of such acquisition and the deposit by the lessee with the commission of such security as it may require.
(Added by Stats. 1941, Ch. 548.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 1 - Provisions Relating to All State Lands › Section 6811.

6811. The commission may, prior to the receipt of any bid for a lease under this chapter, withdraw any offer to receive bids therefor, and it may reject all bids therefor filed pursuant to invitation of the commission. At any time before the awarding of a lease thereon, all or any portion of a tract proposed to be leased may be withdrawn by the commission and eliminated from the proposal.
(Added by Stats. 1941, Ch. 548.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 1 - Provisions Relating to All State Lands › Section 6812.

6812. Whenever by the terms of this chapter the commission may grant a lease of State lands, the commission may make and execute an easement of surface or subsurface rights, or both, in lieu thereof and upon the same terms and conditions and subject to the same limitations and prohibitions as are provided for a lease of such lands.
(Added by Stats. 1941, Ch. 548.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 1 - Provisions Relating to All State Lands › Section 6813.

6813. For the purpose of this chapter, the commission may enter into agreements with any person, association of persons, corporation, city, or county, the United States or any agency thereof, or any of them, claiming the oil and gas in lands adversely to the State of California, which agreements may:
(a) Establish the respective interests of the parties to the agreement in the oil and gas underlying such land.
(b) Establish the boundary line between lands claimed by the State and other parties to the agreement in those cases in which oil or gas is known or believed to exist in such lands or in the vicinity thereof, and, pending the establishment of any such boundaries, provide for the administration, exploration and development of any lands embraced within the conflicting boundary claims.
(c) Fix the amount of damages for past or future production of oil and gas from wells drilled under color of title on or into land claimed by the State.
Any agreement entered into by the commission with the United States or any agency thereof under this section shall first be approved by the Governor in order to make it effective.
(Amended by Stats. 1951, Ch. 686.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 1 - Provisions Relating to All State Lands › Section 6814.

6814. The commission, in the name of the people of the State, may bring action to determine the title to oil and gas in land against persons, associations of persons, and corporations claiming the oil and gas adversely and to recover damages for oil and gas removed therefrom. Any person, association of persons, corporation, or city not a party to such a suit and claiming the oil or gas in the land, or any part thereof, may intervene in such an action and have his rights adjudicated. The State hereby consents to be sued by any person, association of persons, corporation, or city for the purpose of quieting title to the right to oil or gas, or both, in any land, claimed by the State and by such person, association of persons, corporation, or city. Any other person, association of persons, corporation, or city not made a party to such an action but claiming any interest in the oil or gas may intervene in such suit.
All such actions shall be brought and tried in the county where the land or some part thereof is situated.
(Added by Stats. 1941, Ch. 548.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 1 - Provisions Relating to All State Lands › Section 6815.

6815. (a) Notwithstanding any other provision of law to the contrary, the commission may negotiate and enter into agreements for compensation for drainage or oil and gas leases on state-owned lands, other than those not available for lease pursuant to Section 6871.1 and that are described in Section 6871.2, if any of the following circumstances exist:
(1) Wells drilled upon private or public lands, including state-owned lands, are draining or may drain oil or gas from state-owned lands, provided that where wells are drilled on state-owned lands and other state-owned lands are or may be subject to drainage, the development is allowed only by drilling from already developed state lands.
(2) The lands are determined by the commission to be unsuitable for competitive bidding because of such factors as their small size or irregular configuration, or their inaccessibility from surface drill sites reasonably available or obtainable.
(3) The state owns a fractional interest in the lands.
(4) The lease or agreement is determined by the commission to be in the best interests of the state.
(b) Whenever wells drilled upon private or public lands, including state-owned lands, are draining or may drain oil or gas from state-owned lands not available for lease pursuant to Section 6871.1 and that are described in Section 6871.2, the commission may negotiate and enter into agreements for compensation for drainage or oil and gas leases, provided that the development of those lands shall be allowed only by drilling from adjacent lands.
(Repealed and added by Stats. 1983, Ch. 1171, Sec. 3.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 1 - Provisions Relating to All State Lands › Section 6815.1.

6815.1. Whenever the commission exercises a right to take oil, gas, or other hydrocarbons in kind pursuant to any lease the commission shall make and enter into contracts or agreements for the disposition and sale of such oil, gas, or other hydrocarbons only with the highest responsible bidder upon competitive bidding, and in accordance with procedures set forth in rules and regulations adopted by the commission. All specifications and forms for the purpose of inviting bids in connection with such disposition and sale shall be adopted by the commission prior to publication of notice to bidders. Should no bids be received, or should the commission determine to reject any and all bids because of the insufficiency thereof, the commission may negotiate and enter into agreements for such disposition and sale under terms and conditions deemed by the commission to be in the best interests of the State.
(Added by Stats. 1963, Ch. 1429.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 1 - Provisions Relating to All State Lands › Section 6815.2.

6815.2. (a) Notwithstanding Section 6815.1, the commission may take any oil, gas, or other hydrocarbons taken in kind by it, pursuant to any lease or agreement, and exchange it, by competitive bidding, for refined products which shall be allocated to state agencies and to other public agencies, if the State Energy Resources Conservation and Development Commission, established pursuant to Division 15 (commencing with Section 25000), after a public hearing, finds, in its judgment, that such retention and allocation is necessary to alleviate fuel shortage conditions or will effect a substantial cost saving to the state.
(b) The commission may make and enter into contracts or agreements for exchange of such oil, gas, and other hydrocarbons taken in kind for finished products required for use by state and other public agencies. Such contracts or agreements shall be entered into by competitive bids. The commission may reject all bids, if it determines that they are not in the public interest.
(c) The commission shall charge the state or other public agencies allocated refined products the current market price of these products including all applicable taxes. This price shall not be less than the value of the oil, gas, or other hydrocarbons which would have been received by the state if not taken in kind. The revenue shall be subject to the terms and conditions enumerated in Section 6217. The taxes generated by these sales shall be distributed according to applicable provisions of the Revenue and Taxation Code.
(d) The refined products obtained from such exchange contracts or agreements shall be allocated to state agencies and to other public agencies in accordance with the regulations which shall be adopted, after a public hearing, by the State Energy Resources Conservation and Development Commission.
(e) Notwithstanding Section 6815.1, if the commission determines that it is in the best interests of the state, it may allow another state or public agency to take in kind oil, gas, or other hydrocarbons acquired by the commission.
The commission shall charge the state or other public agencies allocated in kind oil, gas, or other hydrocarbons the current market price of these products, including all applicable taxes. This price shall not be less than the value of the oil, gas, or other hydrocarbons which would have been received by the state if not taken in kind. The commission may also charge for any transportation, treatment, or other costs associated with taking the in kind royalty. The revenue shall be subject to the terms and conditions enumerated in Section 6217. The taxes generated by these sales shall be distributed according to applicable provisions of the Revenue and Taxation Code.
(Amended by Stats. 1983, Ch. 1171, Sec. 4.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 1 - Provisions Relating to All State Lands › Section 6818.

6818. All applications made to the commission pursuant to this chapter for erection of any permanent structure on tidelands or submerged lands or for depositing thereon or removal therefrom of any material shall be submitted by the commission to the Director of Parks and Recreation to make an examination and report concerning possible interference with the recreational use of lands littoral to the tidelands or submerged lands involved in such application. All such applications shall also be submitted by the commission to the Attorney General for approval as to compliance with the applicable provisions of law and of the rules and regulations of the commission. Should it be found by the commission that the action proposed in any such application would unreasonably interfere with the maintenance or use of the lands involved for recreational purposes or protection of shore properties, such application shall not be granted unless modified in a manner which may avoid such interference.
(Amended by Stats. 1965, Ch. 1144.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 1 - Provisions Relating to All State Lands › Section 6819.

6819. The commission shall promulgate rules and regulations to require any person extracting oil or gas or other minerals from lands under the jurisdiction of the commission to remove beach and underwater obstructions.
(Added by Stats. 1973, Ch. 1053.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 2 - Provisions Relating to Oil and Gas Leases Generally › Section 6826.1.

6826.1. The State Lands Commission shall not permit the taking of cores or other samples by means of drilling operations on or under the tide and submerged lands described in subdivision (c), (d), or (f) of Section 6871.2 or on tide or submerged lands of the state along the coast of the Pacific Ocean extending from the southerly boundary of the state to the northerly boundary of the City of Newport Beach in Orange County for the purpose of exploring for, or exploiting, oil and gas resources.
(Amended by Stats. 1978, Ch. 747.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 2 - Provisions Relating to Oil and Gas Leases Generally › Section 6827.1.

6827.1. Nothing contained in this chapter or any other law shall prevent or prohibit two or more persons who are individually eligible to hold a lease under this chapter from making a joint bid for any lease or leases offered under this chapter.
(Added by Stats. 1955, Ch. 1724.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 2 - Provisions Relating to Oil and Gas Leases Generally › Section 6827.2.

6827.2. In order to prevent the premature abandonment of a lease, notwithstanding any other provision in this chapter, if, after the holding of a public hearing, the commission finds that continued production from a lease is in the best interests of the people of California and that such production is economically unfeasible under the terms set forth in the lease, the commission may renegotiate the lease to reduce the minimum royalty rate or to substitute such other consideration as would be in the best interests of the state.
(Added by Stats. 1975, Ch. 476.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 2 - Provisions Relating to Oil and Gas Leases Generally › Section 6827.5.

6827.5. (a) Notwithstanding Article 3 (commencing with Section 6851), Article 4 (commencing with Section 6870), or any other law, and to the extent not prohibited by federal law, any state agency, department, or commission, or any local trustee, with leasing authority over public lands within the state shall not enter into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon public lands, including tidelands and submerged lands, to support production of oil and natural gas upon federal lands that are designated as, or were at any time designated as, federally protected lands.
(b) Nothing in this section shall prohibit either of the following:
(1) Any activity undertaken to repair, relocate, or maintain any pipeline or other infrastructure used to convey oil or natural gas or any other activity necessary to ensure the safe operation of infrastructure used in the exploration, development, or production of oil or natural gas.
(2) Any activity undertaken to convey oil or natural gas produced from state lands or waters.
(c) State agencies, departments, and commissions with leasing authority over public lands may establish regulations for the implementation of this section.
(d) This section does not impair or affect, in any way, valid leases that are in effect as of January 1, 2020.
(e) For purposes of this section, the following definitions apply:
(1) “Federally protected land” means land designated as a national monument, park, wilderness area, wildlife refuge, or wilderness study area.
(2) “Local trustee” means a local trustee of granted public trust lands that is a county, city, or district, including water, sanitary, regional park, port, or harbor districts, or any other local political or corporate subdivision that has been granted public trust lands through a legislative grant.
(Added by Stats. 2019, Ch. 769, Sec. 1. (AB 342) Effective January 1, 2020.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 2 - Provisions Relating to Oil and Gas Leases Generally › Section 6828.

6828. All leases of lands containing oil or gas made or issued under this chapter shall be subject to the condition that the lessee will use all reasonable precautions to prevent waste of oil or gas developed in the land, or the entrance of water through wells drilled to the oil-bearing strata, to the destruction or injury of the oil deposits. All leases shall further provide that the lessee therein shall comply with all valid laws of the United States and of the State of California and with all valid ordinances of cities and counties applicable to the lessee’s operations, including, without limitation by reason of the specification thereof, the lessee’s compliance with Division 3 of this code.
(Added by Stats. 1941, Ch. 548.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 2 - Provisions Relating to Oil and Gas Leases Generally › Section 6829.

6829. Every oil and gas lease executed under this chapter, and any oil and gas lease assigned, transferred, or sublet, pursuant to Section 6804, shall include all of the following:
(a) Terms, conditions, and provisions that will protect the interests of the state with reference to securing the payment to the state of the proper amount or value of production.
(b) Terms, conditions, and provisions that will protect the interests of the state with reference to the spacing of wells for the purpose of properly offsetting the drainage of oil and gas from state lands by wells drilled and operated on and within privately owned lands; diligence on the part of the lessee in drilling wells to the oil sands and requirements as to depth of those wells for the purpose of reaching the oil sands and producing oil and gas therefrom in commercial quantities.
(c) Provisions specifying methods of operation and standard requirements for carrying on operations in a proper and professional manner, the prevention of waste, the protection of the safety and health of workers, and the liability of the lessee for personal injuries and property damage.
(d) Security, or other financial assurance, for faithful performance by the lessee, including provisions for the forfeiture of the lease, as set forth in Section 6805, and the requirement that the lessee shall, at the time of execution of the lease, including any amendments thereof, furnish and thereafter maintain a good and sufficient bond in such sum as may be specified by the commission, in favor of the state, guaranteeing faithful performance by the lessee of the terms, covenants, and conditions of the lease and of the provisions of this chapter, including for the costs of plugging and abandoning wells and decommissioning all associated production facilities.
(e) Other covenants, conditions, requirements, and reservations as may be deemed advisable by the commission in effecting the purpose of this chapter and not inconsistent with any of its provisions, provided that any provision of an oil and gas lease executed under this chapter that purports to deprive the state or a lessee of any right or benefit secured by law, or is otherwise inconsistent with the provisions of this chapter, shall be void and shall be deemed separable from and without effect upon the valid provisions of the lease.
(Amended by Stats. 2018, Ch. 607, Sec. 4. (SB 1147) Effective January 1, 2019.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 2 - Provisions Relating to Oil and Gas Leases Generally › Section 6829.1.

6829.1. Every oil and gas lease, including leases of tide and submerged lands, executed under this chapter, shall specify a period of not to exceed three (3) years, as specified by the commission in the invitation for bids, subject to extension by the commission as provided in this chapter, as the drilling term of the lease within which the lessee may commence operations for the drilling of a well for oil or gas, and, providing that, if lessee fails to commence such operations and to thereafter diligently prosecute them, the lease shall terminate.
(Amended by Stats. 1957, Ch. 2166.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 2 - Provisions Relating to Oil and Gas Leases Generally › Section 6829.2.

6829.2. The commission, in the interest of increasing the ultimate recovery of oil or gas, the protection of oil or gas from unreasonable waste, the possible arresting or amelioration of land subsidence, or protecting adjacent landowners, may include in any oil and gas lease executed under this chapter a provision which may require the lessee to enter into any unit or cooperative agreement with respect to the leased lands when the commission gives notice of intention to lease those lands. For any of those purposes, the commission, on behalf of the state as lessor or prospective lessor, may negotiate and enter into unit or cooperative agreements with respect to lands owned by the state, or lands in which the oil and gas deposits are reserved to the state, for the purpose of bringing about the unitized or cooperative development and operation of all, or a part or parts, of the oil and gas field in which the lands are located. Subject to the provisions of this section and notwithstanding any competitive bidding requirements or restrictions on term contained in this code or any other statute, the commission may negotiate and execute all agreements necessary to effectuate, implement, or modify any such unit or cooperative agreement, including the power to bind and commit lands, including tide and submerged lands, or any interest in lands, to the cooperative or unit agreement for the full term thereof, irrespective of whether the term thereof is for a period extending over the life of the field or for any other indefinite period. The power of the commission to enter into unit or cooperative agreements includes the power to do other acts or things, and to incur on behalf of the state other commitments and obligations, that are customary in unit or cooperative agreements. The commission may designate a representative or representatives to attend unit meetings, vote, and otherwise represent and bind the interest of the state in accordance with the terms and conditions of any such unit or cooperative agreement.
(Amended by Stats. 1982, Ch. 1463, Sec. 5.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 2 - Provisions Relating to Oil and Gas Leases Generally › Section 6829.3.

6829.3. (a) The commission shall seek additional infrastructure bonding or other financial assurance, as feasible, under its jurisdiction when a lease term is negotiated or renegotiated for an offshore oil or gas lease.
(b) The commission shall coordinate with the State Oil and Gas Supervisor to ensure the actions taken pursuant to this section and Section 3205.6 are not duplicative.
(Added by Stats. 2018, Ch. 607, Sec. 5. (SB 1147) Effective January 1, 2019.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 2 - Provisions Relating to Oil and Gas Leases Generally › Section 6830.

6830. All oil and gas leases issued by the commission for lands under its jurisdiction as set forth in Chapters 3 and 4 of Part 1 and in Chapter 3 of Part 2 of Division 6 of this code shall contain a reservation to the commission of the right to determine the spacing of wells and the rate of drilling and rate of production of such wells so as to prevent the waste of oil and gas and promote the maximum economic recovery of oil and gas from, and the conservation of reservoir energy in, each zone or separate underground source of supply of oil or gas covered in whole or in part by leases issued under this chapter.
(Amended by Stats. 1957, Ch. 2166.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 2 - Provisions Relating to Oil and Gas Leases Generally › Section 6830.1.

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) That the state owns tide and submerged lands, which lands have been developed under oil and gas leases issued by the state to such extent that it is desirable that secondary operations be undertaken within such lands in an effort to obtain the maximum economic ultimate recovery of oil and gas from said lands; and that it is desirable that the carrying on of secondary recovery operations in such lands be encouraged, which operations the holders of such leases may otherwise not undertake because certain of the leases covering such lands provide for the payment of graduated royalties dependent upon daily per well rates of oil production (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 is not in communication with any other zone), which graduated royalties were established without contemplation of secondary recovery operations and the economics respecting such operations.
The definition relating to multiple completions set forth herein 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 amendments, enter into an amendatory agreement pursuant to Section 6830.2. It is not the intention of the Legislature in enacting this paragraph 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 amendments or in the absence of such an amendatory agreement.
(Amended by Stats. 1966, 2nd Ex. Sess., Ch. 7.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 2 - Provisions Relating to Oil and Gas Leases Generally › Section 6830.2.

6830.2. Whenever the holder of an oil and gas lease of state-owned lands proposes to engage in secondary recovery operations within such lease, the commission and the holder of the lease may mutually agree to modifications of the lease in furtherance of such proposal and with the object of obtaining the maximum economic ultimate recovery of oil and gas from the lands included within such lease, so far as such is reasonably practicable.
Any such amendatory agreement shall contain provisions to assure, so far as reasonably practicable:
(a) That the total royalty production to which the state shall thereafter be entitled shall be no less than the total royalty production to which the state would thereafter have been entitled if such lease had continued to be operated under primary recovery methods, absent any secondary recovery operations, and (b) that the royalty production accruing to the state from the additional oil produced, if any, as a result of the conduct of secondary recovery operations shall be calculated and determined in such manner as to be at least as great in proportion to such additional oil as the royalty production agreed upon in conformance with subdivision (a) of this section is in proportion to the total remaining primary production agreed upon in conformance with subdivision (a).
As a basis for making a determination that it is in the best interests of the state that it enter into such an agreement, and before authorizing the execution thereof, and to determine the appropriate royalty rates on primary and on additional production, the commission shall, using all information available to it, make a calculated projection of the volume of primary royalty to which the state would be entitled under the existing royalty provisions of the lease for the zone or zones involved in the proposal, absent secondary recovery operations, and shall compare its determinations with those of the holder of the lease in an effort to arrive at a mutual agreement.
(Amended by Stats. 1966, 2nd Ex. Sess., Ch. 7.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 2 - Provisions Relating to Oil and Gas Leases Generally › Section 6830.3.

6830.3. In satisfaction of the requirements of subdivisions (a) and (b) of Section 6830.2, the commission may consider, use, apply or adopt any means, methods, formulas or data available to it in order to arrive, in accordance with generally recognized good engineering practice, at any provisions to be included in any agreement amendatory to the lease, mutually acceptable to the holder of the lease, including the rate or rates of royalty to be applied, and otherwise in conformity with the provisions of this section and Section 6830.2.
The royalty rate or rates to be applied during secondary recovery operations shall in no event be less than the minimum royalty provided by the lease prior to any amendment thereof entered into pursuant to this section and Section 6830.2, but nothing in this section and Section 6830.2 is intended to require that the holder of the lease shall account to the State for a guaranteed quantity of royalty production, but neither shall it prohibit the holder of the lease from guaranteeing to the State any given quantity of royalty production.
Amendatory agreements entered into pursuant to and in conformity with this section and Section 6830.2 may be made in conjunction with agreements entered into for the purpose of effecting a co-operative or unit plan of development pursuant to the provisions of this code, including Section 6832 thereof.
(Added by Stats. 1961, Ch. 979.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 2 - Provisions Relating to Oil and Gas Leases Generally › Section 6831.

6831. Rights of way through all State lands may be granted to any lessee by the commission under such regulations as to survey, location, application, and use as may be prescribed by the commission.
(Added by Stats. 1941, Ch. 548.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 2 - Provisions Relating to Oil and Gas Leases Generally › Section 6832.

6832. For the purpose of more properly conserving the natural resources of any oil or gas pool or field, or any part thereof, lessees hereunder and their representatives may unite with each other jointly or separately, or jointly or separately with others owning or operating lands not belonging to the State, including lands belonging to the United States, in collectively adopting and operating under a cooperative or unit plan of development or operation of the pool or field, or any part thereof, whenever it is determined by the commission to be necessary or advisable in the public interest. The commission may, with the consent of the holders of leases involved, establish, alter, change, and revoke any drilling and production requirements of such leases, permit apportionment of production and may make such regulations with reference to such leases, with like consent on the part of such lessees, in connection with the institution and operation of any such co-operative or unit plan, as the commission deems necessary or proper to secure the proper protection of the interests of the State.
(Amended by Stats. 1955, Ch. 1724.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 2 - Provisions Relating to Oil and Gas Leases Generally › Section 6833.

6833. The commission, upon such conditions as the commission shall prescribe, may approve operating, drilling or development contracts made by one or more lessees holding oil or gas leases on State lands with one or more persons, associations, or corporations, whenever in the discretion of the commission the conservation of natural products or the public convenience and necessity require it, or the interests of the State may be best subserved thereby.
(Added by Stats. 1941, Ch. 548.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 2 - Provisions Relating to Oil and Gas Leases Generally › Section 6834.

6834. Whenever the commission determines that lands shall be leased for oil and gas as provided in this chapter and when the form of lease therefor has been prepared by the commission, the commission shall give notice of intention to lease such lands. The notice shall be published in a newspaper of general circulation in the county in which the lands or the greater portion thereof are situated and shall state the time (which shall not be less than 14 days after the last date of publication of the notice) and place for receiving and opening bids, a description of the lands, either as a tract or by parcels, and that the form of lease for the purpose of bidding may be procured at the designated office of the commission.
If the notice is published in a weekly newspaper, it must appear therein on at least two different days of publication and if in a newspaper published oftener, there must be at least five days from the first to the last day of publication, both days included.
(Amended by Stats. 1957, Ch. 2166.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 2 - Provisions Relating to Oil and Gas Leases Generally › Section 6835.

6835. Each bid (which shall be in the form of a lease prepared in accordance with this chapter) for an oil and gas lease shall be accompanied by a certified or cashier’s check of a responsible bank in California payable to the State of California in an amount to be fixed by the commission, which sum shall be deposited as evidence of good faith and except in the case of the successful bidder shall be returned to the bidder. Upon the execution of the lease the amount shall be applied upon the annual rental for the first year and the balance, if any, shall be returned to the lessee. If the successful bidder fails or refuses to execute the lease within 15 days after the award thereof, the amount of the check shall be forfeited to the State.
(Amended by Stats. 1941, Ch. 1241.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 2 - Provisions Relating to Oil and Gas Leases Generally › Section 6836.

6836. At the time and place specified in the notice, the commission shall publicly open the sealed bids and shall award the lease for each parcel to the highest qualified bidder, unless in the opinion of the commission, the acceptance of the highest bid for any parcel or parcels is not for the best interests of the State, in which event the commission may reject all the bids for such parcel or parcels. Thereupon new bids may be called for and the parcel or parcels for which the bids were rejected may be leased as herein provided.
(Amended by Stats. 1955, Ch. 1724.)
2023 California Code › Public Resources Code - PRC › DIVISION 6 - PUBLIC LANDS › PART 2 - LEASING OF PUBLIC LANDS › CHAPTER 3 - Oil and Gas and Mineral Leases › ARTICLE 3 - Oil and Gas Leases on Lands Other Than Tide and Submerged Lands › Section 6851.

6851. Lands owned by the State, or lands in which the oil and gas deposits are reserved to the State, other than tide and submerged lands, may be leased for the production of oil and gas in accordance with the provisions of this article and of this chapter in so far as not in conflict with the provisions of this article.
(Added by Stats. 1941, Ch. 548.)