55-1,104. Commission review of fees, terms, practices; complaint; procedure. (a) The commission, in its discretion, may at any time review a fee, term or practice being used by a person offering gas gathering services to ascertain whether a violation of K.S.A. 55-1,103 has occurred. Upon such review, the commission may initiate a proceeding to determine whether a violation of K.S.A. 55-1,103 has occurred. Upon notice and an opportunity for hearing in accordance with the Kansas administrative procedure act, the commission shall have authority to order the remediation of any violation of K.S.A. 55-1,103 that the commission finds has occurred.
(b) Any consumer of gas gathering services, any person seeking direct purchase of natural gas at the wellhead or any royalty owner, may request the commission to investigate and initiate proceedings to review a fee, term or practice being used by a person offering gas gathering services. As a condition to formal commission action, the person requesting commission action must first file a complaint that includes:
(1) A statement that the complainant has presented the complaint, in writing, to the person offering gas gathering services and included a request for a meeting with such person to discuss the matter;
(2) a copy of the document described in subsection (b)(1);
(3) a statement that the requested meeting took place or the person offering gas gathering services refused to meet with the complainant;
(4) detailed factual statement indicating how the fee, term or practice violates K.S.A. 55-1,103;
(5) a statement of the precise remedy being requested that will make the fee, term or practice consistent with the provisions of K.S.A. 55-1,103;
(6) if the complainant is a producer of natural gas, a copy of the analysis of the complainant's natural gas, including the nitrogen, carbon dioxide, hydrogen sulfide, water and other contaminant content; the amount of volume; and the amount of pressure at the wellhead; and
(7) if available, a map showing the location of the affected wells and all gas gathering systems in the area.
(c) The commission may resolve the complaint by use of an informal procedure established by the commission pursuant to rules and regulations adopted by the commission or the commission may conduct a formal hearing and take evidence as necessary to determine the merits of the complaint. If the commission uses an informal procedure and the complaint is not resolved within 60 days after the complaint is filed, the commission shall conduct a formal hearing on the complaint. The hearing shall be conducted and notice given in accordance with the Kansas administrative procedure act. Upon such hearing, the commission shall have authority to order the remediation of any violations of K.S.A. 55-1,103, to the extent necessary for remediation as to the aggrieved person with respect to the particular violation.
(d) In evaluating a fee or term, or in establishing a reasonable fee or term, the commission is not required to engage in cost-of-service ratemaking or any other form of ratemaking. Instead, the commission can employ any form of analysis and remedy that is designed to accomplish the goals of this act while respecting the legitimate property interests of the person offering the gas gathering services.
(e) Any natural gas producer using the gas gathering facilities of a person engaged in activities described in subsection (a)(1)(A) or (B) of K.S.A. 55-1,101 may request the commission to investigate and initiate proceedings to review the fees, terms and practices of the person engaged in such activities. The commission shall conduct such investigation and proceeding in the same manner as provided by this section for complaints filed pursuant to subsection (b) and may order the remediation of any violation of subsection (b) of K.S.A. 55-1,103 that the commission finds would exist except for the exemption provided by subsection (a)(1)(A) or (B) of K.S.A. 55-1,101.
(f) The commission shall maintain a publicized telephone number to facilitate the filing of informal complaints pursuant to subsection (b) or (e).
(g) The commission shall adopt such rules and regulations as the commission determines reasonably necessary to prevent abuse of the complaint procedure provided for by this section. Such rules and regulations shall include provisions to prevent delay of the proceedings that may damage a party's ability to pursue or defend the complaint.
History: L. 1997, ch. 132, ยง 25; May 8.
Structure Kansas Statutes
Article 1 - Oil And Gas Wells; Regulatory Provisions
55-101 Natural gas for residents of platted land outside city; laying and maintenance of pipes.
55-112 Transportation of gas; standards for.
55-114 Penalty for violation of 55-112.
55-153 Advisory committee on regulation of oil and gas activities.
55-154 Certification of compliance with statutes and rules and regulations.
55-156 Protection of water prior to abandoning of well; penalty for noncompliance.
55-158 Submission of bond logs and surveys; penalties.
55-159 Notification of commission prior to setting surface casing or plugging; inspections; penalty.
55-160 Notification of commission prior to reentering plugged well; inspections.
55-161 Investigation of abandoned wells; integrity tests; costs.
55-164 Administrative penalties; procedure; costs and attorney fees; disposition of moneys.
55-165 Maintenance of information on wells.
55-169 Kansas surface owner notice act; citation.
55-169b Same; authorization for rules and regulations.
55-171 Permit required for the storage or disposal of salt water, oil or refuse in surface ponds.
55-172 Salt water, oil or refuse from wells; prevention of escape.
55-173 Notice prior to abandonment and plugging of wells; notification of surface owner.
55-174 Penalty for failure to notify of intent to drill.
55-175 Appointment of agents by the commission.
55-176 Commission's costs assessed against operators and agents; disposition of moneys.
55-177 Removal of structures and abutments from lands after abandoning wells; exception.
55-178 Abandoned wells; complaint concerning pollution or water loss; commission investigation.
55-179 Same; responsibility for remedial actions; hearings; orders; plugging.
55-181 Administration and enforcement of rules, regulations and orders.
55-182 Agents of commission; right of ingress and egress; restoration of premises.
55-186 Spill notification requirements.
55-192 Abandoned oil and gas well fund established; well plugging assurance fund abolished.
55-193 Abandoned oil and gas well fund; certain transfers thereto.
55-1,102 Filing of rates and other information required; use of information; disclosure.
55-1,103 Limitations on manner of offering services and facilities.
55-1,104 Commission review of fees, terms, practices; complaint; procedure.
55-1,105 Rules and regulations.
55-1,106 Exemptions from rate averaging or pricing systems.
55-1,107 Issuance of more than one certificate of convenience and necessity; exit fees prohibited.
55-1,108 Contractual obligations, when amended.
55-1,109 Notice of lack of capacity to serve required.
55-1,111 Commission review of exit tap on gathering system, access, service, abandonment; procedure.
55-1,117 Same; department of health and environment regulation of other underground storage.
55-1,117a Same; department of health and environment regulation of underground crude oil storage.
55-1,119 Same; penalties for violations of rules and regulations.
55-1,120 Same; salt solution mining wells; abandonment, legal responsibility for.
55-1,122 Same; representatives of secretary; right of ingress and egress.