{"data":{"id":"us-ok/okla.-stat.-tit.-52-52-204","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 52, § 52-204","heading":"Terms and provisions of compact","body":"An Interstate Compact to Conserve\n\nOil and Gas\n\nARTICLE I.\n\nThis agreement may become effective within any compacting state\n\nat any time as prescribed by that state, and shall become effective\n\nwithin those states ratifying it whenever any three of the states of\n\nTexas, Oklahoma, California, Kansas, and New Mexico have ratified\n\nand Congress has given its consent. Any oil-producing state may\n\nbecome a party hereto as hereinafter provided.\n\nARTICLE II.\n\nThe purpose of this Compact is to conserve oil and gas by the\n\nprevention of physical waste thereof from any cause.\n\nARTICLE III.\n\nEach state bound hereby agrees that within a reasonable time it\n\nwill enact laws, or if laws have been enacted, then it agrees to\n\ncontinue the same in force, to accomplish within reasonable limits\n\nthe prevention of:\n\n(a) The operation of any oil well with an inefficient gas-oil\n\nratio.\n\n(b) The drowning with water of any stratum capable of producing\n\noil or gas, or both oil and gas, in paying quantities.\n\n(c) The avoidable escape into the open air or the wasteful\n\nburning of gas from a natural gas well.\n\n(d) The creation of unnecessary fire hazards.\n\n(e) The drilling, equipping, locating, spacing or operating of a\n\nwell or wells so as to bring about physical waste of oil or gas or\n\nloss in the ultimate recovery thereof.\n\n(f) The inefficient, excessive or improper use of the reservoir\n\nenergy in producing any well.\n\nThe enumeration of the foregoing subjects shall not limit the\n\nscope of the authority of any state.\n\nARTICLE IV.\n\nEach state bound hereby agrees that it will, within a reasonable\n\ntime, enact statutes, or if such statutes have been enacted then\n\nthat it will continue the same in force, providing in effect that\n\noil produced in violation of its valid oil and/or gas conservation\n\nstatutes or any valid rule, order or regulation promulgated\n\nthereunder, shall be denied access to commerce; and providing for\n\nstringent penalties for the waste of either oil or gas.\n\nARTICLE V.\n\nIt is not the purpose of this Compact to authorize the states\n\njoining herein to limit the production of oil or gas for the purpose\n\nof stabilizing or fixing the price thereof, or create or perpetuate\n\nmonopoly, or to promote regimentation, but is limited to the purpose\n\nof conserving oil and gas and preventing the avoidable waste thereof\n\nwithin reasonable limitations.\n\nARTICLE VI.\n\nEach state joining herein shall appoint one representative to a\n\ncommission hereby constituted and designated as THE INTERSTATE OIL\n\nCOMPACT COMMISSION, the duty of which said Commission shall be to\n\nmake inquiry and ascertain from time to time such methods,\n\npractices, circumstances and conditions as may be disclosed for\n\nbringing about conservation and the prevention of physical waste of\n\noil and gas, and at such intervals as said Commission deems\n\nbeneficial it shall report its findings and recommendations to the\n\nseveral states for adoption or rejection.\n\nThe Commission shall have power to recommend the coordination of\n\nthe exercise of the police powers of the several states within their\n\nseveral jurisdictions to promote the maximum ultimate recovery from\n\nthe petroleum reserves of said states, and to recommend measures for\n\nthe maximum ultimate recovery of oil and gas. Said Commission shall\n\norganize and adopt suitable rules and regulations for the conduct of\n\nits business.\n\nNo action shall be taken by the Commission except: (1) by the\n\naffirmative votes of the majority of the whole number of the\n\ncompacting states, represented at any meeting, and (2) by a\n\nconcurring vote of a majority in interest of the compacting states\n\nat said meeting, such interest to be determined as follows: Such\n\nvote of each state shall be in the decimal proportion fixed by the\n\nratio of its daily average production during the preceding calendar\nle number of the\n\ncompacting states, represented at any meeting, and (2) by a\n\nconcurring vote of a majority in interest of the compacting states\n\nat said meeting, such interest to be determined as follows: Such\n\nvote of each state shall be in the decimal proportion fixed by the\n\nratio of its daily average production during the preceding calendar\n\nhalf-year to the daily average production of the compacting states\n\nduring said period.\n\nARTICLE VII.\n\nNo state by joining herein shall become financially obligated to\n\nany other state, nor shall the breach of the terms hereof by any\n\nstate subject such state to financial responsibility to the other\n\nstates joining herein.\n\nARTICLE VIII.\n\nThis Compact shall expire September 1, 1937. But any state\n\njoining herein may, upon sixty (60) days' notice, withdraw herefrom.\n\nThe representatives of the signatory states have signed this\n\nagreement in a single original which shall be deposited in the\n\narchives of the Department of State of the United States, and a duly\n\ncertified copy shall be forwarded to the Governer of each of the\n\nsignatory states.\n\nThis compact shall become effective when ratified and approved\n\nas provided in Article I. Any oil-producing state may become a\n\nparty hereto by affixing its signature to a counterpart to be\n\nsimilarly deposited, certified and ratified.\n\nDone in the City of Dallas, Texas, this sixteenth day of\n\nFebruary, 1935.\n\nE. W. MARLAND\n\nTHE GOVERNOR OF THE STATE OF OKLAHOMA\n\nJAMES V. ALLRED\n\nTHE GOVERNOR OF THE STATE OF TEXAS\n\nR. L. PATTERSON\n\nFOR THE STATE OF CALIFORNIA\n\nFRANK VESELY\n\nE. H. WELLS\n\nHUGH BURCH\n\nHIRAM M. DOW\n\nFOR THE STATE OF NEW MEXICO\n\nThe following representatives recommend to their respective\n\nGovernors and Legislatures the ratification of the foregoing\n\nagreement:\n\nJOHN W. OLVEY\n\nOF ARKANSAS\n\nWARWICK M. DOWNING\n\nOF COLORADO\n\nWILLIAM BELL\n\nOF ILLINOIS\n\nGORDON F. VAN EENANAAM\n\nGERALD COTTER\n\nOF MICHIGAN\n\nRALPH J. PRYOR\n\nE. B. SHAWVER\n\nT. C. JOHNSON\n\nOF KANSAS.","path":["OK Code","Title 52"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os52.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"26f73f2b8674142616b07fff9aa35486ad18843bb918dd0a32f0c1da9cace3b2","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-52-52-203","next":"us-ok/okla.-stat.-tit.-52-52-205"},"notice":"GroundRules: Original legal text. Not legal advice."}