The Laws of Texas, 1931-1933 [Volume 28] Page: 383 of 2,111
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FORTY-SECOND LEGISLATURE-FOURTH CALLED SESSION. 3
RELATING TO CRUDE PETROLEUM OIL AND' NATURAL
GAS CONSERVATION.
S. B. No. 1.] CHAPTER 2.
An Act regulating crude petroleum oil and natural gas relative to the
production, transportation and storage; amending Section 1 of Chapter
26 of Acts of the Forty-Second Legislature, First Called Session,
which amended Article 6014 of the Revised Civil Statutes of Texas
of 1925, as amended by Acts of the Forty-First Legislature, Regular
Session, Chapter 313, changing the definitions of waste and prohibiting
waste as defined, and eliminating the restrictions upon the power
of the Commission therein contained, and eliminating the last paragraph
of said Section, and providing that the Commission is authorized
to consider any or all of the definitions of waste in making rules,
regulations or orders; providing that the Railroad Commission of
Texas cannot regulate as waste any process of refining crude petroleum
oil and cannot restrict or limit drilling of wells for exploring
for crude petroleum oil or natural gas or both in territory not known
to produce such minerals, and cannot restrict production from new
field until the production aggregates 10,000 barrels per day except
to prevent waste and providing that Subdivision (k) of Section 1 shall
not apply to such new field until the production is more than 10,000
barrels a day, and further providing that production of marginal
wells as defined by law cannot be restricted; amending Section 5 of
Chapter 26 of Acts of the Forty-Second Legislature, First Called Session,
by adding to the authority and duty of the Railroad Commission
that of inquiring into the market demand for crude petroleum oil
and natural gas to determine whether waste exists or is imminent, and
to require sworn statements as to the market demand for such oil
and gas, and also providing for methods of securing information as to
production, storage and transportation; providing for the limitation
of the production of gas, from wells producing gas only, when the
full production creates waste or is in excess of the reasonable market
demand, and for the distribution or apportionment of the allowable
production; amending Section 7 of Chapter 26 of the Acts of the
Forty-Second Legislature, First Called Session, by eliminating certain
provisions therefrom and changing others so that as amended said
Section provides for notice and hearings by the Railroad Commission
of Texas, authorizing such Commission to make rules, regulations or
orders to correct, prevent or lessen waste, provides for the distribution
of the allowable production of crude petroleum oil and natural
gas, requires compliance with rules, regulations or orders of the said
Commission, and provides for revocation, amendment, renewal and
extension of rules, regulations or orders upon certain conditions;
providing for prevention of discrimination as between common sources
of supply of crude petroleum oil and for allocations of the allowable
or reasonable market demand to prevent discrimination; providing
that the Railroad Commission shall consider and protect the rights
and interests of the purchasing and consuming public of crude oil and
its products and that if Section 6-A be unconstitutional the remaining
parts of this Act would have been included; amending Section 15 of
Chapter 26 of Acts of the Forty-Second Legislature, First Called Session,
which amended Article 6029 of the Revised Civil Statutes of
Texas of 1925, requiring the said Commission to make and enforce
rules, regulations or orders, and to do all things necessary for the
conservation of crude petroleum oil or natural gas and the prevention
of waste and injury to adjoining property, and specifying certain
purposes for the making of rules, regulations or orders; amending
Section 8 of Chapter 26 of Acts of the Forty-Second Legislature, First
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Gammel, Hans Peter Mareus Neilsen. The Laws of Texas, 1931-1933 [Volume 28], book, 1933; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth17293/m1/383/: accessed April 25, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; .