City of Long Beach May Create an Oil Abandonment Reserve Fund from Its Oil Revenues

摘要

In State ex rel. California State Lands Commission v. City of Long Beach, 23 Cal. Rptr. 3d 126, 133 (Cal. Ct. App. 2005), the court held that California law "authorizes the City [of Long Beach] to create and maintain an oil abandonment reserve to cover costs that are certain to occur and can be reasonably estimated." Id. at 133. In 1911, the State granted the City of Long Beach all of its right, title, and interest in tidelands situated within the boundaries of the city, to be held in trust for use in establishing a harbor and in constructing anything necessary or convenient for the promotion of commerce and navigation. The conveyance was subject to other conditions and reservations as well.