Official report to the House of Representatives of the 58th Legislature of Texas Page: 17 of 94
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The Jacobs Lease they bought contained 8 wells, No. 2-A and 6 were deviated
wells and the rest were 'dummies. They paid W. O. Davis $500,000 for that lease-today
its value is zero. The pipeline hook-up on the Jacobs Lease led him to comment
There is another ingenious thing about this set up and I
wondered why they even bothered to drill deviated holes
with this set up. . Simply by reversing the two rubber
hoses, you can reverse the flow. If you want to, you can
suck oil out of the pipeline rather than out of the tank.
It is much cheaper than deviated holes.
He said Nortex received a directional survey or electric log on seven of the eight
wells on the Jacobs Lease, which logs were bound to have been forged or false,
such as the Schlumberger on the 2-A Well showing a total depth of 3600 feet when
the well had an actual depth of 5200 feet.
Nortex also purchased the Dorsey Lease from W. O. Davis. On the Dorsey
No. 2 Well they have a verified Schlumberger directional survey witnessed by G. U.
Yoachum, lease operator. The Schlumberger log indicated a deviation of less than
3 when the true deviation was 60 .
On the Holt Lease they had false surveys from Homco and Schlumberger. He
felt that an employee of both Homco and Schlumberger had to be a party to the conspiracy
that was perpetrated on them. He also said:
. . but there is a third method of thievery in the East Texas
Field which has not been mentioned, and that is a simple
bookkeeping transaction, whereas you have excess capacity
on one lease but you can't make your allowable on another
lease, you merely make a deal with the pipeline company
or the gauger to take the excess production from one lease
and credit it to another. It is simply just a gauger's transaction.
This, we are convinced, has gone on for a considerable
length of time and is still going on.
Buried 3 feet deep on the Jacobs Lease was a time clock which permitted the
flowing well to make 200 barrels a day or enough to feed the dummy wells and then
automatically cut itself off.
A picture was introduced showing a bird's nest in a pump unit on the Jacobs
Lease which supposedly was pumping oil daily. The birds had comfortably nested
on the pump belt for several months indicating it had not seen service for at least
one generation of bird life.
This prompted Counsel to remark that apparently the Jacobs 2-A was for the
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Texas Legislature. House of Representatives. General Investigating Committee. Official report to the House of Representatives of the 58th Legislature of Texas, book, 1963; Austin, Texas. (texashistory.unt.edu/ark:/67531/metapth5869/m1/17/: accessed September 22, 2017), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; .