2005 California Public Resources Code Sections 3275-3277 Article 4.5. Interstate Cooperation in Oil and Gas Conservation

3275.  The Legislature of the State of California hereby ratifies
and approves "The Interstate Compact to Conserve Oil and Gas," and
the amendment, extension, and renewal thereof, as set forth in
Section 3276.  The provisions of the compact shall become the law of
this state upon the compact becoming operative as provided in Article
VIII of the compact.
3276.  The provisions of the interstate compact referred to in
Section 3275 are as follows:
      AN AGREEMENT TO AMEND, EXTEND AND RENEW THE INTERSTATE COMPACT
TO CONSERVE OIL AND GAS
   WHEREAS, On the 16th day of February 1935, in the City of Dallas,
Texas, there was executed "An Interstate Compact to Conserve Oil and
Gas" which was thereafter formally ratified and approved by the
States of Oklahoma, Texas, New Mexico, Illinois, Colorado and Kansas,
the original of which is now on deposit with the Department of State
of the United States;
   WHEREAS, Effective as of September 1, 1971, the several compacting
states deem it advisable to amend said compact so as to provide that
upon the giving of congressional consent thereto in its amended
form, said compact will remain in effect until Congress withdraws
such consent;
   WHEREAS, The original of said compact as so amended will, upon
execution thereof, be deposited promptly with the Department of State
of the United States, a true copy of which follows:
      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 the 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.
   (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 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 continue in effect until Congress withdraws its
consent. 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 Governor 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
thereto 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.
   WHEREAS, The said "Interstate Compact to Conserve Oil and Gas" in
its initial form has heretofore been duly renewed and extended with
the consent of the Congress to September 1, 1971; and
   WHEREAS, It is desired to amend said "Interstate Compact to
Conserve Oil and Gas" effective September 1, 1971, and to renew and
extend said compact as so amended:
   Now, therefore, this writing witnesseth:
   It is hereby agreed that effective September 1, 1971, the Compact
entitled "An Interstate Compact to Conserve Oil and Gas" executed
within the City of Dallas, Texas, on the 16th day of February, 1935,
and now on deposit with the Department of State of the United States,
be and the same is hereby amended by amending the first paragraph of
Article VII thereof to read as follows:    "This compact shall
continue in effect until Congress withdraws its consent.  But any
state joining herein may, upon sixty (60) days' notice, withdraw
herefrom." and that said compact as so amended be, and the same is
hereby renewed and extended.  This agreement shall become effective
when executed, ratified, and approved as provided in Article I of
said compact as so amended.
   The signatory States have executed 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 thereof shall
be forwarded to the Governor of each of the signatory States.  Any
oil-producing State may become a party hereto by executing a
counterpart of this agreement to be similarly deposited, certified,
and ratified.
   Executed by the several undersigned States, at their several State
capitols, through their proper officials on the dates as shown, as
duly authorized by statutes and resolutions, subject to the
limitations and qualifications of the acts of the respective State
Legislatures.
3277.  The Governor is hereby designated as the official
representative of the State of California on the Interstate Oil
Compact Commission provided for in the compact ratified by this
article.  The Governor shall exercise and perform for the State of
California all the powers and duties imposed by the compact upon the
representative to the Interstate Oil Compact Commission.   The
Director of Conservation is hereby designated to be the assistant
representative and he or she shall act as the official representative
of the State of California on the Interstate Oil Compact Commission
when the authority to so act is delegated to him or her by the
Governor.  In his or her absence, the State Oil and Gas Supervisor is
hereby designated to be the assistant representative.  The Executive
Officer of the State Lands Commission is hereby designated to be the
associate representative.  In addition, both the assistant
representative and the associate representative shall perform such
other duties as the Governor may designate which are necessary to
enable the State of California to cooperate fully in accomplishing
the objectives of the compact.