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»' l TRANSCRIPT OF :,< 0 .. , .. ;.\ MEETING

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7 PJJ<.T.lCIPANrs:

STATE ('ANDS COMMISSI.ON . ..,...,,.,.., ~I!". ··~_/? . ···*"'~·~lf'lil'- '\~!Ml"' ... ~

SA~RA~~T01 .. cJ~IFORNIA April. ~5~ 1963

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Hon. Alan Cranston, Controller, Chairman ',1

Hon.. Glenn M., Anderson, Lieutenant Governar Hon., Hale Champion,) Director of Finance

Mr. F. J .. Hortig, Ex~cutive.Officer

Mr .. Alan Sieroty, E~ecutive Secretary to. Lieutenant Governor Anderson ···

OF·FICE OF THE ATTORNEY GENERAL: -Mr,, .Jay L ... Shavelson, Deputy Attorney Gener.al

AP~EARANCE: ----. ..---.. - -~

Mr. w. N. Carlile, Jr. Deputy City Manager City of Stockton

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l ':, . (tn accordanccii~tli "c'ale:ada1: sumJUa:ry)

2 . ·': ' ' \ I I '. ITEM ON . PAGE O'.F PAGE OF . .

3 .. !,.TEM CLAj~~~fiIFI'GATION . g~i~JiID.4;~ QAJ.ENDA&: TRANSCRIPT'

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" CaJ:iJ; to ordet" ' ,,, H

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'"2;··~ ~.\ PE~f::JiflITS, EASEMEN'XS, RIGRTS-\\{lJSf·WAY, NO FEE : ''·

(,qi,) City of Pa.lo Alto 5 ' 1;' \•'

' •' ·!· . If· i('b) Sacramento Mt;nicipal ' '\.g1ti1; ty .Dis.trict

(c) D~r.~t. 0£'1 Public Works County ot $.a.er amen to

PERMITS ; . E.ASEMENT~~ ~ LEASES, RIGHTS-OF.;,;WAY, FE:S! .

(a) City of S-toc~~ton

(b) Paci:t1ic Gas & Electr~.c

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(e}' Phillipe, P(~tro:leuu1 Co. ! ",

'C !TY OF LONG B,;EACR

(a) Approval ~fAgreexnent Amend­ing Ce~tain. C~~n,tracts for the Sale of Natur~\l Gas" C.~ty of Long Beach ~nd\ Harbor ~~'?mm-, Socony-MobiJ.. OJ:.1 Qo., Signal Oil & Gas ; Long a·eacb Dock

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and Terminal Co. 10

(b) (l) Approval of second (ditto) City and Harb.01r Comm .. , Lomita Gasoline Co,., Signal Oil, Lo·~g Beach Dock & 'rertn. 11

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(2) Appro'o/a.l of. first agreement. (Pl-LH',,~ G.,.':k Well.~ Board of Harb. ~wrrun., Lo~ita Gasoline and Signal Oil & Gas

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4 !~ . Allthoti~ation t:o enter :J >l. :

· · ;ag1:',,eement with: Beach}~ake 6 Corp.,· :t:e OH.WM a,Jol1g Gulf

, , of S·an ta Ca t;,alina J 4 I ii(

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Authe>rizatiQn to·execute agreement cionveying lirnited

·leasehold inte_rest to u.s. 15 ac .. tidelartds,Santa Barba:r a County .. ::i '.· • •

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Ac,ceptanc~ l:;>id oh Pare.el 12, $an,t.:al.' Barba1:a County

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Confirmation of transactl.ons,. cf Executive Officer:

Mobil Oil po .. Pauley Pe~role~m lnc .. Phillips ~.ietroleum · . Richf:Leld Qi+. Corp•

· ·. Sawyer :1 Donald & Lilas ."' Standat'~) Oil of Calif.

"Valley 1/i~w Ranch . u. B• · Co~ps of .Enginee·rs

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INFORMATIVE: - 1··s· .. · ,'• ,

Next;. M~.eting

SUPPYiEMENTAL CALENDAR 19. ,....,,__. . '·· .~I>+* -. l I •*11. U•~ .. h: .._,.,.. '

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>:CNF ORM.i\l'IVE! : .. Legis la ti on

tong Beach Unit Wilmington Oil Field '

22 UNCAI.,ENDARED : . .-~11qto/ L!'l I _,,_IQ~

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Discussion of Senate Bill 339

Discussiot\.of Senate Bill 298

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. INDEX . (In accordance-wftli · !tein number§:+).~;:

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··ITEM ON CALE?\1JJAR PAGE OF CALENDAR · 1~AGE .OF TRANSCRIPT' • r~f} U.'"' ~•-' ._,...,,...... -....1.lJ.Uf Mid ~ I:. , . U • • • , Al:IW•

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NOT CALENDARED

Discussion S~B. 33~

298

NEXT MEE'l~J:NG

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:MR."" CRANSTO~.: Let the meeting pt~a.se come to 2

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ordex-.-11 First item, Classific~tion. 2: -~ P~tofnits ~ «1a$eme~1:~ ,. . (f

and ,right.$1,0f>::viaf-~~to be. granted to ·public and c'ther agencies ' . ' )/ .

a.t no fee;~~:;, ptlrS\121.nt to statute: (

Applicant (a) City of Palo l'Al.to ..... 49-year life-of.-.

struc.ture .:Permit, 3.,99 acres tide and submerged lands of San:

F'rancisco Bay, Sc;ln Mateo County, for construction and mainten

ance of channel markers;

Item (b) Sacramento Municipal Utility District -­

Life-of-structt:re permit, Od!t092 acre sovereign lands of ·, < ' ,, ,. \\

American River at Ctity of Sacramento, for 12 KV power line to

provide better service for Greater Sacramento;

It.em {o) Department of Public Works, County of

Sacramento _.,. Permit to extract approjtimately 1500 cubic

yards of material from bed of the Sacramento River, Sacrament

County·, to create navigable waterway'4"

MR* .CHAMPION; Move,.

GOV-. ANDERSON; Second,.

MR+ CRANSTON: Moved, seconded,' an<l so ordet:ed

unanimously.

Item Classification 3 ..,_ Permits 1 easeme11ts, leases

and rights·of•wa.y issued pursuant to statutes and established

rental policies of the Commiasion:

, (a) Ci.ty of Stockton ......... Sublease to Jack Benton~

covering tide and submerged J .. ands of Buckley Cove) San Joa.qui

County, curr~~ntly leased to City of Stockton under Lease P .R~ ...

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1976.l, for boat harbor and apput'tenant f.~cilities~ ·· ·1

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2 MRw HORTIG: Ml:' .. , O~ta;trman, Deputy City Manager,

3 Ca~i.~ie of .the O:Lty of. Sto~kt~11,. anct. the ·DirectQJ; of Parks

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MR., SIEROTY: MrA• Chairman I ra.is e the que.s't:i.on \

7 · I think.'\the City Manager can adeqµately give uslfthzra ans~t1er _ .... i,I, ' ' ~ ~-- ~

a but in this case the,, State Lands Commission issued ,:t;he lease ' ' ·~ '•

9 to a governmental body at its minirnum rental and here· the

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City is executing a sublease to a priv~;te individual;: and, '!

I ./ I whereas? had we. executeq the lease toa private indiv~~ual

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there· would have beep a different rental, I thought we ought

l3 to lqok into this, a little bi,~ • ...

14, .I understa11d thee developtnei1t here j_~ comJ?letely in

15 the interest of the City and certainly ~ay be satis·factory,

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but as long as the City Manager is here, ~ybe !iie can e:&p lai~.

the development.

MR, CARLILE: Mr~-. Chairman, l will be glad to.. . My

name is ·*if., M. Carlile, Jr. I am Deputy City Manager of the

City of Stockton.. We originally owned. Buckley Islc:tnd itself

and, of course, the State had title to the s1.ibmerged lands

surrounding ~ .. 1~klt..\y Island. Back in 1957 ... 158, we attemptj}}d 1,

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. I . to have a developraent there throiigh. the State Beaches and

Parks. At that time, because of the small acreage, the State,

Beaches and '.Parks eliminated Buckley Island from conside:tatio •

During the course of the next coupl.e years, 1958

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through 1959, we attempted to get, a developer there on the

Island, to provide, the facilities that we felt were necessary

o substantiate our one thousand miles of waterway in the

vicinity of the City of Stockton. We were finally able to

obtain one bidder; that was Mt. Benton.

Since that time, in the last three years, he has

been able to provide one hundred sixty-three boat berths and

we do have a master plan for the Island which I would like t

show at this time. If you woL,Id permit me, I want to show

the full development.

(Plan displayed on wall)

Mr. Benton's development vill be on the two sides

he cove. We plan, then, to have a central development

for the public within this area right here (indicating

throughout on plan This is Brookside Road, =tering into

the park area. will have a pafk in this area along with

aftf, which you gentlemen

probably understand is very difficult to have; you must have

t out in an area which will not bother people. We also have

eserved the right for public fishing all along the Stockton

Deep Water Channel.

Now, originally In the lease with Mr. Benton we

set 0 4 thirty five year period. At that time he VAS tc

plow back: all of his funds into the development to provide

se restaurant facilities, boat berthing, dock, development

parkways , and so forth. At the en.d of the thirty five

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OrV AMMIN► RATiV1k NIiacittaltilt• stAllg OP' CALLlloRNIA,

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years,, we have another section of ~he 'lease wh~.ch will take

2 ·· · into. a~oount hi,s p:tofi t that he will be making d~:ting. this

3,, c interim development period a At that time, then, .. the p:rofifts

· 4 coming' from Mr, Benton 1 s conunerc!ial development "will be 1con-

5 sidered in the rest of tb~~ deve.lopment of the tsland1 ·

6 At the present time:, Mr. Be.nt:on • s profit is -Ver;y y

7 ·small .. ln our last analysis of his books, it represented

8 four per cent of hi$ pre'sent 'i.nvest.ment. '

9 GOV• ANDERSON: What is the amount of the lease?

10 Whaf~ do we get: on th~ property? ,·,

11 MR. ,HORTIG: pne hundred dollars a year ..

12 GOV~ ANDERSON: i\nd what is Stockton's sublease to

13 Mr,, Benton? How much is that a year?

14 MR., CARLILE: There is···no monetary return .to the

15 City of Stockton for the firs·t thirty-five years. He is

ia · · plowing back his. profits i.n the development of the Island.

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MR.- F!ORTIG: I think possibly .we shoug,·a.1s.o add

the. fact, Governot" Anderson, that these facilities which will '

ha.ve been construe ted by t:he sublessee wil,1 ultimately become

the, property of the City of Stockton, at no CO$t to the City

f.:>f StocktOl1o

MR,. CAR.LILE: That's right.

MR. HORT!G: So what results from this development

:i.s a fully developed small craft harbor and recreation facil­

ity, at no direct cost to the City of Stockton ..

MR~ SIEROTY~ Is there a limitation or control on

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~he profit of ydur subl.e$see therr¢ 1l You s("l.y ·you audit his

books eveJZy year? i

· MR. CARLILE: That 1 s right. •\ ·'

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completi~n of the thi:rty-fiv·e year.·· period; the

~~ take.~\ into c<;>nsideration.

profi ~s wi.ll ;/ ,/ /!

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I might point out the State lease is for. fifteen · !:

yea:a;s, with two ten-yea'.r options. There is eleven \:years to \'

run on the\ original pr.itnary lease with the State; so at the

9 end of thej1 eleven-year ~:\~riod., the profits then can be ana ...

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lyzed ancf\ determination made for the rent to be paid. ,. I '·"' .·'.·

MR~ ,_~/CP..ANST0"'1· • • '' A.'«. Do you have any further questiot~s 1

QOVo ANDERSON: I don't think so.

MRo CRANSTON: Alan?

MR~ SIEROTY: N~~

MR» CRANSTON: Thank you very much.

ltem (p) Paci.fie Gas and Electric Company -·- 15 ... ye 'I

·i 17 easement, 1~079 acres tide and submerged lands of Sacramento

18 River, Shasta Co'Unty, for wire crossing -- annual rental

19 $51.14;

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Item (c) Pacific ~as and Electric Company

year e~sement, l,148 ac~es tide and submerged lands of i \ ' ~'

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Russian River!ll Sonoma Coun~y, for overhead '!,~ire crossing·

annual rental $38;

Item (d) Pacific Gas and Electt:ic Company ... _ 10-

year renewal of Easement P.R.C,.. 353 .. l, 0.1t482 acres of Tuoluml:e

Riv.,r, Stanislaus Coun;..y, for gas~line crossing, total renta~ _$_2_42_· ._9_0 ; ______ ............... ....._., ---- - ........ ......,_....,...' ------------.............. __ J

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.. ·/item (e) Phillips·. Petroleun1 Comp~ny Deferment of 11

~.·· dri1t,ing reql;lirements under Oil and Gas L~~ase P.-R,C,. 2207 .1,

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.SanttG\ Barbara County, through December 21:;. 1963, to permit

4 at1alysis an.cl it\t:erpretation of data from ·wells drilled, and

· ,/ 6 · ·to allow lessees to ·obtain needed reservioir performance data

6 from a producible gas sand underlying the lease.

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IJOV .A'.N.O;ERSON: I ' 11 move it.,

MR., CHAMPION: Second,,

MR~ CRANSTON: Approval moved, seconded, made

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15 ment Amending Certain Contracts for. the S(ale of Natural Gas, n

14 between the City of Long Beach at1d its Board of Harbor Com..,.

15 missioners; as First Parties; Soc.ony ... Mobil Oil Company, Inc.;

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as Second Party; Signal Oil and Gas Company, as Third Party;

and Long Beach '.Dock and Te:trninal Companys; as Fourth Party. ' I\ '

Any comments on that? ,,

MR.., HORTIG: , Yes, Mr. Chairman. This is somewhat

unique in terms of representing contracts that the City of

Long Beach as such has not submitted f?r app:eoval; inasmuch ~ ' .

as,J.t is contended by the, City of Long Beach that these fands,

are owned <py the City of Long Beach.. However, the State has 'f -' ,, \;

a claim td,; these lands and Deputy Shavelson is the attorney

who is pu1:suing wi.th the litigation with t-espeot to that·

cl~im; and I ~'!.Sh. he would comment on the reason for this

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! reeonunendation for approval.,

· 2 ~· MR.. SHAVELSON: The lands LnvQlved· in both item (a.)

3 and item (b) under n4ir are lands which th~, City of. Long Beach ,.

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4 ·alleges that it owns in its municipal capacity, fl;ee of th¢ .I'

6 Tidelands Trust11: The State, in th~ case of the People versus i.i

6 Long' Bett;ch, tak~~::the position that large porti,ons,·;. of the

.., 1 1.ands covered are, in fa<!t, tidelands; and that other poi:-i'

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tions are, regardless of their natural ;status, because of the

way in whi.~h the City acquired them -· that fs, in settlement

a£ cel;'tain tideland lJ..tigat;i.on between 1938 and 1941 -- that

the lands are held sr-bject to the Tidelands Trust.

our problem is thlJ.t if these lands.are, in fact,

tidelands or held subject to the trust, then undeJ;: Chapter

29 the approval of0 the Com.mission is required for these con­

tracts. If they a.re not tide or submerged lands , o~ not held.·

subje¢.t to the trust, then Con'dnission approval is not re•

quizied; but we think that;: ~der these circ·uiµs tances the Com­

mi$sion should examine ·these contracts as if it were settled :: \, '

that the lands were ·t:iid@lands; and if they turn out to be, ,,

then the contracts are validated •. · If they turn out not to he

tidelands, then certainly no harm has been done by the Com""

,.,2. mission ts action111

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GOV~ ANDERSON: Now, then, have we checked these

agreements1

MB.. SHAVE!.SON: Yes, we have., sir.

GOV-+ ANDERSON: ln other words, we a.re not ju.st

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approving them.

to be on the record; you have checked them?

HAVELSON: We have analyzed these agreements

exactly as though the title t, the tidelands were not in

dispute,

CRANSTON Reeomrnended for approval

SHAVELSON: / Yes.

GOVT AEDERSON I'll move i

MR CHAMPION: Second.

MR. CRANSTON Moved and seconded , adopted u ani

Item (b) Authorization for Executive Officer to

ce tiiy approval of: (1) Seip.ond Agreement Amending Contract

for Sale of Natural Gas, sA between the. City of Long Beach and

is Board of Harbor Commissioners, as First PartieS; Lomita

Gasoline Company, as Second Party; Signal Oil and Compa

as Third Party; and Long Beach Dock and Terrainal Compam,

Fourth Party; and (2) 'First Agreement Amnding Contract for

Sale of Natural Gas OVUM 'G-1 WELL) between the Board o '

arbor Commissioners of the City of Long Beach as First

arty; Lomita Gasoline Company, as Second Party. and Signal

Oil and Gas Company, as Third Party.

GOV. ANDERSON: My motion of appr oval, th ught,

covered it all .

MR CRANSTON: Yuaescon4n that

MR. CHAMPION Second.

ML CRANSTON: Approval is moved, seconded, a and

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OFFICK or Alli∎ iFtI k Vg. PttOCt DURO, OTATIX Or OALLFDRNIA

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UfianimOU$1y ordered of the entire matter., ·C,.

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,,Frank, do you have atlything to :i:eport on the me~~tin

held Monday on the Long Beach Wilmington Oil item? ,,' >;

· Ma. HORTIG·: Ye~~, sir. If you geu:t:t~me.n will refer

to Supple~ental Calendar Itell, page 3:6 1 .r:ittached to your

calendars~ pursuant to the directive from, the Commissic.ln on "

March 28th, the State Lands Divis.ion staff did hold public

reviews in Los .Angeles on April 15th and April 22nd, which

9 was last Monday,, In respt1nse to your. question, Mr~ Chair ...

• 10 man, relative to the proposed contracts for development of

11 the Loio1g Beach Unit or the Wilmington Oil Field, these re-

12 views were f'Ull-day se$sio.ns, were attended by approximately

13 one hundred represantatives of-the petroleum industry, the

14 City of Long Beach, privrate citizens, and other interested

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" 15 , parties • Full opportunity for discussion resulted in ques-

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tions, suggestions, and recommendations that will provide

fac.tual base$ for further staff considera't:ion and coordina-. "

tiotf \\tL th the physical~ legal and economic appraisals and

recomm.endat:i.ons incltldin.g those that will develop from

Senate Resolution 100, which was adopted on. April 8, 1963,

reading as follows (and reading only the 11Resolved11 portions):

,.Resolved by the Senate of the State of California, That the State Lands Commission be requested to with.hold ut\til May 15th, 1963 its detennin?-tions wit11. respect to all of the documents relating to a bid offering by the ·.City of Long Beach for the ex­traction of oil, gas and hy~rocarbons from the Eas Wilmingto11 Oil Field; and be it further

uResolved, That the State Lands Counnission be

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. 10 ' ~._..--~------...--------..--~--·--~.----------~1 ;,-~~~aouraged \~o oont1:nue public hearings and re- · vib.:1S by its\(staff relating to such existing or . propo$~d. doc-t\:r~ents; recogniZit!g the value of. such h~ar.i1i.g$ an. d \%._evie.w. ta .. insure maximunt parti. cipatio. by a.ll·those wno may be ~once:t:ned ~ndwho mray aid in:· a final determination of the most appropriate

. ':)approach i:or such extraction whi(:h will be to' the " \"naxitnum equitable benefit 'to the State, the City

bf tong Be~cth, and the industry; and be. it further

MR., HORTIG: (continuing) At l:h.i.s point, I can

also report that 'the Senate Rules Commlttee has appninted a

· Special 1"Research Committee of the Senate, Sena.tor O 'Sulliozyan

Chairman, togethet' wit1li six othe·;~ members, who ar.e proceed~

ing with the study di~ected by this resolution.

For the ~~rther informati1.>n of the Commission,

Assembly House Resoluti.on 196 I can now report was adopt~d

April 23, 1963, and reading the resolution: (on the bottom

of page 389'

question.,

. 0 :Resolved by the Assembly of the State of Cali-. fornl,a, ".Chat the Assembly urges the State Lands Commission to approve promptly the Unit Agreement, · 1Lo11g Beach Unit, Wilmington Oil Field, California, Unit Operating Agreement, Wilmington Oil Field, California" and Field Contractor Agreement, Long JBeach Uriit~ Wilmington Oil Field, California; .. • n

l~. CRANSTON; i~J.1ything further to report?

l~. HORTIG: No sir 11 unless :tn response to a.

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MR. CHAMPION':

MR. CRANSTON:

Is there any third .course? ·1··

We will go on to Item 5 • ..; Authori ...

zation for Executive Officer· to enter into an agreement. Cl. I.> ...

MR. HORTTG: Excuse me$ Mr. Chaittnan. Und~r tl:l.e

·. circ'Q.mstances, I believe it might be appropriate to read for

the r~cord letters received in ge1teral reference to the· Long

7 Beac.h contract subject, which were requested by the senders

·8 to be read into the record. ~~·i

MR. CHAMPION: Can these docume11ts be erttered into

1 o the, rec·ord without reading them?

11 MR"" HORTIG: They can be. I can only say the

12 request Of one is:. Hlt is requested that this letter be rea

13 verbatim into the recovd at the next form~l meeting .of the

• 14 State Lands Commission.11; and the other, 0 It would be aP,pre-

15 ciated if you would have this letter read ::Lnto the ree'Ord o.f

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· your April 25 meeting, u

MR •. CHAMPION: I n1ove that tb.ese be considex-e.d req:, i;

into the record.

GOV .. ANDERSON: Second.

MR. CRJ\..NSTQN: Moved and seconded) approved 'Unani-

21 i.UQUSly.

~2 GOV• .ANDERSON.: You could identify them for the

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record •

MR.4 RORT!G: The letters which are the subject of '

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Q 25 the motion just passed are, (l), letter.· of April l, 1963 fro·

2e Pa:u1ey Petroleum !ncit,· Reference: Long Beach Tidelands:i sign d

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12 by- Mr. L. E~ Scott; and the second letter

1 is one _f_r_o_m_1 _th ___ e_.....,,l

1 .. ong Bea¢h Chamber of Conimerce, A,pri1 22~ 1963, signed by 'I 3 · Orville Cole, M,.D~, President.

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GOV• ANDERSON~ ~~nd the conteints of these letters

a.re public ... ·,Anyone thci,t W6~nts to r(~a.d, them <."!an (';oni.e and read

them, can•t they?

MR. HORTIG: Yes, ·and they will be included in the

tran&cript as produced for the Commission.

(lietters referred to are reproduced below) '

0 State ·Lands Commission 302 State Building 217 Wes·t First Street Los Angeles l.2., California.

April 1, 1963

Attenti,f..1;\; Mr. Frank J" Ho:1,:ti.g, Exe,~utive Offio.er ~efere~ce: Long Beach TideJl.ands

Gentle1faen:

Attache~ herewith is an . arti•~le f<:>und a·c Page A-6 of. ·the t.ONG J?EA9H INDEPENDEN! dat:1ed SaturdayJ M~rc~ 30 ~ 1963, where.i:n ~\t is .reported that .tong Beacn Oil Development Company, ~if?n&~ ~il and Ga.,s '~ompany, ~exaco ~nc. , a.ng Union Pac1f1c Railroad Compa.11y have filed a. law-suit: l.tt an effort to declare uncon:\~t:ltu.ti.onal the City of Long Bea.ch: s Oil \Production Lic~.~n~!1e tax.

This is call~~d1 " to your. a.tte\ntion in 1order, that you may con.fex- with your Staff and the .Attor:n.ey 13eneral in an effort to ascertain the effect ,of this action upon the presently e·Kisting proposal bef,';n:·e the State Lands Com­mission. 'We must always keep :J.n lllind that any tax, rega.rdles!?,: of h?W small, has a material effe.ct -upon wh&t a company;. bids 1,.n this area.. On¢ per cent of the value of . the Loing Beach Tidelands oil is approximately . $4S:1000 2 000. If an ambiguity exists as to the legality of a t~.x to be levied uEon a producert it will materiall affect tht~ bid and coul,d very easily e.liminate competi­tion and 'tch:tll the bid 1 of those who do file a bit1. ..

this and a.11 other taxe~J become a major problem because

• 2a L_ . ._. -=-=~- remarkab: sta~~~~~-t-·by .th~-:.t~--~·~Long Be:_] I

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"'March 28, 1963, in'its comments :relative to the state~ ment of the undersigned to the State Land$ commission February 28 1 1963, This .s'tateme~t, shown on Page 32 of . Long Beach's statement, ,,q:eads {ls {follows:

. \>>:'•1,;'~\• •11' Ad valorem a.nd other ta~es;

COMMENT: .. .. Altfiough vte appreciate the industry's concern over taxes, we submit that conside~ation of the tax question is not r,ele-vant to considera-tion of this contract_.•• .... ' ·

1'Reference is also made to the statement of the Attorne General at the March 28, 1963 meeting whe:re ha indicate . that there is a strong pos·sibility that the Field Con,-tractor would have to pay an ad va.lorem ta1~ on the tota value .of the production.,

ult is our strong recommendation that the Attorney General be asked to file a. formal, opinion at an early date, setting forth the tax, the amount, and who is to pay same, on.the Long.Beach Tidelands,. The Commission and Staff wlll no doubt agree that every business and each citize11 of the State of California has. the right to kn.ow the amount of its potential ta:r. liability be­fore making a connnitm,ent. We beli.eve,, alsoi that it is to the best interests of the Stat1a of Califor'nia to kn,ow its potential tax income on a venture of this magnit\lde ..

nrt is requested that this lett~.r be read verbatitn into the record at the next formal rM~eting of the State Land Connnission.,

LES:hb

Yours 11ery tt Ally, Is/ 1~~1 E., Scott

cc: Hon,. Glenn M. Anderson, Lteo Governor Hon. Uale Champion, Dj.:re-ctor of Fi,nancie Hon. Alan Cranston, Controller, State of Californ a Senator Virgil 0 1Sullivan.

FOLtOWING~ IS REPRODUCTION OF· ARTICLE ltEFERREP · TO IN FIRS'! PARAGRAPH OF ABOVE LE'f'l:ER:

1 'FOUR FIRMS DEMAND OIL TAX REFUNDS " ~tFour oil comps.nies Frid.s.y demanded refut1d of $66; 693 in city oil production license taxes they·pa.id last October under protest.

2~ L 'The ~irms f~l.~ . ~la~s :i.t~-City ~r¢~sur.~r Wi~~~am ...

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uRamsell fo:r referral to the ·city· council ...... a move , l that noriA\l.ally precedes court action. j

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I 11Union Pa~~i.~:to Railroad C?• so-q.ght the largest }ltno~tnt, .j ~52)356:1 pa.1d both.as an individt1a.l. pl:Odueer atid as 1

vnit producer in the harbor district4l l 310ther claimants were Long Beach Oil Developm.ent Ca", $.7,.403; Signal O:i.1 and Gas Co;f, $5,, 711, and Texaco Inc~ $1,255. . '

. *******' 0 IN ADL~.IO~! to. the constitut.ional grounds -eited in the original protest, Union Pacific raised a new a.rgum.~nt"" The company contended that during the pet'iod cover<id by the claim -- June-Aug~ 1962 .... it already had a ~re-paid licens~ to do business in L£>ng Beach. · ··

ucity officials noted that the new proc}uction tax license ordinance specified that pro rat.a amounts of the previous $50 annual license fee would be refunded or applied to the new levy.. The produ·ction tax i.s thre cents a barrel.. u

' 1 (End of newspaper article)

** 0 Ala.n Cranston, Chairman State Lands Con1mission

· Sacramento, California

near }fr.~ Chairman:

April 2·2, 1963

It would be appreciated i.f you would have this letter · r·ead into the record of your April 25 ·m•~eting.

In connection with t~e proposed Long Beach Oil Develop­ment program.you are conside1;'in~, we .. wisJ:t to stress one important abJeCtive of the City s whl.ch l.S of paramount importance to the people of Long Beach. It is the absolute necessity of avoiding land sinkage ...

As' yo\l know, t.ong Beach .has just emerged from the grim shadow of subs:tdenoe of its hal!'bor, shoreline and d¢wn­town areas~· Lal:l.d ove,r the developed part of the Wil ... mington O:i .. :,, f"it:l4, has sunk as much as 27 feet. in one place and s1~'ik1ng h,~s spread over 20 square mi.les.o More than $90 million of damage has been suffered by publ.ie ~d private properties. Thousand~ of lives have be¢n endangered. The Long Beach Navy Sh1pyard, our

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15 11s~co11d largest :tndustrial a:ctivi ty and payroll, was ,. threat~ned wtth closure~

Subsidence did irreparable.and.inestimable. damage to Long Beach~ s e.conomy by frightening away ~nves tment cap:i.tal. As yQu know fr.oin our correspondence with your co,mmi~sion, dating back to Septetnber 13, 1955, th·

.· ChambeZ' of Commerce fol.lgbt literally for years to fore . a cu,re for subsidence. The fight demanded the combine and intense ef fol:'ts of many of our top governmental an civic leaders~· almost to the exclusion of other con­structive projects. lt was a. bitter struggle which we, at all costs, are determined not to repeat.

We have learned from harsh experience that subsidence is easier to prevent than cure. The Long Bea.ch pro­posal is designed to do just that -- prevent subsidenc •

The principal difficulty Long Beach faced in stopping subsidence, wbi.ch centered in the presently developed part of the field, was the large number of economic interests involved, a.lthough the City and the State ha practically no control over their actions,, the complet coopex:ation of those numerous interests was essential to develop an effective repressuring program. The delays in getting that cooperation spread over too m~ny years whi:t;e a vital part of the City sank., In fact, cooperation speeded up only after the coercive. effect of the Navy lawsuito

In the plan now before you, there will be only one operator~ there will be adequate City attd State contro , and there will be no danger of disputes over where,. when, and how to xepressure and thus prevent subsidenc • But if you divide the economic interests and the . respofisibili ties, you will open the door for the spe.ct r of subsidence to again appea.1:- '*

Our Chamber lead the successful effort to pass the February 1956 City law which prohibited any oil ment in the offshore area you are considering, until adequate subsidence eafegua:rds we.re presented in an .. oil development plan to be approved by the voters. Th C~ty carefully prepared such.a pan and our Chamber sup· ported it in the February 1962 election when the City voters approved it,

We do not believe the people of Long Beach would have approved the proposed oil development without being ......... 1 ......... ..:1 ""·i.. ........ +.1' ..... .i:::.:-1.:t .................. 1,.::l '&....- ..:i .............. "1 ..................... 1 ........................ ......... .:: .... Qi;';:)"'"" ~u. ""ua.. Q,.,. i,.u~ .... ~~ J,.U. WV\.,l,&•U. IJ'C µ1;;; Vl!;;;..LV.if~U -a,..,;;;;J ""1'U'I.': U.U.:;I.."" J with City control to avoid any subsidence hazards9

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0 we l,ikewise be.lieve that if the City's control is lessened, and tb.e safeguards against subsidence weakena,1, t~e P'~op~e c;>f Lt;ng Beach will demand .. that the ban .against dril;L~ng in this az-ea be rest:oz"ed. ·

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1We at:e stx-essing to you the .ser:;i.,ouSnes~I Wit~ which We view the Sl;'.lbsidei~ce as~ect.s of this matter becauset· ot1:1e. r than."_i.:n th'\ City s pre. sent.atie>n, we. have. seeri no evidence 0£ concern about subsidence on the part of those who are critical of portions: of the City's propose~. · ·

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11We endorse the City's program as submitted.to you and i1rge tts ~pp:rovi3.l ~1 To keep the record current about the dangers of subsid:ence, we a.re also. submitt:i.ng: a pictorial brochure \We prepared in 1957 wbic.h shows some of the severe da:magel. Long Beach had suffered up to tha. time$ We· cannot let such a catastrophe happen agairt~ ..

R.espectfully)

/s/ Orville Cole Orville w. Cole, M.Da P:t"e.\S·ident.

MR.., SIEROTY: May I 111ake a short comment? The

Long·Beach th.amber of Conuneice letter, which has been place

in the record, r,efers to the subsidence problem in Long

Be~h'- -~nd. gives as a reasli)n for· opposing . the breaking 0£ , " ,- .... ~-- ~- ,

:"the Tract l area into u'n,div.ided interests~ or any other

break up, the need for subsidence cot1trol; and it says in

here that 11we a.re stressing to you the seriousness with

which -we view the subsl1dence ·aspects of this matter becat1se ~· other than in the Ci'tY 1:s presentation, we have seen no evi-.,

den.ce of concern about :>ubsidence on the pa.rt 10£ those who

are critical of portions of the City's proposal.H

So I would like to say that I was at tl1e hear,i.ng,

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,l ~efn:esenting Lieutenant Govemo::: Anderson and I stated; and I ("

am sure that the Commission feels this way, that we are defin 5'· it.ely probably more concertied abot,1t t:he subsidence features

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than any other single fea~/ure in this ;·.area.; and it is i.n the 4

. 5 · x:-ectir.d of the hear]~ng, but I thought l'U~ might present that

6 now for the Chamber of Connnerce 's information{io

7 MR.jg, CRANSTON: · Yes, I am· sure the record of the·

8 Cormni.ssion indicates c,bnti.11uing interest and careful interest,

9 in the matter of subsidence,.

lO MRat CHAMPION: And, as a. matter of fact, I see

11 -Unanimity on that subject that has led to the discussion of

12 other things$

13 MR., CRANSTON: We wil 1 go on to l tem 5 ... ... Authori •

14 zation for Executive Officer, to enter into an. agreemettt with

15 Beachlake Cox·poration, stipulating the Ordinary High Water !

16 Mark along the Gulf of, Sa:£tta Catalina, and fixing the boundar

17 between State tidelands. and- prope.rty owned by Beachlake Cor ...

18 poration in the vicinity of Oceanside, San Di'ego County •

19 MR .. HORTIG: As the Commissioners may recall, at

20 recent meetings the fixing of the boundary for the major por-

21 tion o.f the ocean frontage along the City of Oceanside, whic ·.

2 2 is owned by the City of Oceanside, was approved by the Conunis ...

23 sion. The pre.~sent segment. of boundary here recommended :for

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approval is th~~ only intervening privately owned segment:t

;and this is compatible with the boundary previously approved

fox· the City of Oceanside on either side of the City of

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GOV,. ANDERSON; This connects the two pieces? .,,

MR-. HORTIG; That's right -- cl.pses th0 last gap •. ~\ .,

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GOV~ A.NDERS'0J~: I move it~ \\

MR;, CHAMPlQN,; Second.

MR~ CRANSTON: Appx-oval moved, seconded, ordered

unanimously .•

;.tern 6 -~ Authorization -Eor Executive Officer to

\\ execl).te an agreement which will convey to the United States

0£ America a limited leasehold interest in approximately

fifteen acres _of tidelands in Santa, Barbara County, for the

period from August 31, 1962 through June 30, 1968 (in the

intere.st of national defe·nse) ,,

.MR~ HOllTIG: The United States Government ha.s

£1led an intermittent peleiod seven-year condemnia:ttt:bn, of

Point Sal State Bea.ch Park in conn.ec·tion with the necessity

for controlling the area in the light of the ope~ations bein / ~,

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conducted from Vandenberg .Air Force Base in the Pacific Mis ... ,-.

sile R.ange.. The recommendation that a limited leas:ehqld

interest be granted in this tidelands str:Lp to th1e United

States for the same pel:iod as the condemnation for the l?a.rk

parcel is, :i:.n liet], of th~~ Untted States condemning the State

iands.. By t1'is inethod it wilt. be certain that at the expi:ra-, .

tion of the limited agreement for leaseb.old interest~ the

title for the tidelands will revert to the State of Californ·· a

without any question.

........_ ..... _._, _____ :~~-~ .. ~~~~~~,-N._:_........ __ u_o_w_w_· J.._· d_e_. _:i_ ... s_t_h_e_s _tr_i_P_ ..... __ ... _j_u_s __ t __ J

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app:t.oxima tely? ;/

MR* HORTIG: In~smyjch as it' .contains only a total •.I

of fifteen acres and it,; i$:1s:\~veral miles long and is describe \

as uthe tideland~0 atid not tn~. submerged lands, it is that

5 s,t:t;>ip of varying width between high and low tide; in other 1_\ It

, ; .· ' 6 ,(" words' that aree,, which would be uncovered by the flow of the

7 tide daily, averaging somewhere be.tween one hundred and two

8 hundred feet.

9 GOV., ANDERSON: lt reaches all the way from Mussel

io· Point to these rocks down south?

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MK># HORTIG: Tha.t is correct, sir.

GOV• ANDERSON: How long is that strip ..., __ sever,al

MR. HORtlG: Yes sir, at least five miles.

GOV~ ANDERSON: Five miles?

Jru!' .. HOR!IG; The strip 9£ necessity is very nal;'row

17 or it would be more tnan fifteen acres.. It is only the ti~a

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lands strip down to low tide.

GOV. ANDERSON: I'll move it.

MR11 CHAMPION: Second it.

MR., CRAfi\fSTON: Approval moved,, seconded, made

una.t~imously ;t.

I tern: 7 - - Aceep ta.nee of bid made by Uu:t on Oil Com-

pany of California and H.umble Oil & Refining Company, for .1\

Parcel 12, Santa Barbara. County, with cash bonus payment r1£

ltrank?

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' ,, l . //' MR. HORTIG: As. the CCY~tmission will recall from th

~' ' ~ previous. report,,. the apparent high bidder for Parcel 12, pur-

5 suant to published notice of intention authorized by the

4' State Lands Commission, wa$ the joint bid ()f· ~'nion Oil Com•

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pany of Calif oi:nia and Rumble Oil & Refining Company -~

offeri..ng a cash bonus of $612,840.

7 The bid offer has been. reviewed by the Office of

8 the Afftorney General as t<:> legal compliance with all bid

9 terms and conditions, and by the staff of the State Lands

10 Division as to technical and economic sufficiency, and it is

11 recommended that a lease be awarded ,put'suant to this high bi •

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MR.,, CHAMPION: So move.It

GOV~ ANDERSO~l:; ,, Second.-

, MR. CRANSTON: Moved, seconded, adopted unanimousl •

Item 8 -·- Confirmation of trans:actions. consummated

ia by. the Executive Officer pursuant to authority confirmed by

17 . the Commission at its meeting on October 5, 1959.

. 18 MR. HOllTIG: These actions again, Mr. Chail.i:nan,

·1 .. 9 were in the nature of replacement leases for previously auth ...

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oriZ·\fld but e~piring grazing leases; and extensions of the

tei.'"Ills of· of.fshore exploration permits previ.ously authorized

by resol'Ution of the State Lands Commission; and the executi n

of a temporary permit to the U., s.. Corps of Engineers for a .

very l:i:mited term, to permit utilization of an area for tak ...

ing of£ a.nd landing amphibious aircraft on the shore of Mono

Lake, for military exercises,,

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MR-. CHAMPION: Mov~ appli.'.~~~l fl G'OV,. .ANDERSON: Second:

MR~ CRANSTON: · .Appro"<iral moved, se~9nded ~ made

unan:t'mously.

Item 9 ... - Anyth~ng new on that?;! I

MR,. HORTIG: We, of course, br1~ng attention to the (

7 action previtbusly referred to but not previously calend.ared

8,because of lack of the date for answer to be filed on motion

9 for leave to file Stl.\ppl-ementary ~omplaint on the part of the

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Solicitor General, seeking to reactivate the' case of u. S.

verst.1s California relating to sovereignty of lands offshore

from the mainland of California, more than three miles from

the offlying Channel Islands. An a.ns~1er is to be filed on

14 this action by May 14th and but for the fact that;he is in

15 c:'.-a;ttendanee at our meeting today, Deputy Shavelson would be

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16 enmeshed and immersed in the com.plet~,on of the draft of this

17 ,,answer, along with other members of. the staff of the Attorney

18 G@neral 's Of,f_ice in Los Angeles, to pro<;:eed with }':.i:Ounsel 's ~-:..:..> ;. '(.

19 portion of the implettientation of the full defense o.f the

2o State's position, as· dit'ec ted at the last meeting.

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MR1t CHt~ION: May I ask whether we are opposing th -

opening or whethel:' we~\ are assunrl:ng tbat we shouid proceed wit

some sort of legal action? Is the;t:e SJlY question of opposiu.g

24 the opening7 \ \

25 MR.., SHAVELSON: Mr~ Cham.pionJI the p-:tesent issue is

primarily a procedut:al one, the United States takii'l.$ the

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1 position that this is a continuation of. the old ca.sell We

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haven't prepared our brief. yet and we c,an 't make any public

statement, but it is vet"y likely we will till<e a contrary

posit~on on that :procedural point; but as far as the necess­

ity for settling the controversy) I think there is no great

difference·between the United States and California.

MR,, CHAMPION: I was curious a.bout that because I .: " :1

8 think members of the Commission received letters - - I think 1

9 from Under-Secretary Carr, which asked if we w@re willing to

10 proceed with this, regardless oj: the procedural aspects of

11 what is going to be before the courts, the idea being that we

12 should get some .... ~cision on the general controversy.

13 MR. SHAVELSON:· May I ask if that was since the

14 filing?

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MR~ CHANeION: Yes.

MR. SHAVELSON: Will ~te be furnished with copies?

MR .• HORTIG: You can be.

Mlt~ CRANSTON: Is that all?

MR.. HORTIG: Yes, sir~

MR.At CRANSTON: We have a supplemental calendar

21 . item, informative, on status of legislation... Do you hctve

22 anY, f.urther information?·

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Mll·i.. HORTIG: Not beyond what was cataloged there - -

other than, of course, the data with respect to Senate Reso­

lution 100 and House Resolution 196 have been updated since

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l".lR.,, CRANSTON: Do you have any information,;, on the

current status of the dredging of the B~y and the filling. 11

in of the Bay'l

MR. HORTlG': As a result of par,~icipation .in· the ;, I :\

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Ass,embly Oil, and Manufacturing hearing, which consumed two) ·

.. - -~\' hours yesterday afternoon -- Assemblyman Kennick, who wa.$1

hearing the measure, had asked that I attend the hearing for

possible tec.hnical support and admit1ist:r:ative advice as to

ho~ th~ measure could be administered if adopted. Many con­

tentions, both pro and co:n,with respect to the matter were

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" ll' made after Assemblyman Kennick requested that I comment on

1~2 th~ conteniplated action, inasmuch as this was not a measure

1$ . which was requested to be introduced by the State Lands Com ..

14 mission, but has been requested by one of our poten.t.ial ·per ...

15 mittees and, indeed, one of our present s.a.nd and gravel ex-

16 t'rac ti on lessees., The result was that in necessary response

17 , to these questions, I became involved in more discussion and

18 ~; 1bate than any other single opponent or proponent of the

19 measureo

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MR~ CHAMPION: Kow were y(JU eventually categorized ...

MR.. HORTIG: I didn't hear any direct quotes. I

can only report that the committee ordered the bill "Do Pass u

MR,. CRANSTON: What does the .bill c1 'np:tise?'

MRir J;lORTtG: l".Che bill l'1il1 authorize the State

Lands Corom.ission to issue permits f,cr the extraction of sand

and gravel subject to all the currently existing protections

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under State- Law, but without the necessity of des

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14 Therefore so that operations could be conducted

15 under a general permit, in which the amount of sand extracte

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cisely, in accordance with normal legal requirement

ance of a lease the exact area fr__ which sand and

to be extractedg the necessity for such roving description

for extraction of sand and gravel which will arise when ex-

tractors find that it becomes necessary to go outside of the

Golden Gate in the ocean, where the sand is shifting continu e

ously and in case of severe ,storms a particularP body of sand

has been known to move more than two miles in twenty-f ►ur

hours.

Consequently, if a State lessee had a particular

description in his lease, he might find he no longer had any

sand in the area in which he was authorized to operate.

would be measured and the State's royalty paid on that sand ,

is the announced purpose of Senate Bill 339.

As to the objections that were voiced, ultimately

the objectors all agreed they had no objections per se to th

removal of sand; they were fearful that this might produce a

Indy of construction and fill material that would result

an ezpsion of filling activities in San Francisco Bay to

the detriment of the tidal waters and the esthetics of San

Francisco Bay -- which, as the Chairman pointed out was t

problem of local zoning propon nts.

MR. CEINAPION: There is other e h

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would p~oh'ibit this.

MR.,. HORTIGi As of two da.y,s ago, ' .

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Assemblyman -~etrJ i1ttl:'oduced a bill to~ in effect, provide a four-year mota.-:-~

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t:orium 9n filling projects in San Ft<anc.isco Bay. I should

report to the Commissi,on that all filling projects in San

Fr.ancisco :Bay currently authorized and currently in operatic·

are on granted tide at'ld submerged lands and have been grante

by !>articular munictpalities, and have not been authorized b

any State bodyjt or on privately owned tidelands purchased

many years ago from the State. So there are no activities

authorized by the St.ate Lands Commission that are any part

or parcel of the problem atld concern with respect to Senate

Bill 339.

MR. CRANSTON: This bill actually does not speed

up extraction; it ju.st proposes to make it a simpler matter

to carry out the work?

MR"' HORTIG: It might make it feasible to extract

sand in the outer ocean> where admittedly it is more costly ."

to get :i.t but whet'e ultimately San Francisco con.tra\.'.!tors are

going to be:ve to get it beca.use they a.re running ou.t of use­

able sand in San Francisco Bay.

GOV., ANDERSON: Under present law you ax-e limited

to sand within ·the Bay?

MR.., HORTIG: No, sirij!

GOV. ANDERSON: Can. you describe that sand outside

the Ba~'i

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l MRt HORTIG: Yes, we could today ... ... if the sand

2 would stay in the area we describe"

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Gov~ AND~RSON: So for all practical p\i:tposes<., you

ca~'t sell it beyond the Bay?

MR. CHAMPION: People won't: buy it.

GOV. ANDERSON: The present law limits you for

p.ractical purposes .t;o inside. the Bay?

8 MR• HORTlG: Or such areas where the sand doesn't

9 have the tendency to move,. It doesn't ·move this rapidly most

10 places offshore,. but right off San Francisco Bay it does.

11 GOV~ ANDERSON: So, in a sense, we are expanding

12 our operations outside the Bay, where effa:?ctively we can't

13 sell it now,.

14 MR.o, HORTIG: Howevl?r, the statute would apply

15 statewide-.

16 GOV.- ANDERSON: In this particular case.we are talk

17 it>.g a.bout a sand bar that moves 'l

18 MR-: HORTIG: Right . .,

. 19 GOV •. ANDERSON: What is also d:i.scussed, aside f:t"om

20 filli.ng inside the Bay ... ""' the erosion ef:Eec t to the sand on

21 the beach, and so on.

MR. HORTIG: Y'es. lnasm\:tch as the proposal in ·1

23 Senate Bill, ,)39 is simply an addit.i.on of adro.inistrat:Lve. flexi

24 bility to the Public Resources CodlE11, issuance. of a permit pur

suant to sueh authorization would be1 subject to all existing 25.;

26 safeguards ...... which include now th~1 itecessi ty, prior to any

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issuance of petmit (Jr lease, by the State Lands Commission:i

fora reference of the permit application to the Division of

Beaches an({ Parks for analysis and report as to whether or

not the operation may have a detrimental effeet on the adjoi -

ing recreational lands; for revieu by the successors to the

6 former Department of Natural Resources; a~,$0 the U. · s. Arm.y

7 Corps of Engineers must issue a permit as to the locale of

8 the dredging specific.~lly, irrespective of the pezmi t by~ the

9 State Lands Commission, which is based on an assurance that

10 there wi.J l be no hazards created to navigation; a:p.d, finally,

11 Senate Bill 339 as amended yesterday in conmtlttee by the auth

12 would provide that, in addition to a.11 these other bodies

13 that mu.st t:"eview a permit before it can be issued by the

, 19 safeguard.s to ·insure that there will be no detrimental effec

20 before. the permit is issued.

21 GOV• ANDERSON: Did you go on record in favor of

22 this bill1

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MR+ HORTIG: No sir, I did not~

GOV., ANDER.SON~ ln otl1er words, as far as we are

concern~d we have not taken a position?

MR.. lit1RTIG: No si~', and all we report'l.d on

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...--------------...................... -----------.. ~ ---·. 4~ how it appears it wou~d adminis,trated if it were adopted and

tbe technical features, and the existence of these ,safeguards

that are already in the statute.

Gov. ANDERS.ON: I think you should keep' it on tliat

basis; because not knowing too much about it, my reaction

would be to oppose the thing and even with all these safe~"

guards in there, I am still worried about the effects of ~b.e

bill because I haven 1t seen much on what the effects would

be of the bill. In fact, I have explained that I am opposed

to it several times and I would be opposed to the Commission

taking any position in support of it.

12 MR. HORTTG: We did not.\ take a position in support ()

13 of it. We were only there as technical cot1sultant.

14 MR..' CRANSTON: I'd like to ask about the Petris

16 MR..u HORTIG: ·I don't believe soi. Wee have not seen '

17 the bill in printed form, but from tbe press releases, as I

18 pointed out, the State Lands Commission. has no filling opera ...

19 tions in San Franci.sco Bay.

20 MR., CRANSTON: There could be some?

21 MR. HORTIG: TheJ:e q()Uld be, but it has been some

22 years since the State Lands Commission has had an appli~atio

23 to fill any State lands,

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MR .. CRANSTONz This would simply stop dredging.

GOV.,, ANl;..!:RSON: Is there any other legislation - ...

We had this constitutional amendment that affe.ct:ed certain

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tidelands in San Francisc'o Bay. Is there any legi $lS.tion

now before t;Q.e Legi~lature which would make additional grant - ·' -~

subject to this kind of filling or' development? I'

:MR. HORTIG: Well, there are probably fourteen ·.

·grant bills in various stages going tht"ough the Legislature,

of~~ which th1t:'ee or four affect San Francisco or San Pablo Bay .· :. ""' )1

of wh:tch two affect $pecifica.lly tidelands offshore from t!le

8 C:i.t:y and County of San Francisco. One of them affects tide-

9 lands that have bef~n filled for man~v years and this is by

10 way of clearing the record~ In other words, the entire

11 Marina area of San Francisco, tha.t is filled and has streets

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on top of it, is still for the record techniC!di2~r tidelands

until this. legislation grants the lands and removes the

navi~ation trust; but:i specifically, there is a bill that

would. au.thorize. the Lands Commiss·ton to sell the :remaining

16 underwater streets within that area, whi.ch has been desig· ..

17 nated by another statute as the Hunters Point Reclamation

18 District; arid the obvious purpose for which the Legislature

19 created this district is to fill and provide industrial lots

20 and industrial sites.

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MR. CHAMPION: Without: go:i.ng into it further,

could we have a memoranduw. on legislation which would affec

San Francisco Bay filling or use for any pu~1?ose of tide~

lands grants? For instance, t know the Port Authority has

either put in a. bill> or intends to put in a bill, which

will assist them in the development of the so"called

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l Ernbar·cadero City, which may get into this whole oomp 1~ex. \'

2 )'.•think it would be helpful if we had a: memorandum of all

3 the legislation now, on which effects are analyzed .•. \\

4 MP~ ... HORT.IG: Thi.s, of course, we ~an'.;~::;;:; fo~~thwi.th; . ,, .ii '

i 5 . with z-espect to San F·ratlcisco '$1,ay,.. 1 think at the same time

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6 we should include -for your information everything else that ' '

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is pending for other tideland areas elsewhere in the State

of California; there ~re probably three times·· as many bills

9 for other areas, other than San Francisco Bay.

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MR., CRANSTON: Any further mattersZ

MR« SIEROTY! I was asking Mr~ Horti8; whether he ·

12 might want to make a comnu;;nt on Sert~te Bill 298.

13 MR~ HORTIG! Senate: Bill 298, which is one of the

14 ten bills. which.the Lands Commission authorized to be intro-

15 · ducedat its request -- '®'hich: would provide.clar:lfi.cation of

· 16 the authority in the State Lands Commission to unitize State

l.7 _laµds in conjunction with an adjoining pre-existing develop.,.. .

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ment -- was scheduled for co1mn.Lttee hea.-::d~ng, Senate. Committe

?U Governmental Efficiency, yesterday morning; bttt the

author, Senator Rees~ requested that the hearing be deferred·

to a date indefinite ..

MR.111- CRANSTON: Any further matters to come .befol:'e

the Commission? (No response) If not, the final item is

reconfi:t.":mation of date, time, and place of nex.t Cominission

meeting ...,_which is Thursday> May 23rd, 10:00 a.ml$., here. in

Sacramento,,. '£here b(d.ng no further matte.rs 1 we no~ stand

.ad.) ~urned.

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CER'flFICA~"-~~ REPORTER ........,,.."'~" 4 ............. Met• 1" ..... ..

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I,. LOUISE H. LILLlCO l r.eporter for the Office of

Administrative Procedure, hereby certify that the foregoing

thirty pages. contain a full, true ~,...~:',correct trcinsct"ipt I . ./

of the shorthand notes taken by me in the meeting of the

STATE LANDS COMMISSION at Sacramento, Califol."'Uia, on

AP'ril 25~ 1963.

Dated: Los