Evening star., 1932-07-10
AGREEMENT ON OIL
PROBATION SOUGHT
Texas Operators Will Meet
July II to Thresh Out
Difficulties.
BY the Associated Press.

BY the Associated Press.
AUSTIN, Tex, July 9.-Claims by a
group of operators in the prolific East
Texas oil field that their production
was being held down while other Texas
pools were permitted to contribute
more than their fair share OF oil to
the petroleum market has caused the
Texas Railroad Commission to con-
slider readjustment of proration allow
ables in other areas.
Although the commissioned admin
istrator of conservation statutes in
Texas-had placed a 325, ,000-barrel
daily top field allowable on the East
Texas area, each well to contribute
ratably and equitably to that maximum,
drilling activities by operators con-
tinued The increasing number of wells
coming in had run the per well allow
able down to 81 barrels for the pro
ration period ending July l.
Operators Disagree.
When East Texas pool operators gave
the commission information on which
to base new conservation rules there
was a division among them. One fac
ton claimed the fields maximum output
was too low and that so barrels would
be a fair contribution of each well
Others sought to have the commission
held the line at not more than 325.000
barrels daily for the field. They claimed
that even that amount of oil taken from
the pool was inimicai to its ultimate life
and best recovery.
This is election year and two Of the
three members Of the commission are
up for reelection. The oil fields ad-
ministration has become an issue.
The commission first decided to give
East Texas fiat 81 barrels per well for
a 60-day period ending September
without a maximum allowable. Esti-
mates of the number OF producers in
the field and of the likely competitions
during July and August indicated the
field under that plan, would be giving
up 100000 barrels daily by August /.
Strenuous protest was expressed by
the Texas Oil and Gas Conservation
Association. The Independent Petro-
leum Association of Texas said the 81
barrels daily. sans top allowable. would
be satisfactory Much lobbying with
commission members went forward.
The commission received petitions
from both sides. The Texas OIL and
Gas Conservation Association claimed it
had obtained the protest of more than
IS per cent of the operators, land
owners lease holders and royalty in
terests to any order that eliminated
field top allowable.
Hearing Scheduled.
The commission meanwhile had called
for July IL a hearing of operators in
the Van, Yates. Gulf Coast and South
west Texas fields to discuss proposed
allowables and conservation rules for
those areas.
The call was indicative Of the COM
missions desire to consider the advis-
ability Of reducing allowables in these
districts
ItNwas likely operators in those fields
would enter strenuous objections to ma
terial reductions in the allowables.
Thus the commission faced the dilemma
CT holding Texas production down in
the face of agitation In East Texas for
larger output and objection elsewhere
TO lower allowables.
Finally the commission was able to
get all East Texas factions to agree to
a compromise order-5l barrels per we'll
fiat, without reference to a field allow
able. until July Is, and 325,000 barrels
maximum from then until September !,
each well to contribute an equal share.
Beginning July 16, the per well allow
able would be reduced TO keep the top
allowable intact, in proportion to the
number Of new competitions.