The Waterbury Democrat., 1941-07-23
FOG LITERALLY. BEFOGS TEXAS. OIL PROBATION.
Revision Loses Because Flying Legislator Is
 Grounded
By RICHARD M. MOREHEAD (United Press stan Correspondent)

ny MkGkAAASU Ms MVA&Ek4EAU Limited Press stan Correspondent)
 Austin, Tex, July 2S-- (UP) -- A fog that grounded an airplaue in Burbank, Cal, kept Texas from enlbarking on g new policy in pro- rating oil production this month.
 It happened this way:
 The Texas Railroad Commission for several months had been pro- rating oil production without re- gard for purchasers requests for crude from certain wells or pools. The commissior's orders were at- tackled in the courts and injunc- tions issued.
 Then Rep. Lester Clark of Breckenridge introduced a bill in the Texas legislature to give the railroad commission power to en- force the policy that it had att tempted to follow. The bill passed the legislature, but was vetoed by Gov. w, Lee O'Daniel. The gover- nor called the bill "undemocratic and monopolistic" and said 1t took away producers rights to obtain court relief from unfair operation orders.
 On the final day of the 171-day legislative session, the house over- rode the governors veto. Propon- eIits expected the vote to b close in the senate, and Sen. John Lee Smith of Throckmorton-who had been in California to fill 8 speak ing engagement started back to Austin by airplane. The plane was grounded by fog at Burbank.
 Arrives Co Minutes Late
 sen. Smith arrived at Austin 40 minutes after the senate had voted against overriding ODanieps veto. Had Smith arrived in time to vote for the bill, the veto would have been set aside because 1t obtained 90 favorable votes and needed 2l.
 There Is some expectation that a special session of the legislature may be called this fall to re-enact a road bond bill which failed to pass during the regular session. If the session is called, legislators will make strong demands that the governor submit to the session the question of oil operation.
 Supporters of the Clark bill said that many small operators will be without order buyers to take crude from any well designated by the commission. Opponents of the Clark bill said that 1t would penal ize producers who find their own market rather than waiting for the railroad commission to find mar ket for them.
 Vast Sources Not Tapped
 Under existing conditions, said legislators supporting the Clark bill, buyers take oil whenever pos- sible from the newer fields and abandon the -produdcting older areas. Texas produces 70 per cent of tho nations oil total and under operation produces an average of about 2,35O,OO0 barrels daily. AL though many wells have been pro- ducing for more than g decade and are not as productive as formerly, Texas could furnish enough oil for all of the nations needs if its wells were to iyeld their maximum capacity.
 The legislature this year, how ever, made permanent the states practice of prorating production. This was partly an answer to de- mands that the Federal govern ment to take over regulation of the oil industry, because sound con- servation practices in the largest oil-producing state are believed likely to take away one fo the main arguments for federal control. Past legislatures voted the prora- ton law a two-year extension.
 Tamkers' Transfer Opposed
 Texas legislators reacted ad- versely to continued transfer oi oil tankers from the run to Atlan- tic seaboard refineries from the Texas coast. Most of the tankcrs were put into service from vene- zuela to Great Britain, and the legislature asked that they carry Texas rather than South Amer ican oil, irlasrnuch as most of the Venezuelan production is con- troiled by American companies.
 Construction of an oil pipeline from Texas to the Atlantic coast found favor in the state, although some legislators expressed doubt that the line would be completed in time to be of great value in the present emergency. It was esti- mated that IA months to two years will be required to build such e line.
 Texas also renewed its member ship in the Interstate oil Compact Commission, which has endeavored to keep the industry on an even keel and to combat over-produc- tion.. Although Texas continues as a compact member, operators in the state have expressed consider able dissatisfaction that some states are making little or no cf- fort to control their production and seek to increase their market at the expense of production-con- trolling Texas.