WIlmington and general california mineral rights

[Lindsay_Patton]

I am posting in LA county as my current producing rights are in the WIlmington field. I hold non producing rights in Ventura county as well. This is a general question as it relates to the push in California to end production of oil/gas.

1. We in California pay ad valorem taxes based on the assessment of remaining production volumes in a producing well/field. Shouldn’t these taxes be stopped as California is planning to stop all production likely within the production life of a well/field?

2. The mineral owner has a statutory right to extract and sell their minerals. Can the state literally render these inaccessible? If this push succeeds shouldn’t the state be forced to pay for the now valueless minerals? The state must pay for surface rights that they take through legal means.

Thank you

[Kitchen]

1. You would think the government would follow their own rules, but we’re talking about California. I imagine they will maximize revenue by ignoring any rules that will set a true end date on production when they make their appraisals. I would certainly appeal the appraisal if the circumstances necessitate it.

2. What you describe is a legal term called “takings”. Normally when property is taken by the government (eminent domain), compensation of fair market value and potentially damages and other costs are to be paid to the property owner who is losing their property / value. This legal issue has been mentioned several times by other mineral owners in California, and even some operators.