reglab/statecodes huggingface dataset:
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 13 - Unitization › 55-1303 Requisites of application; hearings.

55-1303.
Requisites of application; hearings.
Any working interest owner may file an application with the commission requesting an order for the unit operation of a pool or part thereof. The application shall contain: (a) A description of the land and pool or part thereof to be so operated, termed the unit area;
(b) a statement of the type of operations contemplated for the unit area;
(c) a copy of a proposed plan of unitization which the applicant considers fair, reasonable and equitable;
(d) a copy of a proposed operating plan covering the manner in which the unit will be supervised and managed and costs allocated and paid;
(e) an allegation of the facts required to be found by the commission under K.S.A. 55-1304 and amendments thereto.
Upon filing of an application for an order providing for the unit operation of a pool or part thereof, the commission shall conduct a hearing in accordance with the provisions of the Kansas administrative procedure act.
History:
L. 1967, ch. 299, § 3; L. 1988, ch. 356, § 174; July 1, 1989.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 13 - Unitization › 55-1304 Matters to be found by the commission precedent to issuance of unitization order; hearings.

55-1304.
Matters to be found by the commission precedent to issuance of unitization order; hearings.
The commission may make an order providing for the unitization and unit operation of such pool or part thereof sought to be unitized, if, upon application of any working interest owner and after notice and hearing in accordance with the provisions of the Kansas administrative procedure act, the commission finds all of the following conditions exist:
(a) (1) The primary production from a pool or a part thereof sought to be unitized has reached a low economic level and, without introduction of artificial energy, abandonment of oil or gas wells is imminent; or (2) the unitized management, operation and further development of the pool or the part thereof sought to be unitized is economically feasible and reasonably necessary to prevent waste within the reservoir and thereby increase substantially the ultimate recovery of oil or gas;
(b) the value of the estimated additional recovery of oil or gas substantially exceeds the estimated additional cost incident to conducting such operations; and
(c) the proposed operation is fair and equitable to all interest owners.
History:
L. 1967, ch. 299, § 4; L. 1988, ch. 356, § 175; L. 2000, ch. 15, § 1; March 30.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 13 - Unitization › 55-1306 Unit operations.

55-1306.
Unit operations.
All operations, including, but not limited to, the commencement, drilling, or operation of a well upon any part of the unit area shall be deemed for all purposes the conduct of such operations upon each separately owned tract in the unit area by the several owners thereof. The portion of the unit production allocated to a separately owned tract in a unit area shall, when produced, be deemed, for all purposes, to have been actually produced from such tract by a well drilled thereon. Operations conducted pursuant to an order of the commission providing for unit operations shall constitute a fulfillment of all the express or implied obligations of each lease or contract covering lands in the unit area to the extent that compliance with such obligations cannot be had because of the order of the commission.
The portion of the unit production allocated to any tract, and the proceeds from the sale thereof, shall be the property and income of the several persons to whom, or to whose credit, the same are allocated or payable under the order providing for unit operations.
No division order or other contract relating to the sale or purchase of production from a separately owned tract shall be terminated by the order providing for unit operations, but shall remain in force and apply to oil and gas allocated to such tract until terminated in accordance with the provisions of such division order or contract.
Except to the extent that the parties affected so agree no order providing for unit operations shall be construed to result in a transfer of all or any part of the title of any person to the oil and gas rights in any tract in the unit area. All property, whether real or personal, that may be acquired in the conduct of unit operations hereunder shall be acquired for the account of the working interest owners within the unit area, and shall be the property of such owners in the proportion that the expenses of unit operations are charged.
The obligation or liability of each working interest owner, both nonoperator and operator, in the several separately owned tracts in the unit for the payment of unit expense at all times shall be several and not joint or collective, and a working interest owner of the oil or gas rights in the separately owned tract shall not be chargeable with, obligated or liable, directly or indirectly, for more than the amount apportioned, assessed or otherwise charged to his or her interest in the separately owned tract pursuant to the order of unitization.
History:
L. 1967, ch. 299, § 6; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 13 - Unitization › 55-1307 Enlargement of area and creation of new units.

55-1307.
Enlargement of area and creation of new units.
The unit area of a unit may be enlarged to include adjoining portions of the same common source of supply, including the unit area of another unit, and a new unit created for the unitized management, operation and further development of such enlarged unit area, or the plan of unitization may be otherwise amended, all in the same manner, upon the same conditions and subject to the same limitations as herein provided with respect to the creation of a unit in the first instance, except, that where an amendment to a plan of unitization relates only to the rights and obligations as between working interest owners, the requirement that the same be approved by the owners of at least seventy-five percent (75%) of the production or proceeds thereof that will be credited to interests which are free of costs, such as royalties, overriding royalties and production payments of the unit area shall have no application.
History:
L. 1967, ch. 299, § 7; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 13 - Unitization › 55-1308 Existing rights, rights in unleased land, and royalties and lease burdens.

55-1308.
Existing rights, rights in unleased land, and royalties and lease burdens.
Property rights, leases, contracts, and other rights or obligations shall be regarded as amended and modified only to the extent necessary to conform to the provisions and requirements of this act and to any valid order of the commission providing for the unit operation of a pool or a part thereof, but otherwise shall remain in full force and effect. For the purpose of this act the owner, or owners, of oil and gas rights in and under an unleased tract of land shall be regarded as a working interest owner to the extent of a 7/8 interest in and to such rights and a royalty owner to the extent of the remaining 1/8 interest therein, except that, if the commission finds that, under the prevailing industry practice in the area where the unit is located, oil and gas leases contain a higher amount of royalty than 1/8 royalty interest, then the owner or owners shall be regarded as a royalty interest owner to the extent of the royalty interest determined by the commission to be in accordance with prevailing industry practice and a working interest owner as to the remainder of the owner's or owners' interest in such tract of land.
A 1/8 part of the production allocated to each tract under an order providing for the unit operation of a pool or a part thereof, shall in all events be and remain free and clear of any cost or expense of developing or operating the unit and of any lien therefor as an unencumbered source from which to pay the royalties or other cost free obligations due or payable with respect to the production from such tract. If a lease or other contract pertaining to a tract or interest stipulates a royalty, overriding royalty, production payment or other obligation in excess of 1/8 of the production or proceeds therefrom, then the working interest owner subject to such excess payment or other obligation shall bear and pay the same.
History:
L. 1967, ch. 299, § 8; L. 2000, ch. 15, § 3; March 30.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 13 - Unitization › 55-1309 Employment of consultant to advise commission.

55-1309.
Employment of consultant to advise commission.
Whenever in any contested proceeding before the commission for the unitization and unit operation of a pool or a part of a pool, the commission determines that the engineering, geological, or other technical issues are such that it is in need of additional engineering, geological or other technical evidence as an aid to a proper understanding and appraisal of the issues and evidence, it may employ a qualified disinterested technical consultant for that purpose. All opinions, conclusions, evidence and testimony of such consultant shall be presented in an open hearing subject to examination by any interested party as well as the commission. The cost and expense of the employment of such a consultant shall be payable out of the funds of the commission.
History:
L. 1967, ch. 299, § 9; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 13 - Unitization › 55-1310 Procedures on unit operation plans; application of laws; notices; hearings, place of; publication of notice of applications and hearings; cost.

55-1310.
Procedures on unit operation plans; application of laws; notices; hearings, place of; publication of notice of applications and hearings; cost.
All of the provisions and requirements of K.S.A. 55-605, 55-606, 55-607, 55-608, 55-609 and 55-611, and amendments thereto, with reference to the institution of proceedings, notices, hearings, subpoenaing of witnesses, oaths, orders, contempt, enforcement, injunctions, penalties for violation of the act or orders of the commission, costs and other procedure and procedural requirements shall apply to and govern action by the commission and the interested persons under this act the same as such provisions and requirements of the sections apply to and govern the action by the commission and the interested persons under the provisions of articles 6 and 7 of chapter 55 of the Kansas Statutes Annotated. The place of hearing on the application shall be as designated by the commission.
In addition to the notice provided for by K.S.A. 55-605, and amendments thereto, or such additional notice as the commission may require, notice of the filing of applications and hearings held pursuant to this act shall be given as follows: Upon the filing of an application for the unit operation of a pool or a part of a pool, the applicant shall file with the commission a list showing the names and addresses of all oil and gas lessees and other oil and gas interest owners owning interests in the pool or the part of the pool underlying the lands described in the application and whose names and addresses applicant has been able to discover after diligent search and inquiry, which list shall also include lessors, mineral owners and mortgagees of oil and gas interests of record. Notice of the application and the time and place of the hearing shall be properly mailed by the applicant, postage prepaid, at least 10 days prior to the date set for the hearing, to all persons whose names and addresses are shown on the list. In addition notices of all applications filed pursuant to this act and the time and the place of the hearing shall be published in at least one issue of a newspaper authorized by law to publish legal notices in the county or counties in which the lands involved are located and in such other newspaper as the commission may designate at least 10 days prior to the date set for the hearing.
History:
L. 1967, ch. 299, § 10; L. 1974, ch. 231, § 1; L. 1992, ch. 43, § 1; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 13 - Unitization › 55-1311 Agreements not violative of laws governing monopolies or restraint of trade.

55-1311.
Agreements not violative of laws governing monopolies or restraint of trade.
No agreement between or among lessees or other owners of oil and gas rights in oil and gas properties entered into pursuant hereto or with a view or for the purpose of bringing about the unitized development or operation of such properties, shall be held to violate any of the statutes of this state prohibiting monopolies or acts, arrangements, agreements, contracts, combinations, or conspiracies in restraint of trade or commerce.
History:
L. 1967, ch. 299, § 11; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 13 - Unitization › 55-1312 Rendition for taxation of property used by unit; assessment and taxation.

55-1312.
Rendition for taxation of property used by unit; assessment and taxation.
It shall be the duty of the unit operator to make and file all necessary ad valorem tax renditions and returns with the proper taxing authorities covering all property of each working interest owner used or held by the operator in the unit operations. All such property of the several working interest owners shall be assessed and taxed together as a single unit. If such property is not reported for taxation by the unit operator, assessment and taxation of the working interest owners' property of the unit shall be made as a unit by the county assessor. All such ad valorem taxes shall be paid by the unit operator initially as a part of the costs of unit operations with each working interest owner's share thereof to be the same as other costs of unit operations. Each working interest owner shall pay or cause to be paid all production, severance and other taxes that may be imposed upon or in respect of the production of that owner's share of the unitized substances.
History:
L. 1967, ch. 299, § 12; L. 2000, ch. 15, § 4; March 30.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 13 - Unitization › 55-1313 Certificates to be recorded.

55-1313.
Certificates to be recorded.
Upon a unitization order becoming effective the commission shall file for recording in the office of the register of deeds in the county or counties in which the lands are located a certificate in such form as the commission may prescribe, which certificate must include the following information: (1) Date of order and date approved by required percentage of owners;
(2) docket number;
(3) name of unit;
(4) producing formations unitized;
(5) the time unit operations shall commence;
(6) legal description of each tract of land in the unit;
(7) the allocation of the production of the unit among the owners.
When unit operations have terminated, the commission shall likewise file for recording a similar certificate showing such termination.
History:
L. 1967, ch. 299, § 13; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 13 - Unitization › 55-1314 Act supplemental.

55-1314.
Act supplemental.
The provisions of this act shall be supplemental to and a part of articles 6 and 7 of chapter 55 of the Kansas Statutes Annotated.
History:
L. 1967, ch. 299, § 14; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 13 - Unitization › 55-1315 Invalidity of part.

55-1315.
Invalidity of part.
If any clause, sentence, section, provision, or part of this act shall be adjudged to be unconstitutional or invalid for any reason by any court of competent jurisdiction, such judgment shall not invalidate, impair, or affect the remainder of this act, which shall remain in full force and effect.
History:
L. 1967, ch. 299, § 15; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 13 - Unitization › 55-1316 Definition of "pool"; legislative intent.

55-1316.
Definition of "pool"; legislative intent.
The amendment by this act of the definition of "pool" shall not be considered a statement of legislative intent for the purpose of interpretation of the definition of "pool" prior to its amendments by this act.
History:
L. 2004, ch. 115, § 2; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 13 - Unitization › 55-1317 Unitization without KCC order, when.

55-1317.
Unitization without KCC order, when.
(a) As used in this section, terms have the meanings provided by K.S.A. 55-1302, and amendments thereto.
(b) Subject to the provisions of subsection (c), if all mineral and royalty owners and not less than 90% of the working interest owners approve, in writing, a contract for the unit operation of a pool or part thereof, such unit operations shall become effective without application to or order by the state corporation commission.
(c) Before a contract for the unit operation of a pool or part thereof shall become effective pursuant to subsection (b), the person or persons wishing to provide for the unit operation shall file a copy of the contract with the state corporation commission and shall notify all working interest owners of the intention to conduct the unit operation. Such notice shall be in the manner provided by law for notice of an application requesting an order for the unit operation of a pool or part thereof. The notice shall inform the working interest owner of the right to institute proceedings within 30 days after receipt of the notice to have the matter determined by the state corporation commission. Any working interest owner, within 30 days after receipt of the notice, may institute proceedings before the state corporation commission to determine the matter in accordance with the provisions of K.S.A. 55-1301 et seq., and amendments thereto. If no such proceedings are instituted, the contract shall become effective upon expiration of the 30-day period.
(d) This section shall be part of and supplemental to the provisions of article 13 of chapter 55 of the Kansas Statutes Annotated, and amendments thereto.
History:
L. 2004, ch. 115, § 3; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 14 - Pricing Of Natural Gas › 55-1402 Definitions.

55-1402.
Definitions.
For the purposes of this act:
(a) "Commission" means the state corporation commission.
(b) "Gas purchase contract" means any contract under which natural gas is sold within the state of Kansas (1) to any person for resale by such person or (2) to any person for use by such person, but shall not be deemed to include rate schedules, contracts or service agreements under which natural gas is sold (i) by a natural gas public utility as defined in K.S.A. 66-104, either to a person for use by such person or to a person for resale by such person, which sale is subject to the regulatory jurisdiction of the commission, or (ii) to the ultimate consumers by other persons which are local distribution companies.
(c) "Indefinite price escalator clause" means any provision of a gas purchase contract which provides for the establishment or adjustment of the price of natural gas delivered under such contract by reference to other prices for natural gas, for crude oil, or for refined petroleum products.
(d) "New well" means any well:
(1) The surface drilling of which began on or after February 19, 1977; or
(2) the depth of which was increased, by means of drilling on or after February 19, 1977, to a completion location at least one thousand (1,000) feet below the depth of the deepest completion location such well attained before February 19, 1977.
(e) "New reservoir" means any reservoir that qualifies as a new onshore reservoir under section 102 of the natural gas policy act of 1978.
(f) "Stripper well" means any well qualifying as such under section 108(b) of the natural gas policy act of 1978.
(g) "Price" as used herein means the price for natural gas prior to the assessment of any production and conservation fees and taxes by the state of Kansas.
(h) "Committed or dedicated to interstate commerce", when used with respect to natural gas, means natural gas which qualifies as committed or dedicated to interstate commerce under section 2(18) of the natural gas policy act of 1978.
(i) "Person" means (1) any individual, corporation (including cooperatives), public trust or authority, partnership, joint venture or other form of business entity, or voluntary association, or (2) the United States, any state, or any political subdivision, agency or instrumentality of the foregoing.
History:
L. 1979, ch. 171, § 2; May 29.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 14 - Pricing Of Natural Gas › 55-1403 Applicability of act to natural gas purchase contracts.

55-1403.
Applicability of act to natural gas purchase contracts.
Only natural gas purchase contracts entered into before April 20, 1977, providing for the sale, within this state, of natural gas produced in this state and not committed or dedicated to interstate commerce on November 8, 1978, shall be subject to the provisions of this act.
History:
L. 1979, ch. 171, § 3; May 29.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 14 - Pricing Of Natural Gas › 55-1404 Effect of indefinite price escalator clauses of certain natural gas purchase contracts on price of natural gas.

55-1404.
Effect of indefinite price escalator clauses of certain natural gas purchase contracts on price of natural gas.
Except to the extent provided in K.S.A. 55-1405 and 55-1406, on or after December 1, 1978, the price allowed to be paid pursuant to federal legislation or any regulation by an agency implementing such legislation, or the price paid or to be paid for any sale of natural gas in the state of Kansas shall not be taken into account in applying any indefinite price escalator clause contained in any gas purchase contract subject to this act, to the extent that such contract provides for the sale in the state of Kansas, of gas produced within this state which was not committed or dedicated to interstate commerce on November 8, 1978. This section shall not require a reduction of any price contained in any gas purchase contract subject to this act below the price actually paid prior to the date of enactment of this act.
History:
L. 1979, ch. 171, § 4; May 29.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 14 - Pricing Of Natural Gas › 55-1405 Same; limited effect of indefinite escalator clauses; price calculated monthly; exceptions.

55-1405.
Same; limited effect of indefinite escalator clauses; price calculated monthly; exceptions.
Notwithstanding the restriction on the operation of indefinite price escalator clauses imposed by K.S.A. 55-1404, after March 1, 1979, such indefinite price escalator clauses in gas purchase contracts subject to this act may be given effect in accordance with their terms to the extent that the price payable under such contracts is not increased above the maximum price such gas would receive if it qualified under section 109(b) of the natural gas policy act of 1978. The maximum price shall be calculated on a monthly basis. Nothing in this section shall be construed to apply to gas produced from new wells, new reservoirs or stripper wells as defined by this act.
History:
L. 1979, ch. 171, § 5; May 29.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 14 - Pricing Of Natural Gas › 55-1406 Same; effect of indefinite price escalator clauses on gas produced from new wells or reservoirs and stripper wells; price calculated monthly; category determinations.

55-1406.
Same; effect of indefinite price escalator clauses on gas produced from new wells or reservoirs and stripper wells; price calculated monthly; category determinations.
Notwithstanding the restriction on operation of indefinite price escalator clauses in gas purchase contracts imposed by K.S.A. 55-1404 and 55-1405, after March 1, 1979, with respect to natural gas which is subject to this act, and which qualifies as gas produced from new wells, new reservoirs or stripper wells as defined in this act, such indefinite price escalator clauses may be given effect in accordance with their terms to the extent that the price payable under such contracts is not increased above the maximum price such gas would receive if it had been committed or dedicated to interstate commerce. The maximum price shall be calculated on a monthly basis. If the parties to the contract cannot agree as to the category of gas for which such gas qualifies under the terms of the natural gas policy act of 1978, then such category determination shall be made by the commission.
History:
L. 1979, ch. 171, § 6; May 29.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 14 - Pricing Of Natural Gas › 55-1407 Recovery of production and conservation fees and taxes.

55-1407.
Recovery of production and conservation fees and taxes.
For purposes of this act, the price collected for the first sale of natural gas shall be permitted to exceed any maximum price established by such sections of this act, to the extent necessary to recover any production and conservation fees and taxes attributable to such natural gas.
History:
L. 1979, ch. 171, § 7; May 29.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 14 - Pricing Of Natural Gas › 55-1408 Voluntary renegotiation of price provisions.

55-1408.
Voluntary renegotiation of price provisions.
Nothing contained in this act shall prevent or limit the voluntary renegotiation of price provisions contained in natural gas purchase contracts.
History:
L. 1979, ch. 171, § 8; May 29.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 14 - Pricing Of Natural Gas › 55-1409 Enforcement of act by commission; rules and regulations.

55-1409.
Enforcement of act by commission; rules and regulations.
Jurisdiction to implement and enforce the provisions of this act is hereby conferred on the commission, except that nothing in such sections of this act shall be construed to divest the district courts of Kansas of jurisdiction to determine issues relating to private contract rights. The commission may adopt such rules and regulations to implement and enforce this act, as it deems necessary and proper.
History:
L. 1979, ch. 171, § 9; May 29.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 14 - Pricing Of Natural Gas › 55-1410 Judicial review of commission's actions.

55-1410.
Judicial review of commission's actions.
Any action of the commission under the Kansas natural gas pricing act is subject to review by the supreme court in accordance with the Kansas judicial review act. Such review shall be taken in the same manner and time as allowed by law for actions for review by the court of appeals of orders of the commission which relate to rate hearings.
History:
L. 1979, ch. 171, § 10; L. 1986, ch. 318, § 78; L. 2010, ch. 17, § 101; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 14 - Pricing Of Natural Gas › 55-1411 Price limitations to terminate December 31, 1984; reports by commission; end-use allocation by commission, when.

55-1411.
Price limitations to terminate December 31, 1984; reports by commission; end-use allocation by commission, when.
All price limitations as defined in this act shall terminate not later than December 31, 1984. The commission shall monitor and report to the legislature at the commencement of each regular session in each year this act remains in operation, the effect of this act upon the availability of natural gas in this state. In any case where the commission finds that natural gas subject to this act has been or is being diverted to the interstate market, it shall require that the quantity of natural gas which is the object of any other sale of natural gas subject to this act for use as boiler fuel to generate electricity, except for the use thereof for such purpose by municipal utilities and rural electric cooperatives, be reduced in an amount equal to the natural gas so diverted, and that such amount of natural gas be allocated for other uses.
History:
L. 1979, ch. 171, § 11; May 29.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 14 - Pricing Of Natural Gas › 55-1412 Credit of gross profits of emergency or spot sales of natural gas in interstate commerce to customers; duties of commission.

55-1412.
Credit of gross profits of emergency or spot sales of natural gas in interstate commerce to customers; duties of commission.
The commission by appropriate action shall prescribe a method by which the gross profits, including transportation charges, derived from sales of natural gas produced in this state and sold in interstate commerce pursuant to section 2.68 of the general policy and interpretations of the federal energy regulatory commission or section 311 of the natural gas policy act of 1978, or under any similar statutory or regulatory provisions subsequently adopted, by public utilities including pipelines subject to the jurisdiction of the commission, or subsidiaries or affiliates of such utilities, are credited against the bills of such utilities' customers located within this state. If such a credit is not already being applied by any such utility, the commission shall require that this be commenced within one hundred twenty (120) days from the effective date of this act.
History:
L. 1979, ch. 171, § 12; May 29.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 14 - Pricing Of Natural Gas › 55-1413 Certain natural gas distributors to apportion the savings accrued from the operation of this act to its customers.

55-1413.
Certain natural gas distributors to apportion the savings accrued from the operation of this act to its customers.
In any case where a natural gas distributor receives both intrastate and interstate natural gas for its system, the commission, by order, shall require any said distributor to apportion the amount of money saved in the purchase of natural gas from the restrictions made by this act on the effect of indefinite price escalator clauses to every customer of such distributor without regard to their source of supply of natural gas.
History:
L. 1979, ch. 171, § 13; May 29.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 14 - Pricing Of Natural Gas › 55-1414 Profits of pipelines from certain natural gas sales apportioned to customers.

55-1414.
Profits of pipelines from certain natural gas sales apportioned to customers.
Any intrastate pipeline making an intrastate sale of natural gas the purpose for which is to allow intrastate natural gas to be substituted for interstate natural gas in the compressor facilities of an interstate pipeline shall apportion the profit accrued from such sale to its natural gas customers without regard to their source of supply.
History:
L. 1979, ch. 171, § 14; May 29.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 14 - Pricing Of Natural Gas › 55-1415 Invalidity of part.

55-1415.
Invalidity of part.
If any sentence, clause, subsection, or section of this act is held unconstitutional or invalid by any court of competent jurisdiction it shall be conclusively presumed that the legislature would have enacted the remainder of the act not so held unconstitutional or invalid.
History:
L. 1979, ch. 171, § 15; May 29.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 14 - Pricing Of Natural Gas › 55-1424 Natural gas purchase contracts; definitions.

55-1424.
Natural gas purchase contracts; definitions.
For the purposes of this act, production taxes shall mean that portion of ad valorem taxes assessed upon an oil and gas leasehold estate, unit or fee, attributable to the production of natural gas, and shall mean the Kansas mineral severance tax upon production of natural gas, after allowance of the applicable credit provided by the law.
History:
L. 1986, ch. 200, § 1; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 14 - Pricing Of Natural Gas › 55-1425 Same; provision preventing certain taxes from inclusion in purchase price prohibited.

55-1425.
Same; provision preventing certain taxes from inclusion in purchase price prohibited.
No contract for the sale or purchase of natural gas entered into after the effective date of this act shall contain any provision which prohibits or prevents production taxes from being negotiable as a consideration in the contract purchase price for such gas.
History:
L. 1986, ch. 200, § 2; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 14 - Pricing Of Natural Gas › 55-1426 Same; production taxes allowed in purchase price, when; taxes included deemed approved for purpose of purchased gas cost adjustments.

55-1426.
Same; production taxes allowed in purchase price, when; taxes included deemed approved for purpose of purchased gas cost adjustments.
Any contract entered into after the effective date of this act for the sale or purchase of natural gas may contain a provision which allows production taxes to be included in the contract purchase price for such gas. Any such production taxes so included in the contract price for such gas in any such contract shall be considered to be included within a just and reasonable purchase price for such gas and to the extent that such production taxes are included in the contract purchase price for such gas, such price shall be considered to be approved by the state corporation commission for the purpose of purchased gas cost adjustments.
History:
L. 1986, ch. 200, § 3; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 14 - Pricing Of Natural Gas › 55-1427 Same; act not applicable to direct purchases for irrigation purposes.

55-1427.
Same; act not applicable to direct purchases for irrigation purposes.
The provisions of this act shall not apply to direct sales of natural gas by producers to users of natural gas for irrigation purposes within the state of Kansas.
History:
L. 1986, ch. 200, § 4; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 15 - Regulations Concerning Field Equipment, Crude Oil And Related Products › 55-1501 Definitions.

55-1501.
Definitions.
As used in this act:
(a) "Carrier" means a common carrier which is certified under K.S.A. 66-131.
(b) "Dealer" means any person engaged in the business of dealing in used oil or gas field equipment.
(c) "Oil and gas field equipment" means any equipment or material used in extracting oil or gas from the earth or in constructing, operating, maintaining or repairing oil or gas wells or pipelines.
(d) "Person" means any individual, partnership, corporation or association.
History:
L. 1982, ch. 227, § 1; April 22.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 15 - Regulations Concerning Field Equipment, Crude Oil And Related Products › 55-1502 Equipment dealers; records required; penalties for violations.

55-1502.
Equipment dealers; records required; penalties for violations.
(a) Any dealer who has gross receipts of more than $100,000 from the sale of used oil or gas field equipment in the calendar year shall record, for each purchase or sale of used oil or gas field equipment by the dealer:
(1) The name and address of the person selling the equipment to or buying the equipment from the dealer;
(2) the date of the transaction;
(3) the general location of the equipment at the time of the transaction; and
(4) the serial number or other identifying number or mark of each piece of the equipment purchased or sold and the kind, make, size, weight, length and quantity of each piece.
This subsection shall not apply to the purchase or sale of equipment which has a fair market value of less than $50.
(b) The record required by this section shall be maintained by the dealer for not less than one year after the transaction.
(c) Law enforcement officers of the federal government, the state of Kansas and of the city or county where a dealer's business is located shall have access during regular business hours to the dealer's place of business. Access shall be for the purpose of periodically inspecting the dealer's inventory of used oil or gas field equipment and records relating to the purchase and sale of that equipment, to determine if the dealer is complying with the provisions of this act.
(d) Failure to maintain the records required by this section or to allow law enforcement officers access to a dealer's place of business as provided by this section is a class B misdemeanor.
History:
L. 1982, ch. 227, § 2; April 22.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 15 - Regulations Concerning Field Equipment, Crude Oil And Related Products › 55-1503 Carriers required to permit inspection of cargo; penalties for violations.

55-1503.
Carriers required to permit inspection of cargo; penalties for violations.
(a) Any carrier transporting on any street or highway of this state any oil or gas field equipment or any crude petroleum oil or any sediment, water or brine produced in association with the production of oil or gas shall be considered to have consented, as a condition of certification, to inspection of the equipment or material being transported when requested by any federal, state, county or city law enforcement officer.
(b) Failure to permit inspection of equipment or materials being transported when required by this section is a class B misdemeanor.
History:
L. 1982, ch. 227, § 3; April 22.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 15 - Regulations Concerning Field Equipment, Crude Oil And Related Products › 55-1504 Person possessing crude oil; documentation required; penalties for violations.

55-1504.
Person possessing crude oil; documentation required; penalties for violations.
(a) Any person who stores, transports, possesses, disposes of or refines any crude petroleum oil shall have in the person's possession any documentation required by rules and regulations adopted by the state corporation commission pursuant to this section.
(b) The state corporation commission shall adopt rules and regulations specifying the documentation necessary to establish a person's right to be in possession of any crude petroleum oil or sediment, water or brine produced in association with the production of oil or gas which the person is storing, transporting, possessing, disposing of or refining.
(c) Failure to produce the documentation required by this section upon request of any federal, state, county or city law enforcement officer is a class B misdemeanor.
History:
L. 1982, ch. 227, § 4; April 22.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 15 - Regulations Concerning Field Equipment, Crude Oil And Related Products › 55-1505 Tampering with field equipment identification; penalties for violations.

55-1505.
Tampering with field equipment identification; penalties for violations.
(a) No person shall intentionally change, alter, remove or obliterate the name of the maker, the model, the manufacturer's number, the serial number or any other identifying number or mark of any oil or gas field equipment.
(b) Violation of this section is a class B misdemeanor.
History:
L. 1982, ch. 227, § 5; April 22.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 16 - Miscellaneous Provisions › 55-1601 Lapsing and reversion of mineral interests; definition.

55-1601.
Lapsing and reversion of mineral interests; definition.
As used in this act, "mineral interest" means an interest created by an instrument transferring, by grant, assignment, reservation or otherwise, an interest of any kind in coal, oil, gas or other minerals.
History:
L. 1983, ch. 185, § 1; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 16 - Miscellaneous Provisions › 55-1602 Same; lapse and reversion, when.

55-1602.
Same; lapse and reversion, when.
An interest in coal, oil, gas or other minerals, if unused for a period of 20 years, shall lapse, unless a statement of claim is filed in accordance with K.S.A. 55-1604, and the ownership shall revert to the current surface owner.
History:
L. 1983, ch. 185, § 2; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 16 - Miscellaneous Provisions › 55-1603 Same; use of mineral interest defined.

55-1603.
Same; use of mineral interest defined.
(a) A mineral interest shall be considered to be used when:
(1) There are any minerals produced under the interest;
(2) operations are being conducted on the interest for injection, withdrawal, storage or disposal of water, gas or other fluid substances;
(3) rentals or royalties are being paid by the owner of the interest for the purpose of delaying or enjoying the use or exercise of the mineral rights;
(4) the use or exercise of the mineral rights is being carried out on a tract with which the mineral interest may be unitized or pooled for production purposes;
(5) in the case of coal or other solid minerals, there is production from a common vein or seam by the owners of the mineral interests; or
(6) taxes are paid on the mineral interest by its owner.
(b) Any use pursuant to or authorized by the instrument creating the mineral interest shall be effective to continue in force all rights granted by the instrument.
History:
L. 1983, ch. 185, § 3; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 16 - Miscellaneous Provisions › 55-1604 Same; statement of claim, contents; filing, when and where; effect of failure to file.

55-1604.
Same; statement of claim, contents; filing, when and where; effect of failure to file.
(a) A statement of claim may be filed by the owner of a mineral interest prior to the end of the twenty-year period specified by K.S.A. 55-1602 or within three years after the effective date of this act, whichever is later. The statement shall contain the name and address of the owner of the mineral interest and a description of the land on or under which the mineral interest is located. The statement of claim shall be filed in the office of the register of deeds of the county in which the land is located. Upon the filing of the statement of claim within the time provided, it shall be considered that the mineral interest was being used on the date the statement of claim was filed.
(b) Failure to file a statement of claim within the time prescribed by subsection (a) shall not cause a mineral interest to be extinguished if the owner of the mineral interest filed the statement of claim within 60 days after (1) publication of notice as prescribed by K.S.A. 55-1605, if such notice is published or (2) within 60 days after receiving actual knowledge that the mineral interest had lapsed, if such notice is not published.
History:
L. 1983, ch. 185, § 4; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 16 - Miscellaneous Provisions › 55-1605 Same; notice of lapse by succeeding owner; contents; prima facie evidence, when.

55-1605.
Same; notice of lapse by succeeding owner; contents; prima facie evidence, when.
Upon the lapse of a mineral interest under K.S.A. 55-1602, any person who will succeed to the ownership of the interest shall give notice of the lapse of the mineral interest by publishing notice of the lapse in a newspaper of general circulation in the county in which the land subject to the mineral interest is located, and, if the address of the owner of the mineral interest is shown of record or can be determined upon reasonable inquiry, by mailing a copy of the notice by restricted mail to the owner of the mineral interest within 10 days after publication. The notice shall state the name of the owner of the mineral interest, as shown of record; a description of the land subject to the mineral interest; and the name of the person giving the notice. If a copy of the notice, together with an affidavit of its publication and service, is promptly filed in the office of the register of deeds of the county where land subject to the interest is located, the record of the filing shall be prima facie evidence in any legal proceedings that the notice was given.
History:
L. 1983, ch. 185, § 5; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 16 - Miscellaneous Provisions › 55-1606 Same; recordation by register of deeds of statement of claim or proof of notice.

55-1606.
Same; recordation by register of deeds of statement of claim or proof of notice.
Upon the filing of a statement of claim as provided in K.S.A. 55-1604 or the filing of proof of service of notice as provided in K.S.A. 55-1605, the register of deeds shall record the filing in a book to be kept for that purpose and shall indicate by marginal notation on the instrument creating the original mineral interest the filing of the statement of claim or affidavit of publication and service of notice.
History:
L. 1983, ch. 185, § 6; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 16 - Miscellaneous Provisions › 55-1607 Same; waiver of law prohibited.

55-1607.
Same; waiver of law prohibited.
The provisions of this act may not be waived at any time prior to the expiration of the twenty-year period provided in K.S.A. 55-1602.
History:
L. 1983, ch. 185, § 7; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 16 - Miscellaneous Provisions › 55-1610 Development of minerals within city; definitions.

55-1610.
Development of minerals within city; definitions.
When used in this act:
(a) "Minerals" mean oil and gas;
(b) "city" means any city located within the state of Kansas.
History:
L. 1983, ch. 55, § 1; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 16 - Miscellaneous Provisions › 55-1611 Same; authorizing ordinance, requirements.

55-1611.
Same; authorizing ordinance, requirements.
Whenever the governing body of any city authorizes the development of minerals within the corporate limits of the city, it may adopt an ordinance dividing the city into drilling units for the production of those minerals. The ordinance shall require any persons having the right to produce minerals in a drilling unit to pool their rights for the production of such minerals.
History:
L. 1983, ch. 55, § 2; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 16 - Miscellaneous Provisions › 55-1612 Same; protective ordinances permitted, when.

55-1612.
Same; protective ordinances permitted, when.
Nothing in this act shall be construed as prohibiting the governing body of any city from adopting any other ordinance which does not conflict with any state law or rule or regulation providing for the protection of the public health, safety or welfare in relation to the production of minerals within the corporate limits of the city.
History:
L. 1983, ch. 55, § 3; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 16 - Miscellaneous Provisions › 55-1613 Same; act not applicable to certain drilling units.

55-1613.
Same; act not applicable to certain drilling units.
The provisions of this act shall not apply to any drilling unit in which there is a producing well or wells.
History:
L. 1983, ch. 55, § 4; July 1.
2023 Kansas Statutes › Chapter 55 - Oil And Gas › Article 16 - Miscellaneous Provisions › 55-1615 Same; interest on certain payments required; commencement and amount of payments; exception.

55-1615.
Same; interest on certain payments required; commencement and amount of payments; exception.
The payor shall owe its payee interest on any payment, other than excluded payments, at the interest rate provided herein, determined on the first business day of the month that interest commences to accrue for that payment. For each subsequent month, the payor shall owe its payee interest on the unpaid balance due payee on the last day of the month preceding such subsequent month at the interest rate provided herein determined on the first business day of each such subsequent month. Interest shall commence to accrue 60 days following the last calendar day of the month of first sale and shall cease to accrue upon the day that payor places the payment in the United States mail, postage prepaid and addressed to payee. In the event a payor pays a payee's payment or portion thereof to a state under applicable unclaimed, abandoned or escheat property laws, then payor's obligation to pay interest on the portion paid over to the state shall cease upon the day that such state receives the payment from payor. Notwithstanding the above, interest shall not commence on oil or gas sales occurring during the first 60 days following the initial sale provided payment is placed in the United States mail, postage prepaid, and addressed to payee, within 120 days following the last calendar day of the month of the initial sale.
History:
L. 1991, ch. 160, § 2; July 1.