2023 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.