What is the test for exhausting all remedies available to a prisoner in a civil case?

For reasons of federalism, 28 U.S.C. Sec. 2254 requires federal courts to give the states an initial opportunity to correct alleged violations of its prisoners' federal rights. Wilwording v. Swenson, 404 U.S. 249, 92 S.Ct. 407, 30 L.Ed.2d 418 (1971). Prisoners must therefore exhaust available state remedies before presenting their claims to federal courts. Exhaustion, however, does not demand "repetitious applications" to state courts; a prisoner need only fairly present his claims to the state courts once. See Picard v. Connor, 404 U.S. 270, 275, 92 S.Ct. 509, 512, 30 L.Ed.2d 438 (1971). We have held that a petitioner can satisfy the exhaustion requirement in either of two ways: (1) by presenting the state supreme court with a fair opportunity to rule on the merits; or (2) by showing that no state remedies remain available. Batchelor v. Cupp, 693 F.2d 859, 862 (9th Cir.1982), cert. denied, --- U.S. ----, 103 S.Ct. 3547, 77 L.Ed.2d 1395 (1983).