(a) The sale, purchase, or acquisition or the transportation, refining, processing, or handling in any other way of illegal oil, illegal gas, or illegal product is prohibited.

(b)

(1) Unless and until the Oil and Gas Commission provides for certificates of clearance or tenders, or some other method, so that any person may have an opportunity to determine whether any contemplated transaction of sale, purchase, or acquisition or of transportation, refining, processing, or handling in any other way involves illegal oil, illegal gas, or illegal product, no penalty shall be imposed for the sale, purchase, or acquisition or the transportation, refining, processing, or handling in any other way of illegal oil, illegal gas, or illegal product, except under circumstances hereinafter stated.

(2) Penalties shall be imposed for the commission of each transaction prohibited in this section when the person committing the transaction knows that illegal oil, illegal gas, or illegal product is involved in the transaction or when the person could have known or determined the fact by the exercise of reasonable diligence or from facts within his or her knowledge. However, regardless of lack of actual notice or knowledge, penalties as provided in this act shall apply to any sale, purchase, or acquisition and to the transportation, refining, processing, or handling in any other way of illegal oil, illegal gas, or illegal product where administrative provision is made for identifying the character of the commodity as to its legality.

(3) It shall likewise be a violation for which penalties shall be imposed for any person to sell, purchase, or acquire or to transport, refine, process, or handle in any other way any oil, gas, or any product without complying with any rule, regulation, or order of the commission relating thereto.