The State - News from Sept. 13, 1989

Santa Fe Pacific Pipelines Inc. appears close to winning legislative passage of a bill that would significantly change the way cities levy fees for underground rights of way--a revision that some larger cities say would cost them millions of dollars in future revenues. Under two 42-year-old laws, smaller, general-law cities are limited in the amount of fees they can levy for pipelines used by more than one oil company--those known as common carrier pipelines. But the laws do not place limits on fees charged by 83 state-chartered cities, including such large municipalities as Los Angeles, Long Beach, Santa Ana and San Diego. The legislation would freeze the current rates levied by charter cities, while allowing a small increase for some general-law cities. The bill was unanimously approved by a joint legislative conference committee, and was sent to the Assembly and Senate for final action.