Production - Domestic - Oil and Gas Development in Kansas in 1932

Kansas produced approximately 35,434,000 bbl. of oil in 1932 compared to 37,018,000 bbl. in 1931, a decrease of 1,584,000 bbl. or 4.2 per cent. These figures do not indicate the amount of oil that could have been made available from the state for the year. Many of the fields discovered during the year and some discovered in previous years were entirely shut in. Practically all flush production discovered within the last two years has been prorated in some manner or other. Probation Kansas production is under regulation as specified in House Bill 387, passed by the legislature in 1931, which became effective when published May 28, 1931. The principal features of the law are the prohibition of waste, including gas energy, the regulation and prevention of discrimination of purchasers, the marketing of oil ratably from wells in each field when the daily production is above 15 bbl. per well. This act gives the enforcing powers to the Public Service Commission. The Commission, having many other regulatory duties, appointed an Oil Advisory Committee, which, with the aid of the State Umpire, keeps records and makes recommendation for orders as to specific regulation of fields and conditions in each field. At the time the Commission was given authority to regulate production and marketing in flush fields, several of these had already been under voluntary proration and marketing restrictions by agreement of the operators. These gradually came under the control of the Commission by mutual consent. It is the policy of the Public Service Commission to follow the will of the operators so long as they do not have ideas or plans in conflict with the law. The cost of administration of this law is assessed against the operators according to the amount of oil taken from the fields in which ratable taking is necessary. There is a feeling that the whole state should share this expense, which is small, since it is beneficial to the older fields by assuring them 100 per cent market for their output by restricting the flush fields.