Statute 55-1406: Same; effect of indefinite price escalator clauses on gas
produced from new wells or reservoirs and stripper wells; price calculated
monthly; category determinations.
Notwithstanding the restriction on operation of indefinite
price escalator clauses in gas purchase contracts imposed by
K.S.A. 55-1404
and 55-1405, after March 1, 1979, with respect to natural gas which
is subject to this act, and which qualifies as gas produced from new wells,
new reservoirs or stripper wells as defined in this act, such indefinite
price escalator clauses may be given effect in accordance with their terms
to the extent that the price payable under such contracts is not increased
above the maximum price such gas would receive if it had been committed
or dedicated to interstate commerce. The maximum price shall be calculated
on a monthly basis. If the parties to the contract cannot agree as to the
category of gas for which such gas qualifies under the terms of the natural
gas policy act of 1978, then such category determination shall be made by
the commission.
History: L. 1979, ch. 171, § 6; May 29.