Cal. Pub. Res. Code § 6829
Provisions Relating to Oil and Gas Leases Generally
Redline — January 1, 2011 → current.View current text →
Current — January 1, 2019
As of January 1, 2011
Every oil and gas lease executed under this chapter shall include the following:
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) Such terms, conditions, and provisions as will protect the interests of the State with reference to securing the payment to the State of the proper amount or value of production.
(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) Such terms, conditions and provisions as 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 such wells for the purpose of reaching the oil sands and producing oil and gas therefrom in commercial quantities.
(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 proper and workmanlike manner; the prevention of waste; the protection of the safety and health of workmen; and the liability of the lessee for personal injuries and property damage.
(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 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, 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.
(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) Such 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 which 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 such lease.
(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.
Official source: California Legislative Information. Reproduced from public-domain California statutes; confirm against the official source for the current text. Not legal advice.