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55-604. Powers of commission; proration of production; approval of plan or distribution.

55-604

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

      55-604.   Powers of commission; proration of production; approval of plan ordistribution.(a) The commission shall have and is hereby given jurisdiction andauthority:

      (1)   Over all matters involving the application and enforcement ofthis act;

      (2)   to make and enforce rules, regulationsand orders for the prevention of waste as defined by K.S.A. 55-602and amendments thereto and for carryingout and enforcing each and all of the provisions of this act;

      (3)   to employ or appointsuch agent or agents as necessary to enforce and administer theprovisions of this act and rules, regulations and orders adoptedor issued under this act. Such agentor agents, with the exception of clerical help, shall beexperienced in and conversant with the oil business; and

      (4)   as otherwise provided, without limiting the generality ofthe foregoing authority provided in this section.

      (b)   In prorating the production allowed to each pool among thewells in the pool, the commission shall take into consideration,among such otherfactors as it finds proper, and give due and proper weight to:

      (1)   The productivity of each such well as determined by such reasonablemethod as the commission shall adopt for the pool;

      (2)   the acreage of each well owner which is reasonably attributable toeach of the owner's wells; and

      (3)   the efficient utilization of the reservoir energy in thepool, except that the allowable production of anywell in any prorated pool shall not be reduced below 25 barrels perday. The 25 barrels per day minimumper well allowable may be reduced proportionately when the acreageattributable to any well is less than the number of acres in a spacing unitestablished by the corporation commission for wells in a spaced pool. Inthe absence of such a spacing unit, when the acreage attributable to anywell is less than 10 acres, the 25 barrels per dayminimum per well allowable may be reduced in the proportion that theacreage attributable to the well bears to 10 acres, except that the reductionin the 25 barrels per dayminimum per well allowable by virtue of acreage adjustment shall not applyto oil and gas wells drilled or commenced prior to the effective date ofthis act.

      (c)   When it appears to the commissionthat those having a right todrill into and produce oil from any pool, part of any pool or prospectivepool, in this state, have unanimously agreed upon a plan for thedevelopment of such pool, part of any pool or prospective pool or for thedistribution of allowed production in the pool, the commission,afternotice and hearing in accordance with the provisions of the Kansasadministrative procedure act, may approve such plan or distribution.

      History:   L. 1931, ch. 226, § 4; L. 1939, ch. 227, § 3; L.1947, ch. 310, § 1;L. 1957, ch. 316, § 1; L. 1959, ch. 236, § 1; L.1965, ch. 341, § 2; L. 1973, ch. 219, § 3;L. 1988, ch. 356, § 168;L. 1995, ch. 9, § 2; July 1.

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