Bill > AB1054

This bill amends Section 6804.1 of the Public Resources Code, which deals with public lands and oil and gas leases. The key change is that a lessee, which is a party who has been granted the right to explore for and produce oil and gas from public land, can now request the commission (likely the California State Lands Commission) to accept a quitclaim or relinquishment of all or part of their lease premises. This quitclaim or relinquishment will only be effective after the lessee has completed any necessary abandonment of facilities and reclamation of the land as outlined in the lease and approved by the commission. Until that completion, the lessee must continue to follow all lease terms, including paying any accrued rentals and royalties. The bill also clarifies that a lessee's request for acceptance of a quitclaim or relinquishment will be heard at the next commission meeting after they have completed the required abandonment and reclamation. Once accepted by the commission, the lessee will be released from future obligations related to the relinquished land, though they will not be released from liability for any existing defaults at the time of approval. Importantly, this change does not affect any leases that were already in effect before January 1, 2013.