Legislative Messages of Hon. James V. Allred, Governor of Texas 1935-1939 Page: 36 of 263
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Their purpose was and is to drain from the gas lands both within and
without their ownership the requirements of natural gas for these lines,
thus doing great and irreparable injury to thousands of landowners
and small producers in this State by disallowing the benefits of ratable
purchase and withdrawal from the pools.
As a result of this policy the small producer, being unable to enforce
ratable purchase of gas in the fields under our statutes, having lost in
court, have been compelled in self-defense to turn to the wasteful practice
of blowing stripped or dry gas into the open air after stripping, thus
utilizing only the liquid gasoline recovered therefrom.
A sound public policy demands that this atrocious waste be stopped and
that our gas resources be conserved for useful purposes for the present
and future generations.
The remedy for this condition lies in the enactment of appropriate legislation
to remove the causes therefor. This can and should be done within
the bounds of constitutional authority.
I respectfully recommend the passage of appropriate legislation to correct
these evils and, at the same time, to insure to producers and landowners
their ratable share of gas withdrawals from the fields. I particularly
recommend the following:
First: Enactment of legislation to effectuate gas conservation and the
elimination of physical waste thereof within such reasonable limitations
as may be found necessary to protect the program of oil production, i
Second: An adequate provision to provide for ratable withdrawal of
gas from gas wells in the fields.
Third: Proper limitations upon the right to produce natural gas from
gas wells so as to compel producers, handlers and transporters of natural
gas to apportion withdrawals from all gas wells in each field ratably under
the supervision of the Railroad Commission.
Fourth: Adequate power and latitude of fact-finding and regulatory
rules should be given to the Railroad Commission to properly supervise
the restriction of production of natural gas in the gas fields, to prevent
waste thereof, and to restrict the right to produce natural gas so as to
impose ratable withdrawal of gas from the wells in each field.
Fifth: It is my opinion and I respectfully submit that the statute
should be so drawn as not to award a preferred position to those few giant
carriers who virtually hold a monopoly upon the markets for light and
fuel. Instead I recommend that no limitation be put upon the markets
for light and fuel. Instead I recommend that no limitation be put
upon the uses of natural gas beyond beneficial use.
Some proper uses may be of small economic value. But their recognition
under the law is indispensable to competitive industry that insures
the best effect for the benefit of land and well owners in the matter of
market price realized.
For example I refer to the use of natural gas for the manufacture
of carbon black, a highly useful commodity. Carbon black is used for
the manufacture of paints, printer's ink, automobile tires and numerous
other articles of commerce. Experience has shown that gas purchasers
have frequently raised gas prices in the fields for the singular purpose
of discouraging this and other minor uses. This logical and beneficial
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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/m1/36/: accessed May 27, 2017), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; .