Right Column

Article 2

Article 2. Leasing or Other Use of Public Lands

2000. General
2001. Applications Forms
2002. Categories of Leases or Permits
2003. Rental
2004. Term

'2000. General.

(a) This article applies to the leasing of all lands under the Commission’s jurisdiction for all surface uses except the exploration for or extraction of natural resources including minerals, oil, gas or other hydrocarbons, or geothermal resources or any other natural resources, excluding timber.

(b) Leases or permits may be issued to qualified applicants and the Commission shall have broad discretion in all aspects of leasing including category of lease or permit and which use, method or amount of rental is most appropriate, whether competitive bidding should be used in awarding a lease, what term should apply, how rental should be adjusted during the term, whether bonding and insurance should be required and in what amounts, whether an applicant is qualified based on what it deems to be in the best interest of the State.

(c) Leases or permits for tide or submerged lands shall generally only be issued to riparian or littoral upland owners or use right holders, provided however that such leases or permits maybe granted to the best qualified applicant irrespective of riparian or littoral status.

(d) Leases or permits for school, lieu or indemnity lands shall be for value or value enhancement purposes.

NOTE: Authority cited: Sections 6005, 6105, 6108, 6216, 6301, 6309, 6321, 6501, 6501.1, and 6501.2, Public Resources Code. Reference: Sections 6216, 6501.1, and 6501.2, Public Resources Code.

HISTORY

1. Repealer of Article 2 (Sections 2000-2017) and new Article 2 (Sections 2000-2012) filed 2-2-77; designated effective 3-1-77 (Register 77, No. 6).

For prior history, see Registers 55, No. 12; 64, No. 23; 65, No. 25; 69, No. 15; 70. No. 11; 73, No.9; and 75; No. 22.

2. Repealer of Article 2 (Sections 2000-2012) and new Article 2 (Sections 2000-2010) filed 6-2-78; effective thirtieth day thereafter (Register 78, No. 22).

3. Repealer of Article 2 (Sections 2000-2010) and new Article 2 (Sections 2000-2004) filed 12-2-81; effective thirtieth day thereafter (Register 81, No. 49).

'2001. Applications Forms.

Applications for leases or permits under this article are available from and shall be submitted to the principal office of the Commission.

NOTE: Authority cited: Sections 6105, 6108, 6223, 6321, 650, 6501.2, and 6502, Public Resources Code. Reference: Sections 6321 and 6502. Public Resources Code.

'2002. Categories of Leases or Permits.

(a) General Lease: Uses may include the following:

(1) Commercial: Income producing uses such as marinas, restaurants, clubhouses, recreation piers or facilities, docks, moorings, buoys, helicopter pads, decks or gas service facilities.

(2) Industrial: Uses such as oil terminals, piers, wharves, warehouses, stowage sites, moorings, dolphins and islands, together with necessary appurtenances.

(3) Right of Way: Uses such as roadways, power lines, pipelines or outfall lines, except when used only as necessary appurtenances.

(b) General Permit: Uses may include the following:

(1) Public agency uses such as public roads, bridges, recreation areas or wildlife refuges having a statewide public benefit;

(2) Public Resources Code Section 6321 protective structures such as groins, jetties, sea walls, breakwaters and bulkheads;

(3) Non income producing uses such as piers, buoys, floats, boathouses, docks, waterski facilities, and campsites not qualifying for a private recreational pier permit under 2002(f). Other uses may include campsites, cabins, dwellings, arks, houseboats, or boathouses provided that when such uses are located on sovereign lands that such uses are not found to be inconsistent with public trust needs.

(c) Grazing Lease: Use includes the feeding of livestock on forage.

(d) Agricultural Lease: Uses may include farming, silviculture and horticulture.

(e) Forest Management Agreement: Uses may include reforestation, improvement of timber growth and soil productivity, vegetation control, reduction of fire and erosion hazards, insect or disease control or any other use that enhances the value of lands subject to the agreement.

(f) Private Recreational Pier Permit: Use is limited to any fixed facility for the docking or mooring of boats constructed for the use of the littoral landowner, as specified in Public Resources Code Section 6503.5, and does not include swimming floats or platforms, sun decks, swim areas, fishing platforms, residential, recreational dressing, storage or eating facilities or areas attached or adjacent to recreational piers, or any other facilities not constructed for the docking or mooring of boats.

(g) Salvage Permit: Use includes the salvage of all abandoned property over and upon ungranted tide and submerged lands of the State which property belongs to the State and is under the Commission’s jurisdiction pursuant to Public Resources Code Section 6309. The Commission may retain or sell any or all salvaged property or may allow the permit applicant to retain it.

NOTE: Authority cited: Sections 6105, 6108, 6201, 6210.3, 6221, 6309, 6321, 6322, 6501, 6501.1, and 6501.2, Public Resources Code. Reference: Sections 6201,6309, 6321, 6501.1. and 6503.5, Public Resources Code.

'2003. Rental.

(a) Rental for the various categories of usual be generally as follows:

(1) Commercial Use: An annual rental based on any one or combination of the following rental methods, with a minimum rental of $250:

(A) A percentage of annual gross income (the percentage being based on an analysis of the market for like uses and other relevant factors);

(B) 9% of the appraised value of the leased land;

(C) The volume of commodities passing over the lease premises.

(2) Industrial Use: An annual rental based on any one or combination of the following rental methods with a minimum rental of $250:

(A) 9% of the appraised value of the leased land together with 2 cents per diameter inch per lineal foot of pipelines and conduits on the leased premises;

(B) The volume of commodities passing over the lease premises.

(3) Right-of-Way Use: An annual rental based on any one or combination of the following rental methods with a minimum rental of $100:

(A) 9% of the appraised value of the leased lands, together with compensation for any damage caused to such lands;

(B) 2 cents per diameter inch per lineal foot;

(C) The volume of commodities passing over the lease premises.

(4) General Permits: Annual rental shall be based on 9% of the appraised value of the leased lands with a minimum rental of $50.

(A) No rental shall be charged for public agency use of tide and submerged lands if the Commission at its sole discretion, determines that a statewide public benefit accrues from such use.

(B) Monetary rental for Public Resources Code Section 6321 protective structures may be waived if the Commission determines that a public benefit accrues from the installation of such structures.

(5) Private Recreational Pier Permits: Pursuant to Public Resources Code Section 6503.5 a rent free permit shall be issued to those applicants demonstrating their qualifications under that section as implemented by 2002(f).

(6) Grazing: An annual rental based on appraised value for the intended use.

(7) Agricultural: An annual rental based on any one or a combination of the following rental methods with a minimum rental of $250:

(A) A percentage of annual gross income (the percentage being based on analysis of the market for like uses and other relevant factors);

(B) 9% of appraised value of the leased lands.

(8) Forest Management Agreements: Rental shall constitute enhancement of the land’s value resulting from the use.

(9) Salvage Permit: Rental shall be as follows:

(A) A rental of $25.00 per annum per acre, computed on a whole or fractional basis, for the total acreage of the permit area:, and

(B) 25% of the net salvage value up to $25,000 and 50% of all such value over that amount for all salvaged property the salvor is permitted to retain; or

(C) The net salvage value of any property the State retains less any rental to which it is entitled; and

(D) Such other consideration as may be deemed by the Commission to be in the best interest of the State.

(b) The following factors shall be considered by the Commission in determining which rental method should apply:

(1) The amount of rental the State would receive under various rental methods;

(2) Whether relevant, reliable and comparable data is available concerning the value of the land proposed to be leased;

(3) Whether a particular method or amount of rental would effectively cause an applicant to use more competitive substitute land or to abandon its project altogether;

(4) Whether the land proposed to be leased has been classified as environmentally significant pursuant to Public Resources Code Section 6371.

(5) The monetary value of actual or potential environmental damage anticipated from an applicant’s proposed use to the extent such damage is quantifiable;

(6) Other factors relating to the appropriateness of the proposed rental method.

(c) The following limitations shall apply to rental based on the volume of commodities passing over State lands:

(1) Rental shall not be imposed more than once for the identical commodity passing over the same State land if the ownership of that commodity has not changed.

(2) The rental rate for a right-of-way for passage of a commodity across State lands shall be made proportional to the percentage of the total length of the pipeline or conduit that such right-of-way comprises. For the purposes of this section, the total length of a pipeline or conduit shall be the length of the pipeline or conduit between two facilities, uninterrupted by another facility. "Facility" includes terminal, production, storage, refining, manufacturing, processing, mixing or intermixing facilities.

(d) Rental adjustment during the lease term shall be provided for as appropriate.

NOTE: Authority cited: Sections 6105, 6108, 6309, 6321.2, 6503, 6503.5, and 6504, Public Resources Code. Reference: Sections 6321.2, 6503, 6503.5, and 6504, Public Resources Code.

'2004. Term.

(a) The term for leases and permits including any optional renewal periods shall be no longer than necessary to accomplish the intended use or purpose.

(b) The term shall be limited according to standard commercial practices with maximum terms as follows:

(1) General Lease	49 years
General Permit
Forest Management Agreement
(2) Agricultural Lease	25 years
(3) Grazing Lease	10 years
Private Recreational Pier Permit
General Permit Recreational Use
(4) Salvage Permit	1 year but extendable for. one additional year.

NOTE: Authority cited: Sections 6008, 6105, 6108, 6309, 6321, 6501, 6501.2, and 6505.5, Public Resources Code. Reference: Sections 6501.2 and 6505.5, Public Resources Code.