Legislative Messages of Hon. James V. Allred, Governor of Texas 1935-1939 Page: 35 of 263
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the Panhandle field. It is also common knowledge that hundreds of
millions of cubic feet of natural gas are daily being wasted into the air
in other fields of the State from gasoline stripping plants, the number of
which will shortly multiply unless this wasteful practice is summarily
stopped. It is my understanding that this situation has grown out of
probably justifiable liberties taken by producers under what is known as
the Sour Gas Bill passed by the regular session of the Forty-third Legislature.
is my conception that natural gas stripping for the purpose of extracting
natural gasoline, as such, is both a worthy and profitable industry.
The waste of which I speak principally occurs after this operation. The
return of dry or stripped gas to the producing strata of gas or oil fields
in a manner to save or use it beneficially is a worthy operation; as also
is the use of this stripped gas for other beneficial purposes such as light,
fuel or manufacture. But blowing of this product into the open air as also
is the blowing of any natural gas into the open air beyond practical limitations
required incident to the production of oil-is intolerable under
sound conservation policy. The gigantic physical waste of natural gas
in Texas has attracted the attention of the citizenship of both this State
and the nation. This waste must be stopped.
The cause of this tragical condition is embodied in two evils. Primarily
it is the fault of the gas pipe lines which in most instances own gas productive
capacity sufficient for their own requirements. These pipe lines
have refused to adopt a policy of ratable purchase in the fields, leaving
some operators, principally the smaller ones, without a market. The
other is the practice of these small producers, who, without the privilege
to share in withdrawals, have been compelled to turn to the wasteful
practice of stripping the natural gasoline therefrom for profit and turning
the stripped gas into the open air. These pipe lines, selfishly refusing to
purchase gas ratably from the pools, it being more profitable to produce
their own requirements, have left small independent producers with no
It is a fact well known that the Standard Oil Company of New Jersey,
the Cities Service Company and other big corporations led the parade for
oil proration in the oil fields. It is also well know that these corporations,
through affiliated companies, and otherwise, control these gas pipe line
outlets. It is most significant that these corporations, which inspired and
perfected oil proration in Texas, have strenuously resisted gas proration
for the sole reason that the advantage of their position as to gas rendered
it unnecessary to prorate. The gas producer, unlike the oil producer,
cannot ship natural gas to market by tank car or truck, nor can he
It is difficult to understand how, in view of this gross inconsistency,
the executives of these great corporations can pursue such policies without
reflecting upon the intelligence of the people of Texas. The history of
these combines, however, is sufficient to leave no room for shock in the
minds of those conversant therewith. These corporations in many instances
financed their pipe lines to Chicago, St. Louis, Denver and elsewhere
upon the representation of ownership of gas reserves in Texas inclusive
of lands they did not fully own. Upon this representation they
sold their securities to investors.
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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/m1/35/: accessed July 21, 2017), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; .