The Laws of Texas, 1931-1933 [Volume 28] Page: 59 of 2,111
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FORTY-SECOND LEGISLATURE-FIRST CALLED SESSION. 51
SEC. 7. The Commission shall have the right when it reasonably
appears, and shall upon the verified complaint of any
party showing that physical waste of crude petroleum oil or
natural gas is taking place in this State, or is reasonably imminent,
to hold such hearings at such times and places as it
may fix, to determine whether or not such waste is taking place
or is reasonably imminent, and to make inquiry into what rule,
if any, or what regulation or order should be made and what
action, if any should be taken to correct, prevent, or lessen the
same within the meaning of this Act. Notice of such hearings
shall be given as provided by law. All parties interested shall
be entitled to be heard and introduce evidence and shall have
the right to process for witnesses and the production of evidence.
The Commission upon such hearing, if it finds that
waste is taking place or is reasonably imminent, shall make and
enter such rule, regulation or order as in its judgment the facts
justify, in order to correct, prevent or lessen such waste, if any.
If it is the judgment of the Commission that any reduction or
adjustment in the production of oil or gas from any well or pool
is necessary in order to prevent the waste as herein defined of
crude petroleum or natural gas from any such well or pool, the
Commission shall determine how to accomplish such reduction
or adjustment and such order shall be made in such manner as
to distribute, prorate or otherwise apportion such reduction or
adjustment among the wells committing such waste or contributing
thereto as the facts justly and equitably require. Any
properties, well or pools within this State may be described or
referred to by the Commission in such proceedings and in making
of such rules, regulations or orders, in general terms or by
using well understood names or descriptions thereof, or may
otherwise identify the same by general or special descriptions.
From and after the hearing and the promulgation of any rule
or order of the Commission, it shall be the duty of all parties
affected thereby, to comply with the same. From time to time
after notice and hearing the Commission may amend, revoke,
suspend, renew or extend any such rule or order so made, to
such extent and under such circumstances as may justly and
equitably be necessary. Provided that nothing in this Act shall
be construed as granting to the Commission any power or
authority to restrict, or in any manner limit, the drilling of
wells for the purpose of exploring for oil and/or gas in territory
not known to produce either oil or gas.
The Commission shall not restrict the production of oil from
any new field brought into production by such exploration until
such total production therefrom aggregates ten thousand (10,000)
barrels of oil per day, unless such restriction results from
the enforcement of orders, rules or regulations dealing with the
method or manner of producing, storing or transporting oil
therefrom to prevent physical waste occurring in such new field.
SEC. 8. Any interested party affected by any rule or order
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Gammel, Hans Peter Mareus Neilsen. The Laws of Texas, 1931-1933 [Volume 28], book, 1933; Austin, Texas. (texashistory.unt.edu/ark:/67531/metapth17293/m1/59/: accessed April 25, 2017), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; .