45.1-381 - Governor authorized to execute compact.
§ 45.1-381. Governor authorized to execute compact.
The Governor of the Commonwealth is hereby authorized and requested toexecute, on behalf of the Commonwealth of Virginia with any other state orstates legally joining therein, a compact which shall be in formsubstantially as follows:
An Interstate Compact to Conserve Oil and Gas
Article I.
This agreement may become effective within any compacting state at any timeas prescribed by that state, and shall become effective within those statesratifying it whenever any three of the States of Texas, Oklahoma, California,Kansas, and New Mexico have ratified and Congress has given its consent. Anyoil-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 ofphysical waste thereof from any cause.
Article III.
Each state bound hereby agrees that within a reasonable time it will enactlaws, or if the laws have been enacted, to continue the same in force, toaccomplish 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 gasfrom a natural gas well.
(d) The creation of unnecessary fire hazards.
(e) The drilling, equipping, locating, spacing or operating of a well orwells so as to bring about physical waste of oil or gas or loss in theultimate recovery thereof.
(f) The inefficient, excessive or improper use of the reservoir energy inproducing any well.
The enumeration of the foregoing subjects shall not limit the scope of theauthority of any state.
Article IV.
Each state bound hereby agrees that it will, within a reasonable time, enactstatutes, or if such statutes have been enacted that it will continue thesame in force, providing in effect that oil produced in violation of itsvalid oil and/or gas conservation statutes or any valid rule, order orregulation promulgated thereunder, shall be denied access to commerce; andproviding 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 hereinto limit the production of oil or gas for the purpose of stabilizing orfixing the price thereof, or to create or perpetuate monopoly, or to promoteregimentation, but is limited to the purpose of conserving oil and gas andpreventing the avoidable waste thereof within reasonable limitations.
Article VI.
Each state joining herein shall appoint one representative to a commissionhereby constituted and designated as the Interstate Oil Compact Commission,the duty of which shall be to make inquiry and ascertain from time to timesuch methods, practices, circumstances, and conditions as may be disclosedfor bringing about conservation and the prevention of physical waste of oiland gas, and at such intervals as the Commission deems beneficial it shallreport its findings and recommendations to the several states for adoption orrejection.
The Commission shall have power to recommend the coordination of the exerciseof the police powers of the several states within their several jurisdictionsto promote the maximum ultimate recovery from the petroleum reserves of thestates and to recommend measures for the maximum ultimate recovery of oil andgas. The Commission shall adopt suitable rules and regulations for theconduct of its business.
No action shall be taken by the Commission except: (1) By the affirmativevote of the majority of the whole number of the compacting states representedat any meeting, and (2) by a concurring vote of a majority in interest of thecompacting states at the meeting, such interest to be determined as follows:the vote of each state shall be in the decimal proportion fixed by the ratioof its daily average production during the preceding calendar half-year tothe daily average production of the compacting states during that period.
Article VII.
No state by joining herein shall become financially obligated to any otherstate, nor shall the breach of the terms hereof by any state subject thatstate to financial responsibility to the other states joining herein.
Article VIII.
This compact shall continue in effect until Congress withdraws its consent.Any state joining herein may, upon sixty (60) days' notice, withdraw herefrom.
The representatives of the signatory states have signed this agreement in asingle original which shall be deposited in the archives of the Department ofState of the United States, and a duly certified copy shall be forwarded tothe Governor of each of the signatory states.
This compact shall become effective when ratified and approved as provided inArticle I. Any oil-producing state may become a party thereto by affixing itssignature to a counterpart to be similarly deposited, certified and ratified.
(1982, c. 570.)