Open main menu

Page:United States Statutes at Large Volume 61 Part 1.djvu/342

This page needs to be proofread.

PUBLIC LAWS-CH. 244 -JULY 12, 1947 "'(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. "'ARICLE 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 stabi- lizing or fixing the price thereof, or create or perpetuate monopoly, or to promote regimentation, but is limited to the purpose of con- serving 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 find- ings 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 compact- ing States represented at any meeting, and (2) by a 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 pro- duction of the compacting States during said period. "'AB TCL-E VI "'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. [61 STAT.