KRS 353.565: Kentucky Oil and Gas Conservation Commission.

(1) 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 whi ch 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.

(2) 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; o ne (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 su bsequent 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 me mbership 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 mem ber appointed by the

Governor may be removed by the Governor in case of incompetency, neglect

of duty, gross immorality, or malfeasance of office.

(3) The commission shall meet at times and places as shall be designated by the

chairman. The chairman may ca ll 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 o f 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.

(4) 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.

(5) 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.

(6) 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.

(7) 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 be fore 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.

(8) Any interested person may h ave 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 ho ldings 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 givin g to the commission the right or

authority to supersede the authority of the department in the administration of KRS

353.060.