N.Y. Environmental Conservation Law § 23-2101: Interstate Compact to Conserve Oil and Gas

§ 23-2101. Interstate Compact to Conserve Oil and Gas.

1. The Interstate Compact to Conserve Oil and Gas, as first enacted by

chapter 501 of the laws of 1941, and as re-enacted by chapter 263 of the

laws of 1963, is hereby continued as follows:

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

thereto 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.

(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 of 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 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:

(a) By the affirmative votes of the majority of the whole number of

the compacting states, represented at any meeting, and

(b) 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 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 Governor of each of the signatory states.

This compact shall become effective when ratified and approved as

provided in Article I of this compact. 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 E. VAN EENANAAM

GERALD COTTER

of Michigan

RALPH J. PRYOR

E. B. SHAWVER

T. C. JOHNSON

of Kansas

2. The Governor of this state is authorized and empowered, on behalf

of the state, to execute agreements for the further extension of the

operation of such compact and to determine if and when it shall be for

the best interests of this state to withdraw from such compact upon

sixty days' notice as provided therein. In the event the Governor shall

determine that the state should withdraw from such compact, he shall

have full power and authority to give necessary notice and to take any

and all steps necessary and proper to effect the withdrawal of this

state from such compact.

3. The Commissioner shall be the official representative of this state

on the Interstate Oil Compact Commission. At the direction of the

commissioner, any other officer or employee of the department may serve

as substitute representative in the place and stead of the commissioner.

The commissioner shall consult and coordinate with the president of the

New York state energy research and development authority on issues

relating to state energy policy.

4. The Interstate Oil Compact Commission shall submit annually in

accordance with the laws and practices of this state, to the department,

for study and consideration an estimate of moneys required to

administer, manage and support the commission during the ensuing fiscal

year. Such estimate shall include any request for appropriation of funds

by New York and shall be accompanied by a tabulation of similar requests

which the commission expects to make to each other member state and the

formula or factors upon which such respective requests are based.

5. The department shall include a suitable item or items of estimated

expenditures for the Interstate Oil Compact Commission in the budget

estimates of the department.

6. The State Comptroller is hereby authorized and empowered from time

to time to examine the accounts and books of the commission, including

its receipts, disbursements and such other items referring to its

financial standing as such Comptroller may deem proper and to report the

results of such examination to the Governor.

7. No provision of the Conservation Law, and no provision of the

Environmental Conservation Law, if such provision of the Environmental

Conservation Law was derived from a provision of the Conservation Law,

which is inconsistent with the provisions of the Interstate Compact to

Conserve Oil and Gas shall be applicable to the Interstate Oil Compact

Commission or to any matter governed by the Interstate Compact to

Conserve Oil and Gas.

8. Nothing in this section is intended or shall be construed to

prevent or prohibit the production of oil by water induction methods

commonly called water flooding nor to require or necessitate the

enactment of conservation statutes unless and until the Legislature

shall determine by law that such statutes are advisable or necessary to

prevent the physical waste of oil or gas.

9. The commissioner shall make such reports to the Interstate Oil

Compact Commission and the Governor as he deems appropriate.

10. When the Governor on behalf of the state, executes any agreement

for the extension of the operation of the compact herein set forth, he

shall affix his signature thereto under a recital that such agreement is

executed pursuant to the provisions of the compact, subject to the

limitations and qualifications which are contained in the several

subdivisions of this section and are in aid and furtherance thereof.