Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1931-08-13
SOLONS PASS
BILL ON LAST
SESSION DAY

OEOOlUV UHI
AUSTIN, Aug. l3-{P-Texas to-
day had a new oil and gas con-
servation law. on which was pinned
the hopes OF the oil industry for
a reversal Of the chaotic conditions
OF the past several months and for
q substantial price recovery.
Moving swiftly in the waning
hours OF a special session the leg
islature late yesterday passed a bill
to strengthen oil and gas conser-
walton statues.
Compromise Bill
The bill, a compromise measure
that composed the radical differ
ence between the respective bills
OF the two houses. became a law
q few hours after its passage when
it was signed by Gov. Ross s. Sterl-
ing. It had received more than
enough votes in both houses TO be
come effective Immediately on the
Signature Of the governor.
Simultaneous with the signature
O. the bill, c. v. Terrell, chairman
of the railroad commission, ad-
minlstrators OF the conservation
statutes. announced a hearing would
be held August "a at Austin to
consider issuance OF new orders
governing the East Texas field.
The East Texas field has been
generally regarded as the thorn in
the side OF the oil industry and
has drawn a major portion OF the
blame for the collapse Of the price
structure OF both the national and
world markets Low crude oil prices
have been attributed 10 the almost
unparalleled and uncontrolled pro-
duction OF hundreds Of thousands
of barrels dumped on an already
grooming market from the mann
moth East Texas field, the largest
in the world.
Carries Sterling Plan
With the passage Of the bill,
Gov. Sterling succeeded in putting
over a half Of his conservation pro-
gram. The other half, that would
have provided for an appolntlVe
commission Of three 10 administer
conservation statutes, was killed IN
both houses last week.
Passage OF the bill. however did
not completely dissolve the threat
of martial law over Texas oil fields,
threatened by Gov. Sterling
the outlook for passage OF the con-
---.-4t-.- Nsff ~v#nC nNfFamHlV dark
The governor was asked last night
IL the martial law threat was oo-
waited BY the new law. Certainly
not" he replied. If those fellows
get to cutting up over there, we
might send the troops In any
time"
The compromise bill was passed
in the house, l25 To IL. Only one
dissenting vote was cast against u
in the senate, the vote being 70
to l.
The bill was characterized by
G.. Sterling as n with teeth
in II.
That II would be given a test in
the courts was believed inevitable
Waste Defined
It was designed 10 reduce ply
steal waste TO a minimum and
contained definitions defining VIZ
tually all types OF physical waste.
Court procedure IN cases involving
the railroad commission will be
accelerated by giving cases attack
ing the commissions orders the
right OF way. The lack Of adequate
court procedure was n Of the
main causes of the failure Of the
old law.
Under the bill the commission IS
expressly forbidden TO make any
attempt to hold production within
market demand. A bill with mar
ket demand was recommended by
representatives OF several major
oil companies but argued against
by Gov. Sterling.
Just what effect the new law
will have could not be determined,
even from the members OF the
committee that drafted II. Many
and varied constructions were
placed on its provisions. It suited
both prorationists and anA-prora-
tionists alike. Prorationists con-
tended II prov->ed for %proration Of
oil pools and would permit the
commission to set an allowable
production. Anti-prorationists held
/. provided for limited proration
only and the only way the commits
sion could reduce production was
under the waste provisions.
Predictions Made
Rep. j. G. Duvall of Fort Worth,
n member OF the conference COM
mittee claimed 1t provided only for
p~roration OF wells in a common
pool that were attached TO a COM
mon intra-state pipe line. No au-
thority over a well tied into an
interstate pipe line from a common
pool can be exercised. he said.
r. ID. Parker, chief Of the oil
and gas division OF the commits
sion. would make no prediction on
the effect OF the bill.
Sen. Frank Rawlings OF Fort
Worth. chairman Of the confer
ence committee. said the law would
not reduce production but that
wasteful production and the vast
age Of gas energy would be elimin-
ated.
The law contains a stringent pro-
vision giving the commission au-
thority to fix an oil and gas ratio.
wastage OF gas has been a sore