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55-704. Rules and regulations authorized; notice and hearings. The commission shall promulgate such rules and regulations as may be necessary for the prevention of waste as defined by this act, the protection of all water, oil or gas-bearing strata encountered in any well drilled in such common source of supply, ascertaining the several factors entering into the determination of the productive capacity of each well, the total productive capacity of all wells in the common source of supply, the establishment of such other standard or standards as the commission may find proper to determine the productive capacity of each well and of all wells in such common source of supply, and as the commission may find necessary and proper to carry out the spirit and purpose of this act: Provided, however, That notice, as provided in K.S.A. 55-706, shall be served upon or given to the producers and purchasers of natural gas and all other persons, firms or corporations interested, of any hearing or hearings which may be called for the purpose of establishing any facts upon which any proposed rule or regulation may be based.

History: L. 1935, ch. 213, § 4; L. 1945, ch. 233, § 5; March 24.

Source or prior law:

55-705.

CASE ANNOTATIONS

1. Commission has broad powers to prevent waste; may fix minimum wellhead price for gas; price fixed held reasonable; common source of supply, relative rights. Kansas-Nebraska Natural Gas Co. v. State Corporation Commission, 169 K. 722, 723, 726, 727, 730, 731, 732, 735, 222 P.2d 704. Rehearing denied: 170 K. 341, 225 P.2d 1054.

2. Production of gas governed by allowables made by corporation commission. Northern Natural Gas Co. v. Republic Natural Gas Co., 172 K. 450, 471, 241 P.2d 708.

3. Commission's order refusing to reinstate canceled underages upheld. Republic Natural Gas Co. v. State Corporation Commission, 173 K. 172, 173, 244 P.2d 1196.

4. K.A.R. 82-2-125 reasonable; denial of exemption not arbitrary; neither rule nor denial violated due process. Hartman v. State Corporation Commission, 215 K. 758, 768, 774, 529 P.2d 134.

5. Production of oil and gas regulated by legislature; KCC rulemaking authority permits prevention of waste. Robert-Gay Energy Enterprises, Inc. v. Kansas Corporation Comm'n, 235 K. 951, 956, 685 P.2d 299 (1984).

6. Kansas has own elaborate review system for dealing with geological complexities of oil and gas fields. Robert-Gay Energy v. State Corp. Com'n of Kansas, 753 F.2d 857, 860 (1985).

7. Actual demonstrated producing ability of each well is a factor which may be considered under gas conservation act. Mobil Exploration & Producing U.S. Inc. v. Kansas Corporation Comm'n, 258 K. 796, 831, 908 P.2d 1276 (1995).


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