Scope Of Regulation - Mineral, Oil And Gas Brokerage - Business & Professions - CA

Section § 10500

This law says you must have a special license to work with mineral, oil, or gas properties if you want to earn money doing so. It lists activities like selling, leasing, buying, or negotiating deals for these properties, as well as handling loans or collecting rent for them. You also need a license to help others with applications related to state or government-owned properties. If you're not licensed as a mineral, oil, and gas broker, or a real estate broker, doing these activities for money is illegal, unless some exceptions apply.

Except as otherwise provided in Section 10131.4 and this chapter, it is unlawful for any person to engage in any of the following acts for another or others for compensation or in expectation of compensation, unless the person is licensed as a mineral, oil, and gas broker or a real estate broker:

(a) To sell or offer for sale, buy or offer to buy, solicit prospective sellers or purchasers, solicit or obtain listings, or negotiate the purchase, sale, or exchange of mineral, oil, or gas property.

(b) To solicit borrowers or lenders for or negotiate loans on mineral, oil, or gas property, or collect payments for lenders in connection with these loans.

(d) To rent or place for rent, mineral, oil, or gas property or to collect rent or royalties from mineral, oil, or gas property or improvements thereon.

(e) Other than as an officer or employee of the state or federal government, to assist or offer to assist another or others in filing an application for the purchase or lease of, or to locate or enter upon mineral, oil, or gas property owned by the state or federal government.

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Section § 10500.5

According to this law, you can't operate as a principal in certain businesses related to mineral, oil, and gas properties unless you have a specific broker's license. This includes buying, leasing, or taking options on these properties for the purpose of selling, exchanging, or leasing them, as well as offering mining claims for sale or assignment. There are some exceptions noted elsewhere that might apply to specific situations.

Except as otherwise provided in Section 10131.45 and in this chapter, it is unlawful for any person to engage in the following businesses as a principal unless the person is licensed as a mineral, oil, and gas broker or a real estate broker:

(a) Except as provided in subdivision (d) of Section 10502, buying or leasing, or taking an option on mineral, oil, or gas property for the purpose of sale, exchange, lease, sublease, or assignment of a lease of the property or any part of the property.

(b) Offering mining claims or any interest therein for sale or assignment.

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Section § 10501

This law allows the Real Estate Commissioner to take legal action for violations related to specific real estate rules, with the help of their legal team in court. The local district attorney must handle the prosecution in cases like these. If an individual breaks these rules, they can be fined up to $500 or jailed for up to six months, or both, depending on what the court decides. If a company breaks the rules, they could be fined up to $5,000.

(a) The Real Estate Commissioner may file a complaint for any violation of Section 10500 or 10500.5 before any court of competent jurisdiction, and the commissioner and the commissioner’s counsel, deputies or assistants may assist in presenting the law or facts at the trial.

(b) It is the duty of the district attorney of the county in which a violation of Section 10500 or 10500.5 occurs to prosecute the violation.

(c) A natural person convicted of a violation of Section 10500 or 10500.5 shall be punished by a fine of not to exceed five hundred dollars ($500) or by imprisonment in the county jail for a term not to exceed six months, or by both such fine and imprisonment, in the discretion of the court. A corporation convicted of a violation of Section 10500 or 10500.5 shall be punished by a fine of not to exceed five thousand dollars ($5,000).

Real Estate Commissioner violation district attorney

Section § 10502

If you're involved with mineral, oil, or gas properties, you don't need a special broker license for certain activities. You can hold deposits for leases, handle transactions approved by a court, drill or mine for oil, gas, or minerals, negotiate leases between landowners and production companies, and manage mineral rights or lands that aren't oil or gas without needing this license.

A mineral, oil and gas broker license shall not be required to engage in any of the following activities with respect to a mineral, oil or gas property:

(a) To act as a depository under an oil lease, gas lease or oil and gas lease other than for purpose of sale.

(b) To engage in any transaction subject to an order of a court of competent jurisdiction.

(d) To negotiate leases or agreements between an owner of mineral, oil or gas lands, leases or mineral rights on the one hand, and a person organized for or engaging in oil or gas or mineral or metal production on the other, or to enter into leases or agreements with an owner of mineral, oil, or gas lands, leases, or mineral rights on behalf of a disclosed or undisclosed person organized for or engaging in oil or gas or mineral or metal production.

(e) To deal with mineral rights or land, other than oil or gas rights or land, as the owner of the rights or land.

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Section § 10503

This section defines what is meant by 'mineral, oil or gas property.' It includes any land that is used, intended to be used, or even suggested for mining minerals or extracting oil or gas.

Mineral, oil or gas property refers to land used for, intended to be used for, or concerning which representations are made with respect to, the mining of minerals or the extraction of oil or gas therefrom.

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Section § 10508

If you work as a mineral, oil, and gas broker in California, you can't sue to get paid for your work unless you were officially licensed when you did the work. You have to show that you had the license when the situation that led to the lawsuit happened.

No person engaged in the business or acting in the capacity of a mineral, oil and gas broker within this state shall bring or maintain any action in the courts of this state for the collection of compensation for the performance of any of the acts mentioned in this article without alleging and proving that he was a duly licensed mineral, oil and gas broker at the time the alleged cause of action arose.

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Section § 10509

This law makes it illegal for mineral, oil, and gas brokers or real estate brokers to pay anyone who isn't properly licensed for work that requires a broker's license. If someone pays a person without a broker's license for these services, it's considered a misdemeanor and could result in a fine of up to $100 per violation. The payer needs to be sure that the person they are paying is actually licensed or has shown proof of their license before paying them.

(a) It is unlawful for a mineral, oil, and gas broker or a real estate broker to compensate, directly or indirectly, any person who is not a mineral, oil, and gas broker or a licensed real estate salesperson retained by the real estate broker for performing any acts for which a mineral, oil, and gas broker license is required.

(b) It is a misdemeanor, punishable by a fine of not exceeding one hundred dollars ($100) for each offense, for any person, whether obligor, escrow holder, or otherwise, to pay or deliver compensation to a person for performing any acts for which a mineral, oil, and gas broker license is required unless that person is known by the payer to be or has presented evidence to the payer that he or she was a licensed mineral, oil, and gas broker at the time the compensation was earned.

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Section § 10512

This law makes it a misdemeanor for anyone involved with a company, or any other person, to knowingly spread false information about mineral, oil, or gas properties. This includes false advertising, helping someone falsely apply to buy or lease government-owned mineral rights, or disobeying regulations from the commissioner. If found guilty, the punishment can be up to six months in jail, a fine of up to $1,000, and possible suspension or revocation of a professional license. The local district attorney must prosecute these violations.

Every officer, agent or employee of any company, and every other person who knowingly authorizes, directs or aids in the publication, advertisement, distribution or circularization of any false statement or representation concerning any mineral, oil or gas property, or, if the mineral, oil or gas property is owned by the state or federal government, which such person offers to assist another or others to file an application for the purchase or lease of, or to locate or enter upon, and every person who, with knowledge that any advertisement, pamphlet, prospectus or letter concerning any mineral, oil or gas property or any written statement that is false or fraudulent, issues, circulates, publishes or distributes the same, or causes the same to be issued, circulated, published or distributed, or who in any other respect willfully violates or fails, omits, or neglects to obey, observe or comply with any order, permit, decision, demand or requirement of the commissioner under the provisions of this part relating to mineral, oil and gas brokerage, is guilty of a misdemeanor, and shall be punished by imprisonment in the county jail for a term not to exceed six months, or by a fine of not to exceed one thousand dollars ($1,000), and, if a mineral, oil and gas licensee, he shall be held to trial by the commissioner for a suspension or revocation of his mineral, oil and gas license, as provided in the provisions of this part relating to hearings. It shall be the duty of the district attorney of each county in this state to prosecute all violations of the provisions of this section in respective counties in which the violations occur.

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Section § 10513

This law says that brokers who deal with minerals, oil, and gas must follow certain rules that apply to real estate brokers in California. These rules are found in specific sections, and they guide how brokers should conduct their business. Essentially, mineral, oil, and gas brokers have to play by the same rules as real estate brokers for certain activities.

In performing acts within the scope and under the authority of this chapter, mineral, oil and gas brokers are subject to the provisions applicable to real estate brokers contained in Sections 10131.5, 10140.5, 10142, 10143.5, 10144, 10145, and 10148.

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