                                 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.