L

OIL.

DEALERS IN OIL-REGULATIONS-CONDITIONS FOR OPERATIONS-CORPORATION COMMISSION.

WASTE PREVENTED-PRODUCTION-REGULATIONS CORPORATION COM

AN ACT to regulate all corporations, associations, and persons engaged, in this state, in the business of carrying crude petroleum, or its products, through pipe lines; to regulate operators of oil wells and refineries of crude petroleum and its products, regulating the purchasing of mineral oil by pipe lines, providing punishments for violations thereof, and declaring an emergency.

Be it enacted, etc.:

Sec. 1. Every corporation, joint stock company, limited co-partnership, partnership or other person, now or hereafter exercising or claiming the right to carry or transport crude oil or petroleum, or any of the products thereof, by or through pipe lines or line, for hire, compensation or otherwise, or now or hereafter exercising or claiming the right to engage in the business of producing crude oil or petroleum, or of refining it, or manufacturing any of the products thereof, or of storing crude oil or petroleum now or hereafter produced by it, or any other person or persons, or now or hereafter engaging in the business of buying, selling or dealing in crude oil or petroleum, within the limits of this state, shall not have or possess the right to conduct or engage in said business or op[erations, in whole or in part, as above described, or have or possess the right to locate, maintain, or operate the necessary pipe lines, fixtures and equipment thereunto belonging, or used in connection therewith, concerning the said busiIness of carrying or transporting crude oil or petroleum as aforesaid, on, over, (along, across, through, in or under any present or future highway, or part thereof, within this state, or have or possess the right of eminent domain, or jany other right or rights, concerning said business or operations, in whole or in part, except as authorized by and subject to the provisions of this act, except, further, and only such right or rights as may already exist which are valid, vested, and incapable of revocation by any law of this state or of the United States. The word "Petroleum" as used herein means all crude oil and Its manufactured products, not including natural gas.

Sec. 2. For the purpose of acquiring necessary right-of-way, every such person is hereby granted the right of condemnation by eminent domain, and the use of the highways in this state, for the purpose of transporting petroleum by pipe lines, and the location, laying, construction, maintaining and operation thereof.

Corporations of other states and territories, or of the United States, otherwise admissible to do business in this state, may get the benefit of this act upon compliance with the laws and constitution of this state, including the provisions of section 31, of article 9, of the constitution, but until such compliance shall have no rights in, on, or under the highways.

The word "Person," as used in this act, means any natural person, partner ship, or association of persons, or any corporation organized under the law of the State of Oklahoma.

Sec. 3. Every corporation, joint-stock company, limited co-partnership, partner ship or other person, now or hereafter claiming or exercising the right to carry or transport crude oil or petroleum or any of the products thereof, by pip line or pipe lines, for hire, compensation, or otherwise, within the limits o this state, as allowed by, and upon compliance with the requirements of this act, as owner, lessee, licensee, or by virtue of any other right or claim, which is now engaged or hereafter shall engage in the business of purchasing crud oil or petroleum therein, shall be a common purchaser thereof, and shall pur chase all the petroleum in the vicinity of, or which may be reasonably reache by its pipe lines, or gathering branches, without discrimination in favor o one producer or one person as against another, and shall fully perform al the duties of a common purchaser; but if it shall be unable to perform th same, or be legally excused from purchasing and transporting all of the pe troleum produced, then it shall purchase and transport petroleum from eac person and producer ratably, in proportion to the average daily production, an such common purchasers are hereby expressly prohibited from discriminatio in price or amount for like grades of oil, or facilities as between producers o persons; and in the event it is likewise a producer, it is hereby prohibited from discriminating in favor of its own production, or storage, or production o storage in which it may be interested directly or indirectly in whole or i part, and its own production and storage shall be treated as that of any othe person or producer.

All persons, firms, associations, and corporations are exempted from th provisions of this act, where the nature and extent of their business is suc that the public needs no use in the same, and the conduct of the same is no a matter of public consequence, and for this purpose the district courts of th state and the Corporation Commission are hereby vested with jurisdiction t determine such exemptions in any action or proceeding properly before then as provided in this act.

Sec. 4. Every corporation, joint-stock company, limited copartnership, par nership or other person, now or hereafter engaged in the business of carryin or transporting crude oil or petroleum, or any of the products thereof, for hir or compensation or otherwise, by pipe line or pipe lines, within this state, an by virtue of and in conformity to, any valid law incapable of revocation by an law of this state or of the United States, or by virtue of and in conformity t the provisions of this act, shall be a common carrier thereof as at common lay and no such common carrier shall allow or be guilty of any unjust or unlawf discrimination, directly or indirectly, in favor of the carriage, transportation storage or delivery of any crude, stock or storage oil, or any products thereo in its possession or control, or in which it may be interested, directly or ind rectly.

Sec. 5. It shall be unlawful for any corporation, joint stock company, limite copartnership, partnership or other person, now or hereafter engage in the business of carrying or transporting crude oil or petroleum, any of the products thereof, for hire or compensation or otherwise, within th limits of this act, and not becoming a common purchaser as defined by an accepting the provisions of this act, to own or operate, directly or indirect any oil well or wells, oil leases, or oil holdings or interests in this state, afte six months next after the approval of this act, and each and every of s

corporations, joint stock companies, limited copartnerships, partnership or other person, shall divest themselves of all legal or equitable ownership, interest or control, directly or indirectly, in oil well or wells, oil leases or oil holdings or interests in this state.

NOTE: Sections 6 to 8, inclusive, are under the title, Pipe Lines.

Sec. 9. Any person, copartnership, or corporation, its agent or employee, violating any of the provisions of this act, or any order of the competent courts of this state, or the Corporation Commission, pursuant to the jurisdiction conferred by this act, shall upon conviction thereof, be fined a sum of not less than one thousand dollars, nor more than five thousand dollars or imprisonment for not less than 6 months, nor more than 1 year, or by both such fine and imprisonment for each and every violation of this act; but in case the monthly runs or takings or transportation of oil shall average so as to be without discrimination, as herein provided, the transaction or transactions of any par ticular day or week or portion of a month shall be disregarded; and the competent court of the county in which the omission or commission, which is a violation of this act, has occurred, shall have jurisdiction of an action under the penal code for the punishment thereof; and that said penalties shall not be exclusive of civil liability.

Whenever the operation of a valid order of a competent court or the Corporation Commission is duly suspended, according to law, the punitive provisions of this act shall likewise be suspended in their operation as to the transactions adjudicated in said court, and further, any court having jurisdiction of an action brought by the state to punish for a violation under the terms of this act shall not impose a punishment therefor greater than five hundred dollars against either a person, or corporation, if it finds from the evidence that the violation was made solely with the object of testing according to law the validity of any of the provisions of this act, or of the order of any competent court or of the Corporation Commission, in any proceeding to carry out the provisions hereof.

Sec. 10. A properly certified transcript of the report of any such corporation, association, or person shall, as against the maker or makers thereof, be prima facie evidence of the truth of any matter therein contained.

Sec. 11. Whenever the operation of the order of such court or corporation commission is duly suspended, according to law, the punitive provisions of this act shall likewise be suspended in their operation as to the transaction adjudicated in said courts.

Sec. 12. 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 9 months after the same becomes effective.

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 be in force and effect from and after its passage and approval.

WASTE PREVENTED-PRODUCTION-REGULATIONS-CORPORATION COMMISSION.

LAWS 1915, P. 28.

FEBRUARY 11, 1915.

CHAPTER 25.

AN ACT defining and prohibiting the waste of crude oil or petroleum, providing for the equitable taking of the same from the ground and conferring authority on the Corporation Commission, prescribing the penalty for the violation of this Act, and declaring an emergency.

Be it enacted, etc.:

WASTE PROHIBITED.

Sec. 1. That the production of crude oil or petroleum in the State of Oklahoma, in such manner and under such conditions as to constitute waste, is hereby prohibited.

PRODUCTION AND SALE REGULATED CORPORATION COMMISSION.

Sec. 2. That the taking of crude oil or petroleum from any oil-bearing sand or sands in the State of Oklahoma at a time when there is not a market demand therefor at the well at a price equivalent to the actual value of such crude oil or petroleum is hereby prohibited, and the actual value of such crude oil or petroleum at any time shall be the average value as near as may be ascertained in the United States at retail of the by-products of such crude oil or petroleum when refined less the cost and a reasonable profit in the business of transporting, refining and marketing the same, and the Corporation Commission of this State is hereby invested with the authority and power to investigate and determine from time to time the actual value of such crude oil or petroleum by the standard herein provided, and when so determined said Commission shall promulgate its findings by its orders duly made and recorded, and publish the same in some newspaper of general circulation in the state.

WASTE DEFINED-PROTECTION.

Sec. 3. That the term "waste" as used herein, in addition to its ordinary meaning shall include economic waste, underground waste, surface waste and waste incident to the production of crude oil or petroleum in excess of transportation or marketing facilities or reasonable market demands. The Corporation Commission shall have authority to make rules and regulations for the prevention of such wastes, and for the protection of all fresh water strata, and oil and gas bearing strata, encountered in any well drilled for oil.

PRODUCTION REGULATED DISCRIMINATION OF PURCHASER PROHIBITED.

Sec. 4. That whenever the full production from any common source of supply of crude oil or petroleum in this State can only be obtained under conditions constituting waste, as herein defined, then any person, firm or corporation, having the right to drill into and produce oil from any such common source of supply, may take therefrom only such proportion of all crude oil and petroleum that may be produced therefrom, without waste, as the production of the well or wells of any such person, firm or corporation, bears to the total production of such common source of supply. The Corporation Commission is authorized to so regulate the taking of crude oil or petroleum from any or all such common sources of supply, within the State of Oklahoma, as to prevent the in

equitable or unfair taking, from a common source of supply, of such crude oil or petroleum, by any person, firm, or corporation, and to prevent unreasonable discrimination in favor of any one such common source of supply as against another.

WELLS GAGED-GOVERNMENT TO CONSENT.

Sec. 5. That for the purpose of determining such production, a gauge of each well shall be taken under rules and regulations to be prescribed by the Corporation Commission, and said Commission is authorized and directed to make and promulgate, by proper order, 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.

ENFORCEMENT OF ACT-HEARINGS BEFORE CORPORATION COMMISSION.

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 and where 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 in addition thereto, shall cause reasonable notice in writing to be served personally on any person, firm or corporation complained against. In the exercise and enforcement of such jurisdiction, said Commission is authorized to determine any question of fact, arising hereunder, and to summon witnesses, make Abeillary orders, and use mesne and final process, including inspection and unishment as for contempt, analogous to proceedings under its control over public service corporations, as now provided by law.

APPEALS TO SUPREME COURT-EFFECT ON ORDERS.

Sec. 7. That appellate jurisdiction is hereby conferred upon the Supreme Court in this State to review the action of said Commission ir. making any order, or orders, 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 manIr and time as appeals are allowed by law from other orders of the Corporaion Commission. Said orders so appealed from shall not be superseded by the bere fact of such appeal being taken, but shall be and remain in full force and ffect until legally suspended or set aside by the Supreme Court.

PENALTY FOR VIOLATION.

Sec. 8. That in addition to any penalty that may be imposed by the Corporaou Commission for contempt, any person, firm or corporation, or any officer, gent or employee thereof, directly or indirectly violating the provisions of this t, shall be guilty of a misdemeanor, and upon conviction thereof, in a court competent jurisdiction, shall be punished by a fine in any sum not to exceed be thousand dollars ($5,000.00), or by imprisonment in the county jail not to eed thirty (30) days, or by both fine and Imprisonment.

STATE MAY SECURE RECEIVER-EXTENT AND MANNER.

See. 9. That in addition to any penalty imposed under the preceding section, 1 person, firm or corporation, violating the provisions of this act, shall be #ject to have his or its producing property placed in the hands of a receiver