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353.565 Kentucky Oil and Gas Conservation Commission.
(1)
(2)
There is hereby created in the Department for Natural Resources, the
"Kentucky Oil and Gas Conservation Commission" which shall be composed of
five (5) members. Four (4) of the members shall be appointed by the Governor
and the fifth member, who shall serve as chairman of the commission, shall be
the director of the Division of Oil and Gas and who shall serve in an ex officio
capacity as a nonvoting member except in the case of a tie. The four (4)
members appointed by the Governor shall be residents of this state and not
more than one (1) of them may be directly employed in the exploration for or
the production of oil or gas, or deriving more than fifty percent (50%) of that
person's income from the exploration for or production of oil or gas, or engaged
in a business directly servicing or supplying these activities. No member of the
commission shall participate in the deliberations of the commission or vote on
any matter before the commission in which he, his employer, or any business
unit in which he has a financial interest is an interested party, but a member of
the commission is not prohibited from deliberating or voting on matters of
general interest, such as the fixing of statewide spacing patterns, affecting him,
his employer, or a business unit in which he has financial interest as a member
of a class of persons to be affected by an administrative regulation or order of
the commission. The commission shall not contain more than one (1)
representative from any one (1) operator, including subsidiaries or affiliates. Of
the four (4) members appointed by the Governor, two (2) shall be residents of
eastern Kentucky and two (2) shall be residents of western Kentucky.
Longitude 84 deg. 30 min. shall be deemed as the division line between
eastern Kentucky and western Kentucky.
The members of the commission, except the chairman, shall be appointed for
terms of four (4) years each, except that:
(a) The original appointments shall be for terms of one (1), two (2), three (3),
and four (4) years respectively; and
(b) Of the members appointed after July 15, 1998, one (1) member
appointed to fill the term expiring June 21, 1999, shall serve until January
21, 2000; one (1) member appointed to fill the term expiring June 21,
2000, shall serve until January 21, 2001; one (1) member appointed to fill
one (1) of the two (2) terms expiring June 21, 2001, shall serve until
January 21, 2002; and one (1) member appointed to fill the second of the
two (2) terms expiring June 21, 2001, shall serve until January 21, 2003;
and subsequent appointments shall be for four (4) year terms ending on
January 21. Each member appointed by the Governor shall serve until his
successor has been appointed and qualified. Members may be
reappointed by the Governor to serve successive terms. The members of
the commission, before performing any duty hereunder, shall take an oath
which shall be certified by the officer administering it. The oath in writing
and the certificate shall be filed in the office of the Secretary of State.
Vacancies in the membership appointed by the Governor shall be filled by
appointment by him and for the unexpired term of the member whose
office shall be vacant, and the appointment shall be made by the
Governor within sixty (60) days of the occurrence of a vacancy. Any
(3)
(4)
(5)
(6)
(7)
(8)
member appointed by the Governor may be removed by the Governor in
case of incompetency, neglect of duty, gross immorality, or malfeasance
of office.
The commission shall meet at times and places as shall be designated by the
chairman. The chairman may call a meeting of the commission at any time, and
he shall call a meeting of the commission upon the written request of two (2)
members. Notification of each meeting shall be given in writing to each
member by the chairman at least five (5) days in advance of the meeting. Any
three (3) members, one (1) of which may be the chairman, shall constitute a
quorum for the transaction of any business, including the holding of hearings. A
majority of the commission present shall be required to determine any issue
brought before it for decision.
Each member of the commission, except the chairman, shall receive one
hundred fifty dollars ($150) per diem not to exceed one hundred (100) days per
calendar year while actually engaged in the performance of his duties as a
member of the commission. Each member of the commission, including the
chairman, shall also be reimbursed for all reasonable and necessary expenses
actually incurred in the performance of his duties as a member of the
commission.
The commission shall execute and carry out, administer, and enforce the
provisions of KRS 353.651 and 353.652. The commission may make any
investigation of records and facilities as it deems proper.
If an emergency is found to exist by the commission which, in its judgment,
requires the making, changing, renewal, or extension of an administrative
regulation or order without first having a hearing, an emergency regulation may
be promulgated in accordance with KRS Chapter 13A and an emergency order
may be issued in accordance with KRS 13B.125.
The commission shall have specific authority to:
(a) Promulgate and enforce reasonable administrative regulations and issue
orders reasonably necessary to prevent waste, protect correlative rights,
govern the practice and procedure before the commission, and otherwise
administer the provisions of KRS 353.651 and 353.652; and
(b) Issue subpoenas for the attendance of witnesses and subpoenas duces
tecum for the production of any books, records, maps, charts, diagrams,
and other pertinent documents, and administer oaths and affirmations to
witnesses, whenever, in the judgment of the commission, it is necessary
to do so for the effective discharge of its duties under the provisions of
KRS 353.651 and 353.652.
Any interested person may have the commission call a hearing for the purpose
of taking action in respect to any matter within the jurisdiction of the
commission by making a request therefor in writing. Upon the receipt of any
request, the commission promptly shall call a hearing thereon, and, after the
hearing and with all convenient speed, and in any event within thirty (30) days
after the conclusion of the hearing, shall take appropriate action with regard to
the subject matter thereof as it may deem appropriate. If the hearing is
adjudicatory in nature, it shall be conducted in accordance with KRS Chapter
13B.
(9)
Agreements made in the interest of conservation of oil or gas, or both, or for
the prevention of waste, between and among owners or operators, or both,
owning separate holdings in the same field or pool, or in any area that appears
from geologic or other data to be underlaid by a common accumulation of oil or
gas, or both, and agreements between and among these owners or operators,
or both, and royalty owners therein, for the purpose of bringing about the
development and operation of the field, pool, or area, or any part thereof, as a
unit, and for establishing and carrying out a plan for the cooperative
development and operation thereof, when the agreements are approved by the
commission, are hereby authorized and shall not be held or construed to
violate any of the laws of this state relating to trusts, monopolies, or contracts
and combinations in restraint of trade.
(10) Nothing in this section shall be construed as giving to the commission the right
or authority to supersede the authority of the department in the administration
of KRS 353.060.
Effective:July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 1906, effective July 15, 2010. -Amended 2000 Ky. Acts ch. 139, sec. 2, effective July 14, 2000. -- Amended
1998 Ky. Acts ch. 194, sec. 11, effective July 15, 1998. -- Amended 1996 Ky.
Acts ch. 318, sec. 340, effective July 15, 1996. -- Amended 1984 Ky. Acts
ch. 111, sec. 145, effective July 13, 1984. -- Amended 1978 Ky. Acts ch. 154,
sec. 39, effective June 17, 1978. -- Created 1974 Ky. Acts ch. 45, sec. 3.
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