Oil and gas leases: state waters: State Lands Commission.

Existing law vests exclusive jurisdiction over ungranted tidelands and submerged lands owned by the state to the State Lands Commission. Existing law confers the powers of the commission as to leasing or granting of rights or privileges to lands owned by the state upon a local trustee of granted public trust lands to which those lands have been granted. Existing law authorizes the commission to let leases for the extraction of oil and gas from coastal tidelands or submerged lands in state waters and beds of navigable rivers and lakes within the state in accordance with specified laws. Existing law prohibits the commission or a local trustee, as defined, of granted public trust lands from entering into any new lease or other conveyance authorizing new construction of oil- and gas-related infrastructure upon tidelands and submerged lands within state waters associated with Pacific Outer Continental Shelf leases issued after January 1, 2018. This bill would require the commission to conduct an amortization study of the oil and gas leases in state waters for which it is the lessor in order to determine the market value of these leases and provide recommendations to phase out the production of oil and gas production, as provided. The bill would require the study to be completed on or before December 31, 2023, and posted on the commission's internet website. The bill would also require, before or upon the publication of the amortization study, the commission to seek to initiate negotiations with the lessees for the active oil and gas leases in state waters, with the goal of reaching an agreement for the voluntary relinquishment of the leases and termination of all oil and gas production associated with these leases. If the commission is unable to reach an agreement with the lessees that results in voluntary relinquishments of the leases on or before December 31, 2024, the bill would require the commission to terminate the leases and provide fair compensation, as determined using the amortization study, to the lessees.