Railroad Commission of Texas v. Shell Oil Co.

This is a Rule 37 case. The Legislature of this State by the enactment of Revised Statutes, Article 6049c, conferred on the Railroad Commission of Texas the authority to regulate the oil industry for the purpose of preventing waste. Pursuant to the authority so vested in it the Railroad Commission of Texas adopted Rule 37, applicable to the East Texas oil field. For a copy of the rule, see Gulf Land Co. v. Atlantic Refining Co., 134 Texas 59, 65, 131 S. W. (2d) 73, 77. The pertinent part of said rule is as follows:

“Rule I. Spacing Rule. No well for oil or gas shall hereafter be drilled in…