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55-176. Commission's costs assessed against operators and agents; disposition of moneys. (a) Subject to the provisions of K.S.A. 55-143, and amendments thereto, the commission shall assess operators or their designated agents for all or part of the actual costs and expenses incurred in: (1) The supervision, administration, inspection, investigation; (2) the enforcement of this act and the rules and regulations adopted pursuant to this act; and (3) monitoring and inspecting oil and gas lease salt water and oil storage, disposal and emergency facilities.

(b) The commission shall remit all moneys received by or for it for costs or expenses under this section to the state treasurer in accordance with the provisions of K.S.A. 75-4215, and amendments thereto. Upon receipt of each such remittance, the state treasurer shall deposit the entire amount in the state treasury. Ten percent of each such deposit shall be credited to the state general fund and the balance shall be credited to the conservation fee fund created by K.S.A. 55-143, and amendments thereto.

History: L. 1986, ch. 201, § 28; L. 2001, ch. 5, § 192; L. 2011, ch. 53, § 20; July 1.

Law Review and Bar Journal References:

"Sustaining the Unsustainable: Oil and Gas Development in the 21 st Century," David E. Pierce, 23 Kan. J. L. & Pub. Pol'y, No. 3, 362 (Spring 2014).

Attorney General's Opinions:

Use of conservation fee funds. 86-138.


1. Royalty owners are not operators subject to the assessment of conservation fee. Hockett v. The Trees Oil Co., 292 K. 213, 251 P.3d 65 (2011).

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