Papers - - Production - Domestic - Oil and Gas Development in the Texas Panhandle for the year 1935

During the year, there were 570 oil wells completed for a total daily initial production of 365,352 bbl. The daily oil potential of the field, effective Jan. 1, 1935, as established by the Texas Railroad Commission, was 306,102 bbl. with a daily allowable of 58,800 bbl., whereas, on Dec. 31, 1935, the potential was 587,376 bbl. with a daily allowable of 57,800 bbl. Because of the limited market demand, the allowable decreased although the potential increased. In August, the five-day test for determining the potential production of a well was replaced by a 24-hr. test. The reason for this change was that some of the oil-pur-chasing companies contended that too much oil in excess of the limited market demand was produced during the five-day tests. Dry Gas.—During July, the Texas Railroad Commission supervised the first complete and accurate field-wide test of open flows that has been made in this area. The total open flow as determined at that time was 16,426,085,000 cu. ft, There were 79 gas wells drilled in '935, with a combined open flow of 2,408,000,000 cu. ft. and 50 depleted oil wells were plugged back for gas with a total open flow of 529,800,000 cu. ft. The total new gas production for the year was, therefore, 2,937,800,000 cu. ft. The 17 natural-gas pipe lines drawing on the Panhandle supply of fuel gas withdrew a daily average of 420,497,507 cu. ft., or a total of 153,481,-590,000 cu. ft. for the year. The 44th Texas Legislature passed a statute known as House Bill No. 266, which was designed to prohibit waste and protect correlative rights by compelling the ratable production of gas. The part of the law relative to withdrawal of sweet gas became effective Aug. 1, 1935, and the part referring to withdrawal of sour gas became effective Oct. 1, 1935. Three of the major pipe line companies attacked the validity of the ratable production feature of the new law and a preliminary injunction was granted by the Federal District Court. The final hearing on the incrits of the case is scheduled for the early part of January. Natural Gasoline.—Forty of the 42 natural-gasoline extraction plants in the Panhandle operated throughout the year. One plant discontinued