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AN ACT concerning oil and gas; relating to natural gas gathering systems;
  providing for regulation of certain entities; concerning certain natural
  gas public utilities and common carriers; amending K.S.A. 1996 Supp.
  55-150 and repealing the existing section.
Be it enacted by the Legislature of the State of Kansas:
  Section 1.  K.S.A. 1996 Supp. 55-150 is hereby amended to read as
follows: 55-150. As used in this act unless the context requires a different
meaning:
  (a)  ``Commission'' means the state corporation commission.
  (b)  ``Contractor'' means any person who acts as agent for an operator
as a drilling, plugging, service rig or seismograph contractor in such op-
erator's oil and gas, cathodic protection, gas gathering or underground
natural gas storage operations.
  (c)  ``Fresh water'' means water containing not more than 1,000 mil-
ligrams per liter, total dissolved solids.
  (d)  ``Gas gathering system'' means a natural gas pipeline system used
primarily for transporting natural gas from a wellhead, or a metering point
for natural gas produced by one or more wells, to a point of entry into a
main transmission line, but shall not mean or include: (1) the gathering
of natural gas produced from wells owned and operated by the gatherer
and where the gathering system is used exclusively for its own private
purposes; (2) Lead lines from the wellhead to the connection with the
gathering system which are owned by the producing entity person; and
(3) (2) gathering systems used exclusively for injection and withdrawal
from natural gas storage fields which remain jurisdictional to the federal
energy regulatory commission.
  (e)  ``Operator'' means a person who is responsible for the physical
operation and control of a well, gas gathering system or underground
natural gas storage facility.
  (f)  ``Person'' means any natural person, partnership, governmental or
political subdivision, firm, association, corporation or other legal entity.
  (g)  ``Rig'' means any crane machine used for drilling or plugging
wells.
  (h)  ``Usable water'' means water containing not more than 10,000
milligrams per liter, total dissolved solids.
  (i)  ``Well'' means a hole drilled or recompleted for the purpose of:
  (1)  Producing oil or gas;
  (2)  injecting fluid, air or gas in the ground in connection with the
exploration for or production of oil or gas;
  (3)  obtaining geological information in connection with the explora-
tion for or production of oil or gas by taking cores or through seismic
operations;
  (4)  disposing of fluids produced in connection with the exploration
for or production of oil or gas;
  (5)  providing cathodic protection to prevent corrosion to lines; or
  (6)  injecting or withdrawing natural gas.
  New Sec. 2.  The term ``public utility'' as used in K.S.A. 66-104, and
amendments thereto, and the term ``common carriers'' as used in K.S.A.
66-105, and amendments thereto, shall not include a gas gathering sys-
tem, as defined in K.S.A. 55-150, and amendments thereto, unless the
commission, upon application or complaint, and after notice and hearing,
determines that within the area of service, or proposed service, of such
gas gathering system, competitive market conditions do not exist and that:
  (a)  The gas gathering system has, is or is about to engage in abusive
monopolistic practice which is inimicable to the public interests; or
  (b)  gas gathering services are not likely to be effectively and effi-
ciently furnished unless a certificate of necessity and convenience and
exclusive market territory is granted, with rates and practices established
by the commission as in the case of other public utilities.
  New Sec. 3.  (a) As used in this section:
  (1)  ``Commission'' means the state corporation commission;
  (2)  ``gas gathering services'' means the gathering or preparation of
natural gas for transportation, whether such services are performed for
hire or in connection with the purchase of natural gas by the gatherer;
  (3)  ``person'' means any natural person, partnership, governmental or
political subdivision, firm, association, corporation or other legal entity.
  (b)  No person offering gas gathering services shall deny access to any
person seeking such services in a manner which is unduly, unlawfully, or
unreasonably discriminatory or unfair.
  (c)  No person performing gas gathering services shall charge a fee
for such services, or engage in any practice in connection with such serv-
ices, which is unduly, unlawfully or unreasonably discriminatory or unfair.
  Any person seeking a gas gathering service who is aggrieved by reason of
any such unduly, unlawfully or unreasonably discriminatory or unfair fee
or practice may file a complaint with the commission. If the commission
makes a factual determination that competitive gathering conditions do
not exist for the gathering of the complainant's natural gas, the commis-
sion may resolve the complaint by use of an informal procedure estab-
lished by the commission pursuant to rules and regulations adopted by
the commission or the commission may conduct a hearing and take evi-
dence as necessary to determine the merits of the complaint. The hearing
shall be conducted and notice given in accordance with the Kansas ad-
ministrative procedure act. Upon such hearing, the commission shall have
authority to order the remediation of any unduly, unlawfully or unrea-
sonably discriminatory or unfair fee for gathering services, or any unduly,
unlawfully or unreasonably discriminatory or unfair practice in connection
with such services, to the extent necessary for remediation as to the ag-
grieved person with respect to the particular fee or service involved.
  (d)  Nothing in this act shall be construed, or authorize the commis-
sion, to amend or otherwise affect any contractual obligations between
the gatherer and the complainant or rights which may otherwise exist.
  Sec. 4.  K.S.A. 1996 Supp. 55-150 is hereby repealed.
  Sec. 5.  This act shall take effect and be in force from and after its
publication in the statute book.