BILL NUMBER: AB 1234	CHAPTERED
	BILL TEXT

	CHAPTER  839
	FILED WITH SECRETARY OF STATE  SEPTEMBER 24, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 24, 2002
	PASSED THE ASSEMBLY  AUGUST 31, 2002
	PASSED THE SENATE  AUGUST 27, 2002
	AMENDED IN SENATE  AUGUST 7, 2002
	AMENDED IN SENATE  JUNE 19, 2002
	AMENDED IN SENATE  JULY 5, 2001
	AMENDED IN ASSEMBLY  MAY 3, 2001

INTRODUCED BY   Assembly Member Pescetti

                        FEBRUARY 23, 2001

   An act to add Chapter 2 (commencing with Section 3250) to Part 4
of, Division 1, of the Public Utilities Code, relating to natural
gas.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1234, Pescetti.  Production and transmission of public utility
commodities and services:  natural gas.
   Existing law permits 3 or more natural persons engaged in the
production of gas to form a cooperative association for purposes of
selling gas produced by the association's members and performing
other specified related functions.  Existing law permits an
association to acquire a real property easement from a public utility
for the purpose of accommodating the association's gas plant, and
provides that the easement shall be deemed to be held for a public
purpose by the association, provided that the Public Utilities
Commission finds that the use by the association is in the public
interest.
   Under existing law no public utility may sell, lease, assign, or
otherwise dispose of property necessary or useful in the performance
of its duties to the public, including easement rights for the
transmission of natural gas, without first having secured from the
commission an order authorizing it to do so.
   This bill would permit an individual, partnership, limited
liability company, or corporation (person) that is involved in the
production of natural gas, to exercise all privileges of ownership of
real or personal property as may be necessary or convenient for the
conduct and operation of, or incidental to, transmission of natural
gas and to acquire a real property easement from a public utility for
the purpose of accommodating the person's gas plant, and provides
that the easement shall be deemed to be held for a public purpose by
the person, provided the commission finds that the use by the person
is in the public interest.  The bill would require, within 10 days of
submission to the commission of an application by a public utility
for an order authorizing the transfer of a real property easement to
a person, that the utility provide written notification of the
application and of the commission's pending review to each owner of
real property affected by the easement.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares that it is the
intent of the Legislature to encourage the increased production of
natural gas within the state.  It is the further intent of the
Legislature to encourage the private ownership, maintenance, and
operation of natural gas pipelines operated for the sole purpose of
gathering natural gas from producing wells, as a means to facilitate
the increased production of natural gas production in the state.
  SEC. 2.  Chapter 2 (commencing with Section 3250) is added to Part
4 of Division 1 of the Public Utilities Code, to read:

      CHAPTER 2.  GAS PRODUCER ACQUISITION OF EASEMENT RIGHTS
      Article 1.  Definitions

   3250.  Unless the context otherwise requires the definitions in
this article govern the construction of this chapter.
   3251.  "Person" means an individual, partnership, limited
liability company, or corporation, but does not include an
association, as defined in Section 3002.
   3252.  "Natural gas" means all gas produced in this state, natural
or manufactured, except propane, for light, heat, or power.

      Article 2.  Acquisition of Easement Rights

   3255.  (a) A person involved in the production of natural gas may
buy, hold, and exercise all privileges of ownership of real or
personal property as may be necessary or convenient for the conduct
and operation of, or incidental to, transmission of natural gas.
Without limiting the foregoing, a person involved in the production
of natural gas may acquire a real property easement from a public
utility for the purpose of accommodating the person's gas plant, and
the easement shall be deemed to be held for a public purpose by the
person, provided that the commission finds that the use by the person
is in the public interest.
   (b) Within 10 days of submitting an application to the commission
for an order authorizing a public utility to transfer a real property
easement to a person, the public utility shall provide written
notification of the application and of the commission's pending
review of the application, to each owner of real property affected by
the easement.  Costs of notification required by this subdivision
shall be paid by the person to whom the public utility proposes to
transfer a real property easement.