Kansas Statutes Annotated

K.S.A. § 55-703 (2026)

Regulation of production of natural gas by commission; considerations in determination of production from common sources of supply; exception for certain cities of second class

✓ current as of May 2026

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55-703. Regulation of production of natural gas by commission; considerations in determination of production from common sources of supply; exception for certain cities of second class. (a) Whenever the available production of natural gas from any common source of supply is in excess of the market demands for natural gas from the common source of supply, or whenever the market demands for natural gas from any common source of supply can be fulfilled only by the production of natural gas from the common source of supply under conditions constituting waste, or whenever the commission finds and determines that the orderly development of and production of natural gas from any common source of supply requires the exercise of its jurisdiction, then any person, firm or corporation having the right to produce natural gas from the common source of supply may produce only that portion of all the natural gas that may be currently produced without waste and to satisfy the market demands, as will permit each developed lease to ultimately produce approximately the amount of gas underlying the developed lease and currently produce proportionately with other developed leases in the common source of supply without uncompensated cognizable drainage between separately owned, developed leases or parts thereof.

Except as otherwise provided in subsection (b), the commission shall regulate the taking of natural gas from any and all common sources of supply within this state in order to prevent the inequitable or unfair taking of natural gas from a common source of supply by any person, firm or corporation and to prevent unreasonable discrimination in favor of any one common source of supply as against another and in favor of or against any producer in any common source of supply. In promulgating rules, regulations and formulas, to attain such results the commission shall give equitable consideration to acreage, pressure, open flow, porosity, permeability and thickness of pay, and such other factors, conditions and circumstances as may exist in the common source of supply under consideration at the time, as may be pertinent.

The commission in determining the market demand for gas from a common source of supply shall consider the reasonable current requirements for current consumption and use within and without the state, and such other factors, conditions, or circumstances that would aid in establishing the market demand.

(b) The provisions of this section shall not apply to that portion of a common source of supply which is within the corporate boundaries of a city of the second class and upon which is located a producing natural gas well which is solely owned by such city and the total production from which is consumed by and for the benefit of such city. Such well shall not be allowed to be produced in an amount which exceeds two times the amount authorized by any rule, regulation or formula promulgated by the commission pursuant to subsection (a).

The provisions of this subsection shall expire on July 1, 1988.

History: L. 1935, ch. 213, § 3; L. 1945, ch. 233, § 3; L. 1959, ch. 237, § 1; L. 1981, ch. 222, § 1; L. 1983, ch. 184, § 1; L. 1985, ch. 183, § 1; May 9.

Notes of Decisions

Cited in 11 cases, 1961–1995 · leading case: Mobil Expl. & Producing U.S. Inc. v. State Corp. Comm'n, 908 P.2d 1276 (Kan. 1995).

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Mobil Expl. & Producing U.S. Inc. v. State Corp. Comm'n, 908 P.2d 1276 (Kan. 1995). · cites it 23× “In promulgating rules, regulations and formulas, to attain such results the commission shall give equitable consideration to acreage, pressure, open flow, porosity, permeability and thickness of pay, and such other factors, conditions and circumstances as may exist in the common…”

Nw. Cent. Pipeline Corp. v. State Corp. Comm'n, 699 P.2d 1002 (Kan. 1985). · cites it 26× “55-703 provides that whenever the available production of natural gas exceeds the market demand, then, "any person, firm or corporation having the right to produce natural gas from the common source of supply may produce only that portion of all the natural gas that may be…”

Zinke & Trumbo, Ltd. v. Kansas Corp. Comm'n, 749 P.2d 21 (Kan. 1988). · cites it 10× “confers jurisdiction upon the KCC to regulate the production of natural gas in Kansas.”

Sw. Kansas Royalty Owners Ass'n v. State Corp. Comm'n, 769 P.2d 1 (Kan. 1989). · cites it 5× “The infill application was filed pursuant to the Kansas conservation statutes, K.S.A. 1987 Supp. 55-703 and K.S.A. 55-703a.”

N. Nat. Gas Co. v. St. Corp. Comm'n, 362 P.2d 599 (Kan. 1961). · cites it 12× “But Northern has ignored the latter part of the section wherein the following language is found: "The commission shall so regulate the taking of natural gas from any and all such common sources of supply within this state as to prevent the inequitable or unfair taking from such…”

Nw. Cent. Pipeline Corp. v. State Corp. Comm'n of Kan., 489 U.S. 493 (1989). “§55-701 (1983); directs the KCC to “regulate the taking of natural gas from any and all common sources of supply within this state in order to prevent the inequitable or unfair taking of natural gas from a common source of supply,” Kan. Stat. Ann. §55-703 (a) (Supp. 1987); and…”

Colorado Interstate Gas Co. v. State Corp. Comm., 386 P.2d 288 (Kan. 1963). · cites it 4× “Said report and order makes reasonable provisions for an orderly process correcting inequities (existing for more than ten years and which have progressively increased) discriminating in favor of the correlative rights of producers and royalty owners in the Oklahoma Hugoton Gas…”

Kansas Baptist Convention v. Mesa Operating Ltd. P'ship, 864 P.2d 204 (Kan. 1993). “[basic proration unit] necessary for effective and efficient drainage to prevent waste and protect correlative rights pursuant to K.S.A. 1987 Supp. 55-703(a).” 244 Kan. at 164 .”

Transcontinental Gas Pipeline Corp. v. State Oil & Gas Bd., 457 So. 2d 1298 (Miss. 1984). “Kan. Stat. Ann. § 55-703 (Supp. 1983) (Kansas); La.”

Mobil Oil Corp. v. Kansas Corp. Comm'n, 608 P.2d 1325 (Kan. 1980). · cites it 2× “K.S.A. 55-703 permits the State Corporation Commission to exercise its jurisdiction whenever it determines that the orderly development of, and production of gas from, any common *596 source of supply requires such exercise.”

Cities Serv. Oil Co. v. State Corp. Comm'n, 483 P.2d 1123 (Kan. 1970). “” (K.S.A. 55-703) The strength of the testimony on which Cities Service based its claim, that the basic proration order of the commission was unlawful, was dependent upon the method and factors used by the engineer in arriving at the “rateable allowables” which he assigned to…”

— K.S.A. § 55-703(a) — 4 cases

Mobil Expl. & Producing U.S. Inc. v. State Corp. Comm'n, 908 P.2d 1276 (Kan. 1995). “In promulgating rules, regulations and formulas, to attain such results the commission shall give equitable consideration to acreage, pressure, open flow, porosity, permeability and thickness of pay, and such other factors, conditions and circumstances as may exist in the common…”

Zinke & Trumbo, Ltd. v. Kansas Corp. Comm'n, 749 P.2d 21 (Kan. 1988). “confers jurisdiction upon the KCC to regulate the production of natural gas in Kansas.”

Sw. Kansas Royalty Owners Ass'n v. State Corp. Comm'n, 769 P.2d 1 (Kan. 1989). “The infill application was filed pursuant to the Kansas conservation statutes, K.S.A. 1987 Supp. 55-703 and K.S.A. 55-703a.”

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