State Codes and Statutes

Statutes > Texas > Natural-resources-code > Title-3-oil-and-gas > Chapter-90-interstate-compact-to-conserve-oil-and-gas

NATURAL RESOURCES CODE

TITLE 3. OIL AND GAS

SUBTITLE B. CONSERVATION AND REGULATION OF OIL AND GAS

CHAPTER 90. INTERSTATE COMPACT TO CONSERVE OIL AND GAS

Sec. 90.001. RATIFICATION. The Interstate Compact to Conserve

Oil and Gas, executed in the City of Dallas, on February 16,

1935, by the Governor of Texas, the text of which is set out in

Section 90.007 of this code, was ratified by the legislature of

this state in Chapter 81, General Laws, Acts of the 44th

Legislature, Regular Session, 1935.

Acts 1977, 65th Leg., p. 2556, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 90.002. ORIGINAL COPY. The original copy of the compact is

on deposit with the Department of State of the United States.

Acts 1977, 65th Leg., p. 2556, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 90.003. REPRESENTATIVE. (a) The governor is the official

representative of the State of Texas on the Interstate Oil

Compact Commission, provided for in the Interstate Compact to

Conserve Oil and Gas. He shall exercise and perform for the state

all the powers and duties as a member of the Interstate Oil

Compact Commission.

(b) The governor may appoint an assistant representative who

shall act in his stead as the official representative of the

State of Texas as a member of the commission.

(c) The representative shall take the oath of office prescribed

by the constitution, which shall be filed with the Secretary of

State.

Acts 1977, 65th Leg., p. 2556, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 90.0031. ANNUAL REPORT. Before October 1 of each year, the

office of the Interstate Oil Compact Commissioner for Texas shall

prepare and file with the presiding officer of each house of the

legislature a complete and detailed written report describing the

activities of the office relating to this state's participation

in the Interstate Compact to Conserve Oil and Gas and accounting

for all funds received and disbursed by the office during the

preceding fiscal year. The report must be included as a part of

the annual financial report of the governor's office.

Added by Acts 1983, 68th Leg., p. 93, ch. 14, Sec. 1, eff. Aug.

29, 1983.

Sec. 90.004. EXTENSION. (a) The continuous extension of the

Interstate Compact to Conserve Oil and Gas until September 1,

1951, by an agreement executed by the governor in the name of the

State of Texas with other states currently members of the

Interstate Oil Compact Commission was authorized by the

legislature, subject to the approval of Congress, in:

(1) Chapter 217, Acts of the 45th Legislature, Regular Session,

1937;

(2) Chapter 2, Special Laws, page 527, Acts of the 46th

Legislature, Regular Session, 1939;

(3) Chapter 63, Acts of the 47th Legislature, Regular Session,

1941;

(4) Chapter 15, Acts of the 48th Legislature, Regular Session,

1943; and

(5) Chapter 52, Acts of the 50th Legislature, Regular Session,

1947.

(b) The governor may execute agreements in the name of the State

of Texas for the further extension of the expiration date of the

Interstate Compact to Conserve Oil and Gas.

Acts 1977, 65th Leg., p. 2556, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 90.005. FORM OF AGREEMENT. The agreement to extend the

Interstate Compact to Conserve Oil and Gas, which the governor is

authorized to execute for the state, shall be in substance as

follows:

"It is hereby agreed that the Interstate Compact to Conserve Oil

and Gas executed in the City of Dallas, Texas, on the 16th day of

February, 1935, and now on deposit with the Department of State

of the United States, be and the same is hereby extended for a

period of four (4) years from its date of expiration (September

1, 1947), this agreement to become effective when executed by any

three (3) of the States of Texas, Oklahoma, California, Kansas

and New Mexico, and consent thereto is given by Congress."

Acts 1977, 65th Leg., p. 2556, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 90.006. WITHDRAWAL FROM COMPACT. (a) The governor may

determine if and when it is in the best interest of the state to

withdraw from the compact as provided by its terms on 60 days'

notice.

(b) If the governor determines that the state should withdraw

from the compact, he has full authority to give necessary notice

and take any steps necessary and proper to effect the withdrawal

of the State of Texas from the compact.

Acts 1977, 65th Leg., p. 2557, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 90.007. TEXT OF COMPACT. The Interstate Compact to

Conserve Oil and Gas reads as follows:

"AN 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 (3)

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 laws have been enacted, then it agrees to

continue the same in force, to accomplish within reasonable

limits the prevention of:

"(a) The operation of any oil well with an inefficient gas-oil

ratio;

"(b) The drowning with water of any stratum capable of producing

oil or gas, or both oil and gas, in paying quantities;

"(c) The avoidable escape into the open air or the wasteful

burning of gas from a natural gas well;

"(d) The creation of unnecessary fire hazards;

"(e) 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;

"(f) 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 then

that it will continue the same in force, providing in effect that

oil produced in violation of its valid order 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 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 a representative to a

Commission hereby constituted and designated as The Interstate

Oil Compact Commission, the duty of which said Commission 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 said 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 said states, and to

recommend measures for the maximum ultimate recovery of oil and

gas. Said Commission shall organize and adopt suitable rules and

regulations for the conduct of its business.

"No action shall be taken by the Commission, except: (1) by the

affirmative votes of the majority of the whole number of the

compacting states, represented at any meeting; and (2) by a

concurring vote of a majority in interest of the compacting

states at said meeting, such interest to be determined as

follows: Such 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 said 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 such state to financial responsibility to the other

states joining herein.

"ARTICLE VIII

"This Compact shall expire September 1, 1937. But any state

joining herein may, upon sixty (60) days notice, withdraw

herefrom.

"The representatives of the signatory states have signed this

agreement in a single original, which 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 hereto by affixing its signature to a counterpart to be

similarly deposited, certified, and ratified."

Acts 1977, 65th Leg., p. 2557, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

State Codes and Statutes

Statutes > Texas > Natural-resources-code > Title-3-oil-and-gas > Chapter-90-interstate-compact-to-conserve-oil-and-gas

NATURAL RESOURCES CODE

TITLE 3. OIL AND GAS

SUBTITLE B. CONSERVATION AND REGULATION OF OIL AND GAS

CHAPTER 90. INTERSTATE COMPACT TO CONSERVE OIL AND GAS

Sec. 90.001. RATIFICATION. The Interstate Compact to Conserve

Oil and Gas, executed in the City of Dallas, on February 16,

1935, by the Governor of Texas, the text of which is set out in

Section 90.007 of this code, was ratified by the legislature of

this state in Chapter 81, General Laws, Acts of the 44th

Legislature, Regular Session, 1935.

Acts 1977, 65th Leg., p. 2556, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 90.002. ORIGINAL COPY. The original copy of the compact is

on deposit with the Department of State of the United States.

Acts 1977, 65th Leg., p. 2556, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 90.003. REPRESENTATIVE. (a) The governor is the official

representative of the State of Texas on the Interstate Oil

Compact Commission, provided for in the Interstate Compact to

Conserve Oil and Gas. He shall exercise and perform for the state

all the powers and duties as a member of the Interstate Oil

Compact Commission.

(b) The governor may appoint an assistant representative who

shall act in his stead as the official representative of the

State of Texas as a member of the commission.

(c) The representative shall take the oath of office prescribed

by the constitution, which shall be filed with the Secretary of

State.

Acts 1977, 65th Leg., p. 2556, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 90.0031. ANNUAL REPORT. Before October 1 of each year, the

office of the Interstate Oil Compact Commissioner for Texas shall

prepare and file with the presiding officer of each house of the

legislature a complete and detailed written report describing the

activities of the office relating to this state's participation

in the Interstate Compact to Conserve Oil and Gas and accounting

for all funds received and disbursed by the office during the

preceding fiscal year. The report must be included as a part of

the annual financial report of the governor's office.

Added by Acts 1983, 68th Leg., p. 93, ch. 14, Sec. 1, eff. Aug.

29, 1983.

Sec. 90.004. EXTENSION. (a) The continuous extension of the

Interstate Compact to Conserve Oil and Gas until September 1,

1951, by an agreement executed by the governor in the name of the

State of Texas with other states currently members of the

Interstate Oil Compact Commission was authorized by the

legislature, subject to the approval of Congress, in:

(1) Chapter 217, Acts of the 45th Legislature, Regular Session,

1937;

(2) Chapter 2, Special Laws, page 527, Acts of the 46th

Legislature, Regular Session, 1939;

(3) Chapter 63, Acts of the 47th Legislature, Regular Session,

1941;

(4) Chapter 15, Acts of the 48th Legislature, Regular Session,

1943; and

(5) Chapter 52, Acts of the 50th Legislature, Regular Session,

1947.

(b) The governor may execute agreements in the name of the State

of Texas for the further extension of the expiration date of the

Interstate Compact to Conserve Oil and Gas.

Acts 1977, 65th Leg., p. 2556, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 90.005. FORM OF AGREEMENT. The agreement to extend the

Interstate Compact to Conserve Oil and Gas, which the governor is

authorized to execute for the state, shall be in substance as

follows:

"It is hereby agreed that the Interstate Compact to Conserve Oil

and Gas executed in the City of Dallas, Texas, on the 16th day of

February, 1935, and now on deposit with the Department of State

of the United States, be and the same is hereby extended for a

period of four (4) years from its date of expiration (September

1, 1947), this agreement to become effective when executed by any

three (3) of the States of Texas, Oklahoma, California, Kansas

and New Mexico, and consent thereto is given by Congress."

Acts 1977, 65th Leg., p. 2556, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 90.006. WITHDRAWAL FROM COMPACT. (a) The governor may

determine if and when it is in the best interest of the state to

withdraw from the compact as provided by its terms on 60 days'

notice.

(b) If the governor determines that the state should withdraw

from the compact, he has full authority to give necessary notice

and take any steps necessary and proper to effect the withdrawal

of the State of Texas from the compact.

Acts 1977, 65th Leg., p. 2557, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 90.007. TEXT OF COMPACT. The Interstate Compact to

Conserve Oil and Gas reads as follows:

"AN 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 (3)

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 laws have been enacted, then it agrees to

continue the same in force, to accomplish within reasonable

limits the prevention of:

"(a) The operation of any oil well with an inefficient gas-oil

ratio;

"(b) The drowning with water of any stratum capable of producing

oil or gas, or both oil and gas, in paying quantities;

"(c) The avoidable escape into the open air or the wasteful

burning of gas from a natural gas well;

"(d) The creation of unnecessary fire hazards;

"(e) 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;

"(f) 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 then

that it will continue the same in force, providing in effect that

oil produced in violation of its valid order 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 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 a representative to a

Commission hereby constituted and designated as The Interstate

Oil Compact Commission, the duty of which said Commission 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 said 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 said states, and to

recommend measures for the maximum ultimate recovery of oil and

gas. Said Commission shall organize and adopt suitable rules and

regulations for the conduct of its business.

"No action shall be taken by the Commission, except: (1) by the

affirmative votes of the majority of the whole number of the

compacting states, represented at any meeting; and (2) by a

concurring vote of a majority in interest of the compacting

states at said meeting, such interest to be determined as

follows: Such 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 said 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 such state to financial responsibility to the other

states joining herein.

"ARTICLE VIII

"This Compact shall expire September 1, 1937. But any state

joining herein may, upon sixty (60) days notice, withdraw

herefrom.

"The representatives of the signatory states have signed this

agreement in a single original, which 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 hereto by affixing its signature to a counterpart to be

similarly deposited, certified, and ratified."

Acts 1977, 65th Leg., p. 2557, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.


State Codes and Statutes

State Codes and Statutes

Statutes > Texas > Natural-resources-code > Title-3-oil-and-gas > Chapter-90-interstate-compact-to-conserve-oil-and-gas

NATURAL RESOURCES CODE

TITLE 3. OIL AND GAS

SUBTITLE B. CONSERVATION AND REGULATION OF OIL AND GAS

CHAPTER 90. INTERSTATE COMPACT TO CONSERVE OIL AND GAS

Sec. 90.001. RATIFICATION. The Interstate Compact to Conserve

Oil and Gas, executed in the City of Dallas, on February 16,

1935, by the Governor of Texas, the text of which is set out in

Section 90.007 of this code, was ratified by the legislature of

this state in Chapter 81, General Laws, Acts of the 44th

Legislature, Regular Session, 1935.

Acts 1977, 65th Leg., p. 2556, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 90.002. ORIGINAL COPY. The original copy of the compact is

on deposit with the Department of State of the United States.

Acts 1977, 65th Leg., p. 2556, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 90.003. REPRESENTATIVE. (a) The governor is the official

representative of the State of Texas on the Interstate Oil

Compact Commission, provided for in the Interstate Compact to

Conserve Oil and Gas. He shall exercise and perform for the state

all the powers and duties as a member of the Interstate Oil

Compact Commission.

(b) The governor may appoint an assistant representative who

shall act in his stead as the official representative of the

State of Texas as a member of the commission.

(c) The representative shall take the oath of office prescribed

by the constitution, which shall be filed with the Secretary of

State.

Acts 1977, 65th Leg., p. 2556, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 90.0031. ANNUAL REPORT. Before October 1 of each year, the

office of the Interstate Oil Compact Commissioner for Texas shall

prepare and file with the presiding officer of each house of the

legislature a complete and detailed written report describing the

activities of the office relating to this state's participation

in the Interstate Compact to Conserve Oil and Gas and accounting

for all funds received and disbursed by the office during the

preceding fiscal year. The report must be included as a part of

the annual financial report of the governor's office.

Added by Acts 1983, 68th Leg., p. 93, ch. 14, Sec. 1, eff. Aug.

29, 1983.

Sec. 90.004. EXTENSION. (a) The continuous extension of the

Interstate Compact to Conserve Oil and Gas until September 1,

1951, by an agreement executed by the governor in the name of the

State of Texas with other states currently members of the

Interstate Oil Compact Commission was authorized by the

legislature, subject to the approval of Congress, in:

(1) Chapter 217, Acts of the 45th Legislature, Regular Session,

1937;

(2) Chapter 2, Special Laws, page 527, Acts of the 46th

Legislature, Regular Session, 1939;

(3) Chapter 63, Acts of the 47th Legislature, Regular Session,

1941;

(4) Chapter 15, Acts of the 48th Legislature, Regular Session,

1943; and

(5) Chapter 52, Acts of the 50th Legislature, Regular Session,

1947.

(b) The governor may execute agreements in the name of the State

of Texas for the further extension of the expiration date of the

Interstate Compact to Conserve Oil and Gas.

Acts 1977, 65th Leg., p. 2556, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 90.005. FORM OF AGREEMENT. The agreement to extend the

Interstate Compact to Conserve Oil and Gas, which the governor is

authorized to execute for the state, shall be in substance as

follows:

"It is hereby agreed that the Interstate Compact to Conserve Oil

and Gas executed in the City of Dallas, Texas, on the 16th day of

February, 1935, and now on deposit with the Department of State

of the United States, be and the same is hereby extended for a

period of four (4) years from its date of expiration (September

1, 1947), this agreement to become effective when executed by any

three (3) of the States of Texas, Oklahoma, California, Kansas

and New Mexico, and consent thereto is given by Congress."

Acts 1977, 65th Leg., p. 2556, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 90.006. WITHDRAWAL FROM COMPACT. (a) The governor may

determine if and when it is in the best interest of the state to

withdraw from the compact as provided by its terms on 60 days'

notice.

(b) If the governor determines that the state should withdraw

from the compact, he has full authority to give necessary notice

and take any steps necessary and proper to effect the withdrawal

of the State of Texas from the compact.

Acts 1977, 65th Leg., p. 2557, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.

Sec. 90.007. TEXT OF COMPACT. The Interstate Compact to

Conserve Oil and Gas reads as follows:

"AN 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 (3)

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 laws have been enacted, then it agrees to

continue the same in force, to accomplish within reasonable

limits the prevention of:

"(a) The operation of any oil well with an inefficient gas-oil

ratio;

"(b) The drowning with water of any stratum capable of producing

oil or gas, or both oil and gas, in paying quantities;

"(c) The avoidable escape into the open air or the wasteful

burning of gas from a natural gas well;

"(d) The creation of unnecessary fire hazards;

"(e) 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;

"(f) 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 then

that it will continue the same in force, providing in effect that

oil produced in violation of its valid order 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 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 a representative to a

Commission hereby constituted and designated as The Interstate

Oil Compact Commission, the duty of which said Commission 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 said 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 said states, and to

recommend measures for the maximum ultimate recovery of oil and

gas. Said Commission shall organize and adopt suitable rules and

regulations for the conduct of its business.

"No action shall be taken by the Commission, except: (1) by the

affirmative votes of the majority of the whole number of the

compacting states, represented at any meeting; and (2) by a

concurring vote of a majority in interest of the compacting

states at said meeting, such interest to be determined as

follows: Such 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 said 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 such state to financial responsibility to the other

states joining herein.

"ARTICLE VIII

"This Compact shall expire September 1, 1937. But any state

joining herein may, upon sixty (60) days notice, withdraw

herefrom.

"The representatives of the signatory states have signed this

agreement in a single original, which 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 hereto by affixing its signature to a counterpart to be

similarly deposited, certified, and ratified."

Acts 1977, 65th Leg., p. 2557, ch. 871, art. I, Sec. 1, eff.

Sept. 1, 1977.