WHEREAS, on the 16th day of February 1935, in
the City of Dallas, Texas, there was executed "An Interstate Compact to
Conserve Oil and Gas," which was thereafter formally ratified and
approved by the States of Oklahoma, Texas, New Mexico, Illinois,
Colorado, Kansas and 24 additional States; which said compact was duly
amended at Tulsa, Oklahoma on September 25, 1970, a true copy of which
as so amended follows:
AN INTERSTATE COMPACT TO CONSERVE OIL AND GAS
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
hereto as hereinafter provided.
The purpose of this compact is to conserve oil and gas by the prevention of physical waste thereof from any cause.
Each State bound hereby agrees that within a reasonable time it will
enact laws, or if the laws have been enacted, then it agrees to
continue the same in force, to accomplish within reasonable limits the
The operation of any oil well with an inefficient gas-oil ratio.
The drowning with water of any stratum capable of producing oil or gas, or both oil and gas, in paying quantities.
The avoidable escape into the open air or the wasteful burning of gas from a natural gas well.
The creation of unnecessary fire hazards.
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.
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.
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.
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.
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 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
Commission shall have the 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
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
votes 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.
No State 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
This compact shall continue in effect until Congress withdraws its
consent. But any State joining herein may, upon sixty (60) days notice,
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.
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.