NATURAL RESOURCES CODE
CHAPTER 90. INTERSTATE COMPACT TO CONSERVE OIL AND GAS
§ 90.001. RATIFICATION. The Interstate Compact to
Conserve Oil and Gas, executed in the City of Dallas, on February
16, 1935, by the Governor of Texas, the text of which is set out in
Section 90.007 of this code, was ratified by the legislature of this
state in Chapter 81, General Laws, Acts of the 44th Legislature,
Regular Session, 1935.
Acts 1977, 65th Leg., p. 2556, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 90.002. ORIGINAL COPY. The original copy of the
compact is on deposit with the Department of State of the United
States.
Acts 1977, 65th Leg., p. 2556, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 90.003. REPRESENTATIVE. (a) The governor is the
official representative of the State of Texas on the Interstate Oil
Compact Commission, provided for in the Interstate Compact to
Conserve Oil and Gas. He shall exercise and perform for the state
all the powers and duties as a member of the Interstate Oil Compact
Commission.
(b) The governor may appoint an assistant representative
who shall act in his stead as the official representative of the
State of Texas as a member of the commission.
(c) The representative shall take the oath of office
prescribed by the constitution, which shall be filed with the
Secretary of State.
Acts 1977, 65th Leg., p. 2556, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 90.0031. ANNUAL REPORT. Before October 1 of each
year, the office of the Interstate Oil Compact Commissioner for
Texas shall prepare and file with the presiding officer of each
house of the legislature a complete and detailed written report
describing the activities of the office relating to this state's
participation in the Interstate Compact to Conserve Oil and Gas and
accounting for all funds received and disbursed by the office
during the preceding fiscal year. The report must be included as a
part of the annual financial report of the governor's office.
Added by Acts 1983, 68th Leg., p. 93, ch. 14, § 1, eff. Aug. 29,
1983.
§ 90.004. EXTENSION. (a) The continuous extension of
the Interstate Compact to Conserve Oil and Gas until September 1,
1951, by an agreement executed by the governor in the name of the
State of Texas with other states currently members of the
Interstate Oil Compact Commission was authorized by the
legislature, subject to the approval of Congress, in:
(1) Chapter 217, Acts of the 45th Legislature, Regular
Session, 1937;
(2) Chapter 2, Special Laws, page 527, Acts of the 46th
Legislature, Regular Session, 1939;
(3) Chapter 63, Acts of the 47th Legislature, Regular
Session, 1941;
(4) Chapter 15, Acts of the 48th Legislature, Regular
Session, 1943; and
(5) Chapter 52, Acts of the 50th Legislature, Regular
Session, 1947.
(b) The governor may execute agreements in the name of the
State of Texas for the further extension of the expiration date of
the Interstate Compact to Conserve Oil and Gas.
Acts 1977, 65th Leg., p. 2556, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 90.005. FORM OF AGREEMENT. The agreement to extend
the Interstate Compact to Conserve Oil and Gas, which the governor
is authorized to execute for the state, shall be in substance as
follows:
"It is hereby agreed that the Interstate Compact to Conserve
Oil and Gas executed in 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 extended for a period
of four (4) years from its date of expiration (September 1, 1947),
this agreement to become effective when executed by any three (3) of
the States of Texas, Oklahoma, California, Kansas and New Mexico,
and consent thereto is given by Congress."
Acts 1977, 65th Leg., p. 2556, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 90.006. WITHDRAWAL FROM COMPACT. (a) The governor
may determine if and when it is in the best interest of the state to
withdraw from the compact as provided by its terms on 60 days'
notice.
(b) If the governor determines that the state should
withdraw from the compact, he has full authority to give necessary
notice and take any steps necessary and proper to effect the
withdrawal of the State of Texas from the compact.
Acts 1977, 65th Leg., p. 2557, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
§ 90.007. TEXT OF COMPACT. The Interstate Compact to
Conserve Oil and Gas reads as 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 (3)
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 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 order 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 a 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 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. Any oil-producing state may
become a party hereto by affixing its signature to a counterpart to
be similarly deposited, certified, and ratified."
Acts 1977, 65th Leg., p. 2557, ch. 871, art. I, § 1, eff. Sept. 1,
1977.
