Legislative Messages of Hon. James V. Allred, Governor of Texas 1935-1939 Page: 32 of 263
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The operation of any oil well with an inefficient gas-oil ratio.
"(b) The drowning with water of any stratum capable of producing
oil or gas, or both oil and gas in paying quantities.
"(c) The avoidable escape into the open air or the wasteful burning
of gas from a natural gas well.
"(d) The creation of unnecessary fire hazards.
"(e) The drilling, equipping, locating, spacing or operating of a
well or wells so as to bring about physical waste of oil or
gas or loss in the ultimate recovery thereof.
"(f) The inefficient, excessive or improper use of the reservoir energy
in producing any well.
"The enumeration of the foregoing subjects shall not limit the scope of
the authority of any state.
"Each state bound hereby agrees that it will, within a reasonable time,
enact statutes, or if such statutes have been enacted then that it will
continue the same in force, providing in effect that oil produced in violation
of its valid oil and/or gas conservation statutes or any valid rule, order
or regulation promulgated thereunder, shall be denied access to commerce;
and providing for stringent penalties for the waste of either oil or gas.
"It is not the purpose of this compact to authorize the states joining
herein to limit the production of oil or gas for the purpose of stabilizing
or fixing the price thereof, or create or perpetuate monopoly, or to promote
regimentation, but it is limited to the purpose of conserving oil
and gas and preventing the avoidable waste thereof within reasonable
"Each state joining herein shall appoint one representative to a commission
hereby constituted and designated as The Interstate Oil Compact
Commission, the duty of which said commissions shall be to make inquiry
and ascertain from time to time such methods, practices, circumstances
and conditions as may be disclosed for bringing about conservation and
the prevention of physical waste of oil and gas, and at such intervals as
said commisions deem beneficial it shall report its findings and recommendations
to the several states for adoption or rejection. The commissions
shall have power to recommend the coordination of the exercises of
the police powers of the several states within their several jurisdictions
to promote the maximum ultimate recovery from the petroleum reserves
of said states, and to recommend measures for the maximum ultimate recovery
of oil and gas. Said commissions shall organize and adopt suitable
rules and regulations for the conduct of its business.
"No action shall be taken by the Commission except: (1) by the affirmative
votes of the majority of the whole number of the compacting states,
represented at any meeting and (2) by a concurring vote of a majority in
interest of the compacting states at said meeting, such interest to be determined
as follows: Such vote of each state shall be in the decimal proportion
fixed by the ratio of its daily average production during the pre
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Allred, James V. Legislative Messages of Hon. James V. Allred, Governor of Texas 1935-1939, book, 1939; (texashistory.unt.edu/ark:/67531/metapth3899/m1/32/: accessed April 27, 2017), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; .