55-1627. Kansas oil and gas resources board; purpose; membership; officers.

55-1627

Chapter 55.--OIL AND GAS
Article 16.--MISCELLANEOUS PROVISIONS

      55-1627.   Kansas oil and gas resources board;purpose; membership; officers.(a) It shall be lawful for any group ofqualified producer associations to create, fund, administer, operate, manage,be members of and enjoy the benefit of a Kansas oil and gas resources board toadminister a Kansas petroleum education and marketing program provided that therequirements of this act are met. The purpose ofthe board created by this act shall be to: (1) Coordinate a program designed todemonstrate to the general public the importance and significance of the oiland natural gas industry in Kansas; (2) encourage the wise and efficient use ofenergy; (3) promote environmentally sound production methods and technologies;(4) support research and educational activities concerning the oil and naturalgas industry; (5) promote oil and natural gas exploration and productionsafety; (6) support job training and research activities concerning oil andnatural gas production; and (7) implement and comply with the provisions ofthis act. The Kansas oil and gas resources board may be formed as anot-for-profitmember corporation in which the Kansas independent oil and gas association, theKansas petroleum council and the eastern Kansas oil and gas association shallbe members. The Kansas oil and gas resources board, if formed as anot-for-profitmember corporation, shall be formed, operated and dissolved in accordance withthe provisions of chapter 17 of the Kansas Statutes Annotated, and amendmentsthereto, and shall enjoy all of the rights of not-for-profit membercorporations under Kansas law, subject to the restrictions and conditions setforth in this act. The Kansas oil and gas resources board shall be a voluntaryprivate organization and shall not be deemed in any manner to be agovernmental or quasi-governmental board or other such organization.

      (b)   The board's governing body shall be composed of 15 members to beappointed by the governing bodies of the following qualified producerassociations as follows: (1) Ten trustees to be appointed by the Kansasindependent oil and gas association;

      (2)   three trustees to be appointed by the Kansas petroleum council; and

      (3)   two trustees to be appointed by the eastern Kansas oil and gasassociation.

      (c)   A trustee of the board shall:

      (1)   Be at least 25 years of age;

      (2)   be a resident of the state of Kansas; and

      (3)   have at least five years of active experience in the oil and natural gasindustry.

      (d)   A trustee shall serve for a term of three years, except that of theinitial appointments: (1) Five trustees shall serve for one year; (2) fivetrustees shall serve for two years; and (3) five trustees shall serve for threeyears. Vacancies in the board for any trustee shall be filled by the qualifiedproducer association which appointed the vacating member and shall be filledfor the remaining term of the vacating trustee.

      (e)   After July 1, 2006, the trustees of the board which are appointed by thequalified producer associations may by majority vote appoint a nonindustryrepresentativeto serve as an additional trustee. The additional trustee shall have fullvoting rights and privileges and shallserve a three-year term. Such trustee may be removed at any timefrom the board by majority vote of the trustees appointed by the qualifiedproducer associations.

      (f)   The board shall elect annually a presiding officer of the board.

      (g)   The board may elect other officers as considered necessary by the board.

      (h)   No trustee of the board shall receive a salary or reimbursement forduties performed as a member of the board, except that trustees are eligible toreceived [receive] reimbursement for travel expenses incurred in theperformance of board duties.

      History:   L. 2006, ch. 94, § 3; July 1.