AB 706

Bill Subjects

Abstract

Existing law authorizes the State Lands Commission to issue prospecting permits and leases for the extraction and removal of minerals, other than oil and gas or other hydrocarbon substances, from specified lands. Existing law prohibits the commission from issuing a permit or lease until it has been submitted to, and approved by, the Attorney General, as specified. This bill would delete the provision relating to Attorney General approval and would authorize the commission to grant nonexclusive geological or geophysical exploration permits for minerals upon those terms and conditions as the commission may prescribe, without giving the permittee any preferential treatment. Existing law requires an applicant to mark each of the corners of the tract described in the permit, as provided, within 90 days after receiving the permit, unless the tract consists of tide or submerged lands. Existing law grants an applicant preferential right to a permit if the applicant erects a monument on that land, as provided. This bill would repeal these provisions. Existing law grants a permittee entitlement to a lease for not more than 960 acres of land included in a prospecting permit if the presence of commercially valuable deposits of minerals has been discovered to the satisfaction of the commission. Existing law requires the permittee to pay an annual rental of not less than $1 per acre. This bill would delete that entitlement and instead grant the permittee priority over other applicants for 365 days, unless the permittee submits a complete lease application, in which case the priority will expire upon the commission's consideration or applicant's withdrawal of the application. The bill would also instead require the permittee to pay an annual rental of not less than fair market value. Existing law requires a permittee to pay the state 20% of the gross value of the minerals the permittee secures from the land included in the permit until the permittee applies for a lease for the same land. This bill would instead require the permittee to pay the state 20% of the gross value of all minerals secured from the land included in the permit until the permittee applies for a lease for the same land. Existing law limits the term for a lease to 20 years or less and grants the lessee preferential right to renew the lease for successive periods not to exceed 10 years each. This bill would delete that preferential right to renew the lease. Existing law requires the commission to prescribe additional terms, covenants, and conditions to permits and leases as in its opinion will effectually protect the interests of the state in the mineral deposits. This bill would delete "covenants" from that requirement.