§ 23-2101. Interstate Compact to Conserve Oil and Gas.\n 1. The Interstate Compact to Conserve Oil and Gas, as first enacted by\nchapter 501 of the laws of 1941, and as re-enacted by chapter 263 of the\nlaws of 1963, is hereby continued as follows:\n INTERSTATE COMPACT TO CONSERVE OIL AND GAS\n ARTICLE I\n This agreement may become effective within any compacting state at any\ntime as prescribed by that state, and shall become effective within\nthose states ratifying it whenever any three of the states of Texas,\nOklahoma, California, Kansas and New Mexico have ratified and Congress\nhas given its consent. Any oil-producing state may become a party\nthereto as hereinafter provided.\n ARTICLE II\n The purpose of
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§ 23-2101. Interstate Compact to Conserve Oil and Gas.\n 1. The Interstate Compact to Conserve Oil and Gas, as first enacted by\nchapter 501 of the laws of 1941, and as re-enacted by chapter 263 of the\nlaws of 1963, is hereby continued as follows:\n INTERSTATE COMPACT TO CONSERVE OIL AND GAS\n ARTICLE I\n This agreement may become effective within any compacting state at any\ntime as prescribed by that state, and shall become effective within\nthose states ratifying it whenever any three of the states of Texas,\nOklahoma, California, Kansas and New Mexico have ratified and Congress\nhas given its consent. Any oil-producing state may become a party\nthereto as hereinafter provided.\n ARTICLE II\n The purpose of this compact is to conserve oil and gas by the\nprevention of physical waste thereof from any cause.\n ARTICLE III\n Each state bound hereby agrees that within a reasonable time it will\nenact laws, or if laws have been enacted, then it agrees to continue the\nsame in force, to accomplish within reasonable limits the prevention of:\n (a) The operation of any oil well with an inefficient gas-oil ratio.\n (b) The drowning with water of any stratum capable of producing oil or\ngas, or both oil and gas in paying quantities.\n (c) The avoidable escape into the open air of the wasteful burning of\ngas from a natural gas well.\n (d) The creation of unnecessary fire hazards.\n (e) The drilling, equipping, locating, spacing or operating of a well\nor wells so as to bring about physical waste of oil or gas or loss in\nthe ultimate recovery thereof.\n (f) The inefficient, excessive or improper use of the reservoir energy\nin producing any well.\n The enumeration of the foregoing subjects shall not limit the scope of\nthe authority of any state.\n ARTICLE IV\n Each state bound hereby agrees that it will, within a reasonable time,\nenact statutes, or if such statutes have been enacted then that it will\ncontinue the same in force, providing in effect that oil produced in\nviolation of its valid oil and/or gas conservation statutes or any valid\nrule, order or regulation promulgated thereunder, shall be denied access\nto commerce; and providing for stringent penalties for the waste of\neither oil or gas.\n ARTICLE V\n It is not the purpose of this compact to authorize the states joining\nherein to limit the production of oil or gas for the purpose of\nstabilizing or fixing the price thereof, or create or perpetuate\nmonopoly, or to promote regimentation, but is limited to the purpose of\nconserving oil and gas and preventing the avoidable waste thereof within\nreasonable limitations.\n ARTICLE VI\n Each state joining herein shall appoint one representative to a\ncommission hereby constituted and designated as THE INTERSTATE OIL\nCOMPACT COMMISSION, the duty of which said Commission shall be to make\ninquiry and ascertain from time to time such methods, practices,\ncircumstances and conditions as may be disclosed for bringing about\nconservation and at such intervals as said commission deems beneficial\nit shall report its findings and recommendations to the several states\nfor adoption or rejection.\n The commission shall have power to recommend the coordination of the\nexercise of the police powers of the several states within their several\njurisdictions to promote the maximum ultimate recovery from the\npetroleum reserves of said states, and to recommend measures for the\nmaximum ultimate recovery of oil and gas. Said Commission shall organize\nand adopt suitable rules and regulations for the conduct of its\nbusiness.\n No action shall be taken by the Commission except:\n (a) By the affirmative votes of the majority of the whole number of\nthe compacting states, represented at any meeting, and\n (b) By a concurring vote of a majority in interest of the compacting\nstates at said meeting, such interest to be determined as follows:\n Such vote of each state shall be in the decimal proportion fixed by\nthe ratio of its daily average production during the preceding calendar\nhalf-year to the daily average production of the compacting states\nduring said period.\n ARTICLE VII\n No state by joining herein shall become financially obligated to any\nother state, nor shall the breach of the terms hereof by any state\nsubject such state to financial responsibility to the other states\njoining herein.\n ARTICLE VIII\n This compact shall expire September 1, 1937, but any state joining\nherein may, upon sixty (60) days notice, withdraw herefrom. The\nrepresentatives of the signatory states have signed this agreement in a\nsingle original which shall be deposited in the archives of the\nDepartment of State of the United States, and a duly certified copy\nshall be forwarded to the Governor of each of the signatory states.\n This compact shall become effective when ratified and approved as\nprovided in Article I of this compact. Any oil-producing state may\nbecome a party hereto by affixing its signature to a counterpart to be\nsimilarly deposited, certified and ratified.\n Done in the City of Dallas, Texas, this sixteenth day of February,\n1935.\n E. W. MARLAND\n The Governor of the State of Oklahoma\n JAMES V. ALLRED\n The Governor of the State of Texas\n R. L. PATTERSON\n For the State of California\n FRANK VESELY\n E. H. WELLS\n HUGH BURCH\n HIRAM M. DOW\n For the State of New Mexico\n The following representatives recommend to their respective Governors\nand Legislatures the ratification of the foregoing agreement:\n JOHN W. OLVEY\n of Arkansas\n WARWICK M. DOWNING\n of Colorado\n WILLIAM BELL\n of Illinois\n GORDON E. VAN EENANAAM\n GERALD COTTER\n of Michigan\n RALPH J. PRYOR\n E. B. SHAWVER\n T. C. JOHNSON\n of Kansas\n 2. The Governor of this state is authorized and empowered, on behalf\nof the state, to execute agreements for the further extension of the\noperation of such compact and to determine if and when it shall be for\nthe best interests of this state to withdraw from such compact upon\nsixty days' notice as provided therein. In the event the Governor shall\ndetermine that the state should withdraw from such compact, he shall\nhave full power and authority to give necessary notice and to take any\nand all steps necessary and proper to effect the withdrawal of this\nstate from such compact.\n 3. The Commissioner shall be the official representative of this state\non the Interstate Oil Compact Commission. At the direction of the\ncommissioner, any other officer or employee of the department may serve\nas substitute representative in the place and stead of the commissioner.\nThe commissioner shall consult and coordinate with the president of the\nNew York state energy research and development authority on issues\nrelating to state energy policy.\n 4. The Interstate Oil Compact Commission shall submit annually in\naccordance with the laws and practices of this state, to the department,\nfor study and consideration an estimate of moneys required to\nadminister, manage and support the commission during the ensuing fiscal\nyear. Such estimate shall include any request for appropriation of funds\nby New York and shall be accompanied by a tabulation of similar requests\nwhich the commission expects to make to each other member state and the\nformula or factors upon which such respective requests are based.\n 5. The department shall include a suitable item or items of estimated\nexpenditures for the Interstate Oil Compact Commission in the budget\nestimates of the department.\n 6. The State Comptroller is hereby authorized and empowered from time\nto time to examine the accounts and books of the commission, including\nits receipts, disbursements and such other items referring to its\nfinancial standing as such Comptroller may deem proper and to report the\nresults of such examination to the Governor.\n 7. No provision of the Conservation Law, and no provision of the\nEnvironmental Conservation Law, if such provision of the Environmental\nConservation Law was derived from a provision of the Conservation Law,\nwhich is inconsistent with the provisions of the Interstate Compact to\nConserve Oil and Gas shall be applicable to the Interstate Oil Compact\nCommission or to any matter governed by the Interstate Compact to\nConserve Oil and Gas.\n 8. Nothing in this section is intended or shall be construed to\nprevent or prohibit the production of oil by water induction methods\ncommonly called water flooding nor to require or necessitate the\nenactment of conservation statutes unless and until the Legislature\nshall determine by law that such statutes are advisable or necessary to\nprevent the physical waste of oil or gas.\n 9. The commissioner shall make such reports to the Interstate Oil\nCompact Commission and the Governor as he deems appropriate.\n 10. When the Governor on behalf of the state, executes any agreement\nfor the extension of the operation of the compact herein set forth, he\nshall affix his signature thereto under a recital that such agreement is\nexecuted pursuant to the provisions of the compact, subject to the\nlimitations and qualifications which are contained in the several\nsubdivisions of this section and are in aid and furtherance thereof.\n