                                 CODE OF VIRGINIA

INTERSTATE COMPACT TO CONSERVE OIL AND GAS (§ 45.2-301)

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 the laws have been enacted to continue the same in force, to
accomplish within reasonable limits the prevention of:

1. The operation of any oil well with an inefficient gas-oil ratio.

2. The drowning with water of any stratum capable of producing oil or gas, or
both oil and gas, in paying quantities.

3. The avoidable escape into the open air or the wasteful burning of gas from a
natural gas well.

4. The creation of unnecessary fire hazards.

5. 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.

6. 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 that it will continue the same
in force, providing in effect that oil produced 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.
			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 to 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
Commission), the duty of which 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 the 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 the states
and to recommend measures for the maximum ultimate recovery of oil and gas. The
Commission shall adopt suitable rules and regulations for the conduct of its
business.
			No action shall be taken by the Commission except (i) by the affirmative vote
of the majority of the whole number of the compacting states represented at any
meeting and (ii) by a concurring vote of a majority in interest of the
compacting 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 ratio of its
daily average production during the preceding calendar half-year to the daily
average production of the compacting states during that 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 that state
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 60 days&#8217; notice, withdraw herefrom.
			The representatives of the signatory states have signed this agreement in a
single original that 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 thereto by affixing its
signature to a counterpart to be similarly deposited, certified, and ratified.

HISTORY: 1982, c. 570, § 45.1-381; 2021, Sp. Sess. I, c. 387.