Z-1337               _______________________________________________

                                                   HOUSE BILL NO. 1442

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State of Washington                              49th Legislature                              1986 Regular Session

By Representatives Leonard, Lundquist, Sutherland, Belcher, Cole, Baugher, Lewis, Rayburn, Basich, Doty and Unsoeld

Read first time 1/15/86 and referred to Committee on Natural Resources.

AN ACT Relating to oil and gas leases on state lands; amending RCW 79.14.020; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 2, chapter 131, Laws of 1955 as amended by section 2, chapter 459, Laws of 1985 and RCW 79.14.020 are each amended to read as follows:

          The commissioner is authorized to lease public lands for the purpose of prospecting for, developing and producing oil, gas or other hydrocarbon substances.  Each such lease is to be composed of not more than six hundred forty acres or an entire government surveyed section, except a lease on river bed, lake bed, tide and submerged lands which is to be composed of not more than one thousand nine hundred twenty acres.  All leases shall contain such terms and conditions as may be prescribed by the rules and regulations adopted by the commissioner in accordance with the provisions of this chapter.  Leases may be for an initial term of from five up to ten years and ((may)) shall be extended for so long thereafter as lessee shall comply with the provisions hereof and (1) shall prosecute development on the leased land with the due diligence of a prudent operator upon encountering oil, gas, or other hydrocarbon substances, (2) shall produce any of said substances from the leased lands, ((or (2))) (3) shall be engaged in drilling, deepening, repairing, or redrilling any well thereon, ((or be thereafter excused therefrom but not to exceed a period of twenty years, except the lease shall be continued for a producing well as long as it is producing)) or ((is covered by)) (4) shall participate in a unit plan to which the commissioner has consented ((to participate in)) under RCW 78.52.450.

NEW SECTION. Sec. 2.     This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.