**OFFICE OF**  **THE AlTORNEY**  **GENERAL OF**  **TEXAS AUITIN** 

Iionorable sob0 IL Wlor chhr 

## suprrlror

**Annotated Tox** 

~0 hme rour letter **oploion rith**  

### rrf*renco to Ar Terar Cirll Statut46. 

## titer our 

### oplnloa

with r8rOrsnOe 

### t 

## adla the rlrrt latlng to an6 

### iOnwith **,b4tiO66** Statute, or **i6** the ouo 

### aa to lntall6atr

t of tb, 8tatut.o

hrroin0 

### ourtaiLthe production or 

### trorthin **.%OtiO66 r6r,**  “b’, tat4 15 wart8 

### a5 a 66tter or

a the Conaiioion haye tha powr to on or wllr dsrorlbed la Ssotlonr * and "en Ol the Statute, ii 6UOh OUrtail**ia** neormary to pretent warts 88 prodded in other Statutes of 

### t&ir'Stats? 

## l ?hb'd. '-'~,~OU have RtlSr@l%bBeOtiOn **(6) Or**  '&e&tiOSi 

### Tw6In the arr~iaitlve, then ploam 

### mIti@rr whetherornot the **Iangiilatu$e had**  the pow4r **to 64**  drolare and **~~0~164.**ROD. 

### JohnI.Taylor,hga 2

”

### Fhrth. Do46 the 

### Statuteprohlblt the ComI~slon from reotLng theproduotion or well8 of depth4 

### and haying th4 produohg 

### eapaoltleaas 

## ret forth in Seotlons 

### .ar *b”,“o”, "d- and "0" only wh4n ouchwall5 would be da&ad or rerult In 1048 or produotionultimately r4ooT4rable or oau54 premetur4 **abandonment of**  **IMUJ, iI**  thewll or ~411~s dally produotlon wre 

### l rtIflaIally curtell4d?
8Fifth. iutlom9b Should lt be htld **br Jour**  

### Departmentthat

Is not Inralld beoau54ot any enblgulty In the 

### language6446, then I8 ma4 Intalld for

### any other r4a5on? *Sixth. Should it **be**held that Articl4 **6049b** 16 a yalldTfa5tt4, then la a flndlng by 

### theRailroad Commission or Texar of iaatowhloh brings a well with any of the 4la54ltIoatlonsor a mar&ml wll final, concluslre and blndlng upon the Court67

'84T4nth. It Artlolo 6049b I8 a **rslid** Statute, aan the Rm C~mmlrslon In a proratlon ord4r rlx th4 dally allowablsoi any pumping or ilowing ~411 haring a potential oapaoltrgreater than that ot R marginal ~411, undsr 

### your dot4mLnatIon or ths meaning or marglaal ~116, bolos the unount allowsd ror a smrglnal wll ot eWlar depth?

. Ii the lanyPg4 us46 In the

### Statuteto th4 ~mbrglnalwsll' as U64d h4reIr m45ns 

### a puaplag all well oapablr, undsr norm6lamr46trlated operatlng aondltlona,or produolnc~rubh dally pumtltiss of 011 

### ae her4Io #t out 

### a6would k d6mag4d, or result in 6 loss or the produotIOou~tlmet4ly 

### rcroorerabla oraaase

### thepmmature **$%%&4~i6 nOt 60 Imb&6Ou6 whrn u44d 16 4Om44- 

### itit8**dall.** production wre artlfltion with the rekt at the Statute 60 as to invalidate -4 16 it8 4ntlr4ty, th4n plaa5e ady164 what, in your opinion, ir the Qr4OlM 

### nmanlngOS the l~guage quoted?-

. **SO zk%3**  **haTO** 

### your **suppbmental request**  of January 15, 1Oa, in which YOUark ths following question:

fl mne. Doe5 the Sailroad COil3lB16iiO6 Or T4X66 h4Y8 the &Ow4r=4r Art1014 6049b. Rerised Clril Statut46 of the State of Texae, to art~rldall~ ourtail the production or a pu5tpIng

wellharicg a producing oapaoltyor more than 80 bun16 p4r day 66d produolng irOa hOrizOna **iand** at 6 depth **between** 8,000 **and** 4,000 -et,, b414w 820barrelsper day a5 84t forth in Seotlon ***bi?**

### or tb4 abom’rehrrca to Artiale?*fiO& John E. Taylor, P4g4 3

**s6r0re** 8tatl6g our anewer **to** your qu44tlon5, w b8116ra that It 801 **be** halpful t.06et **out** brletly the legl6- latlte hI5tOry Of the ~YargIMl W411 **Statute, ’**  **and** the departmental pnd JodIaJal 4OC6truOtlon 

### whloh it 

### haa **r4OeiWd** up to thlr time.

The &!argInal

X411 Statute n8 first l 

### aaotrdaa Seaat. a11 Ho. 339, **AOt8,** 4gnQ I*gI61atW4, B4gular sb64iOA, Chapter 58, Page 98, which beoams 4rreOtiT4 April 16, 19Sl. Ths oaptlon of thi6 at&&e read8aa follasr

'An **Act** to derln4 mrglnal wellr) drolarlng it to **4OA6titUt4** wa6te 

### to

l rtlfIoI6lly rcrtrlot the nor& proauotlon thsrefmm; dIr4otlng 

### thatnorub or order or the Bailroad COarmi58ion

### or other eonrtituted lrgal authority 6h5l1 bs **mtued** requirifagth4 r46triotioa of the production or arry marglaalw4lll 64olarlng 

### ea.oh prwlrlon lnd4pendent ot each otherprovlrloni and 64oluIng a6 emerg4aoy.w
The fIrrttwo seotlonm of Senate Bill pi'o. 337 **mad** aa rOilOn **:**

**“ SECTIOP**  

### 1. Th4 term Wuglnal Roll* a8 u84d herein meaaa a pumping oil well produoW such dally quantities 

### or 011 a6 **hueln set**  **ovat** 

### a5 wouldbe **damaged,**or r46ult IA a 1066 ot thrproduction ultlnatoly reoworablr, **or** oau66 the **premature** 6banbonment of -8, ii **it8 daily**  **prOdUOtiOn**
**wre** artI?loIally ourtaIled. 

### TherOllOwlng 648orlb46 ~118 shall be besad *Yarginal Eellr* in thl8 

### Stat4: "(a)Any puaplng 011 wll wlthln th16 State baring a dally produotloa of tea barr418 or 1488, araraged wu the preoeding thirty **0066OOUtiT4** day6, producing rr00 

### a depth or 8000 r44t **or** 14588 O(b) Anypumping 011 well rithla this Statearing a dally production or treaty barr418 or 1485, aTua6sd owr the praordlng thirty oon8eoutIv4 days, produaing

### froma horleon deeper than 2000 r4et and 1486 in depth than 2WO r44tt -(o) &iy paaplcg oil wll la thl6 State haying a dally production oi forty b6rr418 or 1456, **averaged** mar the preordiag thirty ooaeeoutits dayr, produolng fmx~ a horizon deeper than 5500 feet.
"SEC. I!. TO 6rwi0i6iiy ourtall th4 production 0r **any Qarglnal**  **.mll*** **below** themarginal litit a# 8et out abow prior to it8 ultImt4 DlW@Q& and abandonment i6 hereby~#rol6zwI t&be waute, and a0 rule 

### or **order** of the 

### Ballroad**cOiMIi6dOC-nor** 94x88, or **other** 

### constitutedlee&al -_-LC_-*L- -Le.. c_ --* aa-1 -,,..a-,..- u-,-*a.*rr r* ,kr

### 199

Hon. John IE.Taylor, Fag0 4

6eOtiOA s Or 8eMt0 till KO. ssv Tinion Or the rtatuts iAd4Qendsrit of eaoh _-._ _.. deolared l aoh **pro** 

### otherprovision and deolar4d the leglrlatlT4 latent to have p6884d l aoh prwisioa l~epeadeatly 

### ofall 

### otherprori5loa8. SectIon 4 was an emergenay olau54,whIah r4ad a8 ~OilOUEt

*six. 4. The raat **thatth4r4** I8 no law derlnlxig a 

### Wugiml Eell* aQd none whloh 

### pnreata the utlrIolal ourtmltient 0s the produotlon0r **866l1 pomPiIl&j**  **W0116,**the artltlelal restrlatlonof whloh would **oauso** their **damage,** a Mallor ultisato reoorery 

### of 011 

### thererrom and th6ir premattu%abandonment,oreates an l 

### nugonoy and an **impera** tive public B4o468ity ZeqUiriAg **that** the COAEtitUtlOAal Rule which r4quir48 bills **to be**  **road** on 

### threesereral day5 **be** 5uspende6, 

### and suchRule is horoby 8u8p4n606,and that this kot taks 0rr0ct iron and arter lta QR65Rge, and it **18 60**  eaaoted.*

PLtt4r theparrsags or the Marginal W411 Statute, th4 L4glslature 4~aoteUBourn Bill Ro. ed, **Ads,** 42ad Legi6latur0, First called 

### session;Ch4ptrr 86, P4go 46, whioh **beoam** orrrotin Augurt l.2,

lOS1, **acd** ao8t of vhloh **18**now mbraoed la hrtloh **60490 of**  VBrAOA'E **Annotated** T4X48 cl~ll. Statutes. Section 16 of thi6 statute (now Seotioa lb oi titlale 60490 or V4rnon*r AnnotatedTaxa* CiTil Statate6) cOAtRIA6 the r0ii0dg provl6lonwlth rstereaa4 to Sh4 Marginal xell Statut4r

%othl.ry in thl5Act Oontained 6h611BOditf or 4haAg6 in any ray th4

### terms and Q~OTIE~OAE or S666t6Bill-Ro. 399, pa6846 by th4 Forty-seoondL0gf8lRtUr0 Rt it6 r0gtIlar S~E~~OA, oomrao~ly luiovo 06 the Eargllul %a11 Bill.* Sub6equcrntly,

the L8girlatUro eaaated &mate Biu NO. 1, Rot6, Fousth Called S486iOA, Forty-84ooad ~giEhtUr4, Chapter S, 4ff0OtiT0 t?Orember lSe,L982. 64OtiOA le Of thi# statute oontalaad the follming prori~onr

“. . . aad thisAct Shall AOt be con&rued t0 **top481** or modify S4Aate Bill So. 337, **pa6606**by **the** forty-84aoAd Legislature, at its Regular Sdllbion, known a6 theKugiaal 3411 BIl1.r
On january 1.7,193?1, **the** Attorney fJ4A4ral*s DC+pUtmeAf con5trucd theplargIAe.l ~411 Statute ln a~ opinion 

### writtenby Assistant Attorney Oeaeral Yaurlce Cheek to El?.R. D. Parker, **Who WE**  **th41i Chi4r**  **St&xwTi6Or**Of the oil& Oa8 DiTiEiOR Of the Railroad CoE&ii88ioA.with r4fUr4cO4 to **th4** 

### OOA8trUCt~OA**Of** the mrgIAa1 wll statute,a6 It then 

### read,the opl~io~ contalnsd the following l

tat&aant:

### ‘200

Bon. John E. Taylor, Feg4 5

wit i6 my oplnlon thatunder the **tcrzs** of thla act the fiailroad

CO0mlSSlOD 18 expraaslg **denled the**  rl&t **to** pea6 any orderwhich curtail6the praductlon of eny wglnnl well below the &ergincrllimit6 ret out in the sot.

. . . . . *Phi6 aot oonatltutsoe deflnlte llaltation on the authority of the FUlroad Commlsafoa. **lmer** ita teal4 the Coma.lasiot~

oemot curtail the productlen **or 4**  pumping 011 ~411 pr&uolng irox a 4.e;thof 2000 feet or 1468 below 10 barrala psr day. It cannot ourtail the production of suoh e **~411** producing frona horizon deeper then 2O@G feet **and 1466**  than 5500 feet below 2.0 barrel4 per day, or l pumpLog oil 1x411produciw from e horizon deeper then 3500 feetbelow 40 berm16 per dey.
*The faot that a acll is a pumping wall dour not wlthdraw **iron** the Cammlasion the powr to curtail **its** produotion to preventwaste tlllder the 6trtutea 6owz to the lialta art forth. In other uerda, a pumplne 011 ~11 lo aubJeot to the rulea, rsgulatiors md orders of the Zallroud Commiaaion just the same ea any other oilwell in Texeo, 

### l **ubjeot to**  ;;&le~ttet1OI.l6

fapoaed On **the ~Owera**  OS the Cosroiaal~n br The Comnla6lonmay, to **prevemt** waste, ourtall the prodictlon of auohwe116 down to the lfxito **set** forth in the aof,but it ney **not** ourtall their production below the limittrr."
On nprll 1, 193S, tcmferrnotOpinlct Xo. 2916 of the Attorney C%oerel*s Dipartmnt, addressed to 

### theaallroad Cowala**rion ot**  **T4184, and**  **written** by **haai6tant** Attormpa General Neal Power8 **and Xaurloa**  Cheek,was laitued,4ontel.nlng 144 Sollowing stat404nt:

Wnder the marg.lccl trelllcw (Acta,1931, 42nd Leg., p. 92, c-h.56 - Row **Art.** 6049b,R. 9.1, pumping ~4116whloh pr&uoe **Sro0 the**  torizotwhlbhrxiats in the Eart **Texas** field may not be ourtailedby a proration order of the Kellrocd Comzisslon to a dally ellowable of **1466 than**  forty **berrela,** althoqh theyasy be curtail44 to that figure to prevsntweate.* Subs4gusnt to the rtndelng of the :oregolng **opiniona,** the ~eglsleturs paaaed Kouae Bill Ea. 678, Aote, 4&d Iaeialature, Regztlar **Seaalo~,** Chapter 97, Faga 215, rhloh beoaam effeotlvrc April 27, 1933. Thfs atatutepslsndetl Ssotlon 1 

### or the marginal well statute so ~a to read a8 tol~owa:Eon. John E. Teylor, Teijs6

'S4otloo 1. The tsra *&rglcel Lell'as used hdr8ln

amma a p@plrrp;

oil well capebl4,under rort4l unreatrleted 

### operating

donditlona, oxf

produolng suchdally quactltlsa of oil es hareln ret out 

### a6 would be demged, or result in e loss of produotioc ultl&ately reooverable,or cause the ?ren6t$W ebandocaent of ~4, if its dally production w4r4 ertl?lolelly ourt4ll44. The followl~g deaoribad roll6 ahall be **deemed** Werelnel Yi4116' 1Sithis Stats: *v(e)Any pumpl~g 011 wellwlthln this State hevlng e deily oepaolty for ?roductlor. OS ten (10)barrels or lees, ayeraged ova: the prccadln~ thirty (30)eoc4aoutivs days, producing fro5 

### a depth **of** two tizouaenb(E,OGO)feet or 1466: *t(b) any pumpln~ 011 we13 tithln tiils Stat.4 h&vi= e daily oepeolty ror produotlon OS twenty (20)barrels or leas, eroregcd over the prcoedlng thirty (30) conaaoutlre dw*, ProthelngSroa a horizon derp4r than two thousand (2,OCO feet and less ln 44pth then four thousand (4,000) 

### feet: “Q(c)xny pusiplnl: 011 well within this Set4 having a dally cepaolty for~productlon of twenty-fim (2s)barrel8 or leas, orsra.gt%over the preoedlng thlrty (30)oonatoutirc daYa# roduolng from a horizon deeper than four thousand (C,OOO P **feet** ant!leas ln depth then 61x thourand (6,000) **feet:** m*(d) imy pumplug 011 ~011within thl8 State harln&~ dally oapeoity for produotlon of thirty (30)barrels **or** l&66, everegad Otsr th4 prscsdicg thirty (30)oon646utlYe **day6** produolng froi a horlton deeper 

### than6lr thoucand (S,OOO! 

### feat end 1486 

### indepth then clght thousand (8,000)feet:
~'(4)my pumping 011 ~11 tithln this State having e dally oepeolty for pro%uotion of thirty-flte or leas, **hrareged** over tba proosding thirty (30 conwoutlre I 38) barrels deya, producing rroz e horlron deeper thaneight thousand **(6,000) feet."**  The ener&enoy oleus4 of liouse%I11 618. aupre, 

### reed aa rollowa:

*SEC. 2. The feot that thepresent %s?inlt&on of the t4rm ‘~ekglnalX411* operates a6 BE lnipeCl04nt to the 6dnlhi6- tretlon**of** the conservation laws or the State of ~4x44 in 4a *wtable dlatrl~utlbn of the allowable production in the Oil *141%* of tbla State oreateraa emergency and en impareUT4 pub114 necssalty rrquuirlng that the

### conetitational mls wu@h r4Wlr46 blllr to be reed OEt~eqhmir&~~~~~ beEon. John H. mylar, Fage 7

**~u~ptn&ed,** andsuch Rule 1s 

### hereby l urponded

### and that 

### thle ;i;c;~~mafreot **rr0=** and after its pasragt, and it 16 80

CR Ootober 9, 1933, Bonoruble tlaurloe Cheek, xm.lstant Attorney Contral, rrott a latter oplAot to the Cmalttte on Oil **k** Car Of **the** ~OUW **Of** RtRrtaentatlvtr of theTesar Ltglrlature. +lth refuenoe to the marginal well law, the opinion eontalned the following &atamentr

"Themm&ml well lag whloh llmita the powr ot the Comn~I~don to ourtail the produotloa oiwell6 below a oertain Us&t i@ aimply a llrzitatloa011the authority of the adaihl8trativt **body** towhich has been entrusted the duty ot oarrying lnta tZi6ot the oonmervatlon laws of thl8 otatt with retortme t3 011 findgas. It 113 Amply a leglnlatlvt dtolaration that, even though mate Bight reeult, if all the Utll6 10 this t&ate are petitted to product at the llmits set by thensrglnal wall'karc,thatotverthtlese that rate or produotlonwiil not be unlawful and operator8 OPII oonduot their opsrrtloar aooordlagly without fear o? lntertarenot tro?rtheRailroad Comineloa. e'Speclfioally

amwerlag your lnpulry, the Legislature ha8 the 

### powar to fir the limits o: produotlon otmarginal wella at any point that It 6ees tit, mince t& marginal well law la a limltatlon not on the rlghtb or the operttor but on the 

### powersof the 

### Codralon. This, of oourre, 18 not the 

### aamtas naylng,assuming that there were QO marginal well lam, that an order of the Cosmleaior or;rtaUlw the produotlon of wells to a rldloulously low llmltwould be a valid order. In that oa8e the order of the Cofmlralon would be unoonetltutioml aa 

### deprivln& the operator of hi8 property without **due** 

### prooersor lay but the llmitr whioh are meton the authority of the Cmnlrsloa by the Legirla

### ture la a law of this oheraoter 

### ut 8oltlywlthla the discretion or the Iaglrlature and the courtswill not &Intubb msh a law, however much they my rtrikt downan order ot the Comlrslon vhlch weaoonably ourtalls the produotlon OS operatoro beyond the neotcmltitr of the prevention or w68te.w
Eouso Bill 80. 9%&, 44th IBgislattuue, EegUlar SeWlon, Chapter 96, **Page** 180, arfeotlvt hprU 16, 19%. oontalntd a nmber or mendnentrr to the statutes providing for the rtgulatioa Or the produotlonor 011 and gab by the Railroad Corsmisslon. Thh **statute** alao contained two txprerr provlalonswith reference to themrglnal well Statute. Seotion &, which wended Artiole 6014 of the Rovlaed Clvll Statutes, ooatained the following provialontBon. John E. Taylor, Fage 8

*RothIog La this 3aOtloa shall **bQ coustrued**  to authorita llmltatlon o? prodcotlon 0r 

### mirglnalwells,as suchmarginal wells arc,de?lntd by Statute, below the mount ilxea by 

### stetutofor suohwellrh* geotlon 18 or **House** till Ea. t88, supra, rbloh 1s now oontalnsd lo **Verncn*s** Annotated Texas Clrll Statutes as S~Otlon 18 o? lirtlcle 6OCQt, oontalned **the** SollOxlr~& provisions:

". . . **and** this Aot .shallnot **be** oonstrutd to repeal ormodlly Chaster 49, Aots o? the Forty-third Ltglslatura, &gular Sessloa knon: as the Q!argloalXc11 Aot.'*
The 

### rortgoiagstatutas oontaia all O? the areandmnts

\ 

### and referwoes to theEargfaal Jell Statute **ug to**  **th6** present tima, **cantal686** Ln 

### any ~egisiativaanaatElcot6.
/ Thwa hna been only one reiwehot 

### to themarginal well statute **in** 

### ar?y Texascase. such rtrertnot beLEg oontalned in the dsolslon of-the Court o? Civil Appeals at Au&in 

### In the -Ease:o?:i

T’idt Fatsr **Associated** 011 Cowaay v. iiallroad**Commls** 

### slon,l20 5. z~.(2a)544 iw. a ii doet not undertake taonstrue **the** Marulnal*rell &a%~.“kotDt to rater to *tha fact that the ~glrlaturs Itetlr'has tken cogliizaaoe (sea hrt. 6040b, Vern~a*s X. C. 5. aa amndcd) that a differsotiatlon should **be**made **betweon** mm$nal wells and themore produotlro areas or d 11416. ...*

The laarglnal

well statuta haa also been rtrtrred to b oi **the ?tdercll**  Courto In **the Rowan**  **k** I?lcholsoa6t. In the ialon 

### in the Dimtrlot Court, i? own & e;lohol.e

Gil Comwmy v. **Railroad** Comalsaloa or Texas, Judge EckxTlzrzi6 (28 P. SURP. 131, 136, 137)

~Respondtnts, In at t??ort to extenuate the lntpuallty o? their order, suwat the dlffloulty presentedby the sisrglnal

well law. Artlole **C049b,** Vernon*6 Ann. Cl+. **St.** TeZ. This **d0t** ralateis to pampfng nella and 60 tar as xast Tams 1s concerned torblds the 

### artltlolalcurtaIlment otproduotlonbelow go

### barreloa &as ii mioh rmluctloa mu16 manse damage to ~tht well, or less o? ultlnhte recovery,
**or premature**  sbandartaitot.

**. .**  **. .**  **. ”**  The Statute orrers no sx~ust ror a rlat a0 barrel~ail&anee to other wells rumIng op to 880 barrel6 par hour.

;I; it’< soaoedtd that the Statute 1s valid (tioh has been seriously questioned) and that thesa strlotly marginal wells mumt be allowed 80 barrels a day Ir **they** oanmaka it, still that tor~lsh68 00 txoum 

### fora6ntIsoatIbg the property of som other producer better 

### situated.

### -5. John 3. Taylor,PagoQ

ru~psng vella of thisvarietymight appear in a 

### rleld to arch an extent as to rxbaunt the entire allowable, thereby 

### leavinenothing

### Sorhigh potential flowing wells. l?osuch absurd 

### rarult wa8 ever intended. This StatUt8 ~a8 ObriOu8ly d88i@led t0 kWp tb,W &sell pwcre fro5 **belng all,@tad**  off, it being oontsmplated that the bettw ml18 wuld b&we a muoh h&her 

### l llo7eble. Jf, hOwaTer, thi8 atarginal m.h.&mum

muat be oon8ldrred a8 a oomponeot alemcnt of a 

### prorationache&e, thereby ~a8o5- ably rodwlag th? allowable8of other betterwell8, either the Statute 

### ortheschememwt fall.*

In Railroad Comia8105 or Texas v. Rowau & Hlohola oil co., 107 H. Isid) 70 imdge Fo8ter or the Ciroat co&art of kppmla said, with &fsren&e to ths Earglnal Fell Statute:

*The 45i wells referred to in the stipulationa8 allowed to produoe all the7 can ma7 properly be classed Se &%argintiWell8 underthe tarSi t&f a Te~a8 8t?&Uta, tit. 6OlQb. VetnOn' Ann. ClV. Stat., which, inter aa, define8 

### a 5aPgLnti well as 

### any p5plng well having 5 daily output of produotlon of 20 barrole 

### or leas. The statute prohibits tha Railroad COa1&88iio5 from restrlctini;the produotlon of 

### a4 marginalwell aa thereunder defined.

. . . . . -. '. . ?lowingWe118 produslng 80 barrels of oil a dax et 1088 could not be ao58ibered RS aarglnal well8 oorpiag

dthln the mantletoryterms of the rtatute. 

### The COti 18 uithout SUthoritr t0 80 Ola88 them.*
x%th reference to the &h&al well Statute, the Raihoad COaE&8dO5 ha8 adopted it8Rule PO. S under it8 general'pk

### rideRule8, which read8 a8 follow8~

=5. URGINAL WELL EXEXFTIO~.- Ro rule herein adopted 8hall be eonatcuad a8 Impelring or In anpi8e abrogating what 18 knoan a8 the %ar&ial tFel1l.ar,*end each well prcduolng 011 a&allbe entitled to produos aithout restrlctlon the amount of 011 fixed br lan for it8 olaa8lfloation u-n ths baslr of depth." &wiring in mind tha ?or~&oing 8tStlltS8, an& the 

### departmental and judlolal oonstructionrrrhiohhaarebeen plaoed upon the &argbal ml1 statuto,we 8hall 

### prodeadto a58wr rour Q~e8tlona. IA doing 80,w dli, Or QOUICO, m&it 011l

### OpitiOA 8triOtlJ 

### toa dirOU88iO5 Of the h@il QUE8tiO58 involved, 83.5c. all ques loaa ~,polloy are out8lde oT **mar**prorinoe and rest 801e1y 7ltM&&$&.y.q~&sr $lrcretlon of th8 

### Leagirlaturcl and the **Railroad** COEUIi8aiOLi.Eon. John E. Tcylor, Eagc 10

FIRST. OUr058WbCt0 YOU fit8t qWStiO5 18 t&t 15 our oplz all of theXarglnal Xbl.~~.Statute should be oonatraed together clodthat the laz&uage of the statute 18 5ot 80 ambigUOU8 81 to 1malldat;e it.

Ir:COA8tnli5g Article 6049b,vc hare followed certain ~11 rcoognlzed geooral prlnolples of stat&or)- con8traotlcn. Prinarlly, we have kept in **aind** the rule that oo etatutc shouldbe held to be invalid or lnoperatlvcbeccusb of ambiguity or fOS any Ot&r rba8on u&cc8 t&r@ 18 no rbasOnabl8 oon8tructioD which oan bbadoptedwtioh would **make the**  8tatutcvalid bnd 8freotlvb; Sbb Yett v. Cook, 115 T&z. 203, ES1 S. Vi.0391 39 Tex. furls. 206 ln(; a etatee, the intentiono? the Legislbture*ib I5 CO58tlWto be arrived at by Vievl5g the act a8 a whole,rrolrcaption to bmcrg8noy 0leu8e.~ Spenra v. 3an Antmlo, 110 Ter. 628, 625; 223 S. **2.** 166. Our ~Xprbme Court baa deolarad that, “It I8 the lntectlon of the la* which 18 the law; and oooc &uly asoertaincd, **it** should **prbtil, WC5**  SgaiA8t **thb 8trht**  **letter of**  the lar," , 110 Tax. SO, 214 S. X. 295, sod that the oour 8trlot grcmatlcal rule8 in lnterrmctlnr,

statutbc.when to do M would Ylolcte the evident lbgi8ihtiVe iiLt85t."-FophamV. Fatterson, 121 Tcr. 615, 51 S. X, (2d)660.

SeOttOE 6 of Article 10 of the Revised Civil &&t&c8 provide8 that, -35 al].intbrpretations, the court 8hbU **look** dlllgently for the intention of the Legislature,keeping 15 view **at** all tlmca the old lav, the 8~11 end the **remcdy.m** Our SuQrcfm Court has further 8aid that, WOnoc the laglrlatitc intent is croertained theduty of the oourt is plain. To rcfucc to enforce rtatutos %n accordaaocwith the true intent of the Legislature 1s b5 inbrcasable breach of judicialduty, beoause an unwarranted lnterfercncewith t&e

### axaralseof lawful, laglaZatlro authority."Love v.Wilcox,ll9 Tex.256,276; 28 S.w.(2d)515.

Bcari&g inmind the tOra~Ol5~ ocrdlnal r&i&.8of 

### statutoryoomstruction, it is our opition that the la5gucgc of Article 0049b, vhllc it is Cot perfeotly clear

## andunambiguOU@,'$~ tiuifiolently plain to oakc it oaclble

## to arrive at thO~~i8l.attivb intent. construing el

### P of the 

### 8tGtUtetogether, we thlllk

that it 18 reamnobly plain that the lntcntion of the Lcglalature in p386i5fi the ~crglnal ml1 Statutewa8 to plaoe definite llmlt8 upon thepowers of theBailroae C0tPsrL8d0~ bo 1-t the produotion of oil fromml18 15 the State O$ TeXb8. cb Opinion as to thb spbOifi0 i&bb5l5g Of the St&d4 18 8bt out in our c58wczstoyonr rencini5g qUe8tiOnE, 8tatbd below*

### 206

x0& John E. Taylor, PWe 11



## s?xom* (a) Our anawr 

## to the first subdltlslonOS pur 

### seco’~tiOn 18 **that** Section 2 ot Article **6049b, whan**  construed togetherrlth the reaalnlrg **portions** of **tb** statute, msns **that.-the** E811rOad Conutlssion 18 prohibited by the Lagislature from Curtailing the produotlon of oil frosi thm wet116 o&ng dthtn the Olas6itloations #t forth ln gection 1 of the mUgirId Wll 6tfJtUt6. The leglslotlre rostrlction upon th. purr of the Railroad CbmzsisBiOn16 6t6t66 in Section Z h l n,ways; rlrst, 66 a daolaratlon **that** it 16

### waste to curtail artlflclally tho production OS 

### anyaarglnalwell, and 6ecOndr as an **express** prohlbltlon agalnSt any rule or ordor of theRallroad Conunissionrequiring restrfctlon of the production from any marginal rqsll.

(b) Our Bnemmr to tha second 6ubdiYislooof your second qwotion is that in our oplnlon th6 Comxlsslon does **not** hare the pmuer to mutall the productionOf well6 dseorlbed ~IJ6Ub66OtiO66 *a*, *bw, *O*, "d' and *On Of Section 1 0i Art10ls **b049b,** even thowh the COd66lOn shouldbe of the oplnlon that such ourtallment 16 

### neoe6sary toprevent want6 a6 prwided in other statute6 **of tai6**  **State.**

ConslderlnE the leglslatlre hlstorp af themrglrul well 6tatute, 

### and the cocstruotlon that it has **reosired** since **it6 pssraga,**  it 18 rassoaably **plain** that the intentionbf the I.egislature

WA6to designste certain classSsOf 011 w6116 and to provide that the Eallroad Ccmnl66lon shouldhave no gowr to restrict the production of 011 from suchwells. The speoifio oonsldsrntions tbratimpel a6 to the conoluslons 6t6t6d **abor6** 6r6 

### a6 fOllOwSa

(1) Thhe

~1aIIgUage

Ot the StEtUts lt68ii **iDdiO6te6** that the Legislature intended to rtrrtrictthe ?3allroadCommls61Onby removl~ troa its jUd6diOtiOn ttS p0w.r t0 

### lhit the 

### productioniron aarglnal *8116. The OaptiOn Of ths orlglnalmarginal rell otatute, Senate Bill X0. 537, Acts, 4&d Legislature, Regular Seoslon, Chapter 56, Page SE, 6tattS that It 16 *An Act to define marginal a~lls; deolarlng 

### it to oozstltutewaste to artlflclally restrict the normal production thsretroa; dlreotlm that no rule or order of the Railroad Comissioa or other constituted legalauthority Shall kmtsred raqulrlm the r6strl6tlOD Of the &'rodUQtloDfrom any suu~inal ~11.

. ."HOn. 

### John E. Taylor, Page lf!



### S4~ti0D1 

### or said aot then prooeeas to aerin0 th9 tezm %uxrglnsl ~e116"by stating three dlfterent speolflo olas6lrlcatlon6. 

### %CtlOn 2 OO!it6in6 the 6pCO1fiCprohlbitiOD6 6g6iD6t the restrlotlonof tha proauotl06 from &argi

### Dd mu6 br the R&llrOSt COZOLi6niOD, which hare b44a 

### heninb4ror0 84t 

### forth. notion 4 Of the aat 

### rCOlt66that anl mrgenoy eristbbSSS*ae O? %h4 Snot that th4re **16** no **hw** defining **a** ***Mrgindl W611** **’** and son8 which protects the artlfidul curtalksnt 

### of the produotlon Of~#aLl pumplog **W116. ”**  The68 portionsof thet;arglnulGel1 Statutes can oaly **paint** to on4 16t4ntlOn,that la, an lntentlo~ td prohibit any ourtallmant by theRailroad C~SE~OD of theprOQuctlo6 Of 011 frOa EiEir&bd **-116.**

**See 1**  **Summers,** sdltlon) a* 96, k&era, "The La?:cf 

### 011 **s.nd Gas** **”** (Permanent author says, Cltiw AFticle 8049b, the leame&

=TheUbtiZi.Ss&OC

10 4Xpre66ly denied the

### power to lblt or prarate.#muiuotlorof *marginal. wells.*'
The only lanyage lr 

### thr! statute wNch might lead to a different c0L6tmiotlonin the language aontalnedin 8eotlon I, which refer6 to amarginal ~011 cu belnc a pumpingoil uell 6uoh

**‘ 66**  would be damaged, or maul5 ln 8 loas 

### or the production ultimately recoverable,or cause the presature abandonmentof **64m6,** if its dallyyroductlonwere artlfiolally curtal%ed.w

Sirellar

&&&age **16** ilsc oonta~med 'iaSootion 4,

### whrra the Lsgl6latum **6608 that**  62 l 5ergenQy

rxlsts 

### beoaun of the 

### fact that **there** 

### isno lhwd4flning a m6r&inal **wall** and **@o&a** whlohIplev4nts thsartlflclal ourtallment of theproduotlon of 61~11 punipl~ ~4110, Vhc nrtlil~lal restriction of *oh **would OCLULIC** 

their **dluge,** a 

### taller **ultf.mate** 

### rcoorery**of** 

### 011 th4rerrom end their

### pr4faaturc abandon5ant. . . ."
It ha6 bsea arb@ad that by the language quoted the Iagislature intended tQ~ ray that ths Railroad Co!mlssiOn should be prohibited from 1lstUlng th% production of Mrglnal **~4116** only where **suck** rsstrlotlonof their produotlonwould **04~66** wa6t4, **and** thrctlf thsRailroad Comi6SlOn should find that In reot waste tould not be uaused by euoh restrlotlonef production, then the Railroad CO~~~S~OD oould llmlt the ProduetiOn 

### from such 

### S!bllS. tiich **construotloaz** was apparettls adoptedby Judge k!cNllar!in ROWIT, 8 Elohola 011 Co. Y. Ballroad Coamisalo~. 26 F. SUFP. 131, 1% but wSS Dot f I.1 **C** by **Judge FO6t4r**  **in** Ballroad Comml~~sion 4. Rowan(i 6ichk6°%l CO-, 107 F.(Zd) 90, 92.Iion.John 2. Taylor, Pace 13

p;ebelleve however that 8uoh oon8truotloh 

### ia ontumble. In the first place, lt 

### dlrragar48 tha plainly

## exme8sed intenMoo or 

### thebglolature that 

### thepurporeof thestatutelato prohlblt 

### the restriotlon or the produotlon or marginal well& In the 8eeond plaoe, luoh eon8truotlonWOtid IEakethe &%rgllWd i?ellStatute praotfoally mo4nlnglo88. Eren li 

### there

### rersno marginal well 8tatuto, thoR4llroad Comml88ion olrarly would h4ve no IawfUl 4uthorlty 

### to **rrstrlot** the prodnotionfrom marginal ~ell8, or from My OthOr ~e118,Whom 8Uoh re8trlOtiOn rotid Oau8e w8tO Or would 04U80 &18~@8 t0 8uOhwell8 Or **rO8Ult** in tha **1088** or produotlon 

### ultimately **roooter8blo** 

### or In the

### pranatulv abaabonsieat Of 8uOhrS118. The R8ilrOad CormPi881On18 only given power to limitproduotloa where 8uoh llmitotlon 18 neoe844ry to pretent ra8te, aAd **0r** oourle **it** uould have no power **to** onaot a lldtatlon rhloh **would** hare sxaotly **the** oppo8lte 

### result. The evident lntootloa or 

### tb8Legl8laturem4s to 

### nlaka4 lagl8latlYe 

### detlllltlon or what **would** 

### oon8Jtltute "ka8klm in oertsln 8ltUdOn8 fml thereby to place a new restrio

### tlonupon the power4 oi the R4llroad Cor~mieslon, 

## notelsewhere found 

### in the 8tatuteo. such intention oould not be 

### glren errect Pnte88 the 8tatuto **is** oon8trued tq **bo** 4 positive prohlbltion agalrut the 

### ourtallment oi 

### theproduotlon of narglnal rello. 18) w think th4t it 18 

## l 8peelally 

### 8igBiriO4ZLt that 

### atter theenaotment or the orlgln41 414rglnal well etatuto, the **L8glrlaturo** ha8 deilnltely rtated la rour 

### ssp4rate8tatutorr prorlsiono, whloh hare been quoted above, that the power8 ot 

### theEallroad Comml88lon.to llmlt produotlon of 011 8hould 

### not extend 

### to the ourtrilment 0r 

### production trammirgin41 -118. fn raot, it appear8 th4t l 4oh time, 

### aStar the pa88agr or tho original Eargina Tie11Statute, 

### thatthebgi814tUre p88ed a new **8tatUtO** 

### cronierrlng broad **power8** on the Railroad Comm.i88lon, tba ~@18lE&lre WE8 OI3?ON t0 Edte 8peOifiCprOVi8iOll84&n8t an7 eon8truotlon which ~01116 #$ve the Railroad Commirelon authority to cut **down** theproduotlon fron **marginal ~0118.**  **We** 

### oannotbollevothat the tigl814turO soti& hare 8honn thl8 8olloitubs for the UarglnalMl1 Statnto had lt latended that 8uoh 8tatutewould not **be** a dbfinlte and 

### ponltlvellElt4tlOn upon the power8 of the Railroad Commisolon, not **oontaineb** in other atatute8.

8ae 1 Suuuaer8,*Thel.4~OS 011 and G48),*(Permarwit 

### ?XltlOn)m. 96, note 

### 66,where it 

### lo **8ald,** 

### Qmlal Or **th0** oomml8don*8 authority to 1Wt and prorate produotlon **or** 8wh (marginal)uellr 18 rtated'in artiolea 6014 **and** 60199, 8- 16.m ~8 we bar8 prrrlourlf pointed out, 8uch dsnlal 1S al80 round in Article 60498, **8. l@.** En. John E. Taylcr , Page 14

(3) The construction cf Article 6C49bby the Attcrney General’s Department has consistently been that this statute was a pcsitive limitation upon the powers of the Railroad Commission, The relevant portions of the former cpinions of this Department which have considered the question have been quoted above and need not be repeated here. These former cpinions contain clear and definite statements of the interpretaticn which is adopted in this opinion. Such consistent departmental interpretation is in itself highly persuasive. Federal Crude Oil Companyv. Yount-iee Oil Cornan 122 Tex. 21, 52 3. b. (2d) 56; Mocrmanv. Terre11 lO~~?‘i& 202 S W 727. In addition to the constructio: of this stat&e in ihe’ opinions of the littcrney General, we again refer to Rule No. 3 cf the State ;;ide Rules adopted by the Railroad Co.mission, which specifically provides that no rule adopted by the Commission shall be construed as abrogating the Marginal Bell Law and that “each well producing oil shall be entitled to produce without restriction the amount of oil fixed by law for its classification upon the basis of depth.”

THED. Our answer to your third question is that it is **our** man that the Legislature had the power to limit the jurisdiction of the Railroad Cc.mnission by rohibitin it from curtailing the prcduc+ion from margin& we 1s. Whet Y I?

er or not the legislative definition of %aste” contained in this statute conforms to the i%X?~Ed”&omm~ssEon, an&

the s atute s a l~~~~t~o ”ni~~~‘F~l~o~~~~‘~~ ,tk not a regulation of private rights. The Railroad Commission has only such authority over the prcducticn of oil as is specifically vested in it by the Legislature. Article 16, Section 59a of the Constitution of Texls is merely a general declaration of policy with reference to the conservation of the natural resources of the State, and a direction that

“the Legislature shall paas all such laws as maybe appropriate thereto

.” The question of what laws shall be “appropriate” rests exclusively within the discretion of the Legislature. \ihat laws, if any, shall be passed regulating the production of oil, and what powers, if any, shall be vested in any administrative agencies, are questions which the Legislature alone can decide. TheRailroad Co:snission cannot exercise any newer unless such power has been specifically delegated to it-by the Legislature. In the case of Danciger Gil PC Refining Co. v. Railroad Commission, 49 S. lrc. (2d) 837, 841, the court said:Hon. John L. Taylcr, ?age 15

“;.e recognize the rule th::t, in the regulaticn and contrcl of pri-r.ite rights -ni ?rn:;erties nf individu:lc by ad.ainistrati-le agencies of the strte, the interests of the individual, so far 3s consondnt v:ith The public welfare, should be jealcusly guarded and protected; and n; authority not clearly delegated to such agency by tne Legislature, or nece; warily implied from that expressly delegat.ed, should be sustained .I’ jee also Co:amercial Standard Inszsnce Co. -I. 3oard of Insurance Ccmmissioners, 34 3. ;;. (idj 343; &Ate v. Rnbisnn 50 8. it. (kd) 292.

Since ,;rticle 6049b is a restriction on the pcwer cf the hailrotid Co:dmission to act, there is nc 5.ueotir-n but ::jhat the Legislature has the power to maze such restriction.

FoUl=iTfi

. Our answer tc ycur fourth question is that the kiarginal !Leli A-tute prchibits the Railroar? Co.rl:ission from restricting the production cf oil frc.a v:eils coming within the classification set forth in the statute, ccc! that such prohibiticn is not dependent u$on the findings of the Railroad Commission as to whether or net such restriction -Ejouldcause 

### VJaSte cr would damage or cause the aremature abandonment of such wells. The Legislature has simply taken awayfrcm the Rzilroad Co;aissicn dny ?cwer to curtail the lroducticn of these wells, and whether or not such curtailment would cause their premature abandonment in f-:ct is wholly kmmaterial. As we have previously st,ted, the Riilro& Cc?mis;icn can exercise only such powers as xe specifically delegated tc it by the Legislature , and in this instance, the Lz+islsture has specifically withheld this Sov:er Prcm the R.:ilraid Ccmmissicn.

FIFTH. Our answer to ycur fifth questicn is that in our opinion Article 6C49b is not inv;ilid for acy reason. You dc not mention any specific constitutional objections, except the possible a,nbipity cf the statute, ind this has been discussed under our answer to ycur first question. The caption of the statute tipjears to be sufficient~, .:r.d it is .:;ell settled that the Lecislature has the t%‘Verunder the Cznstituticn to withhold from the Co.&nissicn Any ;owers L;iiich it deems proper to withhold. See iknciger nil k Refinin: Cc. :‘

. >ailroad Commissicn, 49 5. ;I. (2d) 837; brown v. Iiu:ble Gil .kRefining Co., 126 Tex. 296, 83 3, ‘A. (,d) 935, 87 S. -,, (2d) Ud3.

SItEI. Our answer to ycur sixth question is that the ~findings of the Railroad Ccmcnission of Texas oi’ facts which would bring a well within any of the classific-tions cf a marginal well are presumptively valid; but thAt they are net conclusive and finally binding upon the courts, and can beHon. John R. Taylor, Iare 16

attacked by a proper apye?l to the cou.rt?, ‘::.:ere t?ey will be sustained unles; suck findin- are foun,: bv t’ e court3 to be **1NithOUt** foundaticrl in 3ubst::ntial evidence; :.rticle 6019c, Revized Civil Xatute;; Gulf L-n3 CO. v. ---- tl.:rtiafininu

--- T C,- a”

. , 171 ;. -:. (2) 73.

**.%w~TT?**

**.** .:e cannot an3Ier yol!r seventh clle.it.ion categcrica=ceRt to say that tke :‘ar~ir.al Yell Xetute itself doe3 not prohibit the curtailment by crders of the Railroad Comzi3Jion of the producticn of oil fro;,l Ilo-:rino -Nell 5or fro-7 Rum~in~ :ell.i having treater dlily caTacitie3 than those 3recified in ;ection 1 of the ::ar:J.nal ‘cl1 jt:~;tute. It is clear that the ::arr,inal “!ell Xatute doe;: not relate to flo:viny, :lell.j. yurthermore, x.de:r t\e 1033 amendment to the I:arginal :lell .;tatute, 7:. 9. To. 2?2, Act3, 43rd Le,i;lature, Reqlar k:;ion, C’T.-gi.terC?, la-e 215, the definition of “mar$nal ‘.vell~ i3limited tc Rumrinq :vell; V’c;l:abls, under normal unrestricted operatin.:. condition;, of producing such daily cuantitie3 of oil.’ a3 are therein ;pecified. In rub-section2 “a*’ throqh

.‘eir of .Zection 1, the definition is limited to pumping oil well; having ‘a daily capacity for production,’ of a certain nu.;ber of barrel3

“or ie;;,” depending on the depth **of** the -.vell. Tl,ls 1aquag.e manifest; an intention to define a3 zzarp,inal v~ell~ only thoae

‘Nhich have a maximara daily capacity **of** not in excess of the amount3 3tated, and lumping ?dell; w.?ic:; kve rreater capacities do not comewithin t!:e definiticn of marginal yrell;. pi; interpretation i3 the 3amea3 that Flsced on tte .meaninqof the term, “marginal :vell.” by bcth the X3trict Court and the Circuit Court of A;;ealj-in the Rc+ran9 ?ichcls case. 2EF. .Zurp. 131; 107 F. (Ld) 70. ---A_

Yhether the Railroad Cc:.::.i;jioz in a proration order can fix the daily allovable of any puqing cr flo::ving well having a potential capacity greater than that of a marginal well, below! the amount allo-red for a marsins ::ell of Similar depth, will depend uron all of the relevant feet; in connection with such order and it; ar;lication. It .,cy be that there will be a jztification in the fact3 for 3ettinc the allo-.vable for strictly marginal -Jell; at a hipher fieure t%n the allo!vable a;JiTned to pumpin? or florins well; havin? 2yc:tentir 1 capacity Vreater than tte .?arrinal 9el.13. A reasonshle cla i;if ication i; permitted, and it ha,: been held that the facts .mayjustify the granting of a preference to rar.Tinal Tvell:. Xnciger Oil &Refining Co. v. Smith, 4 7”

. ;u,..
. 236. II: renersl, we believe that the Co.A.is;ion ‘vould be per.nittcd to cut the allo:vable of other -.;ells belo-r the **allO?Jable** az~3irned to 3trictly marginal -Nell;, provided such action TNouldnot result in either physical waste of oil or ga;, or in the confi;catioc of the ;roperty of. !Ion. Jokn 3:.‘Taylor, i’nye 17

other owner;. Ro:Javer, any claJ3ificaticn .:cu13 have to ha.Je a reasonable factual b:zis, end the Co:,-:i ;,icn zould not arbitrarily favor one cla;3 as a-ain;t other;. 7!.c.-.-.;on v. Ccnsolidated Gas ‘,‘tili:les Cir!.orLtion, X:: T’

. ;
.55. Xr ther:.,ore , under the decisions in the ?ederal. Cc:;2t;, t;le relative producinc ca;acities of Jell; .rrithin the ;ame pocl or reservoir constitute a very i.mrort.-nt factor thnz must be considered in promul~atinr, any proration order, and there ~0~15 have to be a rational justification. in the evidence befcre the CommitJion would be sustained in. an order :vhi.ch reduced floAne; *vella or strona cumcinn wells belo:.? the riarcinal allzvnble. :ee FeoS.lels-F;)tr~le& Ircducers, Inc. v. ;terlino, 60 3. (Ed) 1041; E 1 ‘S Fetrcleum Producers JV~~,O~Fetroleum Cor&oration’v Inc. v. Smith,- 1 ?. 5~3.. 361;

. Railroad Co.:mis;ion, 3 -. %pp. 633;PLwhancieer Oil R-Refinzn:: Co. v. ;mith, 1 F. XIr. 236; :*scIillian v. ?zilroa?i Commiaaioni511”.40C; Rc.:an - ?ichok Gil Co, v. RAlroad Co::i-izion, 2&7. jut.

. 131; Railroarl Com:io;ion v. XC’-Xii& ;JicholaQii Co., lC7’k. (2d) 70.

ZIGR’F!. 1.1your eighth -ue;tion yor asked fcr a statement byof the .zeaninn. of the I’arTinal ‘lell :~:.tritc. **3e** have already stated our vie73 penerally, and -::es~:;~arize them as follca3:

Article 6049b defi,nes the :.eaninr cf the term WarEinal well,” accordin% to the depth of the -rell and the naximum yroducin.: capacity of the -dell under normal unrestricted oreratine conditions. T-e t=r:. “marfinal well:’ 1~ r=jtricted to FuapinR,vrel13 ) .anddoes not aF-ly to flo%nr: .*Jell3. T% tern

“;,zrtinal ;zell” doe; r,cf include all lumpin* ‘sells, but only those wells whose .maximuilproduci.nq csracitie; under normal unrestricted orerating conditicns do not exceed the amounts set forth in subsections :lar t’zcu.-2. ,Ie” of 3cctio=. 1. If a l~V~;in=,well has a maximumproducing capacity in excess of the amount set f!zrth in j,ctic;: 1, then such ::ell i; not a narginal well *:rlthin the definition of the statute, and it3 ;rcductioc can be curtailed by the R.:llrcrd Cc:mi;;i9n, FroVidin: the Rzilrcad Coi&;jion finds that such curtailm&nt is reasonably necessary
. A3tc *;vells YJhiCh ccme :‘sithin the definition of a marginal well, the Railroad Co;,i~L-:sicn i; zvholly .Jithcut pager to limit the production of oil frcn 39c!1:;‘ells.Hon. John C. Taylor, Page 18 .

NI:JTH.Our answer to your ninth ruestion, which is conta.ined iii-j&r supplemental relusst dated January 

### 15; **19LO.** is that the Railroad Commission, depending; upon the rkievant facts, mayhave the power to curtail artificially the production of a pumpingwell havin; a producing capacity of more than k:enty barrels per day and producing from horizons found at a depth between 2000 and 4000 feet, below 20 barrels per day. Under the construction of the law which we have adopted, a well producing fro.mthis depth, and having a maximumproducing capacity of zore than twenty barrels per day, would not be strictly a marginal well, and the Commission is therefore not prohibited from curtailing its prOdUCtiOn, provided such curtailment is reasonably necessar'y under the facts. Of course, if the facts were such as to show that such curtaiL!ent would cause waste or would cause confiscation, the Commission would be without power so to curtail the production from such a well. A3we'have already stated in our an3wer to your seventh question, the relative producing capacities of wells in the same field are an important factor that must be considered in any proration order, and a proration order Siving a strong pumping well a lower allowable than a marginal well would not be sustained unless it had a reasonable justification in the relevant facts. Yours very truly ATTOREYGEKERAL OFTYXAS By (Simed) James P. Hart

James P. IIart Assistant JPH:AKM APPROVED

JAN. 17, 1940 (Signed) Gerald C. Mann ATTORNEY

GDJERAL

OFTX&S

This opinion considered and approved in limited conference.