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 obtained only under conditions (a) constituting waste as defined by K.S.A. 55-602 and amendments thereto, or (b) independently of waste, under conditions injurious to the respective correlative rights of the producers in the pool, or (c) under conditions unreasonably discriminating against other pools in the state, any person having the right to drill into and produce oil from the pool may take currently no more than that proportion of all crude oil which may be produced from the pool currently without such waste, injury or discrimination, which the productivity of such person's well or wells, considered in connection with the acreage reasonably attributable to each such well, bears to the productivity of all the wells in the pool, considered in connection with the acreage reasonably attributable to each well in the pool. The state corporation commission is authorized, and it shall be its duty, to regulate the taking of crude oil from 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 of crude oil from the pool by any person and to prevent unreasonable discrimination therein. The commission is further authorized, and it shall be its duty, to prevent unreasonable discrimination in favor of any one pool as against any other pool or pools in this state in the allocation of 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.
Notes of Decisions
Bennett v. State Corp. Comm'n, 142 P.2d 810 (Kan. 1943).
· cites it 2× “Broadly stated, section 55-603, 1941 Supp., provides that when the full production from any oil pool cannot be had without constituting waste, or without injury to the correlative rights of other producers from the pool, or without unreasonable discrimination against other pools…”
Sw. Kansas Royalty Owners Ass'n v. State Corp. Comm'n, 769 P.2d 1 (Kan. 1989).
“Production may be regulated under K.S.A. 55-603 when required because of conditions “(a) constituting waste as herein defined, or (b) independently of waste, under conditions injurious to the respective correlative rights of the producers therein.”
Aylward Prod. Corp. v. State Corp. Comm'n, 176 P.2d 861 (Kan. 1947).
· cites it 4× “Section 55-603 first set up three conditions that must exist before the statute should affect any pool, that is, it must appear that full production from that pool could only be obtained under conditions— “(a) Constituting waste as herein defined, or (b) independently of waste,…”
Robert-Gay Energy Enter., Inc. v. State Corp. Comm'n, 685 P.2d 299 (Kan. 1984).
“55-603: “The state corporation commission is authorized and it shall be its duty, to so regulate the taking of crude oil from any pool within the state of Kansas as to prevent waste therein or, independently of waste, to prevent the inequitable or unfair taking of crude oil…”
Sinclair Pipe Line Co. v. Snyder, 147 F. Supp. 632 (D. Kan. 1956).
· cites it 3× “Section 55-603 in general provides that whenever the full production from a common source of supply of crude oil can only be obtained under conditions (a) constituting waste as defined in the statute, (b) independently of waste, under *636 conditions injurious to the respective…”
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