55-1406. Same; effect of indefinite price escalator clauses on gas produced from new wells or reservoirs and stripper wells; price calculated monthly; category determinations. - Kansas Statutes

55-1406

Chapter 55.--OIL AND GAS Article 14.--PRICING OF NATURAL GAS

      55-1406.   Same; effect of indefinite price escalator clauses on gasproduced from new wells or reservoirs and stripper wells; price calculatedmonthly; category determinations.Notwithstanding the restriction on operation of indefiniteprice escalator clauses in gas purchase contracts imposed by K.S.A. 55-1404and 55-1405, after March 1, 1979, with respect to natural gas whichis subject to this act, and which qualifies as gas produced from new wells,new reservoirs or stripper wells as defined in this act, such indefiniteprice escalator clauses may be given effect in accordance with their termsto the extent that the price payable under such contracts is not increasedabove the maximum price such gas would receive if it had been committedor dedicated to interstate commerce. The maximum price shall be calculatedon a monthly basis. If the parties to the contract cannot agree as to thecategory of gas for which such gas qualifies under the terms of the naturalgas policy act of 1978, then such category determination shall be made bythe commission.

      History:   L. 1979, ch. 171, § 6; May 29.