Section 851 Approval

In its application SoCalGas seeks Commission approval pursuant to Pub. Util. Code § 851 for the sale of 36 undeveloped lots. By its original application, we are also aware of 48 lots that had been sold between 1950 and 1998. SoCalGas sold the 48 lots that were once part of the Playa del Rey storage operation several years ago without our prior approval. Subsequent to those sale transactions, development took place on the properties.

In this case, and similar to our determinations in Decision (D.) 03-06-069 and D.04-07-021 we will not impose a penalty for failure to obtain prior approval of those transactions. However, we emphasize that the purpose of § 851 is to enable the Commission to review a proposed encumbrance of utility property before it takes place, in order to take such action as the public interest may require. Thus we will only grant approval of the sale of the 48 lots on a prospective basis. Granting approval on a retroactive basis would thwart the purpose of § 851.

With respect to the CEQA, we note that because all of the transactions took place several years ago, any activity which may have warranted our timely environmental review has long since occurred. Consequently, for practical purposes, meaningful CEQA review at this time would have no effect because we are unable to conduct review prior to any project or construction activity. Therefore, the environmental review conducted as part of this application is limited to the 36 lots for which prior § 851 approval is sought.