Official report to the House of Representatives of the 58th Legislature of Texas Page: 7 of 94

In Texas in 1960, the average number of productive acres
per well was only 20, while in Louisiana, the average
number of productive acres per well was 54. In 1961,
the average rate of production per well in Texas was 12
barrels daily, while in Louisiana, it was 46 barrels
daily, more than three and one-half times as high.
From these figures, it is readily apparent that the oil
and gas industry in Texas is laboring under severe difficulties
that is harming the program:inthe State of Texas
as a whole.
Certainly-one -af the most important factors in the health
of the industry is the regulatory system under which it
operates. It is our purpose to determine the facts relating
to the question of whether the regulatory system
needs to be changed and improved, either in the laws or
in the administration of these laws, and to report to the
legislature the facts that will enable it to make its decision
upon these matters of grave importance to the State of Texas.
Texas was the first state to develop a comprehensive and
effective system of conservation regulations. Texas has
always been a leader in this field. The Railroad Commission
of Texas was the pioneer in the field which presented problems
of tremendous magnitude and complexity, and much credit is
due the Railroad Commission of Texas for the work it has
done through the years.
But recently the state has been shocked by the revelation of
widespread violations of the law in the East Texas Field and
in other fields. Recently published reports indicate that a
total of 568 wells have been shut in as a result of the discovery
of crooked holes drilled in violation of the rules and regulations
of the Railroad Commission. In addition, 64 more wells have
been shut in because wells had been junked before they could
be tested by the officers of this state. These wells have been
producing at a rate of approximately 3 million barrels of oil
each year, and the investigation of still more wells suspected
of illegal deviation is still proceeding.
It has been stated that the great number of crooked holes could
not have been drilled successfully without the collusionof certain
state officials. It has also been reported that there has been
actual bribery of officials. There is no doubt that a tremendous
majority of the employees of the Railroad Commission, like the
other employees of this state, are honest and reliable people.

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