SECTIONS 772.010-772.060 - California Statutes

CODE OF CIVIL PROCEDURE

SECTION 772.010-772.060

772.010. 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.

772.020. As used in this article:
(a) "Surface zone" means the zone which lies above a plane which
is 500 feet below the surface of the land.
(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) "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.

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) 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.

772.040. 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) 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) The subject land is not presently occupied by any of the
following:
(1) A producing oil or gas well or well bore.
(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) A well or well bore being utilized for the disposal injection
of waste oil well brine and byproducts.
(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) 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.

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) 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.

772.060. 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.