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

( SESSlUN DAY
AUSTIN, Aug. 13-tP-Texas to-
day had a new oil and gas o n
servation law, on which was pinned
the hopes OF the oil industry for
a reversal or the chaotic conditions
OF the past several months and for
a substantial price recovery.
Moving swiftly in the waning
hours of a special session the leg
tslature 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
ences between the respective bills
Of the two houses. became a law
a few hours after its passage when
1t was signed by Gov. Ross 5. Sterl-
ing. II had received more than
enough votes in both houses to be-
come effective Immediately on the
Signature of the governor.
Simultaneous with the signature
OF the bill, c. ". Terrell, chairman
OF the railroad commission, adj
ministrators 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 to the almost
unparalleled and uncontrolled pro-
duction OF hundreds OF thousands
of barrels dumped on an already
grooming market from the NAM
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 appointlve
commission of three TO administer
conservation statutes, was killed III
both houses last week.
Passage Of the bill, however, did
not completely dissolve the threat
OF martial law over Texas oil iieios,
threatened by Gov. Sterling when
the outlook for passage OF the con-
-----.-.. In x.a nytrarnalu dark
The governor was asked last nlght
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 u IL. Only one
dissentin. vote was cast against y
in the senate, the vote being 70
to l.
The bill was characterized by
G.. Sterling as one with teeth
in II.
That It would be given a test IN
the courts was believed inevitable.
Waste Defined
II was designed to reduce ply
steal waste TO a minimum y
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 p
right OF way. The lack OF adequate
court procedure was one OF the
main causes Of the failure OF the
old law.
Under the bill the commission IS
expressly forbidden 10 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 1t. Many
and varied constructions were
placed on its provisions. II suited
both pr~orationists and anA-prora-
tioniStS alike. Prorationists con-
tended IL prov~1ed for ~proration OF
oil pools and would permit the
commission TO set an allowable
production. Anti-prorationiStS held
Ii provided fpr limited %proration
only and the only way the commits
sion could reduce production was
under the waste provisions.
Predictions Made
Rep. j. C. Duvall Of Fort Worth,
A member OF the conference COM
mittee claimed 1t provided only for
proration 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
400 can be exercised, he said.
r. d. 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
enoe 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 70 fix an oil and gas ratio.
wastare OF gas has been a sore
srot for many months.