No. V-0097a (1947).

• Case Date: April 09, 1947
• Court: Texas

Texas Attorney General Opinions 1947. No. V-0097a (1947). 1April 9, 1947Hon. L. R. Pearson, Chairman011, Gas and Mining CommitteeHouse of RepresentativesAuntin, TexasOpinion No. V-97-ARe: Constitutionality of proposed Committee Amendment by King to H.B. 67, permitting pooling in oil and gas fields; and the effect of such Act on the Antitrust Laws.Dear Sir:We have your letter of April 7, 1947, which reads:

"The Oil, Gas and Mining Committee of the House of Representatives has instructed me to withdraw our request of April 3rd for an opinion on a proposed substitute of H.B. No. 67, since the authors of the proposed substitute have prepared a new substitute bill. The new substitute a new before our committee is by Rep. Lealie King and is attached hereto.

"The Committee requests that you give us an opinion as soon as possible on the constitutionality of the attached substitute by King and your opinion as to whether or not this substitute would have any adverse effect upon the validity or enforceability of the Anti-Trust Laws of Texas."

Because the attached instrument referred to in your letter is but a proposed Committee Amendment, and in order that there may be no mistake as to the exact wording to which this opinion applies, we set out in full Section 1 and 5, to which your request is directed:2

"SECTION 1. It is hereby declared the public policy of this State to prevent the waste of, and to promote the conservation of oil and gas, and to protect correlative rights therein. Therefore, when necessary to prevent waste of, and to promote the conservation of oil and gas, and to protect correlative rights therein, it shall be lawful for two or more persons owning, claiming or controlling production, leases, royalties, or other interests in separate properties in the same oil field, gas field, or oil and gas field, when it appears from geologic or other data that such properties are underlaid by one or more common accumulations of oil or gas, or both, to enter into and perform agreements for Co-operative development and operation of all or any part or parts of such field, for the purposes hereinafter specified in (a) to (d), inclusive, provided, such agreements are approved by the Railroad Commission of Texas, upon application and after notice and hearing, upon a finding by the Commission that they are in the interest of Public welfare as being reasonably necessary to prevent waste, to promote the conservation of oil or gas, and to protect correlative rights, Provided further that the order of the Railroad Commission shall define the area of the common source of supply or

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