Okla. Stat. tit. 52, § 52-204

An Interstate Compact to Conserve

Oil and Gas

ARTICLE I.

This agreement may become effective within any compacting state

at any time as prescribed by that state, and shall become effective

within those states ratifying it whenever any three of the states of

Texas, Oklahoma, California, Kansas, and New Mexico have ratified

and Congress has given its consent. Any oil-producing state may

become a party hereto as hereinafter provided.

ARTICLE II.

The purpose of this Compact is to conserve oil and gas by the

prevention of physical waste thereof from any cause.

ARTICLE III.

Each state bound hereby agrees that within a reasonable time it

will enact laws, or if laws have been enacted, then it agrees to

continue the same in force, to accomplish within reasonable limits

the prevention of:

(a) The operation of any oil well with an inefficient gas-oil

ratio.

Oklahoma Statutes - Title 52. Oil and Gas Page 116

(b) The drowning with water of any stratum capable of producing

oil or gas, or both oil and gas, in paying quantities.

(c) The avoidable escape into the open air or the wasteful

burning of gas from a natural gas well.

(d) The creation of unnecessary fire hazards.

(e) The drilling, equipping, locating, spacing or operating of a

well or wells so as to bring about physical waste of oil or gas or

loss in the ultimate recovery thereof.

(f) The inefficient, excessive or improper use of the reservoir

energy in producing any well.

The enumeration of the foregoing subjects shall not limit the

scope of the authority of any state.

ARTICLE IV.

Each state bound hereby agrees that it will, within a reasonable

time, enact statutes, or if such statutes have been enacted then

that it will continue the same in force, providing in effect that

oil produced in violation of its valid oil and/or gas conservation

statutes or any valid rule, order or regulation promulgated

thereunder, shall be denied access to commerce; and providing for

stringent penalties for the waste of either oil or gas.

ARTICLE V.

It is not the purpose of this Compact to authorize the states

joining herein to limit the production of oil or gas for the purpose

of stabilizing or fixing the price thereof, or create or perpetuate

monopoly, or to promote regimentation, but is limited to the purpose

of conserving oil and gas and preventing the avoidable waste thereof

within reasonable limitations.

ARTICLE VI.

Each state joining herein shall appoint one representative to a

commission hereby constituted and designated as THE INTERSTATE OIL

COMPACT COMMISSION, the duty of which said Commission shall be to

make inquiry and ascertain from time to time such methods,

practices, circumstances and conditions as may be disclosed for

bringing about conservation and the prevention of physical waste of

oil and gas, and at such intervals as said Commission deems

beneficial it shall report its findings and recommendations to the

several states for adoption or rejection.

The Commission shall have power to recommend the coordination of

the exercise of the police powers of the several states within their

several jurisdictions to promote the maximum ultimate recovery from

the petroleum reserves of said states, and to recommend measures for

the maximum ultimate recovery of oil and gas. Said Commission shall

organize and adopt suitable rules and regulations for the conduct of

its business.

No action shall be taken by the Commission except: (1) by the

affirmative votes of the majority of the whole number of the

compacting states, represented at any meeting, and (2) by a

Oklahoma Statutes - Title 52. Oil and Gas Page 117

concurring vote of a majority in interest of the compacting states

at said meeting, such interest to be determined as follows: Such

vote of each state shall be in the decimal proportion fixed by the

ratio of its daily average production during the preceding calendar
le number of the

compacting states, represented at any meeting, and (2) by a

Oklahoma Statutes - Title 52. Oil and Gas Page 117

concurring vote of a majority in interest of the compacting states

at said meeting, such interest to be determined as follows: Such

vote of each state shall be in the decimal proportion fixed by the

ratio of its daily average production during the preceding calendar

half-year to the daily average production of the compacting states

during said period.

ARTICLE VII.

No state by joining herein shall become financially obligated to

any other state, nor shall the breach of the terms hereof by any

state subject such state to financial responsibility to the other

states joining herein.

ARTICLE VIII.

This Compact shall expire September 1, 1937. But any state

joining herein may, upon sixty (60) days' notice, withdraw herefrom.

The representatives of the signatory states have signed this

agreement in a single original which shall be deposited in the

archives of the Department of State of the United States, and a duly

certified copy shall be forwarded to the Governer of each of the

signatory states.

This compact shall become effective when ratified and approved

as provided in Article I. Any oil-producing state may become a

party hereto by affixing its signature to a counterpart to be

similarly deposited, certified and ratified.

Done in the City of Dallas, Texas, this sixteenth day of

February, 1935.

E. W. MARLAND

THE GOVERNOR OF THE STATE OF OKLAHOMA

JAMES V. ALLRED

THE GOVERNOR OF THE STATE OF TEXAS

R. L. PATTERSON

FOR THE STATE OF CALIFORNIA

FRANK VESELY

E. H. WELLS

HUGH BURCH

HIRAM M. DOW

FOR THE STATE OF NEW MEXICO

The following representatives recommend to their respective

Governors and Legislatures the ratification of the foregoing

agreement:

JOHN W. OLVEY

OF ARKANSAS

WARWICK M. DOWNING

OF COLORADO

WILLIAM BELL

OF ILLINOIS

GORDON F. VAN EENANAAM

GERALD COTTER

Oklahoma Statutes - Title 52. Oil and Gas Page 118

OF MICHIGAN

RALPH J. PRYOR

E. B. SHAWVER

T. C. JOHNSON

OF KANSAS.