NY Env Conserv L § 23-2101 (2021)
2021 New York Laws ENV - Environmental Conservation Article 23 - Mineral Resources Title 21 - Interstate Compact to Conserve Oil and Gas 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.