SEC. 2.
(a) Notwithstanding subdivision (d) of Section 4 of Chapter 138 of the Statutes of 1964, First Extraordinary Session, the City of Long Beach may retain, out of the oil revenue, as defined in subdivision (b) of Section 1 of Chapter 138 of the Statutes of 1964, First Extraordinary Session, received by the city each month, an amount to be deposited in an Abandonment Fund to be used solely to pay that portion of the costs of plugging and abandoning all wells, and removing all oil and gas production facilities from the Long Beach Tidelands that are not the contractual responsibility of the contractor or other parties.(b) Any oil revenue that is withheld monthly pursuant to subdivision (a) shall be based on a reasonable and good faith estimate of the remaining life of the oil field, and the amount of money that will be sufficient to cover fully the abandonment and removal costs by the time these costs will be incurred. However, the total amount deposited in the Abandonment Fund shall not exceed one hundred ninety million dollars ($190,000,000), and the amount to be withheld each month shall not exceed 50 percent of remaining oil revenue, as described in subdivision (d) of Section 4 of Chapter 138 of the Statutes of 1964, First Extraordinary Session. These limits may be adjusted with the consent of both the City of Long Beach and the State Lands Commission if and when it is necessary to ensure that there will be adequate money in the Abandonment Fund. If the City of Long Beach retains oil revenue pursuant to subdivision (a), the city shall invest the money in the Abandonment Fund in investments that are lawful for other city funds. All interest earned on the money in the Abandonment Fund shall remain in the fund.
(c) The State Lands Commission shall provide written approval to the City of Long Beach before the city may use money in the Abandonment Fund for the removal of any oil islands on the Long Beach Tidelands. The City of Long Beach, however, may expend those funds without that written approval for purposes authorized by this section relating to the plugging and abandoning of wells, and the removal of oil and gas production facilities other than the oil islands. Any moneys remaining in the fund after the completion of plugging and abandoning activities authorized by this section, shall be remitted to the state in accordance with the requirements of subdivision (d) of Section 4 of Chapter 138 of the Statutes of 1964, First Extraordinary Session. The administration of the Abandonment Fund shall be subject to the requirements of Section 10 of Chapter 138 of the Statutes of 1964, First Extraordinary Session.