ca state lands commission | california state lands commission · 2019-01-23 · • ,, •!;•, -...
TRANSCRIPT
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MEETING
STATL,OPCALIPORytA,
LAND,,, ITcommizsioN 0 0
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STATE CAPITOL 6
a ROOM 444
SACRAMENTO, ,CALIFORNIA „.„ 0
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10-10CFAM.
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DELORES I. DLNLTON, C.S.R. License No. 4691.
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PETERS StIORTHANuL REPORTING CORPORATION
34:53 AMERICAN RIVER DRIVE, SUITE A
SACRAMENTO, CALIFORNIA 95525
TELEPtp.:.‘ WO 972-899,4 LL
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MEMBEI3gWENT.2;;2 '
Kenneth Cory, Sat Controllbrii ,Chairman,o
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•-1,i" , - k _„--___. Leo T.,14cCarthy t ieIttenant GoVernort, Cozmi0ipner
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4 b_N7.1i y_ —way, repres'entin4Michael'Frnchetti,
trectu ,of Finance, cammissioner 0
(..7) 8TITEIP8M:
(Clairerj.ck, Eiecutive Officer ') 0 ,
RObert 'tght ,,0
M.,Thorapson
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von -Everitts
Alan Scott r. (/
judy Markell.
,CregOry
'ALSO.FRSVNT: -\„
Taylor Assiant`Attorney Geharal 0 .0
Rick I.--
Frank, Deputy Att:frney—cieffoha:1,=' ,,,
Dennis Eagan, Deputy Attt,ney General • —\•\ 4
,,Alan'Hager, Deputy Attorney Gehe44. (2)
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o PETERS SHORTHAND REPr:ft)RTING CORPO'RA'TION
34:33, AMERICAN RIVE0 puLTE
SACRA.1,4E1'4TO. CALiFONIA:,,SIgilk
, TELEPHDNE (916) 972-Ei3945
.147W17Pm-, : ,g -
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COnsent Calenda 'Items Cl - C19 ,(Items C2 (E)
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C13,, Cl,5, C17, 6\and C18 are C, off calendar). o
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Question by bave Mandell, ApP1(4ant, Lighthouse',, Marina 'and fillesort As-AN,Ciates.
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`PETERS SHORTHAND REPORTING CORPORATION - 3433 AMERICAN RIVER DRIVE SUITE A
SACRAMENTO, CALIFORNIA, 951325
TELEPHONE( 16) 972-81394 <-,■„
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0 D E X
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Proceedingsji = ,t- '' 0.
Call ‘,to Orler .1;:y oChairkon cop/ 1 2, ' . $
AgpFoval O\\f,_Mlnute.s 7 6 :2
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, IE?,:eutive-„Otficer's deport \c- 6
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0 CoMmission Action ,r0
co Regular: 'Calendar
Item 20 - State Lands ConunisSioh "
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,,Co mmission Aotion 0 (.06' .Harkey (Applicant
Lesset)„, 0 V 6 W-Staff Presentation by exec ubedribk
Public Commenta:
, Ilajter' HarVey,
• = Leo Goto, Commo,pity
Laura, Solloway O
Question-and-answer qe8pin between, 'Cov41. sSion and Applicant land' Applicant' s Attorney, Curtis'13rownO
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Development
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Item
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„ „ , ,• - Commissji_on Action >, ,,„..,, 22 - State. Lands Calhimission Lands
Staff-Presentation
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.1 Public ComMenf As..„„ . ----
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2 J; . John Zainef, Attorney's , '
.representing . Western „Qi1,,and. ,3' _,/"--- <T-
,'Gas Associ ,ti:CWi-AWOCA)
ciuestions and Discussion ",
„Comm6s6h Action T,..°0'(r- --'' a /219 ,-; ;,,,,,, ,
6 Itk4 23 7 United States neriCa ,\V' (Applicant):: -----,.// (_,',.,,,,
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State of Catifornia (AppilicaiL) 0 or 11
a ' Item 27 - Joseph ,Alexander (Applicant) (' 12 „
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'Item_, 24,,7 DepArtment of III'ransportation, 40 ,
8 State of California (Applidrit) °
9" ---0 Item 25 State Lands ,Corirission ,, ,,- . , . 0 cs) ,,,,
10 Item 26 - Department of TransTortation ,
IteM c28 -, 'Phe,BurlingamerGroup(Applicant)
Item''-29 - EXXON Corporation and.Pacific Offsdre Pipeline Company (Co-Deosees),
0 (Put over to end of agendas)
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Item 30„,, - - City of and Oregon '42 0 Towing Company , , 9 . ,, (
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' Item -31,<'= CEO Cebthermal Respurces ; Irid . ' ' (Assignor);larry T.,Plrkan, (AsSignee/ Assignor):l
,Explaration Engineering, Inc,
(Assignee)' . . 0
Item' 32, Union Oil' Company''(ApPlican
Item' 33 Inc; (APPlicant)= c.
Item 34 --=rthr'Baier:III, R. S. Dattis5 and Stephen R. Bruff '(AppliCants),
IteM 35 7-'County, Of San)tuia Obispo ,,(?applicant) 44
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44 Item =36 - State Lands Commisson; Informative
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PgTERSBH9RTHAND.REP9RTING CORPORATION 3433,AMERICM4RWER.ADMVE.SOIMA
SACRAMENTCI, CALIFORNIA 90825.
TELEPHONE 'NW `978-B 94 '
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Item 43 4Dames and Moore (Applicants
"Item 44 -,,Stte Lands Commission
0 Item 45 -.Redwood City
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40ib1ic Comments
Andrea Miller, Attorney for c Cuba 'Goldfields
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1=s / ) r Item'37' Stace Lands COmniissi
0 0 , -Ttem 38 -, Sta'te LandS COMisSiO -'--4,, . 0, , ,, " 0 r (' C' ' '' i 0
(; , c;) ji,,,
3 j 1 Item 30 -' State La ds Commission d
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4 Itel,0"- State Land8COmmission'
'Item 41 - Tetra Tech,, Inc. ,AI:;pliCant) 0
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Item 42 - EG&G Interhational„Incii -(Appcl)icant)
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' Item 46 -,,Fremont International Partner,s (Assignor)k,King- and Lyons (ASSignee)
Item 47 /- Casimer an Etta Malinowski v. StateLands Commission
Item 48 - City of vallo)o,,, the Redevelopment Agency of the City of Vallejo, and Vallejo0 Associate'I, A Limited Partnership
k•Public Comments
Ted McDonnel, City Manager City of Vallejo
rtem 49 - State of ,California v. Yuba Matural esources, Inc,. (formerly YI. ba Goldfields,
, 41c., et al)
0 Staff dorilmentse conflict Ofjnterest 54
Comments by °Chairman 'Cory 54
Comixtents by Commissioner, McCarthy 54
Staff PredenatiOn ofItem
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:PETERS SHORTHAND REPORTING CORPORATION
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0 a4 3 a AMERICAN RIVER DRIVE, SUITE A
SACRAMENTO, CALIFORNIA 95F325
" TELEPI-4QNE (910 97z-es9,4
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ot,,immispion Act,j6h r, u (,)
050 - Petro Corpor4tiori 0
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Xtera ?97uEXXON CoRooratial and :Pacific, OffSh. re ?ipetine c‘,6mpany;)-5(CO-Lessees)
66 Wade 1:14 Cook, 'EXXON 8 ), C 0
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5Adjdurnment
Certificate of OhorthaL Reporterl 67 0
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PETERS SHORTHAND REPORTING SORPORATION
3433 AA ti4iLIAN RIVER —DRIVE
0 sACRAMFNTO.\\ CALIFORNIA 95e25
TELEPHONE (916) 97243994
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AttOrney General -- the
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PETERS SHORTHAND REPORTIND CORPORATION
3433 AMERICAN RIVER DRIVE, SUITE
SACRAMENTO; CALIFORNIA 95425
TELEPHONE (916) 942-E4194
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CHAIRMAN CORY: .We c1411 Cali the, _meeting to order. qo The first item is theconfirmation ,of the
minutes of SepteMber 28th. 7e there any cortectA2n-S- or
additionS? 0
J Without objection, the minutes will be confirmed
as presented.
The report of the Executive Officer; 0
EXECUTIVE OFFICER DEDRICK: Mr- ChairMan, the
report is
▪
before:tt4 Ifyou,Would like me ,to read it,
, 14 - 'Off iCer report? \ k%\'''-'
0
It dot,,, .we ,will accept it. _,- 0
■) COMMISSIONERMcCARTHY I remembee it as a Try - ' /L_,-.____-_,-'-'>—,
,
,, stimulating4Meeting
will. r
.
CHAIRMAN '
ORY: c*
An questions on ,the Executive
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'1 (Laughter-) ,-,_ '-° , . —ZTh, 11 , CHAIRMAN CORY: ;,The. record will note that the
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00 Lieuten/t Governor -,7i hays'n!t ( , that known you very long, Leo -- re 1 embers tha as a memoraI le
meeting.
We have accepted)the-Executive Officer's'repprt.0
Th6'next item is Ie-Consent'Calendar; li These q 0 -
"are items that will be taken up in a single motion. They
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C . 0 are printed in the' calendar With the pr ;mix C. Certain . o, . , _
0' ( ' ' \s,___ items have already been removed, needing more, work. The 0 0 ,
first one is Item C(EY4, C13, C17, ;,and. C1,8. 00
OA :For, theme items remaining on the calendar, if
c j there is anyone ,-' II
,P.
C,
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COMMISSIONER ,ORtWAY:, \-,Xxcuse me. it is my
understanding that just been moved to the regular --
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8 EXECUTIVE OFFICER DEDRICK: Since thenk, we have ' P taken it off the calendar.,
10 There is one ,c,,h4r item, C15, which should come 3 0
off. I'm tarry I fergotto tell you about . nat.
CHAIRMAN CORY: thcay. Let's Makepsure we've
132 got) a clean shot at this. c)
_, 14 The items that are off calendar and will not be
15 taken up today are Items C2 (E),, C13,C15, Cl7r and C18.
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16 EXECUTIVE OFFICER DEDRICK: Correct.
17, ("CHARMAN CORY: If there is anyone in the audience
18 x/lo has any' disagreement with the proposed solution of
47' ,-0-- 19 any of the other ones prefixed by the C'r would
,„,,, they please
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c-0._ 0 20 let us kneV.
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Yes, sir. )
MR.,MANDELL: I would like'-to know why
23 C15 Nascremoed from the Consent-Calendar? '- 1 r, 0 ----,,
2411 o CHAIRMAN CORy: Would the, staff respond as b 6,,
25 C15 was removed. O
to
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PETERg'SHCIRTHANDREPORTINUCthRPORATION 3433 AINCRICAt■4 i4iVeR °RIVE, SUITE A
SACRAMENTCWCALWORNiA 95025
"TELEPHONE (9161 97i93094
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P6-ERSSIACMICIiANDREPORTVVG131301:3RATIOV
aits AMERICAN RIVER 1:ILIITE A
SACRAMENTLIg,,CALIFORNIA 9WS,
TELER).:ONE (9)s) 972-8994
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EXCUTI9 OFFICEA,pEDIICX:, yes. ° A ir,cf,,qtstfor
time Was receiVed just before to meeting tOday, and
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thoge Oingess there
legal reason we ,need
of courtesy to --
CifAIRMRY: Who'iaised it?
3 we normally honor
46 to some spe4fic
is time value/
to -,,act So just
EXECUTIVE OFFICER DEDRICK: Assemblyman Isenberg
/1 8' requested that we hold off on this, through the Lieutenant
0 9 oGovernor'S Office. 0
CHAIRMAN CORY: And the person who ased the
11 question. Are you the applicant
MR. MANDELL: Yes, I am the applicant. 0
10
EXECUTIVE OFFICERDEDRiq:
yoursecf for th'e record, sir. r;'1
You should identify
MR. MANDELL: This is Lighthouse Marina.
CHAIRMAN CORY:
MR- MANDELL:
We expected
to us tht. there Q
CHAIRMA14 CORY/:
And you are? 0
Dave Mandell, the office manager.
routi4, 1/
apbroval, and it is a
is any problem.
I expected pne too.
EXECU IVE OFFICER DEDRICR: Well, we all (did. -
22 COMMISSIONER McCARTHY If I may;) Mr. Chairman 0
Mandell; we will try to identify what the problems
are
tl
are cn this, and then get areset forAyou so you
AS 1 not,PrejudiCed as toany undue time limit.
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PETERS SHORTHAND REPORTING CORPORATf-ON o , II
3433 AMERICAN RIVER OR)/VE,;,81.11TE A. o ACRENT,9, CALIFT74 95825
it L 6-MINE (91,5) 972-8894 ) ,-., 0
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LI
LL: That. fine. 0
o , CHA 21AAWCOM Okay., Is there anybOdy p1S0 _,,,) ),--- r.-s›, I, '1 ci :) i that has- guestons, about Mahe" Consent Calendar? . a'1
5 Calendar are approved as presented: 6 ',
6 i( The'Pext item isAtem 20. oThe staff>5 some 0 ,
7 proposed amendments td the lease- terms. These are aealing
8 with the problem of he Air gp Qi i.and this is-enegotiated
9 settlement with the Air Forcze?
,47) 10, EXECUTIVE OFFIC6R. DEDRICKi' That is porrect,
n
6 lease .or on' the environmental cbnditions or anything0 else i, ,,
wording, Which thd-Air, Force is more comfortable with than
Mr. Chairman. They have 'nn effect on the substande of the
41 the lease . It
s merely a questforl„ ,of 'adopting the3 0
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u 15 the original wording. 6 o
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16 In addition, to that, they were transferred from 0 -
1)-6 17 the special Operating conditions into the body of the
18 lease where they mole appropriately Lon ,0 but th&se are , ) i ---,J
-N)),
10 the only changes thathave taken place. , s,)) ,„
20 ' CHAIRMAN CORY: Is there anybody that has any
LI
Without objectApn,)those items ,on the Consent
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21 comments bout these specific amendmepts from the audience?
22 duestidns from Commissioners? 0
*ithout objection, we Will make,those amendments 0 )),
24 and they are aPpted.'
25 ,,yq Now, the next gueStiOn before us is that we have,- 6 )(
CL, 62 °
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a problem with a written court opinion, from Sup ior
Court in Santa Earbara --
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EXECr:Z,IVE OFFICER DEDRICK: r. ChairMan I think ; 0 ,
Mt. Hight perhaps should -- .
.: CHAIRMAN CORY: -- last evenTing.
last 'evening, EXECUTIVFICER pEDRICKt
„after 6;30.'
CHAIRMAN CORY': Greg, do you went to comment?
Not comment? Should'I comment? How should we get us to
where we are probably going—tOobe?
MR. TAYLOR: I think they, courthas raised a
.° question with regard t6 whether or not the Coastal
Commission has jurisdiction. This Commission has not
agreed with the Coastal Commission s assertion of
jurisdiction in this issue. In light of that I think the
Commission wants to .1..1 the Lands dommission wants to study
it and has directedto us to seek a clarification from
the court, I believe. In light of that, I think you are
going to consider whether or not the lease sale would be
reschedUled or not.
EXECUTIVE OFFICER DEDRICR: I would recommend that
the lease'Sale: be',, rescheduled. I think we cannot at this
point determine What is the best course of action, and
the POtential lessees have been -- really, Ithink, should
havFl the opportunity to sit back for awhile while we figure
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, PETERS SI-113M4HA1■11) REPORTING cofTaRATIoN 433 AMERICAN RIVER DRIVE, SUITE A
SACRAMENTO, CALIFORNIA 9SEM9
-TELEPI-iaNCe (9ld) 9/ 2.0E194
out 'what happensohext. , • . 0 • . CHAIRMAN CORY:, Socur option frCm the staff is
to go ahead and notprzIced, put over the pending-leaseHmile'' " 4,1
-0 14 and authorize the attorneys to prObeed with -- 0 0
EXECUTIVE OFFICER DEDRICK: Tie proper legal
remedy, if that's' all right'with' you. 0 0 O
MR. TAYLOR Which, initially,. would be to 6 ‘')
seek reconsideration of the order. 1 r} 0
CHgIRMAN CORY: Any problems with any of that?
COMMISSIONER McCARTHY: I would just like it
41 recorded, Mr. Chairman, that"— I, of course, have stated — 0 , o
MY' POSitiOn ip the past -- that L had no personal Problem.,
13, With alklYing to,,,theCoastal CommissiOn for a petMit in
14 every sense, so I would Jlasent from proceeding in the g-,
u , - -
ybu would approve ,putting, the-lease sale over-?
COMMISSIONER McCARTHY: Yes, I, have no ptoblem
0
0, Courts on the0adtion, but'I understand there ate two other'
, ° A., P ,
(,--
VoM's on this Commission that feel otherwise. ° j
EXECUTIVE OFFICER"DEDRICK: But, Gorpor,
0 CHAIRMAN CORY: Okay,
22 will pdt the lease sale,, over.
0 by unanitou8 consent, We
We probably should have a motion tf,
COMMISSIONER ORDWAY: I will moventhe, Continuance 0
with appropriateolegal'remedies. a
PETERS SHORTHAND REPORTING CORPORATION 3433 AMERICAN RIVER DRIVE, SUITE A
SACRAMENTO, CALIFORNIA 95825
TELEPHONE (916) 372-13894 6
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Staff? 0 0
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CHAIRMAN CORY: o=
'I will second that.
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All in• favor sby aye. \_13
3 (Ayes.)
4 0 CHAIRMAN CORY: .Opposed,,nay
5 - That motion passes.,
6 MOCUTIVE OFFICER, DEDRICK: "Do
7 on the lease sale?
we have a motion
0
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0 9 consent.
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EXECUTIVE OFFICER DEDRICK: Yes.
This has °a long history, and to make it short,
16 in 1978, the Commission, aUfhoried staff to issue a lease,
‘ Nekt item, IteM 21, Recommendation f& revocation
of offer to lease on Commercial Lease atc"0" Btreet
CHAIRMAN CORY: Yesp that was Wunanimou$
Item 20 is' taken care of.
17 given certain conditions of paying. 0 0,
18 The conditions were never meta by the applicant, 0 , 0, 19 and it has been very close to five yea'r.s. We would like ,o
20 you to- -- what is the present of rescision? -- revoke
21 that authority, since the lease has never been taken up by
22 the applicant and thel1
conditions set by the Commission have ---„,/ .0
23 never been mete in that five-year period.
0 ,.
24 ' Bob, did you have "-
s,
MR. HIGHT: No, that's
rJ
PETERS SHC3RTHAND REPORTING CORPCIRATpN
AMERtaAN.13(Vtff ORIV5t PLICTE
sAURAMCNTF1, CALIMRNIA 9A1325
TELEPHCistt (91G) 972•EIEI94
0
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7°-
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tIKLIA OFFICER DEDRICK: We have staff here
2 if you want more detail. "80
CHAIRMAN CORY': We ha'Oe Som eOple that want'
•
Mt. flarVey. %,„ ,
Is Mr. Harvey here?
Would you like to address he Commission on this
O
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i'S'i,-ue or not?„, 0 Q
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MR. HARVEY: I would-
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CHAIRomAN CORY; ' Okay. “Take „your shat:
11 I would lie 'the record this is' ,N r. Walter "-" 0
1. Harvey, who is not the Walter Harvey who works for me.
13 Ci
(Laughter.) 0
14 MR. HARVEY: Everytime I come before thidA,e
15 ComMirSsion, you precede with saying that-
16 A) c)„.. (Laughter..)
17 CHAIRMAN CORY: If somebody picks up the record, ,0
18 Z want them to understand, or not jump t the conclsion 7 -I)
19 that We are dealing With staff.
20 MR. HARVEY: Okay.
W4.th regard to the- lease that is under
22 consideration or option lease that is under considerati6n,7
23 I would? note that our documents will show tha t our option
24 t, runs through January 1st of 1984. NO• I don't really„ wish
25 to get into a full discussion of the entire ramifications,
PET -a5 SHORTHAND REPORTING CORPORATION D- 1.\ AMERICAN RIVER DRIVE, SUITE A'
o \CRAMENTO, CALIFORNIA 95825
ELEPHONE (916) 972.5594 ,,i?
0
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the city
coming to a final agreement as to the:terms of thes-'2,1eass'
"5 , and also the terms o— locatingothe restaurant ate the "0"
.p,
0 6. ,„ ' 1 -
'.' on 9 0 r, C. 8 " o '
C) , . o .P
gest yeas, under',Ithe direction of this
Commission, We have.made lery earnest attempt to deal with ,,,, 0 -
and -to deal both' with theState LandsIstafin „ •• 0 ,•
0 *
it.
0
Street,,Pier. During that time, We have met with many 0
obstacles, the last of which seems, to be, or at least one
of the last which seems, to be the- termination or the 0
request to rescind the lease agreement. L .0,
The only thing that1 might say is that thel-->',is 0 .,--' 0 ),
11 a meeting scheduled with the Redevelopment, Commission of , Cl
the City of Sacramento, on November 14, at which time they
will take up this thing. This has been'at the reeluest-of
Mr..,Joe ,Serna'on the Council and also? at,; the request of
Mr. .Sam Walton who is the chairman of that CommiSsion.
16 They'-have made ,the request:that it be bn that----!Commitsion-
17_2 agenda for„the hearing,on0the one condition that we really <5- -
18 hai:/0 been able toupeet, whichwas0parking consideration. 9 0 -”
19 Wehave wtentatiy agreement with the Cityoof"'gacramentb.
We have the documents that support that..
We would wish that' this Commission would not take,
the final action to reSind what agreeMent we . .
until such •ime as this has(beenx-hearcl by the ,•.,„ ,
the Redevelooment Commistion, and by' the City
is the only thing that T can request 0 0
have with you - _
Commission,
PETERS M4C1RTHANC) REPORT/NIG CCIROL71;ii1T101q ,:-/
6423 AMCRICAN K:4V9R DRIVE, SUITE' ■‘■ SACRAMCNTO. CALIFORNIA 95925
TEL9PHONE (916) 972-8164
9"). 0
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ICY
(P0
CHAIRMAN' COl Any gnestIons e0MIASsioners?
We, have a Mr. 3e0 Goto and Laura ' -
you wish to. speak" td' the COMmissioners7 0 c,
CIO MRS GOTO: Vor the record„, • ,,,J? " ° ... Director of community Development, and to my,,,rightis
tetra Solloway, agency counsel.
We would just like to 'say that the news-regarding
;-; 8 the forthcoming meetlhg was news) tb %/r
was from the top dowm, so go be it
us i Th,at ,apparently t,„ 0 Q.) 0
We, Will be at `that
time presenting what we believe td, be the Staff 'S ,position,
in, term's of )1g oing ahead with the ,Arp, proceeding. " 5n that
will- ,brought out, 6aPpar'ently 'at this 1196;aber
(1
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CHAIRPERSON CORY: ,Okay
Yes, we will get to you.
SALTJOWAY: Yea, would just like: tpyresPond
„tosthe StateMent regardingthe agreement On ,parking with
the
I have 'xamined--our records extensively, and I ,
absolutely no evidence of any agreement with the 0 0
P
Zity 'of 8acramento or the RedeVelooMent, Agency regarding . 0 ,
1 parking.' cM. ,this time, there are considerable anni.;:ng
. - 0 problems °regarding the use of oarkin4 .for Mv.0 HarVeY''S'-
lv
accommodate oarkin for'his projec W nithout having a .
ER$ 81-10S6ill iq RePtIRTINp, COROCIFIAtii:IN 4af.4 AMEN AN IvER Dtliv,,surtE
9ACNAt46`niTtl. Tatflifiant 16) 972-aa94
0
a-
0
3
4 I am Leo si,.3o
5
6 Q
7
10
11- 1A,;
014
15
16
17
18
' 19
20 J
21
22
23.
24
25
3 latest Itroposed project in such a way -tha-t he could
0
V".""r,7"7:71 v7 ;i5. 77.4irtprowx"vo
o.
adverse impact on the parking neeels for the entire
develOpmeA. No planning solution has ever been resolved. o
3 X understand from our.. staff that._, some of the - °
area that he had'originally:proposed.to use for parking
is iow being used for another,purpOse, for
. A railroad purposes. So there hasn't, ever - been a resolution ., 0 7 pl the par king issue-,- which,, Of„cours
e, was a condition--
8 precedent tcx -the lease. \
9 In addition, the land use which is permitted
= 10 under this offer to lease is not the lend use which,
11 = Mr. a:,,,,vey proposes -to-make at this time.. Therefore _ thiS ,:-.
0 „ 14 lease offer as it Was drafted is really not appropos to the
13, project he is proposing now. 4,2
14, 'CHAIRMAN CORY: (aould staff -- all of this, I.
15 feel like I came in in the middle of a very bad movie.
(Laughter.) ,S\ fr
17
EXECUTIVE OFFICER7DEDRICK.: Yes.
,18 CHAIRMAN CORY: COuld our staff please tell us
-- we have an 'Offer to lease the property outstanding
20 to Mr. Harvey?
11 EXECUTIVE OFFICER DEDRICK:' Yes.
It does not, have zutime limit on it, Mr. Chairman.
4MAIRMAN CORY: So that was our error to begin
E:MCOTIVE OFFICER DEDTLCK.:, No, 071
„(c - don't believe it
=
22
23
24
25
with.
O
1\
0 0
PETERS SHC1i4THApID REPOIVING 01:40PCIRATON
sva430 AMERI6A1J ORIVE, SUItc A
pACRAMENTia, pALIFDPINIA 9502.$
f ELEM`HI]NE 972.-aii94
Q
.rfenw.T.M.Vrtrq'T..1.'1.
0 was an errilr.0
CHAIRMAN C9 Y: My instincts ,tell
leave a° lot of offers --
you, shouldn!'t
1 , 0, EXECUTp/E.OFFICE DEDRICI Oh, I cet your point'.
Good idea.
Actually, you set conditiOns which at'eth, time
staff (4 parehtlY thoUght Mr. Harvey could meet, or at least , - 6
intended to try to meet., , Those conAitions wereo never
met. We have app4sed Mr. Harvey several tines in th4 0
",gears that hive gone by that he was „not in compliance, O
0
LHAIRMAN CORY: So therpiisp.not'an tion3) D0
0 - : qx.wu!fv.7.7.21c-17 rum That is,,,, rrect.
0 0 0
There is no option.
0 - , ,+ , p
15 0 0 ,,MR'; I 4; rma IIGHT`i . Correct, 1,,, Chain. As a
, It lease whiCh he has not e=xecuted, the terms of wnion he
. _
17 haS notcomE1ie4 with. _---0,--
,-- , (3
18 cL, ExEcumiv.8 OFFICERttDRic: in,addition to which, '7))
the project for which-he, was granted the cipportunitv to '',, 0
=have a lease is nat'the project ,heis currently proposing.
,21 And I should have told you earlier that sa -.L. 'is currently' ),
:Lk reviewing an application fr6m the Redevelopa.'int Agency to ,,2
, 23 do,a city plan coveringotherY entire waterfront, including , ,,
, 0 0
othis property,*which is one of the reasons for 'Iheobhncern
of fir. Goto.
PETERS S,11,13RTtAND\eEP1:11 !NG= CORPORATION' o3433 AMERICAN cRIVER DIVE, SUITE A
c.
SACRAMENTO, ,9,,,LIFIZIRI41.A 9SEI2S
TELEPHONE (916) 9-'32.66994 , o
with those,,conditions° 0 L
19
200
24
0 25'
0
0 (2. you are. 8 MR..41ARVEY: I,believe that
there's nothing I
immediately, I will
,who are seated here wish to deny4-hat,
can do about them denying it/except,
CHAIRMAN CORY:
the facts', from'you
!--,----_-----,‘. Mr. Harvey° amif',74understanding 0 ',..„
i'de of the table?
0 : 11
0 0.,
la„
, 0
,'ZHAIRMAN 0 a It seems like we should o
.;a4 to square4one, -since Mr. Harvey doesn't have
th44. 0
}EXECUTIVE OFFI41;ER DEDRICK: Certainly
Harvey 11
5
6
C.`
(")
dbRy,:; What do you think- you have? 0,,
HARVEY:'''I think we would'thave to go back 0
The only thing I ccen do at
this point --an5thi is out of a final attempt to deal
with the city /-e/- ther$ he-been a9requeS't7-tliatVfull , ( °
hearing be gra )ted to this''by,the Redevelopment Agency,
-Pt he chairman ' that commission. Now, if the two people
„ V
0 \ to the original applioltion.,
to know is what do 3ou thin you have in the way of rights (
\1
and obligation9 from us, because as the staff has explained
22
23
24
20,
21 ere
19 who aeeured me
makecsome coPtacts with Mr Walton since-he is the one
that this has been scheduleu.
it to us, w put an offer to enter into a lease if you met 25
0
--, ' PETERS SHORTHAND REPORTING CORPORATION
3422It ; AMEC_CAN RIVER DRIVE, SUITE A
-, _ 0
SACRAMENTO, CALIFORNIA 95825
4 TELEPHONE (916) 972.8894
, :),
0
Now I thi4 the whole issue of whether =
isr parking --
or not
6 CHAIRMAN C RY: Harvey, what I think. I want
0
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, .1,74tny,,,7•A• ••1 o
k 0 • • , ■■•■•■■■•■••■••■•■....+•■••••••■•■■•■•••■••••■■••
a.
14 tl
certain COnditiL for a specific plan. The staff is .> ,
2 informing usothat you area riot). longer interested in'that
0
21
22
23
24
25
Speific plan. You are ,pursuilig a ditfent Tif4 c a
plan --
MR. HARVEY: That is not correcti
CHAIRMAN CORY,: Okay. What is your side,of the
argument?
MR. HARVEY: The staff i sugges;ing that one
portitin of the plan -- .g \\__,_: (.? CHAIRMAN CORY: Wh;n't you come on up. ,
dmR.,BROWN; Mr. Chai man, my dame is Curtis,
Hrown. Ioam Mr. Harvey's attorney, and 4 think mafte 1
can add some,light on this as well.
CHAIRMAN CpRY: Okay. It is ourunderspinding
from or staff that You do nOt'have an optioLN_;
MR. BROWN;{ We,feel that we have a commitment
to 16asne-, based G'1,1 mt. Harvey's ability to satisfy
certain conditions which require cooperation from the
RedevelOpment Agency Ms. Salloway"went through her 17)
exhaustive analysis of this matter in response to a long
letter that I wrote to her documenting the fact that
Mr. Harvey feels he has met allofthe conditions. I
had to give them this long letter because the Redevelopment
Agency dbuldn't find any of their documents.
We feel we have met the conditions. That is What
7?"
O
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4
S o
6
o 7
8
9
10
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12
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14
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17
18
10°
20
0
FILTERS SHORTHAND F/63RTING CORPORATIoN
3433 AMERICAN RIVER DRIVE, SMITE A
EADRAMENTIAL.IFORNIA 9,5825
TELEI4HDNE \ 910 972-8994
0
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ri*ar#V.IYI!",.,417T.
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13
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15
16
17
18
19
rs._, 20 „
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22
23
24
25
15
) AC,
j1
'for before' the Redeveldpment
Agency. \doa't thi41%CommisS3-on 0shold be burdened
.we ate,asking'that-this matEX,4 the status quo which
heari g where Mr. HarvelOcan pre-yep+'his argument :r
with hearing an'argument anea Whole series Of argTents
Which should be before theRedeVelopment Agency,6and,all
exists, be preserved until after the ReaevelopMent
0 0
0 ' 0
. <) 0 ,
.,, 0 . :y
, —
he
has met the conditions that are needed prior to executing 1 7/' '
, .0 i'''he ..ease:
11, , ;-_,,, C:'; .
CHAIRCHAIRMAN q9RY: 0I'relooking to the Lands -- MAN S i-- 0 ,z_5)
EXECUTIVE OFFICER DEDRICK: Our records really .
indi6W;t)e hat Mr. Harvey as AO prefentiAl rights here, ,:---- ■„
Mr. Chairman, and'that we have waited five years for 00
.something toy happen, have had repeated communications.
We are now sitting there with'a piece of land that,is
'reaching the point Where there is going to be an
organized 'development.' Tne'Redevelopment,Agency will , ,
decide on a plarr--Which we would'have to agXee With it for c, ‘ ,,--,,
that to happen.' At that,time, Mr. Harvey could reapply for°
■.•
COMMISSIONER Mc9ART-4: Mx: Chairman, what I
think I hear Ms. pedrick saying is that, as in arAy other,,,
0 0° _ ,q, --,, 0 number of cases wh -re we'have enteied into a—lease
, q - arrangeent with soMeone,that if they didn't exercise
_ - their rights (under that lease-arrangement, aftet a certain,
5:1
1 (-9 the purpose of tale heating
0 0
a lease without prejudice.
'2
C)
S? Q.\
0
PETERS SHORTHAND REPORTING 7.13RPORATION 3433 AMERICAN RIVER 01,,IVE, :SUITE A
SACRAMENTO, CALIFORNIA 95325
U TELEPFIONE('916) 971JLE11394
4 W.'
O
„ 0
(;)
""'"'" ""M ogrr 7••■•'•-•
period of time, that we simply terminated the pdtential
advantages of that lease arrangement. I thinkthat 0
operating Principle i' being suggested regardlessof what
the Redevelopmet Agendy of Sacramento does One 'ay 0 =
EXECUTIVE OFFICER DEDRICK: That's*correct,
7 COMMISSIONER McCARTHY: I think that is what
8 yol are hearing. , So we re really not,c'trying to be in the
9, middle of the merits or they demerits Ilof whatever-plan' the " 0 0
10 Redevelopment Agency may want to shape. 0 I quite agree with
1.1 you that that's something' that we could he into up and down • . .
the coast and. throughout' California and don't really ‘nt 12 „ 0
to be. This is redly a natter of whether or not the
14 lessee, in effect, has acted with some reasonable dispatch
15 to fulfill the opportunities and ri hts 44ziven under the
16 lease arrangement. ,
17" Staff has, decided that it
Mr. Har ey has not and is
Is rrecommending to this Commission, as in dozens of other . -,
, 19 a casesthat we ought to terminate the lease arrangement.
.., EXECUTIVE OFFICER DEDRICK: Let me coErect'one
0
Point.
You are correct on all pointsebut there is no p
existing,lease. He is a lease-app4icant. 0 •- z3,-,
COMMISSIONER McCARTHY:Okil',.y.
cc (.2
0 CHAIRMAN CORY: So what we are simply saying is,_ ,
21
22
24
25
0
PETERS SHORTHAND REPPRTING "Cai4PORATION
3433 AMERICAN, RIVER DRIVE, SUITE D.
,,SIERAMENTD, CALIFORNIA .,95SS 0
- TELEPHONE (9V&) 9'724E194
0 kl
cc o cc
o
what State Lands is saying that.; because
this
copy ,
.
14 that got,, received. wheft the 'item care before
the Cmmissibn, stated' that we would have until January
10 probably a technicality that we
perhapsat Oifferent time. What 1 am suggesting' Is, 0
else, that the,coverletter that came; addresai 12 nothing
I believe, to the CommiPSion =- at) 1„past.the issue
10 1984 to activate this lease agreement. ' Now, IIij'ave that
indicate- that at any time duringAhhe discussions or during
0
O
PETERS SHORTHAND REPORTINO 6014pgRATION 3433 AMERICAN' RIVER DRIVE, SUITE A
SACRAMENTO-1,J CALIPOCRNITt■ 95825 0 ° TELEPHONE (916) 972.81394
1
0
6 .
when, the local people[decide what's there, lk). 0 get-together
with them,° come onrin,,and-Without prejudice reapply
and we will take a look at it 1 MR. HARVEY:" - Tipe only thing l might suggest is
that there has been a. lease approVed.,
7 they haven't signecrit yet,
g that, we have been attempting to
9 they would sign the lease after
document, if no one else has that document. I guess 0 Maybe ol. have got the -only copy.
COMMISSIONER IfARTHY:. Is that correct? 0 0 0
CHAIRMAN CORY Bob?
EXE0CUTIVE OFF'IC'ER- DEDRICK: Our records dO'not
17
18
5
6 NOW,
=,? 1 because there was a condition
meet with the city, rand
the approval, that is
will have to discuss-
11
13'
15
0
As";
- limit was set. I also think it would 0 ,-,-,- 4,,
a five-year time lisnit Would' have
o"
be very unlikely that 0 . , ,, ■
0 "0
a lease applicatIon.o Ille fact is that- the I
1
0
been se-e on such
0
0)
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3
it 9
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20
21.„,
22
23
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rc
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'18 o
authorization contains specyic cond,itions. 0 Staff cou1
not have executed a lease', legal y, until' o cenditi'ns
\\were met. Those conditions have never met;t Mr. Harvey
has not signed a lease. The state has:notsigned a le Se. 1,)
There'is not a lease in, exis=tence. ,
COMMISSIONER McCARTHY: Is Mr. Harvey implyng
that he somehow was given Until Jantary
whatever conditions were required for this
HAAVtY; WOuld the Commission
the document?
CHAIRMAN CORY: Do you hav it?
MR. HARVEY: Y4s, I have it.
CHAIRMAN CORY: Let's look at it. I an
puzzled. What I have
EXECUTIVE OFFICER OEDRICK: This one is news.
CHAIRMAN CORY: Has Mr. Harvey made'llis-rental,
payment that was due on,Juhe 1. 1 /9?,
EXECUTIVE OFFICER DEDRICK: Nth he hasbnot. A.
CHAIRMAN CORY: Has he made his payment that
was due on Janury 1? 1980?
EXECUTIVE OFFICER DEDRICK: No, he has not. It
CHAIRMAN,CORY: HaShe made his third, fourthC
and fifth rental, paymen450 that were due January 1, '81, , -
'820and '83?
EXECUTIVE OFFICER . DEDRICK: No sir.
PETERS SHORTHAND REPORTING CORPORATION
3403 AMERICAN RIVER ORIVZ:,13LIITE A
9AcIRAMCNTO. riALIFoRt■ilA 95e2s
TELEPI-CZNE,016) 972-813°94
MR. it
Commission --
HARVEY: If i0ere'are two leases before this
0-0 D
CHAIRMAN CORY: NO, there is., '6nly one.
0
6
7
8
r
Cr,
PETERS SHORTHAND REPORTING CORPORATION
3433 AMERICAN RIVER DRIVE, SUITE A
SACRAMENTO, CALIFORNIA 95825
TELEPHONE (910 972.8834
0
0_'19., 9,
MR. HARVEY No rental payment becomes dud until 0
theeffective date of the lease. g
, . CHAIRMAN CORY No? The authorized lease has
1 0 specific dates in i
,t It seems to ine, if yo go by '.he
( 0
time you're supposed to payer something,,, it sprt o, - .
speaks to the fact that yOUshouldo have- sighed it before.
EXECUTIVE OFFICER DEDRICK: Mr. Chairman,
Mr. Scott has just poirAed out that there were two docvnients. ).]
One is the lease that was authorized with the conditions you — o
have described, which,, had to be signed -- the conditions
had to be met and, the lease had to be signed. There0'was
, ,,a proposed lease, given that the first lease went, for the
0 0 future, which may have a 1984 termination date on it.
0 0 MR. SCOTT: Beginning date. There was a proposed
0, beginning date crf 1984. Neither of the lease has ever been
0 , 0
executed g'y either party. The only one that was ever
approved by the COmMission or authorized for us to enter
into was the one with a beginning date of Januar 11 1979.
IdECUTIVE OFFICER DEDRICK: And it is that
approval we would like you to revoke.
OHAIRMAN CORY: Mr. Harvey.
EXECUTIVE OFFICER'DEDRICK: There is not.
„Q0R. HARVEY: There is only one that 1-0have a - II
” rebord. of, and it only ,.--
there ano/her number of' another lease that has come up 0
before his Commission, I would like ••
EXECUTIVE OFFICER DEDRICK:
0 C
,o ,°:% 0 McCARTHY. : Mr. Harvey, (-,10 you' have
, = „ 0 a "dcicurnent that in any oway commits you a,,January- 1984
11 date to giVe you an, opportunity, to execute, on the
12 ,Conditions of the lease?, 0
13' Do you have a documept signed by' thiS Commission • / '
c' .' V ... ''-
14, or, the staff representing tit/or- Commission? „o t://1 ,-:--; 1 ,,,. -, • " iie , ,1- ,_., s
IS Mil• HARvEY • _ Not Oigneth - ..&'It comes out as a part i , ,,,_ , ' • it---:
orcame aS a par-c of the lease document,
COMMISSIONER MoCARTHY: SO it was what was bealg•
0
° tO knOVnt abou,t that°.
Tt. has,----hibt come"
4: ore the Commission, mr . Harvey,'
,-'
c.
COMMISSIONER
18 negotiated as a0potential lease agreement? 0 - 3
19 MR, HARVEY: -What was (being recommended to -the 0?,3
Commi(ksion, I believe, for approval of time
COMMISSIONER„McCARTY: This is a form, of a 0
recommendation? 00 $
0
23 'Ext CUTIVE OFFICER DEDRICt:' ,It waS nevef-brollqht
cl3
0
3 25 first -- the authorized lease was ne=iex- metI, \
aEJ
PETERS SHORTHAND REPORTING CORPORATION ,.,
34y AMtFilcAN RIVER bRIVE, SUT,Te A
AcRAMENTO, CALIPORNIA 981323
TELEPHDNE (9t6), 97i1133.04
=.:=•• 0
O 0
24 to the Comirkistion because the precOndltion ;wean: ng the
0
4 y
0
0
0
O
0 , recommendatiOn./
°07
CHAIRMAN CORI: Motion to 0 0 -.-
8 ' recommendation.° 0, 0 ,, !
0 ,,. s; Q ' o &: , Ik
,9 0 COMMISSIONER McCARTHY: Second.
F o
0 0
l.
e .
_, 00 CHAIRMAN CORY: Any ,'questipft of 466Mirioners?
a ' : ' ' 0,
---x.ommtssloNta owamx: No. ,„, 0 It ,
COMMIFjSIONER McCARTHY:
ivIA cx41, N CORY: I'm prepared "to -- , , t 0
COMMISSZONER ORDWAY: 'I will move the \0
0
staff
(")
c;CHA 4
fRMAN r_dRY: oSeCondl. /' .0 0 !e=0 0c,
H -All those in favor, SigTI 7. fy'by saying aye.
ff
0 0 , . , 16 f of our code on general leasing.
. , Staff?
EXEWTIVE OFFICER'DEORICK::'Sir. (}
What vs the, name' of that statute?
20 ° statute AB 1111 reOires that When you, change regulations
11
22o
23
24 0 0 25 notablY giving you discretion to decide,-- rather than,,
) (Ayes.) 'r A
<1-) CHAIRMAN CORN?: Opposed.
We have revoked-the offer.
Item(22, approval, of modification
0
17
18
19
with thei neW
submit it to
some chan es
Ot your statutes change
regulations, with bearings and so
the offiCe of Administrtive Law.,
in °the authority df the Commission
2 that you go througnthe process
PETERS SHORTHAND REPORTING CORPORATION 3433 AMERick)NI RIVOR. DRiVt, =1„;(TE A
SACOAMetrria, aAI-Ir' 614NIA 951325
I TALEPHoNe4916) 94i2-13iiO4
k`,1 - , : ,,,,, 0 p 9
0 0:0 • 0
making penalties mandatory on late payments, you pow have
the discretion to decide whether or not it was the guy's
3 J fault hT.AT late.- You recall we had prqleMs with, that
4 last year. 0
5 CHAIRMAN CORY: 'Okay.
6 EXECUTIVE OFFICER DEDRICK: And there are a
7 few other items. These new regulations are up for ybur
approval sol we Can proceed with—the Office of Administrative
Law process 0 , „''
10 , 1 .. ,
CHAIRMAN CORY: , We have a request to speak from ,f.
11, a John wines. e. - MR.ZAINBS:Xes, Mr.: Chairman.
CHAIRMAN CORX: Would- yOu come-up and identify
yourself'for the° record and tell -us what you want to
BXECUTIVE ,OFPICER DEDRICK: I should say -- e.Ncuse
me for just a moment', Mr: Zaines
M. Chairman, hearings have already been held), 0
19 and you will see in yourc=notes what the substantive effect
21 MR. ZAINES: Good morning, Mr. Chair wan. My
22 name is John Zaines. ° I'm an attorney with the law firm of , a
0%2i, McCutchen, Black, Verleger & Shea., I'm here today on
24 behalf of the Western Oil and as Association. ,
25 0 Western Oil and Gas Association, or WOGA, as it 0
0
0 0
PETERS SHORTHAND REPORTING CORPORATION fl ) '-
34SS AmERMAN RIVER uslve, SUITE A
SACRAMENTO, CALIPORNIA) 951925
TELEPHONE (916) 972-0B94
12
13
14-
15
16
17
IS
0
0,
24 before-thiscCoftiMiron at all.
25 (-1n addition
0
PETERS S RTHAND REPORTING CORPORATION
3433 AMERICAN RIVER DRIVE, SUITE A 0
SACRAMENTO, CALIFORNIA 95025
TECEPliONE (916) 97245894
0
0 ",!,
1(
71,
0
23 („)
A.s'called, is a trade association whoaP,Lmembes'condUct
much of thel produding refining, transportation and ,
marketing of Pefroleum and petroleum products in the Western
United States. WOGA,'s statement today concerns the
proposed coditions of $'e State Lands Commission's
j , b /1 '
6 -regulations which deallparticularly with what has come to
7 be known as, throughput, that is assessing "a charge for the
8 use of 'State lands 'based on the amoTint\ of commodity that
- ,
9 passes over th6e lands. , r
0 10 CHAIRMAN COp,Y0: What is it that you don't like U, vo
11 about the change? ci ,
12 MR. ZAINES: orf I may, Mr.cChairman,i would
13 like,to outline briefly my statement today, and then go,
14 in(s10 a little bit more detail on it. 0°
15 Bas,ically, the problem ,4 hat there is ae=lawsuit
16 'pending. The lawsuit was filed --
17, CHAIRMAN CORY: Does the lawsuit relate to the
18 changes in the C(-;Zse= or the existing code?
•9 MR. ZAINES: it does,'in effect,' Mr. Chairman.
20 What-the changes to do",are to modify the .
,. •, , 0 .
21 - regviati9ns that have been Oclared to be invalid, as ,
7- (:) ''''' \\
11 ,
1.- :'''''',,, 1 '-% 22 unconstitutional. It ,aefkes reason to have changes in a 0,
23 , set' of regulationS, which have been invalidated, come'
0
SADRA11ENTD. CALIFORNIA 95825
TELEPHONE (916) 972-8894 0
0 CI
• • 17, ••••
0 24
11: 11EC7TIVE MICHR DERRICK: LExduse Ile. Could you
be a littleJAt more clear. I don't know wha!t has been
3 declared to be unconstitutional.
4
ZAINES: , Certainly, I •
5
The Chairman has asked me a question. ' I'm just
responding. „)/
CHAIRMAN CORY: Go 'ahead with Ydur thing and 0
let's get done. :5
MR. ZAINES: Fine.
As the Commission is aware, WOGA is and has been
deeply concerned about the Commissioss attempts over the
past seven,years to amend„ those *oviSidhs of the
AdminiStratiz'vo, Code that deal with what I refer to as
throughput.
:'Back in 1976, when theseregulations were
proposed, WOGA and several other interested parties
actively participated in the Commission's hearings and
) urged that changing the regulations at that time was not
19/4 only unreasonable, but unconstitutional. The Commission
20 went= ahead and a-.Toved the regulations. WOGA filed suit it
21 f here in federal dour where in Sacramento on both/ federal
= 23 The state was SvocessfUl in havinTthe, trial, \
22 constitutional grounds ancon'state law,7grounds as'Weli —_,
0' r-----,,
0 0
r-, ,
24 more or less split so the state law issues Would be
25 decided first by a state court. We went through that
O
0 6
7
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PEtE.RSSHORTHANCSkPORTINGCORpORATION 3423 AMERICAN RIVER DRIVE, SUITE A
0 u 0
0
11 0
'11 0
t, 25
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20
21
„ 22
23
24
25
pre:bees for many years, and the'ciresult was'that'the
state courts determined that there was no ii.iolation of
The lawsuit , ame back to federal Court
in Sacramento, as has been provided when it was split, and
the federal constitutional issuev7ere specifically 0
addressed. 0 I)
Federal court in Sacramento, a year,or two ago,
ruled that the regulations were violative of the Federal
Constitution commerce clause, the import/export clause 0 0'
and the duty ,and tonnage clause, and it invalidated, them
based on that violation of the Constitution. 0
The state appe,aled that decision in the Ninth
Circuit Court of Appeals. That decision is pending
befote the Ninth Circuiti No decision whatsoever has
been remlered by the. Court of Appeals.
So what you have is a situation where,these
regulation6 and the amendment, today are proposed tb „
0
, 0 ,
amend these basic regulations thatwere enacted in 1976.
Those regulations have been declared unconstitutional.
So why the Commission is going through this exerdiee
,
I
guess is the threshold question, when you have regulations
whose validity is in serious doubt based on the existence
ofifoniy one decision concerning their validity and that
decision -- their constitutional validity -- that decision
2
3
6
(1 7
9
10c
0
PETERS SHORTHAND REPORTING CORPORATION
3433 At4ERIcAN RIVER DRIVE, SUITE A
SACRAMENTO, CALIFORNIA 95825
TEC:.t.PMONE (916) 972-8894,
hn „11
in Sadramento saying that they are ihd fed constitutionally
°Clearly, you hav-ali inconsency with- -a 00 '
of the°United States Federal Court. A?k,
01> invalid.
decision
ft
L.
-3°
4
5
6
13
rf
saying they are invalid. O
referred. to AB 1111, codified in the Government Code 0 Now,"second, Mr. Chairman, the Executive
0 ,e 0
rt„ 0 , P
ft
Officer
. in Section. 11340, et secr.,,,AB,q1121 among the. criteria
0
decisions,of courts relevant to those,statutes. .(1 1,
nece'ss'ity for ca ny 01,/ have here absolUtely no
amendments to theselgulations when their ft% -- c,tthe
very 1\st, their fate hasn 't been decided. Thy may eg;e a„
wipedoc4h completely tomorrow by a decision0cf the Ninth
Cirit,,Court of Appeals. And ou've got a district court
o 0 , - , ,r( -,-,,,„--- 0. 0 to regulations and that those regulatit-,K-S be consist;lantD '
v' .(,
. jith5the 'laW4 cof the state .as embodied' in statutes 'add
it sets,foth fbr enacting regulations inc'the state, ate, 0 0.
that there, b;3 ;a necessity for, re411./; tigns and/or amendments
14
•
0
Mr. Chairml4h, have 9imore substahtial statement
that goes into these issues that I have raised briefly now,
and I would be happy to delve into them:in a little more 1 -
detail if the Co ission So-desires, or I,Would,be happy$'
toAust0submit that's he COmmissiba. 0
COMMISSIONER McCARTHY: M y I ask -- has the
Commissipn staff seei.he full antaaysis of counsel 'for WOGA?
, 0 d MR. HIGHT: Dennis Eagan, :Deputy Attorney General,
PETERS SI4CIRTHANti RE001:2111■03 PLIRPORATION 343•3 AMERIdAN UVER SVITE
SACNAMENTO, 6ALIFORi.MA
TELEPHONE' (916) 97121-6-44: a
15
16
17
18
19
21 n
23
24
25
0 //
that WOGA has prevailed ana that the federal district O 0<2
court here in Sacramento has deciared,these regulations
0 U
lk
i2, 0,
o can, answer that guetion.
C .MMISSIONER McCAOW: May we hear the
from the Deputy. Attorney General? 3
5
6
7
' response
and they also brack the Written subtission which .was
made by WOGA at that tilue. I haven't per nally ,e h
herethis morning.
prepar!edf tp
/(1' Mr. ZaineS,
What the remarks and presentation were earlier?
MR. ZAINES:
COMMISSIONER McCARTBY:0 What is the status of the 0
case before the federal° cou22t? 3 Mr. Zaines has indited
constitutionally, flawed. Is7that your,perception of it? ,
MR. EAGAN; I would like -tO cover to points J (z, 0
by way of response.0 One, to give e' Commission an!overview
the written presentation that“,iir. Zaines referred toa
It :;sounds like something later
that substantialay,Qin line with
It is, Mk. Eagan, and f think 0
0
8 C
O
12,
13
1V
016
17
18
23
24
25 ,$
0
MR. EAGAN:, From what I've heard of Mr.
remarks this morning: r y
presetation made on
so an attorneyawith McCutcheri, 0
they track
behalf of WOGA by Betty Jane Xirwan,
the July 7th kparing,
substantially the oral
Zaine c' s'
00"
nificant addition is-the discussion fe;
1111'to the proposed amendments
probably the only S —
of the 'significance of
today. , -
U
PETERS SHORTHAND REPORTING CORPORATION :ii433 AMERICAN RIVER DRIVE, SUITE A
G SACRAMENTO, CALIFORNIA 958F5
°TELEPHONE (916) 97241E394-
0
The case was argued „
last January, and Isla ,(lon 0
is, Judge Wilkins
and we are, hopeful 0 -1
0
0 decision has no immediate =
that the Ninth. Circuit' wi1(1.
his determination.
of that
effect,
Dverrule
up llG
ci
0
0 O
0
= 25
. of the litigation and the status reF-)rt,, and,,,sdcondly,
to make the,,,;point that that is essentially irrelevant ,
before the CommisSion today, which' is my
°primary point. But in re.vons4 to your first -question,
approximately a year and a half ,ago, Judge, Wilkinsr the o 0 0
federal district court judge here in Sacramento, did rule
in accordance with the contentions of WOGA in a lawsuit,
finding that thosd portions of Article 2 that pertain to _ 0
the volumetric leasing alternative are invalid under 0
o
certain,cited provisions of the Federal Constitution.
The Commissio ,appealed arid maintained a ata of 'the'
injunction thaj Judge Wilkins issued. What that,Mean$ i sue,
pending our r ;$ult out of thd Ninth Circuit Court of „
; 4 Appealst, ache Commission' can continue to collddt and,
negotiate new v9lumetriC rentaIS. So whatever =the result
yet have a decision.
The second point -- and really the more important .0_. 6
one fr purPOSes of. what is iDefore the Commission today • •_ , .
--, no .
is '7
this. this. Even JUdge'Wilkins madesblanket rulint--tha
0
,.
quoteN,,,
'the regulation's the regulations of the Stat14andsComx4ssio,n 'o
- = .
unconstitutional. The lawsuit filed by WOGA is aoyerY II ,
0 0
O
21
22
23
24
3 to whatH.s
Q
PETERS SHORTHAND REPORTING CORPORATION
3431 AMERICAN RIVER DRIVE, SUITEA
`0'sAcRAMENTt3, CALIF0171NIA 9Esze,t--'
YELEI3tICINE (p16) 9,7g:'-8904, 0
22
23
COMMISSIONER McCARTHY 0
MR. ZAINES: ust aothe
(-, clear on, what Judge Wilkins when-he :stayed his
19
20
21
Yes.
record is ',absolutely'
,injunction. All he did was -
order appended to my written
- I have a copy'of,his
statement that I0 willsubmit
today. What he didowas he set up an escrow account so . , could obe
25 that while this'matter was being appealed, monies
0
74wir."."17, .17.161•47r..f.,."
29
If
on certain aspects of the'
volumetric leasing alternative.
is merely one aspect of Artl-le 2 which covers many
other things, And those other things() some of them, are 0
realty thy' only subject of what isloeforel the COmmission „.. on
y4(:f2:k way of proposed changes.' Ther4s nothing
whatsoever being proposed or changed.regar)ding the
volumejric rentals', which is the source of this litigation.
COMMISSIONER McCARTHY°: Mr. Chairman, if I 0
may -- Mr. Eagan, is it your statement that the proposed
0
11
12
0
now before thia-- CoMmission do
po#t -- the issues C;hat were
court?
MR EAGAN: Yes.
regulations pending
not touch on the focused
before the federal distrA:t
0
14
15
16;
17
18
amendments to this general 'area of
COMMISSIONER McCARTHY: Thank you.
ZAINES:' Mr. McCarthy, might I respond to
Mr. Eagan's remarks?
0
PETERS SHORTHAND 'REPORTING CORPORATION
M.„4:12 AMERICAN RIVER DRIVE. A
8AcRAMENTD, CALIFORNIA 96825
TELEPHONE (916'1,0724,8894 ,
„
may3oe amended {to
e the issUe
13 which are <fo0nd'constitutionally flawed
14 remove those flaws. So even if that we,
0 9,
PETERS SHORTHAND REPORTiNo coR ,DRATION 3433 AN,I,ER!,,3AN RIVER DRIVE, SUIT
SACRAMENTO, CALIFORNIA 95525 0
I, ) TELEPHONE (916) 972-eSO4
0
0 30
put„ into that escxowTaccount; and if WOGA prevails pn the
appeal', the monies will be refunded. If they doWt',,, the lJ
monies will then, go to the (state. There is a distinction,
0
to be made between staying the injunctive effecO, staying
the ability of the state to collect these, and staying the (7
6 Kpre&iledential effect of what the judge0has decided . 0
7 (don't know if Mragan has led you to believe anyth,
8' else, but I want to be sure that that is clear for tr 1
COMMISSIONER McCAWHY: Thank you.
ii Mr, Zaines,- of course, any statute 8r,any
set Of' regulations promulgated and based upon a statute
15 before us, I'm sure you're notsuggestipg to this 6 6.ii
16 Commission that we could not try to addresstheflaws , fi
now c,,-
17" n in the regulations. Are you suggest4g„that, as ,
18 the regultiOns would be amended, it thtS,CommiSsion
19 Oopted the proposed amendments before us today, that they (,),
20 still do - not,meet the reguirements,of AB 1111?
MR. MINES: Yes, and ',believe I can provide
() 22 you with
)3. sub (2), sub (13), which is on page 4 of the Strike-out
'24 underlying format of the regulations -- actualiy, I th ink /'
25 you need to lo k at sub (A) and sub (B).
0
,•••■•■■••■
Goo
11
9 record.
an example, Mr. McCarthy Looking at Secti& 2003,
)
C
ii
21
0
-3
4
0
20
21
°2Z
_3
24
25
A ,
yJ
EXECV,TIVE OFFICER DEDRICK,; Excuse me, is that
,
Page -- o 0
CHATMANCORY: 104? fl
MR. MINES: I'm sorry. I'm looking at the notfuce6
(7 6 Exhibit A in,the notice of today's meeting.
EXECWIVE:OVFICER DEbRICE: FOund Page a04? ■70
12
13
15
16
17
18
19C
10
/ - it bh per lineal foot," 0A
I bel4Ove, as I understand. -'-6
proposed 2005 ,which is Ater On op page- -
-it,w, ill ,— , 0 II
then t1 Commission "the discretien to,propose v4riabie _ 0 0-
is
for diameter
M. ZAINES4 Yes. 21
°you see that the change, going' from IA) A:c4B),, ;// to strike Out the "two cents4aer'd,iameter,Och pec
6 . lineal foot" and change that to an:openended, "a rate
Sec` ,A4on 2065 --
give
rates per diameter inch per lit al foot. SOwhat this
was
does is it goes right to the section Of the reg ations that
° (20 eclared invalid and it' attempts to change !hem.
All I''m saying, At. Mca-4.;thy, is this Is at
_,, . \ .- ,1
best premature ante it may be. a ,toal wastedceffort0to go thrbugh" this eXercise.- It ispremature because there °
haSn't been a Final, resolution as to whether you can have
' ) ' this basis concept of charging on the basis'of diamete 0
inch per lineal foot, and, if' indeedthe Ninth. Circuit
affirms the difotrict coat and if the, Supreme cotirt takes
PETERS SHORTHAND REPDRTING CDRF'ORATION 433 AMERICAN RIVER ORO/Et SUITE
BACIRAMENtd, CM-IMF/NIA 4sa2.5 'TeLeplcirit Vai61.97-2-aag4
that appended to it, the underlyingforMat
0
9
'it up and' aiffirms asAvellr then' you"wilVh7eno regulations
MR.'EAGAN:May'i be heard, ,j1.-est:Onresponse ,
0 3 make. , 0
i ., 0 • 0 o C
• 6 that the Commission uses- One, which is the C.? 1 0 o 0 0
7 Most time. honored, is merely ('appraising the fee value' . , _ _ , . 0 - 0 '
" 6 of'the property%to be leased, and then appIyihg against' .=.
1 think it underlines' the poi I was trying to
There are a numbgt of types of leasing formats- °
0 c? 9
that to get ao,'Yearly rent a rate of'return. °Let's say
it is determined it is one ,percent, So if You had a
hundred thousand doll4'r piece' of propertyr yoar yearly
rental on 6that would be $9',006, under, that approach QF'
Th# has° ben e2rounda lOng timeeThat orm ofleasing, is , 0 , not the subject of the litigation., In adt, it is a form Di P
lr
that is hardly endorsd in (its oha,llenge tothe 9volametric
° '''',\_A,. rental xequlation),.. -
1 ,
I. D / c_',; : ,
17 T:iee,s/go down to the next one. The diameter' " _ - __•., _ 0 „ 0
itr, inch per lineal foot'means charging rent for pipelines.
19 'Again; that is something that is not,beingchalienged in P 0
26 the lawSUit and has been CI
around in terms of the
0
4sion practice" for manor, manyir,ears, prior to the in 1976° of the volumetric rental aitern\'!1 ative.
says Lhadyou can look at -the size and length of the
plpeline and chargecrental based on that, regardless o
any consideration of what volupe goes 'Orough it.
21
22
o ,23
2.4.2 0
25
c.
PETERS SHORTHAND REPORTING CORPORATION '/
3430 ANICRICAN RIVO PRIVE, SUITE A
SACRAMCNT6, 95a25
TEL0PHON (4{6) 972.aa94 0
0
'33 0 0
-
CHAIRMAN cORY: THat'S the, only change thatc,is
made, The'volUte remains ponstailtoif You look at:the
Strikeout. The language of the VOlUmetrio is not' altered.. 3
now is the question
11
12
13/
14
15
16 j 17
0
,111
19
20 li
Y23
"24
10
WOGA for all of,thisr.), //' ,6( -// (Laughter.)
C there, is -- that is, as I understand 'it, the
volume being charged, , tNk0
CHAIRMAN CORY: Wrong. (C) is, the
0 charg0.0,- . ,
MR. ZAINtSi -You are correct. MR.
correct, Mr. ChaIrMa4
CHAIRMAN„,C9n: /And since - you made
I presume you will refund tli- money that you
MR. ZAINE86 Mr. Chairman, /*L, I think thoughl''
You are .
that error,
charged
basis of the
VoluMetric
C)
just
in ou
C)
papers anewat is-being,appealed J7. of
„ PETERS SHORTHAND REPORTING COF2PORA.TION
343 AMErvIdAts1 RIVER t39IVE, SUrre41,
SACRAMENTO. CALIFORNIA: 96925 0
oTELEP116NE (9,16) 972-6E194 6
0
O
trying to recall the'litigatiOn as it has been proposed /- to the Ninth Circuit and to the district court, I don't
beiik that Mr.lEagan is conreot in
' stric y „2,ne islue.
limiting itTh to
I think what'we have sai
9,1 subsection' 2, and subsections (A) and (B), it looks, like
7 0 ZAINtS:
8 chang thatis proposed here, Mr. Chairman
Maybe I'm misunderstanding the d 0
Looking( at 5.1
.p, _ EXECUTIVE OFB''iCER, DEDRICK: That,is correct.
3 CHAIRMAN CORY: That's whyA'i rellly-at 'Ossr, ,, . 0 . 0 , --'' we/.; o
6 1.',L.r .00 Zaines f as to what 'it is you're ,,speaking 0.f..
23 while ago, and I apologize for not answering it directly.
is being prpposed today
contravention of AB 1111. ,
0 0
0
PETERS SHORTHAND REPORTING' CORPORATION
3433 AMERICAN RIVER DRIVE, SUITE A
SAEIRAiv'tENT,P4 CAL4FORNIA 95825
TELKPHON1E ISIS) 912-131394
24 , You.asked, if what
25 if I still be14eve it: 1s in,
00
0
o
to the value of services directly provied by' the state,” ) it
0 „ '-\ is ° A
0
That is whatothe Constitution says has to be provided, ,6 0
and that I think is still in controvery here.
MR. EAGAN: I can only say that I disagree with
the char cterization of the-scope of the lawsuit. It has 0
0 r,
0.■
. .
. o 0 ,.
,. 0 0, 0 whether yoU c‘set up the sort "of charge. that i'i; not es''
'0 ,V, -
,
',. , 0 • „,
■ '' ■,,,,. e ,
reasonably related to 'the value-of the service being,
by the stiate. ThatisHthe-testthat:the three 0
commerce clause sectiOnisotha I referred to earliet C.'7,' 1r.
C'
proposed. ° 0
0, ' . , , ill
And we said, as 'Mr. Eagan, notes
3 provided
"(Sure. If
you ant to'asseri s the percentage basis based on the,value.
Of the land, that "fine, bueto look.„at bther_ - things such
as the volume going through: thediameterinch of a
10 particular p1peline,going through, those ar% not rela e
11
12
13
14
15
from th13 inception been focused on the volumetric
17
18
' 198
20 "volumetric. o C7
21 MR. ZAINES: I think, Mr.
22 back- to the questions Mr. McCarthy posed to me a =little cl
Chairraan this comes t".
0
0
rental alternative.
CHAIRMAN, CORY:
from the industry talk to
I ha - yet to n4ye anybody 0 0
me abouto anythin other than
0-
C
0, C
C
0 ■11
2
3
O 4 pendiAg law.
0 I think we have got ,an. issue as to whether
prpposed, is,, and I'm Saying that this his preillat9Fe
and that it may bp,' if the Ninth Circuit affirms and. S--,%/-7
0 0 AB 1111 sae's that the has to be a-demonstration D'f hecessity and' there has to be a demonStration that there
is no conflict, i.e., that there is a consistency with 0 a
5 c>what is
the decisionoof the court stands all the way up the line,
it may be absolutely unnecessary., Il
CHAIRMAN CORY: The changes that are being made,
10
IT
12
13
14
15
16
17
18
19
20
21
22
as' I understad it, do not relate to volumetric,* the
issue before the court at the Ninth Circuit is volum tric
MR. ZAINES: rr. Chairman, as I understand it,
the changes that are being made are part of the ,challenge
0 in that' what is being challenged is a levy on coMptmies
crossing state lar;gbaSed upon other than the reasonable
value ,of the serVices provided to the state.
C91RMAN CORY Ithink you are misstating the
issue before the court, even from your viewpoint. 1 don't
think it isoservices provided to the state: I think it 0
is servides provided by the state 0
MR. ZAINES: °Excuse me. I misspoke, Mr. Chairman.
o. , -
It s- sOrVices provided by the state to the lessee., That t
23 is what 0
-24 CHAIRMAN CORY: Td- My,knOwledge -- and I haVe
25 ' had various people from WOGA,0Variousttembes dl WOGA com
0 0
0
PETERS SHORTHAND REPORTING CORPORATION
3433 AMERICAN RIVER ORIVE, SUITE A
SACRAM`ENTc, CALIFORNIA 95025
0 TELEPHONE (916) 972-8E194
0
0
O
9 into. my office. I have yet to hear any of themt .in my
recollection, argue, that the diatheter inch per lineal. 0
3 foot°was riot approp4dt;e.
MR. MINES: Well, may be, Mr. Chairman, that
07'.
5 in 'these, discussiong that you have had, it is just an t. , ) 0 0
6 economical way Of referring to really ,;what the' court isst4.
7 1 is, but can tell, you what the basis of the challenge is,.
4
0
your standards? 0 0 9
MR. ZAINES: No, not necessarily, Mr. Chairman;
CHAIRMAN CORY: How is ito not? 'We are prOviding
, MR; MINES,: 'Right. If there iS an empty piece
of and that just happens` to by lying there and,italas
a certain value cr-
8
9
10
11
12,
13
14
15
16
17
18
19
20
21
22
23
24
of easic logic?
MR. ZAINES : z wouldn't "question that no,
O Mr. Chairman.
(,CHAIRMAN CORY: Isn't that in conformity with
that the coMMerce clause cases say there must be a
reasonable relation beteen the value of the services 0
provided by the state and the --
0 CHAI41AN CORY: QueStiop, the bigger diameter the
Pipe and the longer it is the greater amount 6E land
is consumed 'by it? Would you guestion: that jtiS x;in terms
I)
O
„25 E,'HAIRMAN CORY: 9 •
All land has to be someplace, 0
PETERS SHORTHAND REF5 TING CORPRATION rf o.
CI
d433 AMERICAN RIVE CdRIVE SUITE' A
SACRAMENTO, CALIFORNIA 951325 00
aTELEPMCINE (910 972-8E194
37 01
q but gO ahead
..°(LaUghter..) 0.
,11 :, , 3 g
14. MINES: .NIA k \Cnairmanb percent nine ercent c 0 \
e, 0 0 ,
,,) is
4 formula "that is also contained in these regulations as
an optional metW'is ,a'formula aat relates to the'Value V
services that," Are being provided
0 7
6 of land, bhe -lue of
by the state. pr‘oafu4 a pipeline takes up two feet or
8
9
10
N 12
9()
because another one 'bakes up our feet, the lease may (1
cover a larger, chunk maybe a quarter of a mile, wide,,
whab difference does the diameter_oI that particulai.
pipeline that, happens to ,be goinacross that land make?,
CHAIRMAN CORY: It takes up more room.
13- MR. MINES: If the lease is for the whole 0
, 14
15
16
quaAer, the'whole,Auartermile then theoi.aiue ,
_CHAIRMAN CORY : There are t‘O alternate
ascertaining hOw much'land is'donsumed: 0
ways o.
M1. ZAINES -: Mr. Chairman, ]r submit that the •,
issue befdre the , court, having been involved in the
briefing of these, is whether there is a reasonable
-relation between the services provided by the state r-
22
23
24
25
wnile your 'Impr6saon may be that it is strictly, the
thioughput issue, I believe that that is"no(c what is '2/ 0
being taken up, on this appeaf and that was nor't, what
was 0 0 0
,CHAIRMAN CORY: My position is .t.(at WOGA's , 0 °
PETERS SHORTHAND REPORTING CORPORATION° 3433 AMERICAN RIkR DRIVE, SUITE A
SACRAMENTO, CALIFORNIA 95325,
TELEPHONE (916) 972421a94 0
O
0
o. =
n.
0
110 ,
■■ 0
0 "
TrIWT -11
a . 0 0, - II
a g 0 0 • D
cc
L...„ ..0 , ° • k? ", °„°7)0 0 ,f---0.
('1 0 C?
o and ', ,■,,,,.. _ 0 ... Q
c member clients and the representa4veS and the t'epreSenta= - 9 , t _Q ,
,, 2 tives of WOGA , to ,my knowledgehaVe never questioned -.-- a 0. _ • a /7----,,
a , „ . they
0
and, In fact, I belieVe they havb paid, not into,prOtesf'
c,, a ,
a
%» 0.
5
6
Ci o . .
°
of"the appeal that is Penand. before o o
"Zi
17 CIIAIRMAN CORY;„ Not is a question of-4-;
117/ 'th fitacts 'that exist in thesw6rld not_ the appeal. 0 °
o-o 19 (=, It ,is a question of whether
an or pot your members are paying c,
20 th<fae fees. I believe'they
- are.,_ PP' there anydispute
„ wha., i,, before •the''cburt, or „th /,' court, °a's WOGA and
0 0 1 9.: s
\\ 0 , 6 6( b 00010 ' 'everybody else, is ,,not plarSuing"their economic interests. „ ,"0 o , 'cry e 0 0
g' 0
o
1 1 „ And the • cdrilbentpc%rar eous construCtibn( ()of the„ restiCiea in ''
0(::6 . •,,-
. . \S ''f) 12'' p,ayng the fees Would. indi'cate that”, the think-that these e 0
,, ° a . ,?
0 ,13 ia;•es--valid. , 0 . •a0 ' 0 e,„ N!.''' 0 '" E, C-(--A
, ).,,c,.r-
(;14 MR. °Z.6111)i 8: Well, '''•apparently,0 Pir ,''. Chairman„ ,
15 gwe just have a d a reement as the factual .0postnXe :),-,°----i;
0 1 :014--not into _escrow, but paid directy - to thP State :Of o
0' der
, 0 California, diameter inch Sper lineal 'fobt. fees.. We have -.)
c-.7 collected th-m; we have spent them. They are not in 0 Y ,
0 escrow. They, ate--not pendAnig before the-ourt, I think A .....--\__ i , , . , \
you are factually ;ro4°4r:assertion that that is 0
o °
0
CI
O
0
e )- - •
0 ,
21\ ° cori"the matter in 'the View, of the''IStaff?,;'• 0 . ,) , ° 0 0
...., ” ,-
„ EXECU'TIV'E OPF'diCER ‘.-9DRICK:: No. You are c', 22 0 ,. °I ""
0 :0 o o , .%=0 o ,'
tr P , -
. 23 0 `correct, Mr. Cha<Irman: , 0,0;0 ;) (0 ,-
', SL,
24 OAIIIIMAN dORt: '" Yourr2-tnerneerS ;pre d'urrently paying), ,-,
25 rift s.i,-,11-to t}1.6 escrow, but into o the „State General Fund,
,%8
of%
C
0 a— , 6, 0 0 U: l)
.i.,,,, .-,` ' „,..
f I 0 (.1 '• '`- C ,,,,' :. ,
0 , .
. . .
' --. „,,,fiw.,0;rERs SP.IWITHAND REPLIiiTING 06RPCIllakeidk„ , ",,- " '„ -1'' ,,' na:.1:,4, AME6(t,9AV, RiVCR,c,ga0:, SUI'M A
0 0 ' sAtIRAMZNTilecAL-irtiONIA,, 9,582.5 ' 6 ,„!,
, TeLEPHL-1N916) 9372(•01394 '
q ° 0,0 0 0 , ,,, , C`:-)
, 0 00 o o
:.fir , .. fi 0 h __ 2 '.2Lai::of-3-''
the 0
fl
00
0 0 0
rental Payments bdsPxkupond-tameter'inch per lineal foot, c7 7'
I 0. 0, 0
a 5 presentation here -- 0
CHAIRMAN CORY: Xhejpoint
trying4o make
from= that is t at tiothink the statf, 0as,I°1Ockat it,
tried to only effect those changes ih the regIllationkon 0
those ? items which are not in dispute .= 00
EXECUTIVE 0OFF/CER DEDRICK: Mr11' ChaL6an, in
,-)4ddition to thatl tIleoillt AC)„1-1as-alrea4ybeenprovd ,„
____ 00 c ____
by the Offic6i0T.Administratiye Law.-0-THese are changes. 'c,"■., cz
that are brkught about b recentiditions. Thqjare u 0-
(p7 , -----77":? ,.,1 . . ,, 0,/, )
amendMenta to the earlier OAL"approval. V,,,k0will go in .:,
and go through the .rocess with OAL on thede chUngev. 9
, :0 , a
14: But anything that\isn't changed-has aiready.beencapprOved' %
ki4 by 0OAL.
Il
12
13
14,
15
0 0
MR: ZA NES. ,..moat,a loss, Mr. Chairman. I 4 a
can't contradict thatG
tN-4t there is ,Opiece
• The Simple
of litigatio
, '11 m making is , e ding, and myr
C.7
0
CHAIRMAN CORY: What is the, wish of
• 19 Comm ,aftioners?
0
COMMISSIONER McCARTHY:MovejadoPtion. 0 00
, , ' 0 . , 0, *, %, .-, ■,
.)1 0 . ''> ,r a '-'''')
. . COMMISSIONER ORDWAY:q Yes
calkIMANpORY: We have a motion and a aecond:'
0 _ \ . 00 .c.,
, r , e ,"l ,
that the fegulation S'a adopted'. Any; quest , . 0
,0 0 0
C
Without objection, that will be the o 0,.
Thank yo(i,o--,,, s,ir. a rz, __,,,, .-:,.
O0
c)
0 o 00
Ly PET RS kttJD REPORTING OpeRPORATION
.1) 1' AMERICAN RIVER DRIVE, SUITE A
, SASRAME:IVTCI, EAL:FOR't:11A 94,1326
TELERHONE '(9,16) 9';')2-SS94; 0 0
9 c7.›.
20 .
°
O
j
6 0
0
1-7
Mk ZA/NES: Thankyou, Itr. Chairman.
0 'CHAIRMAN
an easement over 1 0
which we have been
, CORY: Item, 23, appoval of the sale of
0
c
.5 acres asll
--li d
is a road'
leasing to the -- 0
Ca
EXECUTIVE-OFFICER DEDRICK: Forestry.
CHIMMAN CORY:, Anybody in the audience aon this? °
11 °
Questions f._j Commissioners?
Without objection, Item 23 will be approv01 as,
presented. 'e;;)
Item 24, approval of the, sale of 12).2-acres in
San'Bernardino CoUnty to CalTi.ans, which we have been
leasing to them..
Anybody in the audience on this?
1/Questions from Commissioners?
Without objection, approveLaS presented.
16
17
14
19
20
11
12' O
(.13
tat,
25'
Item 25,!-- this authorizes-the staff to negotiate , -2
-
°the acquisition of landS. This is consolidation of lands lb
in S40Diegg County school-lands under manageMent; is that (5
o correct?,
MMCUTIVE OFFICER DEDRICK: Right. Yes.
What we are asking, 24,r is°an authorization to > negotiate between private -parties for the'benefit of
0
„.•0 „ !I _ , ., ,
consolidation of school rands and access to other Sch061 0
., 0 •.
lands-, The San Diego cone is one-that is,itmediatejY b \fore 0
0 „
o 0 . . . , us but the authorization is broader than.that., °t he , t.,
0
0
0
PiTE:FiS SHORTHANX) REPORTING CORPORA'T'ION ' 1 43 AME(VEAN F/10ER DtqlVt ,..91..1/TE
EACFTAMTer, 6ALIFtipo.tok 950ZS
TEL ONE (916) 97,A-13991 c0,
CHAIRMAN `CORY: 'Anybody in 'the audience :oh this
0 Questions of CommiSsioners?
o. Without objecttl?on; Item 25 is apprOved
0
Item 260,--,, the'approvalfiof the sale of 12.5/ ,Imperial COunty -1,:p CalTrans. „ 0
) , ,, .,, Anybody Anybody in the-audience on, this ' item?.
k . 0 0 ,
Questions fram COmmissioners? o
10 Withoutobjelion t Item 26 is approved as J ,
01- 1 presente.
12 Item 27; issuance of a 'patent to Mr.„ Joseph''' 0
0)
0
AlwOnder who "had, originally fil6ed for thi.s,in cr911
and with our crack 'Staff
(Laughter.")
r`CHAIRMANO Ry: ,,,i
. (,
tt.' 0 „
' ' " 'd' ' We are now ge ing around to this, expe ,itious , , Ci =,
Laughter.) o o 0„
/720 , CHAIRMAN CORY: Is thete anybody-in the, a4dien elb
21 , who has been ,hrer'standing,in line waiting, for thiS one
(Laugh1.41..)
„ 0
716)
17
is of this patght.
job
efficIen
Issuance'
0,
-- doing- theft normal
ocORYA;, Questions o
objection', 'Item 27 i 0
ti
,;25
23 f CoMmissioners?'& .
s approved as
g , 0
0 v7
e
o PT,ERS,-, etitti411-1ANIS,.RePORTIA:ilti 0‘"I RPORA,TION
' (.' ' -• 1 '41,4EFiiCAN-,RINiii*FtDRIVE St-iTe -"A ,' 0,, , ,, „. 0 ,, „
ACFIANIEN133 CAL&bFtriiii+,95$1,5 .,,
,, (_,... itt-ttilitaNt N't&) 9/2.,SEI.k. 4 1 „ I
o ,,,, s o 0
0 f . '
V
C.;
:P 0
0
U
0
0
02 , Item 28 --dthis Is'apprOal of terminatifon
0
Ofoleases PRC 4685.1 and" 4686:1', And°the issuance of
3 new leaSes. This „is sometimes nnoWn as the Anza Liquidating
4 Trust, Pan, hd#iefully, Will 4e the last,-- rz
MR.. HIGHT: LiquidatIon,
CHAIRMAN CORY: liquidationof'Ue Anza 0
in '61G, :p40!,/endo on O Liquidating, Trust, Is 14ere'anybody
'
7
EXECUTIVE OrVICER DEDRICK: He ".has vanizhed. 0,
6 , 1\
MR. RIGHT: Why don't we -- 9
V
0 q EXECUTIVE OFFICER DEDRICIC t, 'Could we put this
0 , 0 O, : 4
to the end? , lc.„.... over
,. 10
0
PETERS SHORTHAND RCPbRTINdCORPORATION d4:33MERICilkId RIVER DRIVE, SUITE A
SAtRAMENTO, CALtraNtA $5132S 6 „ vErt,1E1,03Hi,\NE (016) 9724113940
1,0 42, o
-&71e4Air
0 L
-
this 'item?
)
r'---- odestiotts of ComiTontrs? . , 0
WithouUt objection, Item 28 iS approved as
presented..
r 0 06 Item f28 -- this is an amendment to pRe 4977.71
of pXXON. Is Mr. Taylor here or lias his
0
CHAIRMAN CORY: We will put this to the' end of
t1 agenda so „We dan check
Mr% Taylor from the AG's office Wanted to 0-
21 u "check something to' make sure it was okay j5efore *e
1)
8
9 t,
41.
12
13
14
15
22 , proceeded. )go we will ohold in' abeyance Item n.-
23 Item 30 -- City of cEureka and the Oregon Coast
24 Towing Company, appfoval Of lease'under'Granted Lands in ° -•
25 Eureka. 2:s there anybody in fie audience on this? 0 0 .
' o
70
Item 31 ,6-
-- approval of othe assignment of° 75
interest, Mr. Durkan to Exploration Engineering,
0
li
, 0 Without objection
COMMISSIONER MoCARTHY: He is 13
Often, we ,,ou4it to 0 14
15
16
0 0
0 "
'percent
. Inc.
0
Isthere anybody in the {I audience on this item?
0
Any questionsommissaoners? --z 0 0
1
,2
3
'4
5
7
8
presented.
0 o
9 0 COMMISSIONER McCARTHY: CoUld wemakeMr.,:Durkan 10
011
0 1 t onr honary mertibe 'the the Commission?,
.?,Laughter- )
0
,
18
19
, 20
21°
U
23
o 24
25
0
12 Jo
CHAIRMAN
°business deals ,
party.
are going to I)Ave
0
a request from
a
em 31 Is \ 0
0
0
0 hae a gc4ng away
P
Without objection
0° IteirL32 is ,
drilling operations on VRC'2879.
the audience ion this item? „01
,
,'Apy qUeStiqns of Commissioners? „. n °
° W 8 ithCtt objection, Item 3s approved' as ,
- „
Do lire'bave,-anybody in , '0 0
Union, Oil to defer
PETERS- SI-IORTHki40 REPORTING CORPORATION
34 i AMERICAN COVER p(41,,"je, sub ,E A
° S47:ZCRAI■41):NT0°, CALIFORVIA 95!.:125
0
0 ,TE LEP ApNt (916) (972.8E194 00
0
1
,
0
Questions of Commissioners?
Without objection, 0„
Item 30 is approved as
0
(Laughter.
have Ibme sort of ar -0 t
CORY; I Ifo we ever co 0
CHAIRMAN tORY:
approved as- resented. 00
before us 00S1D Al;
arrangement
clude ou lV
7.17T 11,..C5,7474.nr
44
° = Item 33 ,.is the of the drilling term
4 for the geothermal leacte 02 Aminoil in,The Geysers,0„ .\c 0
6 0
' c , 0
0 0
'4 °Sonoma County. 0 - ,6 0 , 0 ,,? ,, a ,:,
5 Anybody in thaoaUdieppe on this item?,
0 . Questions of Commissioners?, 0
, Without objection, Item'33 iSs''appoved'as
,A''' 0
0, 7,.:.. presented. 0,, g2
.°;' 14 0 \'''. ,c0 0 , 0 , o .°
IteM:34 is approval of three prospecting perMit ,_-/,-/ 0 ., 0'E,
applications,on property in. Imperial CoUnty. This is for
SilVer and, gold, for Mr. Arthur. Baker, R.°S. Davis, and
Cr
,00
0
Stephen R. .E31.uff.s- An/body in the audi6nce on these ...tems?
Any questions of Commissioners?
6rese=a4,d. 0 0 9
02
':.■
,1thout objection, Item 34 .s approved as
,,,,,----,„-------- ,,, -.-:- . 0
,TI g
0 0 . c)
0 , , C,
Item 35 -- Exemptidn'of rpropoSedil and gaS-- -
00
leases frore public competitive bid. This i\'s and .the ?,,-,?, 0 Q,
San Luis Obispo dity -- County property, and they ddn't 9
.0 21
;;
24
25
, haVeydrillIng siTELeciso they almost ctTe to go
who has the,drilling,-site, ,r—
Any questions from Commission&SZ . °0 0
Anybpdy in'th6 audience onythis'item? zt
WithOu„'L, ,objection;, IteM 35'isapproNied as
presented.
somebody is going to infozm us cis 11 o
0
PETERS SI-1014114-43*el REPORTING CORPORATION 3433 AME141CJAWRIVO7 DRIV4. SbITE A°
T, SACRAMEi,11? r.111UPCFPNIA 95E125 o n
' o° ' TeLEPHO-i,le (9t6) 97243139 0 43 0
■, c :1
0(J-1......1....:: .,
Item
0
, 0
'0)
last March. Maybeyau\could read it real,--uick /
read it Areal qUifAcy and will'tell,-yOu what is in it.
Okay`
PP! rrrrwr" 0
. "°"'•-
•
o 0 0
6, ° 0 0
something.. Me,haveA letter I think in our folder, '0 1 O 0 , °
EXECUTIVE OqICER DEDRICR: Wei do, which,I'haye
just received. 0
This'o is a status -E-67put on Esther which was
:8
9 (Bief pause in the probeedings.)
10° e
,EXECUTIVE OFFICER' DEDRICK: ' I'm Sorry. 1174;
ti- made a mistake. I thought tiiisWas:new infOrMatiOn. o 0
12, 1 It is tit new inf6rmation. 0 . „ 0 , 0
13 MR. EVERITT$:- Thisst cameanc:
14 . ,V4ECUTIVE-s=OFFICER DEDRICX: i is new nation.
„0 -/7 virtually demolished -- w^s d&zItclished d -the storms
Ll
li 'Alrright.
16
17
"
19
20
21
22
23 r
0.1.mg toc4, $46 xilllion to reboil island, a4 1 .. ,,
q I/ „ ) 0. havenAt---goti ori al-4 ftirger. . ., .
EXCUTIVE OFF TCER I1EDRICK: vi ° doing j' ./.). d)„
,,,,. ;„ (, .-.- 0 „
0. in the rep4r wort( underan emergency permit from,the ,„
f. ' . :"State Coastal'; Comm sioriwhile,the qoaaWiCommisSion is
, 0 , 0 0 processing a general. permit for_,, his eorgency action.
This letter is an addendum to calendar in your calenar . , ,o .
6 ' ,
G '';.. • , ',)
6 0 e ,'-'--)-i.
0 0
Do the -CoMmissioners have aCopy?
(Discussion. ofd. the r1cOrd.)
HIGIq: Chevron estimates,beSically
hevrt.Tin ois currently
0 0
...., i> PETtliii S 4111:1011TAND RtPORTANIG,91:1RFQ6A7101
0 m433'Ai:AgRicti;N Rivco DRAM', surre 'A ' ' .0 c
sActoAmENTD, caLtrawn,4 95.4-Th ° (11) ,p72.111404 „ 0 "
0 , • 0 .
It'soan informational COMMISS;ONER'ORDWAY:
item. c,--2
0
Oz
CHAIRMAN CORY: Giving some
numb:Ors', I would think.
23
0 0
0
r.
(ALL LL,csr, h.
TELEpHoNE(918),P972-ai3?..4, vs° 0 •
,-, , .0,
fr:7144r4.7.Affr,11:4!PRIrKIrkr,nn'.":71.1"Y .
1?
8/?
0 °
4 CHAIRMAN CORY: Says hgreq: ,The econom4cs for ok,
,T, , rebuilding and restoration of Island Esther are marginal„
o
b ° ,
'0 '
0
5 A reduction in, royaltiessfrom tht present 16.8839 percent V ❑ CY 1, s o 0 - r 0
6 to 12.1,5° percent Illight havp-a significant impact on the . 0 o . . .. 0
t ec/Onomics0 ,f0 . r of returning he island to production. ° Chevron , v
o 0 1, jnncture,with the island2.
<<1
0,
which inaicates what theyare planning to do,at this
is Currently „g
reauction,"
evaluating the economic impact of such a
0 0 0 1\
I'm glad to be info&ed of'this, but I'm
not prepaFed to vate an the reduction of a rayaity-.. o
EXECUTIVE OFFICER, DEDRICK:
10
111
12
13
0 0
time to, grind.throb.gh
15
16
EXECUTIVE OFX0ICER bEDRICK: Ir think
O
18
19
20-
require thqt chevroncreport,to* agai do .0
In the7meantiMe, 5 ot course 0
0orecent information.
yithin thrte montIs .
the staff will's t1=11:td
ook4y, , 0 0
IteM 36, ci
° 'i.
tem --
0- 6)
CHAIRMAN CORY: Any questons? o \\}
been informed.
ApprOVal of
c 24
25e
PEfLRS SHORTHAND REPORTING, CORPORATION .
341:134.-,AMF:RICAN RIVER DRIVE, SUITE Al
SACRAMENTO, CALGPORNM1 95825
ce
0
k_,- - Inforoakiional,Atem, Mr. Chairman:
0
11
17
18
..`•!)
• , o
2 20-degree gravity oil. Anyone in the audience? Thiso i
3 authorization to proceed With the sale, z
0 Anyone in the _audience?
Questions from Commigsionets?
Without objection, IteT 31 is apoved - at
presented-
4
5
6
'oil on PRC 3033 in HuntingtonQLBeach, 631:barrels of 6 -
0
Item 38 is again a prope2led selloff on P„I;
Elwood, Santa Barbara County, of 1724 barrels
of 20.1.
8 O
SoUth
0
Amybody in the aUdiencdon this;'? '
EXECUTIVE OFFICER DEDRICX: ere is One thing
I would like'to call to your attentZon
bothc:f these&
014 Santa Barbara County sales, Mr. Chairman. „ . 0 0
-
15 0 0
ave We h made :1 clear both ih the sale
and in the calendar item,. that the successfulobidder 0 _ (/
n0
must comply With the Santa Barbara County transportation ,
ordinances. = That is clear in a- our leaseOsales, it all
a
19
0 20 _.but Santa Barbara County has been concerned in the past that 'oc
21
22
23
o 24
25
ourfroyalty oil sales that transportation shall not change, a
there would be chantTes. We are making that change --
CHAIRMAN CORY: Explicit.
EXECUTIVE OFFICER DEDRICK: explicit, so - there 0
will be no concern on their part. 0
CHAIRMAN CORY,: Any questions from
o II
PETERS StIO„RTHAislb REPORTING CORPORATION
3433 AmER1,t,AN RIVER ORIVC, SUITE A
9A6RAMECiip. CALIFORNIA 956125
TELEPHCINIE (916Y,9724894
0)
•
o
• ''',777
•
0
bra .0 0 c.
sg;4e audienpe?
2 Questi5nsfrom CoMmissioners? 0
3 Without objection, Item 38 is-apppoved,,adJ°
4 presehted, Q
Item 3-9--as a prPopoSed selloff in Ventura Co, 7.._-,-.,
Rincon of 131 ,barrels ,d day' of frOL6 to 28 API Q.,gra 0 , A ° :
,, .
6
0
8 Anybody the audience on thil'?
Questions' frdm 'Commissioners?
approved AS
It presented'.
day) o
a Item 40 viis is a proposed selloff of
„
13 ElwO6d, Santa Barbara County, of)2870, arrels 0
014 20.1 API gravity oil.
' Anyt)'ody in the audience on 'this?
16
- Questions!' frOm,:the Commissioners? 0 11
Without objection, Item 4Q is aPProved.
18. Item 41 approval oz: thengeological/Geoph :)
19 ' Survey permit for offshore tide and submeroeed lands in (;).
200 Region I, II, III and IV to Tetrh Tech. Anybody-inr,th 0 ,
21 audience on thiw As.
cO
23 I I Without
24 Oesented.
O
OUesti from Commissioners?? - ,
a
Ipption , nItem 41 ?s approved as
f ) '
25 Item 42 -- approval, of Geologicaf/5lophysical . 0 0 n
0'
CZ, —
2
PETERS SHORTHAND REPORTi1 CORR:MA*10N C
3433 AMERICAN ROVER DRIVE, SUITE -A 0
SACRAMENTO, dALIFORNIA 9582
TE,LEPHONE (916) 972-131994%.
0
'0 10 Without objection, Item 39 is
0
Mr.
1
bdundaries wand approval of0pcxoposed1
C)
boundaries
0
ChairlAri. 0
A Tg,
• C2'
°
„ 0 i
ea '1131.1:701POril4t S Intekitationl G
,au ierice o f 1,thiS?
„, stionS caf CemmiSSioners? 4,;„
Without objection,
Item 43,
1 l Survey
this?
C) , 0 0 „ Withc'oUt,lbje'L"on Item 43 is apt,
presented. 0.W=
YclyrArtPelffrt7r-;07"- '713 7,4 w P ,r17141:0, ' • '
/14
AS
18
0 0
21
22
23
;4'
25
1co %
s' eT5ented,
Permits in o 71,t, ; An ibodyr in the audience, on
o ° stions from Commissioners?c,
0o item alSio approves the annexation,
,tem?
EXECUTIVE OFFICER DEDRICK:
CHAIRMAN CORY:
0
/
oved
CI
Item° 42 is approvedl
11 <9, q
--, Approval of C;eologicallGeophysical
the. canib re§iens for Dames and. Mo9re,
0 „0 /r fc9unties.' This ,is thWsubvengion list for Fiscal !p3/84-
13' 10- 0 0 c..,,,D 173 p
.0i) Anybody in the aUdIence on this item? . 0 l
QUettiolcs ,Of-11 C6mm,issidners,?
,Item 44--- we haV6 the Subventions to cities and ”
AnybodWin the audience on
, Chairman, ,this C)„
'.."'.. .■•••••■■•■■•■■■,,aa., 1,
ItTEFFirLiiH1:1RTHAND REPORTING OCIRFORATI N
111 r1, 34330 AMERICAN RIVER DRIVE, SUITE A c.
SACRAMENTO, CALIPCIRMA,\968iS ol \S
TELEPHONE (916:)7,9Tz-ear94 0
11 ci
a 14- objection, 4 is approved aS
00 0 D
"'presented.
Item45
are in Order? ,
MFG HIGHT: Correct, M
annexation, 330 acres to Redwood City. The
5
6
0 11
8
9
10
11 s
12
13
15, 0, --
16
111
19
21 0
22 in 4,xecutive'Sej!ssion and also, foz( the record, you 2
\∎ ,) International Partners and King and yof--, ns. Anybody. a f,
the audience on tilis? ° \ ,/, .e.,,, 4 ..,°) II g
Questions from Commissioners? , 1 , ,
zWith,54)f
objeption Item 46 fs „ c,--, presented.
,-. 6 ' 6 Item i7 -- Approval 7, 0 ■ ---75
-' settlf settlement a0eement.coverng portions of Long Island ement ,,,
,,, port ;'ions 410, 0 di ,-----,
, and the Sacramento River between r- ,..., , 0„....-----7,----- ff
one °
NR.
:, 43, the , .- HIGHT: ne„
c
, A „::fihAIRMAN CORY: Maliqmski anti State. Lands
..-?ommission. Q ‘,..,__, ._., i '(:). I §
, 0
L--,b —
M. BIGHT: ,, No, Mr. -Chairman: This.Wa? c/ ssed
'''---/ 0,
17
cA "N3C0AYt, Y,0,sk,-41r .boundary sand annexation: 0
-EXECUMM OFFICER.
0 DEDR
tICKi u4nd'annexation. li
N. . . . . o, , 'CHAIRMAN CORY Any questions of any0of-the us
t A - . ,,,, )n Al 0 .,-\ -, Cbmmieeioneks or anyone 47gth audie,1:be,7
,,,)- - 7 0„ q - .,,A .0 o .,
''%f - ,-,
Without.pbjectionr Item45 is approved as f”
,Ipproved a.v” '
o ,v Of a litigation (and,-atle
. 1
1
acting 80 Land Bank Commissioner
EXECUTIVE OFFIER DEDRICK: As well as Stte
Lands Commissioners. O
,./ 0 presented;.' ,g
I:teak:46'7 Approval of assignment of:rig ts- PG .
f.,'nd obligations'under a'comlrOmse settietlent and exchange
agreement on,&28 acres in remont, between Fremont .
S W Ri-HAt40 R EF'131411iN 1.3 RP CI FIAT1
3433 AMEWCAN. FtIVER Divve, SACRAMINTI:b CALIPPRVIA 951325
TELEPHCiN (916) '?,..i2411394
CoMmissionerS.' , g - ( °
)) Item ,48 RegueSt fdroauthorization to elceoute
r___r,HATRMAN CORY: w'S ,
Vklle have .a 'fed McponnelV. 0
• q o ,
ii
that 'the option'0 sir?
ti
item or do you want ue-to'approve it?
f9) M9DONNELt;-:',. Is
(Laughter .)
.d 3n this was CHAIRM2 CORY:
V. 0 0.,
77 77 .!
, v • 0 ...,9, is______ter
. , a q 0 - ,, -. 6 ..
0 °NIGHT: , Yes.
- :r CHAIRMAN CO-Y: 0, •le 0
on this item? ;
• - 0
Quest7;,".-s-of 0Commi7loners7- 0. 0
Iterd 47 is approved a
= (1 . 6 F6cesented, ,- both Tian 4 CommissionerS,, and Land. Bank
0 (.)
0 , . and record", exchange agrOements e„,24 ,acres in outli. Vallejo,'
,5 ..
(kith' a cintributio ;Ding to the Kapilof,f Land Bank Fund.
aot.
;■
long time -ago by GeOrge Miller I? " Wil e '' sbn ' ' I
o ,0
,; , 0
o- the votes or do yoti*ant tp talk?". cit ' , 'P .
(Lau ci te're ) -,,
MP.. MAeilTeLL For-the -redord,.my name is .
Ted McDonnell. I'm o the City Mdriager of the City of,
0 0 -7 ,
Vallejo. } -, 0 ?,
') I WM/5 d „ like A° 1-7alk on benalf of the staff. 0 ,
1 , 0
0 t have been crj?' dal "of (Staff? on some previous
1=iF,TtRE',-.SHORTI-IANO RPOki\ TINO CORPORATION 3403 AMERICAN 4IVER-10RIVE,1 SUITE A
8ACRAMENTEI, CALIF-046RA :3825,, 0'7). (.31‘) 94'249994 0
'ty
1
12
13 '
0
(.0) the anyOne
sin the ,audience „
0 .„.;•;%
This is Land Bank ,CoNdssioners
4XECUTIVE OFFXCERDFORICK: That i-
0 ., K „ \\\
saioners.
sPeako
building a
o _you want
0
a 0
4
0
0
as Lands', cool
Do you wish'- to
.01 0 "
1 O
0
■., 6 • • 0
actXVities we naVe had withtheMi and I 1,Tant0 as cor e, to
o ■•=-", z b , ,, s
) 0tie Commission now 'and Commend the Staf y f to you, fR) the
0 ,' , , 0 . , . , 0
,
, d s d 3/ oe*peditious handling of° this 'matter. It ' was oeSPecially
v. , 4' 41-14.k1at'ga beCause when we ate dealing with private
(5 . de4elOPers and wh-6.' development schedUles are on the line',..
--- , t i . 6 0 '' " ,
quite" often state, s lochl and public officials (tend not 'to, 0 ,,, 0 9 , z, 0
0 q , 00
be concernedcabout) the clock'. In this chse, I '(,lould fike tO . . .,,, ,
.Comrriend specifically Mr.o.'Stevenson who ban ed' it ,very
e
1.e),,N
0 , s f(,e'xpedit'iously, and we rfdo .)ppreciate, the effort on,
- ,) ., -0, 0 0 0 ,,,
(part ,of the staff d.? ' ,,,
0
0
0
,s
p 0 0
91°11'
0
„.qIAIAN COR .You'Tre U'St lucky yogi upt
get your' application -overowitWJoe Alexander s. ,:-, , „
- J.). ,‘ 0 0 , 0 6 0
(Laughter.) „0 0, 0 0 s r; 0 .
,C"1HAIRMAN CORY: „ I'q ve
0 . beep c(ptical'bf, the'';stalf 0 Ths
on occasion. Some of 'th6Se iloarbs were alOng, the sap
lines Vie are glad .to” shav•' you 'here this morning. (-)
MR. McDONNE4L-.' received some of 'those barbs'2% , s
from own co ncil of occasion. , o 18
COMMISHIONER McCARTHY:''C',Staff always `,appreciates e '
being rehabilitated.
EXECUTIVE OF CE1 DEDRiCK: Especially today.
is MR. MCDONNETA: It is easy, to complain. It ho iL. "
not ,'always ,easy to pass on 1-.he coMpliment. I want to - . A
, s ,Y,
. '!- do that today. \f ---, ,1(
0 &,,0 , .
CHAIRMAN CORY: there anybody from the ' ss
rr
0 0 fS O su
0 0 0
6
'PETERS' SHORTOAND REPORTING CORPOR"TIEIN AMERItAN.RiVEI7 ok31vt, SUITE
SACRAMENTO, CALIFORNIA 95E25..
\ TELEPHONE OW 972-094 0 "
• ..
• . oo h 00,
.0 q
it
c
)1 ,-
auuience on thiOtem? 0 ,
q , tions :from r i
- e from Com4sSioners? . 0 0 0 0
% C. 0
3 , .. ,,
, Without ob jection ,' Itera.484i ' be cap ,roved` as - 1 0
0 0 0
\■
, .
4 presented. % - b .,
0 0 '- '
, y. 0
Item 49% -- this is-d proposed settkement between • , 0, .9..
‹. 6 0 the State of California? and Yuba doldfieldS. . 0 0 0 0 0 .0 ' 1
ID Cr befor. we take up this item, shall' we 0,,,, 0 so q deal with but —
„- 0 , o 'N.
L. ' \) ,i) c7g-'
.9 0 . I, . ' EXECUTIVE FFICER DEDRICK: ooh, - "6 sorry., 0
0 „ 0 ''.MR. JIIGH. 'Yes?:.-
1 0 , :', ° , , .,
(,:?, o 11 'CWIIRMAN COW:-::, In.termsof190n t4,,,,, ,,.,b
, 4 !I 0 ,Z
1 a ' procedualiy(4We ilsh to takeMli up, s up but mwwould,
33, 3 0 ' ° 0 °
ll 1, you suggest,We deal with- dealing with the record. , //'-'
0 , .. # ,,..„, 0
14
R. TAYLOR:, Mr. Chairman it is My uhd rg. anding . // - i,,‘
15 that Yuba GoldfleldS in Mayof this'year, was-ac eiu .ed i r
. . 0
v . 16 ,by, group of individuals'headed by,,Mr-, Silberman, who„1,
tJ
5
17
1.3
°20. o ,g
21.
2V7
7, 23
14-
25
o ■; OZ7) wasforme,rly the DirectOr of Finance ,.for_;the State of
a. Cdfiforki 4 0
19 ° Prior to that time it is my understanding, that ,
oy o
, C 0 ii 4 he riot' teAhis acquisition of the,companyo it As my
&iderstandingthat -- i CHAIRMAN CORY: Let me justI clarify.
0. --=,•-, 0,„-9
t is ' , 9 „,
my updetztanding that the managementt/4 and I guess the " ,o ■ / • ,, L
contrafrling- interest, but not the entire planer0iP, /
becauoe I thinkit4is pliiicly held u
p r, 0
C)
PETEREI 51-4ORTHAND REPORTING CORPORATION
O433 AMER)DAN RIVER DRIVE, SUrrg*
SACRAMENTO CALIFORNIA 95E25
TE,LEPHCINK (916) 972'8894
IS
• .
\ ........., ' r' 1
J ------,,=) ci __
0
■
o
k
,,Ir6 .
"C&6 0 0/ ■ I
LI° a MR. TA41.06R:„ ightd YeA% „ m 0 V " 0D aip!. ;(3
ce - Anyway, at same time Prior to atliz acguistion, ,,,
cs
<7. and QI -belieV-'e "in 1982,,, brQ. Silberman 4prently ma" (> '''-‘,00,,, a
z1 CO_s_..q.7,_. i bla ti-6C,)/a, tif d your campaign, „a 'd there was ,w loattmade (1-'
)r, , 1 „ k), .,_ ',to. 'Mr „ Ma'qrthy s' , campaign, T'phich '-'t---,---a._widearStand ba,- not ,„
1 ,, 0 , 0, 0 - 1)
,i, , '• ' '
beer paid off .0- We don 3 t believe that„ at- Causes You , -0 0 --
L \ ,,,, 0 ( ay - , „ G 0 , r' L any ,problm in proceeding 19ut „I thinks tha'-\ in 040,0 that
P "
2■' 1 — , 0
,Dthis matter> be s t to rest that 'it should be idisc,lbsed on -----,
6 . ' ,. i
the ohe record, and that, with 'that, n tation, t our 0 a (-3 ' I( u 4) 0 0 , 0, ,, :1'
(office concurs there ip no reasOn °for eitner /,/ oil nOt .-, -
,, ...._ /
vote' on this'matter. '/Z,
CHAIRMAN COJI:il'Aa, sigally cortedt ix (.('`' C9
terme of the facts. I think ,it' was° probabl in 'Dcembf.,±. ,
„of ' 8i) I recieved at'contAbiltion -.).rd'in hiM an,;may' hcavta .,,, , - (_,...f
0„ ,-, ' i; _'c,„ - - -,, ,1 ' ' G? received some prior, to that.
;,,,-, ,, .; ,2 '''
L6b.
C? C.
G 0 '1Y
0 0 , .7 i
COMMISSIONER McCAii.,TWK: Let me state, for'the
—7-7. ,, ,, c6
_7 --.7.----i.: 11
,
..7ecord, in my for Lkeutenant Governor, •.ioriard. t
0 ,
19 Silberman didoH make 1pan° to me zie first half ,
;:0 Q
,
of it 'T,Ar---c.,s repaid ,,so: months', ago-.. The se ,'Snd half was 7- , , 0 a,
11 5us repaid.' P. may even have, made- di;ect). contribution
U to my , campaign', 'either in late, -198'is rat the beginning 0 C ' ?/- a ..,
o 0 (2, Ir' e n ilH '..a. , o
0 0 a o o 23 . , of 1982. "Even though. that abpatentlyaes no present .
I, ,,7 —, 6' A , ' think
o aril,. legal COrkf 14.0 {I. Of interest, -I t71it„is impprtaA a o
a oPETERS„SHORTHAND REPORTINI3 CORkRATION
0433 AMERICAN RIVER DRIVE, 39iTE A
EApIAMENTI:3, CALIFORNIA 9582S
- ELEPHCINE 016) 97tfrae..94 0 4-,!?
a
8
:9 • 0
0
12
13
15
•,-.‹.\.1f , 0
G Cf \ - \ 00
,
■
/ • 25 to sta..eQ.- ' those factS for the public record: c, "q
-., \O-.■- .,, 0
o t.
cIY /J
n.0
91111.01erwr.,b „ rormwre.
O O
0 0
.6 , . ”' °
n C1
\ §5
„
4 4' N
"•-cf, met on thiS s-iiSue directly or 4.fidirectly, The dedis-*-on ir .,,} U , ,.....f
o II Ck, 0
r ,
5 1 now make, having been advised by theoPitorney Gener'1 ;
6 that therit' e is no conflict of interest,5ewili rest, w1(1,9 lly
1 \\ ,0ugen the staff's case that the people of california benefit
# , o ' by,any proposal before the Commission at ,this . time.' 'j” ,‘
tk, , Ft . , ,
CHAIRMAN, CORY: With thdt, s the two -ot us are t
0- ' ',let Vie further adil (-that neither Ri hard Q ,k_...
p, , . ,1 c ..-_-,s,i , s, , '
Silberman' nOr -anyone, on 11,4isebehalf or 'anyOne represent in ' It
,k the, applicants before' this commission h (
ave ever :ski)okeri\ , ,,'
• kfrOm anyene..:
• o
a- , last
prepare ,,,,e . ,•
: the Q Participate„„ i0f h one clean meMber is. o (1 o
(Laughter 4 ), .,,,,,,,o n ---k-■.,
t . n 0 to i'-',,A, „ ,C2MMIS S I °NUR "ORDWAY: I creceixed' no „contirV:tationso, 0 _ , 0 0 r',
•
1 O, C0;41%41 S S IOW McCARTHY:, I exempt myself 'f -om that
-,
come back 6'to -haunt ,P 1`,
0 let's lay' it out can title record what we are doing and
„
'0- (Laughter.)
koCilAIRM4 C06; They always
Would„ somebo4 pease explpin What, is there, "
t.
Ek- ECUTIVE (OFFICER DEDRICK-: „ CCk
O
Would you put that map up.
'CHAIRMAN CORY: I Would like the record .to' reflect 0
D
that if I could figure out how:to vote against - t ,, , Lr
,1.1.1*•■■••••* "
PETERS SHORTHAND -REPORTING CORPORATION
3433 AMERMAN RIVER DRIVE, SUITE A q
sAtRA O MENT, CALIOORNIA 9SEMS
TELEPHONE (916) 97291 fl
,,,, q 4113
•na, rf. rf-1470P6.77
o o
350
U
Mr. Silberman,, I do 0
have a lot of reasol t
(langhter;) co 0 ,,, 0 g
EXECUT/VEQUVIICER DtDRIt.0 Ce)Mission, can you Ci
see that chart okay?
5 '7
6
(Discussion off the reeprd.) , -
EXECUTIVE OFPICER„,DEDRICrf T
7 -the negOtiatc,d set; lerent at this pOint should be Probably„ ,fi 6 ,
o
,
(explained
we were in
,° and Yuba
C)
9
in decLail by the attorneys, but to make'it short',' ,-,
litigation with both the Federal Government 0 0 0 ' 7
oldfields, oven the state' s claim to_ the former ' 0° 0 „ A 0
bed; of the Yuba, River, whichowould be the, bed as it
exiSted - on September 9th, J.,850 The orange strilx, on the,
chart_ is the n4otiated former. :,red,,, .9
In hay of this year, early 'May, he Supreme 0
Court came dOwn,w,,i, h a `decision.Which prohibited cthe nstate3 C?
or prediud d the state front suing'-the;, Federal Government 7,2 (I's"‘„1
17 on: matter's of quiet title. In the process-of, that suit,
" 18 1 J the„Jhstate'wa-s therefore unable to , use evidence Chet h a d>
c.,0, been used in the federal case iii the case:. of /uba. " 19
20
21
22
23 (i
This Baas followed by an offer or negOtiation,
, whia oOcarred very recently, from Mr. Silberman7
. , z
., ' ,
l ■ '
The settlement that we are proposing to(,`You
would clear- state title as far as Yuba is concernedoto all
24 J of the bed of the existing Yuba River which is an
25 exceedingly valuable biological resoure. C,
9
PETERS SHORTHAND RCPORTING CORPORATION 3433 AMERICAN RIVER DRIVE, SUITE A
SACRAMENTO, CALIFORNIA osai's
TELEPHONE (918) 972-8004 CI
It fi
Q. 57 •
,all of
own in
distance.
6
their mineral rights, Which 4.s the inta__:st they 10
0,
the:preseht bed of) the river, for the rest Of, the
1)
0 „
„ 4
°15
6
7
8
C2
10
0 0
o 0 "
0
PETERS SHORTHeNNo REF59RTING C.,,ORRORATION
X433 Am thicAN-RIV4R DRIVE, 7/SuITE A
iACRAMENTO, GnLIFORNIA 951325
'TELEPHONE' (916) 972-131394 40
0
1■:
°
it ip an exaellent° s ,stee hea y
stream and a veriiimportant'spapning area for
,anadromods fish for the felageth down 'to where °ib'shows 0
thefee o title area. And-it would quitelaiml to us
The arets involved are, in terms of the o „
stipulated bed of the river; are -- that riverbed, the i0 , • •
and about eight Miles f— 0
z -
siti,ttriir- i-s- 800 long. The curre4t,existing bed- of the
9
10 'stipulated bed; is '350 feet wide
and shad 9 a
the 0
O
15'
16`
17
18
19 S)
20
2,1
22,
23
24 I)
25
CD
12
13
14
a
IC
u 0
mat wide andBabout ten-miles lOng.
Have I got my numbers right 0
-?' -
0 • Inotermd' of land Value that is of substaqti4
value to the state. In ti&s-of mineral value, or staff
two
beds h virtually identicaf and equally unknown.
(lighter.)
EXECUTIVE OFFICER DEDRICK: Ytiba Goldfields has DC') . ,
■;--? 'offer,ed us", ih addition -to the ,fee title;) to ;the bed ofathe .,,
existing stream in thid area and the irelinquishMent of , N, 0 „,,,,(7---- ,4'''
''(
i:
,their mineral'rights n the bed pf the stream:, in this C " , „ , 0 '
area °-- 0■they have offered 'Us three new ,public access 0
O , .-
6 Q° 0 , - 0
c 0 , ,
.points to the Yuba River Which are not now available to o :' 1 1_ 0
0 ., ,ti
`). ' ' J ) " 0 , 0 ."M
(Uhe public. Two of them-are,-- and on each side of the
C
• g
had aetermined that' the ,potential mineral value of the
0 o , 14
0 , . the Federal Government; arising from the' Federal
Q
Goovernment diSmissal from the trial court action.
COMM*l
IONER2 McCARTRY: WOuld you expand on » , ,
PETERS SHORTHAND. REPORTING CORPORATION
3433 AMERICAN RIVER DRIVE, ;SUITE A
SACRAMEOTO, CALIFORNIA'9582S =
113NE {372-E11394
01
„ 3
4
5-
„ 6
II s 9
11
12
' 4)1 1 public before. 0
10
711 be useful,- not, only for access, but alsb for campi __
ng ti 0
■
) _. , ,,,
oo
tl
and onshore. . „ .
,
„ § , 10 0 0 0 It In my judgment end the judgment of the staff
,, our and the Attorney-General's Office and o legal counsel, -0 ,, .
0 (f.:- thiS is a very good deal for the State of California.
It gives, the public rightS in, the stream which it has never ,-!.
, ■
had,Fhichfc„ will proteot,.that stream and its salmon-beds, 6 0 &-- .
unless the state decides they want to mine and can get
,a permit -- which they probably can't -n--. and, also provides 0
o.
new public access which ,has0 n available 1 r never bee
°,,,,, va
.lable t , the
o 0
'
, ; 9
4e,
• „ .,„ county park with theg iver An a dine-acre parcel which
,
Parkv9 Bar Bridge and a ne4■61parcel'which 0will connece a rt - 0
MR. EAGAN: If I can add very briollythe e I
0
0
A Attorney General s Officeodoes concur in the recot endation.
„, We would further ask t t the map from which P - ,
Dr. Dedrick has°,been speaking beadmitted as part of the 1
18 I record because it does reflect the prospective parcels. C
20 --,--confirm that this settlement, if)kgreeable to the
19 Finally, we would redtmmend that -Lle commisio
0
C.
i°s not intended to azffect in anT)way the existing 0
that the state has brought against -- is pursuing againSt
0
Commission,
appeal
0
5
06
7
8
93
10
11 ,
12
13
C, 0 0
)'J 1 '
I 0
a aP t ' cp Tripe ri, t ? -,What is the advantage to the 0„st
California in reiati:all6hip to',t6fecler
MR-. p.GN: Wel4,0riginally% when thi c \ Was brought ;,11 October of 197' the cash` br,ougti by
,,,) -
- „
,,--? _ , ,N the c'state- Bands Commission,sion, acting for ttfid 'state, al.ilst„ , '0
6 0 I Or
t, 6
D botlYuba'Goldfielids, Inc., and the Federal Governmei4 :1 o o ss(,.,...) 0&"?
a 1
because therere Property interest claimed by "both 0" ,,,
those parties to the stipulated bed, the historic bed. 0 a ° - 71-the river. ,, 0
, 4 ' As a result'of ,,,,he .SUpreme dburt's decision i
North Dakota, the district
court dismissed the F 1ederal Government as n 0
to the suit, finding that the state's cause of act do
1:( accrued under the statute at slai‘ a time as to preclude
the existing prosecution 9f the quiA 4tle,action. Aral c „
the adge,1 made that issue immediately ,available for
g0 0
appeal.
- Basea2on the dir,ectria this, Commission, we
have appealed,the district court's ,ruling dismissing
20 J, the Federal Ge.ernment,from'the case with respect to
21 their independen N proPerty invests. That raises some, 0 ,1
subst4ntial issues regarding legal questions that bear
on the state's claims to lakes nand rivers, throughout the , ,0 00 f—
s, state that need clarificaion by the appellate court.
We have .worked with the staff on this Proposed
11 0
PETER50 SHO4TWiND REPORTING OORPORATION 3433 AMERICAN RIVER DRIVE SUITE A "I' 60SACRAMENTC3, CAWFURNIA 9,5132.1 ;
o TELEPHDP4E (910 972-B694 _ _
May of rthis,y,ear,' Block
15
%16
V7
fit
19
r)
„
2S
11
5
6
of
8
9
10
(11
12
t3
15
„ 16 people ofa California, derit. in a
17
18
20
21
22
CQMMISSI6NER Mc,CARTHY 01T lank you.
CHAIRMAN CORY: nybody tice atdienele on this 0
PETERS SHORT1-1410 REP.ORTINth ORPORASTIO14 ',,),. J, i ,,,4s c., ' 3433 AMERI'OANuRIVE9 DRIVE, Itl iTE .k ,,,,, !,)'
9A09A-MeNTC), GIA1.10'09i4414.): 9, 25 ,, ''
o ''' o'
Tel,EPH6NE (9M) 94ii'9 o "
0 D ° 0
' 1 L......a„ .
otOihe state from ylis transactioli
e.. EXECUTIVE OFFICER DEDR1
a °finding of equal value on, both ' 0 -----,
, the minral rights, on the, bas0---0o ,i. r,
----,--- 0 0
think you ctan also mak
is doing a° little better ,, bu gat) is is not a. good doing j f _
to say° in negotiations . So didn't say it:
'WrlilyOu characterize 0,40
(COMMISSIONER i,:,,'CARTHY: tAnd biological., value.
0, 2) e.)
COMMISSIONER McCARTHY:'
Dedrick -- Ms. pedrick,'"a$
he ouniary' benefits
? What, advanta'g
ecuniary sense?
„ —
We can usually -makell , —
n the 'real ',estate anc: 0 c„
ethis .ne4otiation,: ,
1' 0 . finding ti,..tat the
• dhairman, , if I TaY
e/ °heard -,y)ur StateMen4
his a4reement;,,,yoU-
ire scenic and , o
0 0 And biolO4ical
n0
CI •
0
do
(1, 0 a'
C:
2 S
Mille pa:1 (.0psVnt,Yuba Goldfields in this litig
/ I looked at the COmMission ososettlement doe ent, / .
'' " --,
f and find/ it ,eil 0:n -order with,twoccexceptionsc. We woula o ) .e9 ,
justyiko to put on the record the fact t t----Pin page 311
.. „ , c;,,, -- — '- of te proposed settlement, the first,Unnumbered , ., _ , ff
0 '' „ 5)
k ■
par/graph, assumes Ownership of this,property as , a
so,'ereign right. - That was ahissueoihthe lawsuit, and 9 / p
1 Noy/e of the reasons' that we defended it, it causes title
10 roblems. n the Unal, settlement, we would propose" that 0 -0
hrl-641.guageqread.,'"claims of sovereign ownership. 1.
1/u XECUTIVt orrtain DBDRIA: The Attorney General
a0 ooncuti.ing ,n that, and so is the applicant. , .
So0 -on the advicd of the attorneys, ,X advise „ - 0 0 you to accept that . ., \\ ,,,
CHAII*ANORY: Okay. Any other -- ri
omS. MILLEA: I understood there was going to be
an ,oral amendment to Item 't 7 Of the recommendations.
CMS . 4 ,lIER:„ Yet m name, Andrea
1\ ,
11
change: 0
mR. HIGHT: Yes, No: 7, Mr. Chairman,,is relating
the surveycos.4, and we propose to make the folicAving , -
_ 0„ hoa of 7Themanner and met , surveying the property to b
colivisyed to state oshall be
that' MUtuallyagreeable to',the
PETERS SHORTHAND REI:43-- 3433 AmERIDAN RIVER DRI
CORPORATION
SUITE A do sADRAMENTD, CALIFORNIA \ \5825
TgLE:PHaNt (910,972.8494
d
11 23
22
24 O
25
11 (,)
0
ii
0
0, 0
Q good look at What those cosh $ 0
(I
are' goinT to "be , which •
0
0
0 0
O
2
4,
4
5
6
7
partie4, sand the ai$ 611a r of 'the)
.6) 0 - „ „ .. ,, ,;., °0 • , , (,..,..„ , 0 l.% , ,- 0z
cost iliceSsary ,to effect the
_ Silrvelehall be Fsub)ect to the e \\
apprOVa of the Executive:Officer. 4 ,e - , \ , , \ _
z, Ca
o
EXECUTIVE OFFI7R DEDRICK: a The purpose of that
amendment-- this whole tiness on survey- costs \ , 00„ up last night, What I Would:, °like to 66 free to
°.1 in of the existing '
COMMiSIOER -MCCARTHY : What is the' purpose , u
that ath'endoent? \
\ ,
•
dos take
-Only came
we do *,t yet have she)
13 , with "Yuba toldfields the pace
\ on, „and to negotiate
-- you know, Who
CP
going to pay what on this SurveY It Fifty-fift3r
15, what, we originally thOugt of, Peple at Yuba . 0 ,
9 , ° or 0an bpportunity0,to discuss it an \ negotiate
. ,
17 Will essure,,,you that if I'm not Satisfied with - ,
7/ \ ' • negotiation, I °t ill it back. to ,t is ComMisSiOn.
0 COMMISSIONER McCARTHY Thank you.
, CHAIRMAN CORY: AnYbody else 1, the ,audience, on
0 A,
,4)
jCHAIRMAN CORY: ° So we have the amended -veisien:
Nof-, Six. 0
"7) 0 :i7y ci
o , Ci
us. I just want to ask the question on the :77', J = .
O
have asked i!„
the "''"! 4
, 0
this ,iitem •
Do you have , MS MILLER:
25 before
O
0 c>, a o
PETERS sHcIRTAAND REpciFrrtNG rthRPORXT03.61 '3433'1AMERICAN KIVER)ORIVE, SUITE A
cSACRAMtNrcit CIALIFEIRNIA 95E2$
ttLtPHONE (916) 972-131394 0
8 0
00
„
V,
03
1. o 0 o,
7 „ anyway. 0
3
4
5
6
° , „„if There was a( conflict-and 13otli of '118 were similar-icy
:.,
C „ ' r 0 . , , record: Since' the (Liettenant - Governor„ and „I at -basi Jt -
1 . , - , °
in the aame,position would find ourselves .-- the. 0,./ k, 0 = „
- 0 ° " 0 F .-• , cone...laza:On is' that,' ecause 'Of the ,fact. .circumStancel: 0
d' ' •1-` ' ''' c 'Q
there is 'no ,,con.Plict,, given the ,fact circ4fstanCe that
rt, situated, we'' would be required: to' vote out of 110,C9-SS
\ 6
(?2
0) 0
8 1`4 'TAYLOR,: ''That is ccorrect. , , / ' ,,, I
0
90 ",--.HAIRMAN COR,y: Sc) itre really don '..e. have an
O 0
10 option of not voting. R
„7 0 °
fj, 0 6, 12 0 CHAIRMAN CORY': X 'just wanted to put sch.1-9
11 MR." TAYLOR,: 'Xhat is correct.---
' s"1) , . 0o " ,
. ,- `13 symmetry„ on the things we are `dealing wit; here, th
14 C \vIMISSION,p,R -ORpWAY: , f will move the „ ■
tign with, uht, amendmentS suggested bi, the Attar
(Th o ° .0 COMMI S SIONERJMcCARTHY: Second.
All those In xavore.)ignify by sayiiilg oaye.
CilAiRMAN )RY: Moved and seConded.
(Ayes.) , V'
,,.?'• ,......
VL-1 '7
, .,
0
'
CHAIRMAN CORY,t„ OppdSed.
The mdtiono is carried. o o
The next and last .item is , 0 O.
o"appr bval of00 Sett,lement agreement with Petro Lewis,„ on
I cb 0 IP
Win ..4 1 pkofit0taxes. "----ai': 1 ' ,,
____, ,,,, , „ , U , , 1,`
' 0
11 ?-c
?'1 ' Alan, do you „want to explain ,what„ we're ao;Lng' ), /'
4,, '' ',8-9 'W ,
00 0
PETERS SHORTHAND RERO, RT, ING- COR—PO
; RATID N
' 3433 AMCRICIAN R;VEFi DRIVE, EU\TK. A0 0 9AcRAmiN,T6, ttAuFtiRNiA '9sair, Ii
.,..1-61.Er=4-1.cusit (91E') 97-E3E194
CO
0'
=
- Item 5;0, Petro-, Lec
pa 0
here gniCklY?
MR. HAG R: This is an attempt to, settle
„ 0
11
matters Of windfall profit tax refunds that came about' by the passage of the Technical Corte-01°ns Act which is
5 legislation that the '' Commission Worked very- hard'to get
agsed; amending the original Windfall Profit Taxu Acte
=
a", 0
0
9
10
11
c\ 12'
V\ 13 14
156'3
"17
18
0 20
21
'22
0 23
9 ;4-
25 0
were
some 0
can ,obtain' the refunds under '.E'he law. They obtained , . the refunds. Peirb Lewis, the 'corppratia could not [D
get the:rrefunds back-from the partner8'. -0 .
', We discussed t4s,with them, andrin order ',to . ,1\0
avoid rather,, lengthy 4nilcomPlicated litigation, we
have coMe to a settledent which has really three PartS, 0
' The parts of the refund that werebtined by the corporatio c • . 0 itself willo be paid to the City,ofi • ng BeachPand the 0 stab in ft,111. The part of,the'refylds that were,, paid
directly to,, the partners, which Pete Lewis cannot get,
will be =paid by Petro Lewis, the corporation, to the city ,,0
and,
, the state to the tune of 6Upercent
, - - There are still some ironies in the United
0
States thathave nOt'Abeen obtained as refunds , ,
They are refundable to. the' partners ,o. not) to the corporation. C9' ' , ,,,/ G „ _6 , .
e0===------, The state-; hd Petro LeWis'lliii work together , '',./
0 _ , The problem essentially .was trot some 11 refunds
0 obtained by Petro Lewis aa'opartnera
, -- there are
57,000 of theM. They are the ones who pay taxes
0
PETEOSSMCIRTI-4ANDRiPORTINGCORepRAT1131■', 34333,AMEFEAN RIVER IDRIVE,,ELIITE A
SAERAMENTEI CALIMRNIA 95E125
TELEPHICNE (01E0'3972.8E194
"
00, .,1 to get enactment of``-a technical amendment by Coiag'ress,
allowing the,' corporation, which 'is the general -t■artner,
-- •
1),)
„ . ,
. 3 0 tokbt_rtin,this, refUnd. If it' 'that refund, it will 0 '‘„
0
be paid in its entiretS(Qt0 the statyand city.0 '-lf that „?
0
legislation- does 'not, pass,,.. the amo=unt refundable will be
paid oby the corporation to the' city,,and- state to the tune
of percent. 0 o a
-- o ,^ <, PaYrnent of the 60 percent. portion, the amount"' J
_ 0 0
'1 0 4
that Petro tewis is, coming 4p with, attributabl,e to the
10 Tattnerth"--,, w_il; be paid' over a, period of time With interes=t;
the interest tO be 'the.“ pooled Money :invLes-tmOnt rate as ,o 'I
0
14 '' s-)
15
now. , 1
r.23'
0
,
0 ' , 1 , ',''1) 1 1", 0 „ 0
°HAI:MAN CORY: Questions fro7„rn the COmMisaipners? 0,- 0
Anybody in the audience on this?, ‘\\)s 1
WithoutoobjeCtion, the, settlement. will be
' approved as presented by the staff anod recommended by
staff. 7 the
0
,We have item 029.
MR. FIGHT: ;If we Mr. Taylor abo one can 'give 19
20
21
think he 18 ,trying, `fo cut a deal.
CHAIRMAN CORY: We will be in, mementary re4ss. 0
. 0 0 - -,., .■._ __----- - — -- (Thereupon a brief recess„was---taken.) ''
0, --- 1-4 CHAIRMA 'rk-CORYle are readti to reconvene.
0
0
The last item is 29, I can find„ the agenda,
0
Thii ..1.s approval of anamendment to leasP 4977.1
0
0
PETERS 91-1CIRTHAND _REPEIRTINA.)" COR 20RATI 3433 AMERICAN RIVER DIOVE,,EUITE'A
SACRAMENTO, CAIATMNIA 95825';
, TELEf11-43NE, (94) 973-8894 5)
' S i,
G
o ,
-and where are we on this One,;----;i:#ee was1., me clarification
that the stafts Seeking before we took it uP.
is the act tht—there is aDletter of agreement between
,2 C) --L,-<'' Q-, ■
2:-.9)0_ 9'
MR TAYLOR:, 1clarification, Mr. Chairman; 01 .
0 t■J
PnW . , \
fl V__„___.-1 t -' IV , . . . o c-/ fr ' ,,,
,
.9
U
this Commission and EXXON that stays the right of thet),,
Lands Commission to,contesti certain portions 7— whe-crier (
, 0
, certain portion of/ the lea e,5 re still dlid. 0 \
Z11 We want to 'make sure is0 that ,the. State
Lands 6411 1.Sa mare that assertion, if
it becomes0apPropria is pre-Served.
5t ft „ j;, -There is, in the docu ent to implement
11 e5
12 this proposed action, a rrkenoe in the recitals to that 9
13 agreement. It is m.y'undePrstanding from taA 6,- ing t --,„thcN
gentleman from EXXON that the,reason faro the r erence
0
/ -fl, „ 15 ---ir the recitals to the - 'gr
,
ement is to affirm that)that .„ciAv
agreement stands, and therefore the State Lands C&MMiSsion
--_, - --,_
14, 0 17 is not prejudiced. 9AS':/lona as that is/the case, the
1 , /
0 ;8, is no legal obj,(actionCto proceedingtoday. 9 ..,"%/.
(,)
19) CHAZRMAN, CORY: There is an existing9lettgr ,, 0 0
V ' agreemenbetween EXXON and L&pds, and we are, in essen 20
e, • ` \\ , tA
" ' ' ),1/1*%. ' / . ' ' c' \ 2140 Raying tha by approving this we a'e not all:ering that
II
ME;., TAYLOR• Jfhat's correct.' \ 71)
IctiAiitAWcORII And you are -- , MR. COOK; My name is Wadet. Cook, an employee
PETERS SHORTHANP REPORTING OCIRPORATIGN a
-3433 AMERICAN RIVER 1:AdVE; SUITE Ao ea
sAcRAmwrof DALIFDRNIA 9592$
T6..tizNaNt (916) 972,18894 6 , )!
II
0
9
0
•
a
0adjourned. , o
(Thereupon this meeting of the State. o
Lands Commission was adjourned at
18
19
20
21
22
O
11:55 a.m.)
--o0o-
24
25
0 g
0 0 (
Ff o -
o o
11 ') cic\
!OYLOR: It is intended not to
the ,st=ate's poOtipn by taking thiS action.
//1 greemeht, iemight ber., -Hour underStnding J ',) 0 0 0 o be– argued that we bad waived,_ o
of EXXON.
MR. pre Udice
Without th:s u\
o MR. COOK: Itis my int is
instrument that that letter °vas
t th t what is in this
incorp rated and is -
0
a 10
1
12
13
14
a part Of the instrument. 4
EXECUTIVE OFFICER DEDRICK: 0
CHAIRMAN CORY: Anybody in the-i\au ience 0
this. cl
Any questions froCoMmissioners?
ObjeCtion, Item 29,, with tha(j
understandipg, will be approved.
on
C
•
Any other item to come before the CommissiOh? .---,-"- 6 (/ EXECUTIVE OFFICER DEDRICK: No, sir.
A 0 -(2 ' i==)
CHAIRMAN CORY: Wit/lout objection, we stand
16
17 0
(I
'PETERS SHORTHAND REPORTING COTZPORATION
3433 AMCRICIAN RIVER DRIVE,su(TE A
SACRAMENTb, CALIFORNIA 95315
“, 1.cl...cow:me (916) 972-8E194 \
V, o (
0
O
Yf -
0 ■ , 68,,
c,
CERTIFICATE OF'SHORTFND REPORTER
I, DELORES I. DALTON, a Certified Shorthand ,
4 Reporter of the State. of Caljf*ia, do hereby-tb".fy:s C - '-* ,,
, . That F a am disinterested person hereillg,Ctflat . (.,
,theyoregopg,meeting,of the State Lands co mission,
(,---,. StateLof-California, was reported- ii sfiorthai by me, cf>
( (
, 1
$) 8
\ \
DelorS I. Dalton, a Certifed Shorthand Report6r, and „ .0 7,/,„0 ii„
thereafter transcribed into typewritins----", 01-.)
0 --- 0
_II 0
1I0furthe./.,:, certifyShat Y aiit not pf counsel
' 0 ,
lf 0 , 5 8
no
'r for any' of the parties to pail hiring nor'in
o ,
IN WITNESS win3REOrt ,-L have hereunto ,set to hand °
„;. ''''' 14 thiP IV day
. ,5 , ° qf Normber, 1983.
,,. . , t5 0
LORES ALTON Certified Shorthand Reporter License No. 4691
0
12
13
/ / 4lY way 4.nter Wq.ed in the OjitcomeOf said,, hearing".
O
0
.$)
0
0
"'""'""t ✓
0,,
C.2
9 ,
FiETERS SHDRTHAND REPORTING CDRPDRATI-Disi' 3433 AMERICAN RIVER DRIVE,' PLATE
liA
{3 SAbRAMENTO, cALIFORNIA 95E32"
i_tFcHt3NE (916) 972.1389L4 ,
0 0
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