55-603. Production regulated; prevention of unreasonable discrimination. - Kansas Statutes

55-603

Chapter 55.--OIL AND GAS Article 6.--CRUDE OIL OR PETROLEUM; PRODUCTION AND SALE

      55-603.   Production regulated; prevention of unreasonable discrimination.Whenever the full production from any common source of supply,herein called "pool", of crude oil in this state can be obtainedonly under conditions (a) constituting waste as defined by K.S.A. 55-602 andamendments thereto, or (b) independentlyof waste, under conditions injurious to the respective correlative rightsof the producers in the pool, or (c) under conditions unreasonablydiscriminating against other pools in the state, any person having theright to drill into and produce oil from the pool may take currentlyno more than that proportion of all crude oil which may be produced from thepool currently without such waste, injury ordiscrimination, which the productivity of such person'swell or wells, consideredin connection with the acreage reasonably attributable to eachsuch well, bearsto the productivity of all the wells in the pool, considered inconnection with the acreage reasonably attributable to each well in the pool.The state corporation commission is authorized, and it shall be its duty, toregulate the taking of crude oilfrom any pool within the state of Kansas as to prevent waste in the pool or,independently of waste, to prevent the inequitable or unfair taking ofcrude oil from the pool by any person and to prevent unreasonablediscrimination therein. The commission is further authorized, and itshall be its duty, to prevent unreasonable discrimination in favor of anyone pool as against any other pool or pools in this state in the allocationof allowable production among such pools.

      History:   L. 1931, ch. 226, § 3; L. 1939, ch. 227, § 2; L. 1957, ch. 315, § 1;L. 1965, ch. 341, § 1;L. 1988, ch. 356, § 167;L. 1995, ch. 9, § 1; July 1.