EVIDENCE-REPORTS OF GAS COMPANIES. Sec. 13. A properly certified transcript of the report of any such corporation, association, or person, shall, as against the makers thereof, be prima facie evidence of the truth of any matter therein contained. ENFORCEMENT BY CORPORATION COMMISSION-APPEALS. Sec. 14. The Corporation Commission is hereby authorized and empowered to enforce all the provisions of this act, including the employment of requisite help and gas experts to carry out the same, except where jurisdiction is conferred on some other branch of the state government by the Constitution of this state; appeals may be allowed from the decision of the Commission to the Supreme Court as now provided by law for appeals in other cases. EXTENSION OF TIME FOR OPERATION OF ACT. Sec. 15. For good cause shown, the Corporation Commission is authorized to extend the time within which this act shall operate as to any particular corporation, association or person not to exceed nine months after the same became effective. EMERGENCY. Sec. 16. For the preservation of the public peace, health and safety, an emergency is hereby declared to exist, by reason whereof this act shall be in force and effect from and after its passage and approval. Approved March 26, 1913. WASTE PREVENTED-CORPORATION COMMISSION-POWERS. LAWS 1915, P. 326. CHAPTER 197. MARCH 30, 1915. AN ACT to conserve natural gas in the state of Oklahoma, to prevent waste thereof, providing for the equitable taking and purchase of same, conferring authority on the Corporation Commission, prescribing a penalty for violation of this Act, repealing certain acts, and declaring an emergency. Be it enacted, etc.: WASTE PROHIBITED. Sec. 1. That the production of natural gas in the State of Oklahoma, in such manner, and under such conditions as to constitute waste, shall be unlawful. WASTE DEFINED. Sec. 2. That the term waste, as used herein in addition to its ordinary mean⚫ing, shall include escape of natural gas in commercial quantities into the open air, the intentional drowning with water of a gas stratum capable of producing gas in commercial quantities, underground waste, the permitting of any natural gas well to wastefully burn and the wasteful utilization of such gas. CONSERVATION OF GAS. Sec. 3. That whenever natural gas in commercial quantities, or gas bearing stratum, known to contain natural gas in such quantity, is encountered in any well drilled for oil or gas in this state, such gas shall be confined to its original stratum until such time as the same can be produced and utilized without waste, and all such strata shall be adequately protected from infiltrating waters. Any unrestricted flow of natural gas in excess of two million cubic feet per twenty-four hours shall be considered a commercial quantity thereof; provided, that if in the opinion of the Corporation Commission, gas of a lesser quantity shall be of commercial value, said Commission shall have authority to require the conservation of said gas in accordance with the provisions of this Act; and provided, further, the gauge of the capacity of any gas well shall not be taken until such well has been allowed an open flow for the period of three days. Sec. 4. That whenever the full production from any common source of supply of natural gas in this state is in excess of the market demands, then any person, firm or corporation, having the right to drill into and produce gas from any such common source of supply, may take therefrom only such proportion of the natural gas that may be marketed without waste, as the natural flow of the well or wells owned or controlled by any such person, firm or corporation bears to the total natural flow of such common source of supply having due regard to the acreage drained by each well, so as to prevent any such person, firm or corporation securing any unfair proportion of the gas therefrom; provided, that the Corporation Commission may by proper order, permit the taking of a greater amount whenever it shall deem such taking reasonable or equitable. The said commission is authorized and directed to prescribe rules and regulations for the determination of the natural flow of any such well or wells, and to regulate the taking of natural gas from any or all such common sources of supply within the state, so as to prevent waste, protect the interests of the public, and of all those having a right to produce therefrom, and to prevent unreasonable discrimination in favor of any one such common source of supply as against another. Sec. 5. That every person, firm or corporation, now or hereafter engaged in the business of purchasing and selling natural gas in this state, shall be a common purchaser thereof, and shall purchase all of the natural gas which may be offered for sale, and which may reasonably be reached by its trunk lines, or gathering lines without discrimination in favor of one producer as against another, or in favor of any one source of supply as against another save as authorized by the Corporation Commission after due notice and hearing; but if any such person, firm or corporation, shall be unable to purchase all the gas so offered, then it shall purchase natural gas from each producer ratably. It shall be unlawful for any such common purchaser to discriminate between like grades and pressures of natural gas, or in favor of its own production, or of production in which it may be directly or indirectly interested, either in whole or in part, but for the purpose of prorating the natural gas to be marketed, such production shall be treated in like manner as that of any other producer or person, and shall be taken only in the ratable proportion that such production bears to the total production available for marketing. The Corporation Commission shall have authority to make regulations for the delivery, metering and equitable purchasing and taking of all such gas and shall have authority to relieve any such common purchaser, after due notice and hearing, from the duty of purchasing gas of an inferior quality or grade. HEARINGS BEFORE CORPORATION COMMISSION-HOW CONDUCTED. Sec. 6. That any person, firm or corporation, or the Attorney General, on behalf of the state may institute proceedings before the Corporation Commission, or apply for a hearing before said commission, upon any question relating to the enforcement of this Act; and jurisdiction is hereby conferred upon said commission to hear and determine the same, said commission shall set a time and place when such hearing shall be had and give reasonable notice thereof to all persons or classes interested therein by publication in some newspaper or newspapers having general circulation in the state, and shall in addition thereto cause notice to be served in writing upon any person, firm or corporation, complained against in the manner now provided by law for serving summons in civil actions. In the exercise and enforcement of such jurisdiction said commission is authorized to summon witnesses, make ancillary orders, and use such means and final process including inspection and punishment as for contempt, analogous to proceedings under its control over public service corporations as now provided by law. APPEALS TO SUPREME COURT. Sec. 7. That appellate jurisdiction is hereby conferred upon the Supreme Court of this state to review the orders of said commission made under this Act. Such appeal may be taken by any person, firm or corporation, shown by the record to be interested therein, in the same manner and time as appeals are allowed by law from other orders of the Corporation Commission. Said orders so appealed from, may be superseded by the commission or by the Supreme Court upon such terms and conditions as may be just and equitable. POWER OF CORPORATION COMMISSION-RULES AND REGULATIONS. Sec. 8. That the Corporation Commission shall have authority to make regulations for the prevention of waste of natural gas, and for the protection of all natural gas, fresh water, and oil bearing strata encountered in any well drilled for oil or natural gas, and to make such other rules and regulations, and to employ or appoint such agents, with the consent of the Governor, as may be necessary to enforce this Act. ACCEPTANCE BY PIPE LINES. Sec. 9. Before any person, firm or corporation shall have, possess, enjoy or exercise the right of eminent domain, right of way, right to locate, maintain, construct or operate pipe lines, fixtures, or equipments belonging thereto or used in connection therewith, for the carrying or transportation of natural gas, whether for hire or otherwise, or shall have the right to engage in the business of purchasing, piping, or transporting natural gas, as a public service, or otherwise, such person, firm or corporation, shall file in the office of the Corporation Commission a proper and explicit authorized acceptance of the provisions of this act. DUTIES OF MINE INSPECTOR UNCHANGED. Sec. 10. That nothing contained in this Act shall be construed to interfere with any duties now imposed by law upon the Chief Mine Inspector of the state or his deputies, VALIDITY OF SEVERAL SECTIONS OF ACT INDEPENDENT. Sec. 11. That the invalidity of any section, subdivision, clause, or sentence of this Act shall not in any manner affect the validity of the remaining portion thereof. PENALTIES FOR VIOLATION. Sec. 12. That in addition to any penalty that may be imposed by the Corporation Commission for contempt, any person, firm or corporation, or any officer, agent or employee thereof, directly or indirectly violating the provisions of this Act, shall be guilty of a misdemeanor, and upon conviction thereof, in a court of contempt (competent) jurisdiction, shall be punished by a fine in any sum not to exceed five thousand dollars ($5,000.00) or by imprisonment in the county jail not to exceed thirty (30) days, or by both such fine and imprisonment. EMERGENCY. Sec. 13. For the preservation of the public peace, health and safety, an emergency is hereby declared to exist, by reason whereof this Act shall take effect and be in force from and after its passage and approval. Being a proposed new section to Article VI of the constitution, providing certain powers and duties of the Commissioners of the Land Office. Be it resolved by the Senate and House of Representatives of the Fourth Legislature in Extraordinary Session Assembled: That the Secretary of State is hereby instructed to prepare and submit to the people of this state for ratification or rejection at the special election to he held August 5, 1913, the following proposed amendment to the Constitution same to be a new section to article VI, to be numbered section 32-b, and to read as follows: "Section 32-b. Until otherwise provided by law (a) river beds owned by the State may be leased for oil and gas by the Commissioners of the Land Office only after advertisement of the date, place and terms of such leasing for twenty days in three daily newspapers of general circulation throughout the state, on of which is published in Oklahoma City, Muskogee or Tulsa. Such leases sha be made for royalty of not less than one-eighth of all the oil and gas produced thereon, and in addition thereto for the maximum bonus that may be obtained from any bidder. Not more than one mile of any such river bed in any "proven" field shall be leased in any one contract, and not more than five miles of such river bed in any part thereof. Each lease contract shall stipulate that the same shall become null and void at the expiration of one year from the date thereof, except the lessee, his heirs, successors or assigns drill a well on the land included in said lease contract within said year. "(b) Where any person, firm, association or corporation now has an oil or gas well upon any of the property of the State embraced within the beds, banks or islands of its navigable streams, such rights as may have been acquired in such well or wells shall be preserved to the owners thereof, but the Commissioners of the Land Office shall proceed to ascertain the ownership of any such oil or gas wells and the rights of the proprietors therein, and shall collect royalties on all oil or gas produced on said lands not heretofore paid the state, and may permit owners or proprietors of such wells to continue to operate the same upon such reasonable royalties as are customary in the locality; provided, that such rate of royalty shall not be less than the rate stated in the contract, or lease under which such well or wells have been drilled; provided, further, that where any person, company, or corporation has drilled a well without a valid lease the land where said well is located shall be leased as if no well or wells had been drilled. If any owner or proprietor shall refuse to pay the royalties payable upon the production of any such well, then the Commissioners of the Land Office shall take control of the same, sell the production and pay the money so secured into the State Treasury. "(c) No lease of river beds owned by the state shall be made for sand or gravel, but all persons, firms, or corporations shipping sand or gravel from uch river beds shall pay to the Commissioners of the Land Office, monthly, I royalty of two and one-half cents per cubic yard for the same; provided, hat no royalty shall be charged or collected from anyone hauling sand or ravel from such river beds with a wagon and team. "(d) All sums collected under the provisions of this act as royalty, bonus r rental shall be turned into the State Treasury to the credit of the common chool fund of the state. "(e) Whenever the United States has heretofore made and established a urvey on either side of a navigable stream, for the purpose of fixing the oundary lines of the land abutting upon the banks of such stream, the meander oundary lines of such survey along the borders of such stream shall be taken nd accepted as the high water mark at all such points, and where such arveys are made upon opposite sides of such stream, all the territory or rea between such meander lines shall belong to the beds of such streams. *(f) The provisions of this act shall not be constr.d in any manner to rejudice, impair, alter or affect the vested rights of any Indian tribe, allottee f such tribe, or other person in and to the beds of the rivers or streams withia be state that may have accrued or become vested under any law of this state, under any act of Congress or treaties or agreements made by the United Rates with any such Indian tribe." Passed the Senate the 8th day of May, 1913. Passed the House of Representatives the 28th day of June, 1913. |