Page:United States Statutes at Large Volume 57 Part 1.djvu/398

 57 STAT.] 78TH CONG. , 1T SESS.-CH. 194-JULY 7, 1943 "A RT ICLE 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 within 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 in the ultimate recovery thereof. "(f) The inefficient, excessive or improper use of the reser- voir 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 penal- ties for the waste of either oil or gas. "ARTICLE V "It is not the purpose of this compact to authorize the states join- ing herein to limit the production of oil or gas for the purpose of stabilizing or fixing the price thereof, or create or perpetuate monop- oly, or to promote regimentation, but is limited to the purpose of conserving oil and gas and preventing the avoidable waste thereof within reasonable limitations. "A RT ICLE 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 coordina- tion of the exercise of the police powers of the several states within 81077--44 - --PT . --- 25

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