Official report to the House of Representatives of the 58th Legislature of Texas Page: 84 of 94
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CONCLUSIONS AND RECOMMENDATIONS
... _ . .....
The investigations by the DPS and RRC are continuing. By the end of December
almost a thousand alleged wells had their pipe line connections severed with production
totalling approximately 12,000 barrels a day, By and large the work of the
Committee has been done. It has brought to full public view the facts. What heretofore
had been a labyrinth of rumors, innuendoes, charges and counter-charges
have been correctly set upon the record. The Committee has been told by representatives
of all segments of the oil and gas industry that it has done a good job and
performed a real service te the state. The Committee feels that it has performed
its function and concludes tis report with its legislative recommendatiozs,
In hearings fraught with smrpriaes, the biggest surp'ise of all wa The Committee metnbers were told that they ere wasting their time, that
these producing practices were universally established, that no one was being hurt
and that the local grand Jries would simply not tals ay action,
Attorney General Wilson stated:
I can think of at least three counties in Texas where the
honesty of public officials is far below any acceptable
standard, and I do not see a sign of any majority of the
people in those counties really willing to correct the
The offenders underestirnated the indignation of an informed public. Just as
this Committee found at Amarille and at Beaumont, a conspiracy entrenched by
years protected by bribery cannot survive the withering glare of public exposure.
In the wake of the hearings have come indictments, procedural changes of the
RRC, improvements of conservatioa practices and a stronger and healthier oil and
On September 14, 1962 a Federal Grand Jury at Tyler returned 109 indictments
for transporting hot oil and filing false statements against J, D, Stroud and W. V.
Stroud. This was the first criminal suit brought resulting from the investigation,
The indictments alleged that 14,000 ba-rrels of oil had moved illegally through pipelines
and that false statements and reports concerning it were made to the Federal
On September 17 Nortex Oil and Gas Corporation of Dallas filed three damage
suits totaling more than one-half million dollars, involving oil wells in the East
Texas Field found to be slanted, Suits were filed against Max Clark, W. E.
Mitchell, Jr, Carter-Jones Drilling Company, Blaine Dunbar, Tom Cook, G. U.
Yoachum, Idaho Oil Company and Joe Hart.
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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/m1/84/: accessed September 21, 2017), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; .