Section 2151 - DefinitionsAs used in this article unless otherwise specified:
(a) The term "royalty oil" includes oil, gas, natural gasoline, other products extracted from gas, and all other hydrocarbons.(b) The term "purchaser" means any person or corporation that has entered into a contract to purchase royalty oil from the State.(c) The term "lease" means oil and gas lease, easement, or other agreement for the extraction of oil, gas, or other hydrocarbons from lands owned by the State.(d) The term "lessee" means holder of a lease.(e) The term "base price" means, in relation to royalty oil, a price to be determined in accordance with a standard to be adopted by the Commission for each contract to purchase royalty oil and to be included in each such contract when it is adopted pursuant to Section 2153. The standard to be adopted shall relate, to the extent practical, to objective criteria and to data easily ascertainable, such as posted prices or prices paid for products of like quality, taking into account location, so that both the State and a purchaser will be able to establish the base price with reasonable ease and accuracy. Prices paid under any contract to purchase royalty oil pursuant to these rules and regulations shall not, under any circumstances, be used in determining such base price.Cal. Code Regs. Tit. 2, § 2151