Court Opinions

State Laws

US Code

US Constitution

Texas Natural Resources Code - Section 90.007. Text Of Compact

Legal Research Home > Texas Laws > Natural Resources Code > Texas Natural Resources Code - Section 90.007. Text Of Compact

§ 90.007. TEXT OF COMPACT.  The Interstate Compact to 
Conserve Oil and Gas reads 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 (3) 
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 order 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 a 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 
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:  (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 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.  Any oil-producing state may 
become a party hereto by affixing its signature to a counterpart to 
be similarly deposited, certified, and ratified."

Acts 1977, 65th Leg., p. 2557, ch. 871, art. I, § 1, eff. Sept. 1, 
1977. 

Last modified: August 11, 2007