45 ILCS 55/ Interstate Compact to Conserve Oil and Gas Act.

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45 ILCS 55/0.01

(45 ILCS 55/0.01) (from Ch. 96 1/2, par. 5300)

Sec. 0.01.

Short title.

This Act may be cited as the

Interstate Compact to Conserve Oil and Gas Act.

(Source: P.A. 86-1324.)

45 ILCS 55/1

(45 ILCS 55/1) (from Ch. 96 1/2, par. 5301)

Sec. 1.

The State of Illinois does hereby ratify, approve and adopt the
compact aforesaid, which is 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 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 oil 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
therein 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 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 co-ordination 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 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.