7. Comments on Draft Decision

The draft decision of ALJ Econome in this matter was mailed to the parties in accordance with Pub. Util. Code § 311(g)(1) and Rule 77.7.

Findings of Fact

1. CSD and SoCalGas are signatories to the settlement agreement. Paragraph 3 of the agreement clearly requires the prior landowners to execute a general release in order to rescind SoCalGas' acquisition of the mineral rights under the settlement.

2. D.00-09-034 did not modify the settlement agreement as now suggested by CSD, and did not eliminate the requirement (to which CSD and SoCalGas agreed) for a prior landowner to sign an appropriate general release before obtaining rescission according to the settlement terms.

3. Finding of Fact 10 in D.00-09-034 does not require a different interpretation. In this finding, the Commission specifically stated its understanding of the settlement agreement, namely, that the agreement did not preclude individual landowners from litigating against SoCalGas should they believe that rescission is not an adequate remedy. In other words, landowners could elect rescission and sign a general release, or pursue their claims against SoCalGas elsewhere.

4. The correspondence attached to CSD's petition for modification indicates that SoCalGas' attempt to resolve its dispute with CSD concerning the proper interpretation of D.00-09-034, at least in part, caused its failure to timely mail the notices of rescission as required by the settlement.

Conclusions of Law

1. CSD's Petition for Modification of D.00-09-034 should be denied.

2. If in the future SoCalGas believes an extension of time is necessary to comply with a Commission decision, it should request one within the time constraints provided by Rule 48.

3. Because the time for landowners to respond to the offer for rescission is March 22, 2001, this decision should be effective immediately.

ORDER

IT IS ORDERED that:

1. The Consumer Services Division's December 12, 2000, Petition for Modification of Decision 00-09-034 is denied.

2. This proceeding is closed.

This order is effective today.

Dated , at San Francisco, California.