Report 2010-125 Recommendation 25 Responses

Report 2010-125: State Lands Commission: Because It Has Not Managed Public Lands Effectively, the State Has Lost Millions in Revenue for the General Fund (Release Date: August 2011)

Recommendation #25 To: Lands Commission, State

To ensure that it does not undervalue certain types of leases, the commission should periodically analyze whether collecting oil royalties in cash or in kind would maximize revenues to the State, and use that method to collect its oil royalties.

1-Year Agency Response

The commission requested the city of Long Beach to perform an analysis of the sale of oil from the Long Beach leases. The city of Long Beach determined that it will not collect royalties in kind as such sales would be detrimental to the State. Commission staff conducted an analysis of its non-Long Beach leases and made a similar determination. (See 2013-406, p. 205)

California State Auditor's Assessment of 1-Year Status: Fully Implemented

All Recommendations in 2010-125

Agency responses received after June 2013 are posted verbatim.