Evening star., 1933-02-03
LEGAL FIGHT ON OIL
| PROBATION PUSHED
Texas Court Expected to
Hand Down Decision
in Short Time.
BY the Associated Press.

HOUSTON. Tex, February 3.-Ths
biggest news concerning oil In Texas
these days is courthouse news.
Still another in the long line of legal
attacks on the validity of State prora-
tion Of production in the vast East
Texas field, called by many the worlds
greatest developed petroleum reservoir.
has been heard by three judge Fed
eral Court sitting here. and a decision
was expected within a few weeks.
Meanwhile, the great field continues
to grow. In the week ended January
%. 81 new producers were reported,
bringing the total to 9,505.
New Field Active.
Elsewhere in the State the relatively
new Conroe field, near Houston, saw
the greatest activity. Conroe accounted
for IL Of the II new wells from that
big area called the Gulf Coast of Texas
In addition, there we're two spectacular
fires IN wild gassers at Conroe which
formed sgreat craters, released such
tremendous pressures that gas burst
through a score of creyices in the
ground and caused one great patch Of
earth, 100 feet or more in diameter,
to drop from sight, leaving a water
filled hole
interest, however, because it brought in
issue the whole plan OF pruration in
this State, specifically in East Texas.
The current proration orders, limit
ing production in the field to a mini
mum of % barrels and a maximum
Of 81 barrels per we'll daily, went under
fire Of numerous operators on the con-
tention they were arbitrary, discrim-
inatory and confiscatory."
Likewise, the new statute upon which
proration rests was challenged.
Price Fixing Power Charged.
The statute, enacted last November
in an extraordinary session OF the Legis-
proration legislation in Texas by ex-
pressly permitting the Texas Railroad
Commission, proration administrative
body to consider the question Of market
demand in making up its schedule OF
allowable production for the various
pools in the State.
The act was attacked on the claim
it was designed, though not openly, to
provide the commission with a means
of fixing the price.
Ernest o. Thomp1on, member of the
commission. insisted .the body had not
considered price. Its sole aim. he said
was to prevent waste and, If price
movement followed, 1t was not by &C.
sign of the commission.
One charge raised against the prora.
ton orders, apart from the broad .ssue
was to the effect they we're substan-
TALLY the same as the old orders, put
ting production purely on a "per-well'
same court last December. In thai
connection the commission said tn,
, current orders were not so based, point
ing out there was a three-barrel spreac
, between the minimum Of % and tht
maximum Of 81.
The commission obtained tempo
rary injunction last night from District
Judge w. F. Robertson in the State
Court at Austin, restraining the Gran.
fill g. Reynolds Co. from overproducine
two wells on the McGrede lease neal
Kigore. The injunction also restrained
company employees from doing violence
to Railroad Commission supervisors anc
others and from interfering with the
commissions efforts to enforce prora.
ton.
lo 1lOlIl kA1lsOlC odl0 q ASdkI-
road Commission employe was forcibly
thrown from an oil tank he was at
tempting to gauge and that 20 State
Rangers later shut down two wells.
Governor Backs Commission.
Commissioner Thompson. speaking al
Kilgore before an association of East
Texas oil land owners, asserted The
Governor of Texas was "squarely be-
hind the commission In its efforts te
curb overproduction in the East Texa:
field and violations Of proration abso.
lutely will be stopped
Thompson said the commission hae
decided to ban the running Of "bacl
aliowables" and wells would not be al.
lowed to produce or transport oil. eX'
cepting during daylight hours. How
ever, he said, the rules had been modi
fled to permit the drilling of l we'll II
every 10 acres in the field. instead Of
we'll to each 20 acres, as heretofore. Tit
commissioner said wells could be drilled
$50 feet from a property line and 66(
feet apart under the new rule.