Texaco Producing, Inc. v. Fortson Oil Co.

CARROLL, Justice.

Texaco Producing, Inc. and Fortson Oil Company sought reinstatement of canceled allowables for gas wells in the same reservoirs. The Railroad Commission granted Fortson’s application and denied Texaco’s. Texaco appealed to the district court, which affirmed. We will reverse the district court’s judgment affirming the order of the Railroad Commission, and remand the cause to the Railroad Commission for further proceedings.

THE CONTROVERSY

This appeal presents the question of when the Railroad Commission may treat producers in the same reservoir differently. Texaco and Fortson…