This article applies only to lands within a city in any county with a population exceeding 4,000,000, or with a population of more than 700,000 and less than 710,000 as determined by the 1960 Federal Decennial Census.
Special Actions and Proceedings to Clear TitleRight of Entry Or Occupation of Surface Lands Under Oil Or Gas Lease
Section § 772.010
This law specifically relates to areas within a city that are in a county with a population of over 4 million, or between 700,000 and 710,000, based on the 1960 Census.
city lands county population 4 million population
Section § 772.020
This section of the law defines key terms related to land use and oil or gas production. 'Surface zone' is any area up to 500 feet below the land's surface. 'Subject land' refers to the specific area of land described for which someone wants to end a leasehold right. 'Lease facilities' include necessary equipment and structures for oil and gas production, like tanks and heaters.
As used in this article:
(a)CA Civil Procedure Code § 772.020(a) “Surface zone” means the zone which lies above a plane which is 500 feet below the surface of the land.
(b)CA Civil Procedure Code § 772.020(b) “Subject land” means that area occupied by the particular described surface and surface zone for which plaintiff seeks to terminate the leasehold right of entry and occupation.
(c)CA Civil Procedure Code § 772.020(c) “Lease facilities” means storage tanks, wash tanks, separators, heaters, and other facilities reasonably necessary for the production of oil or
gas, including secondary recovery operations.
surface zone subject land leasehold termination
Section § 772.030
This law allows someone who owns land with a mining lease for oil, gas, or hydrocarbons to ask a court to stop the miner from entering or using their land if their ownership is affected. However, this legal action cannot change any existing agreements related to operating or unit plans that are valid under specific sections of the Public Resources Code.
(a)CA Civil Procedure Code § 772.030(a) If a mining rights lease, including a community lease, exists for the production of oil, gas, or other hydrocarbons, and a right of entry or occupation provided by the lease encumbers all or part of the surface or surface zone of the leasehold lands, any person who owns a fee interest in the surface of the leasehold lands may bring an action in the superior court to terminate the right of entry or occupation as to all or some described portion of the surface and surface zone of the leasehold lands in which the person owns an interest.
(b)CA Civil Procedure Code § 772.030(b) No judgment rendered
pursuant to this article shall change or affect the terms or operation of any valid unit agreement or valid operating agreement which comes within the provisions of Section 3301 or 3321 of the Public Resources Code.
mining rights lease oil production gas production
Section § 772.040
This section explains that a court can end a lessee's right to enter or use the surface of the land if certain conditions are met. First, the lease must be more than 20 years old, counting from any changes made to the lease specifically about surface rights. Second, the land cannot be occupied by certain types of active wells, like those for oil or gas production or waste disposal. Finally, ending the lessee's surface rights shouldn't disrupt their ability to produce oil from below the land in an efficient and economic way.
The court may render a judgment terminating the lessee’s right of entry or occupation of the surface and surface zone, subject to such conditions as the court deems fair and equitable, if the evidence shows each of the following:
(a)CA Civil Procedure Code § 772.040(a) The document that created the leasehold interest was originally executed more than 20 years prior to filing the action under this article regardless of any amendments to the document. However, if any amendment was entered into expressly for the purpose of waiving, limiting, or rearranging surface rights of entry and occupation by the lessee, the 20-year
period shall be computed as if the document were originally executed on the date of execution of the amendment.
(b)CA Civil Procedure Code § 772.040(b) The subject land is not presently occupied by any of the following:
(1)CA Civil Procedure Code § 772.040(b)(1) A producing oil or gas well or well bore.
(2)CA Civil Procedure Code § 772.040(b)(2) A well or well bore being utilized for injection of water, gas, or other substance into geologic substrata as an aid to oil or gas production or to ameliorating subsidence.
(3)CA Civil Procedure Code § 772.040(b)(3) A well or well bore being utilized for the disposal injection of waste oil well brine and byproducts.
(4)CA Civil Procedure Code § 772.040(b)(4) A well or well bore being utilized for the production of water for use in oil field injection, waterflood, and pressure maintenance programs.
(c)CA Civil Procedure Code § 772.040(c) Termination of the right of entry or occupation within the subject land in the manner requested by the plaintiff, or subject to such conditions as the court may impose pursuant to this section, will not significantly interfere with the right of the lessee, under the lease, to continue to conduct operations for the continued production of oil from leasehold strata beneath the surface zone in a practical and economic manner, utilizing such production techniques as will be appropriate to the leasehold area, consistent with good oilfield practice, and to gather, transport, and market the oil.
surface rights termination leasehold interest 20-year period
Section § 772.050
This section allows the court to let a lessee continue using certain parts of the land even after the right to enter or occupy the surface has ended, if it’s necessary for specific easement activities. If the judgment requires relocating any oil and gas-related infrastructure, the person who brought the case must pay for the relocation, unless the changes provide a benefit to the lessee. If there's a benefit, the plaintiff might pay less. It's up to the plaintiff to prove any benefits to the lessee.
(a)CA Civil Procedure Code § 772.050(a) The court may qualify the judgment terminating the surface and surface zone right of entry or occupation so as to provide for limited surface and surface zone easements that the lessee may continue to enjoy within the subject land.
(b)CA Civil Procedure Code § 772.050(b) A judgment may be conditioned upon the relocation of pipelines, roadways, equipment, or lease facilities in such manner as will most effectively free the subject land for surface use while safeguarding continued oil and gas operations in a practical and economic manner. Any such condition of the judgment shall require the
plaintiff to pay the costs of the relocation. However, the plaintiff shall be entitled to a setoff against the costs to the extent of any benefit to the lessee resulting from the installation of new equipment or material. The plaintiff has the burden of proving any benefit accruing to the lessee.
surface right termination limited easements relocation of pipelines
Section § 772.060
This law says that when an oil or gas lease is first written, it cannot include any terms that give up rights established by this specific legal article. Also, these rights cannot be given up through changes to the lease within the first 20 years of it being signed by the plaintiff or their previous owner.
It is against public policy for any oil or gas lease, at its inception, to provide for the waiver of any rights created by this article, or for such rights to be waived by amendment to any oil or gas lease within 20 years of the date of its execution by a plaintiff or the plaintiff’s predecessor in interest.
oil lease rights gas lease rights public policy
