Unit Operation of Oil Pool - Proration in Texas

The efforts towards curtailment in Texas have been successful, despite the great area covered and the wide variety of oils offered. There are, of course, examples of noncooperation, perhaps of absolute indifference, but of such it can at least be said that they have benefited from the restrictions imposed elsewhere. The prevention of waste is the legal background for proration in Texas. The legislature in 1899 passed the first laws to prevent waste of oil and gas. Subsequent legislatures, especially those of 1905, 1913 and 1917, undertook to regulate the development and transportation of oil and gas to the end that waste would not occur. In 1917 a constitutional amendment was submitted to the people, providing that natural resources of the state should be conserved and requiring that the legislature pass appropriate laws. This amendment was adopted, and the Acts of 1919 and 1929 have been passed, and these have had the effect of making a rather elaborate plan for the conservation of oil and gas and their protection against waste. In 1930 the new pipe line act, designed to provide for ratable purchases, was passed. The administration of these laws has been placed under the Oil and Gas Division of the Railroad Commission of Texas. The Commission can only consider actual waste, not economic waste. The various proration plans in use in the state, while differing in efficiency, are based on engineering principles. In the proration of flush fields, the limiting of drilling and the steady production of oil under restriction are the principal points involved, and these methods are entirely different from those which prevailed until recently in the Oklahoma City Pool, where apparently nothing beyond the restriction of production on a time basis was attempted. There is little to say in defense of proration in the older and smaller producing areas in Texas, except that, inasmuch as the market outlet has been reduced, proration distributes the market ratably among the producers. Work of Central ProRation Committee In the early part of 1930 the overproduction situation became acute, and, at the request of the Railroad Commission, a committee was formed composed of representatives of the Texas Division of the Mid-Continent