Page:United States Statutes at Large Volume 49 Part 1.djvu/985

 940 74Tn CONGRESS. SESS. I. CH. 781 . AUGUST 27, 1935. " ART ICLE II " The p urpose o f this compact is to c onserve 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 continu e the sa me in f orce, to accomp lish wi thin rea sonable limits the revention of a) The operation of any oil well with an inefficient gas-oil ratio . "(b) The drowning with water of any stratum capable of produc- ing oil or gas, or both oil and gas in paying qu antities . i"( c) The avoidable escape into the open air or the wasteful burn . n g 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 pro- duced 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 j "It is not the purpose of this compact to authorize the States oining 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 pur- pose 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 bring- ing abo ut conse rvation and the preven tion of physica l waste of oil and gas, and at such i ntervals as sai d Commi ssion de ems ben eficial it shall report its findings and recommendations to the several States for adoption or rejection. " The Commission shall have power to recommend th e coordina- tion 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