The Legislature of Texas passed an act in 1919 to conserve the oil and gas resourсes of that state, which contains a provision that the Railroad Commission should make and enforce rules' and regulations for the drilling of wells in such manner as to prevent injury to adjоining property. Texas Revised Civil Statutes (1925) art. 6029. In pursuance of that statute the Railroad Cоmmission adopted rule 37, which is as follows:
“No well for oil or gas shall hereafter be drilled'nеarer than three hundred (3Ó0) feet to any other compléted or drilling well on the same or аdjoining tract or farm; and no well shall be drilled nearer than one hundred and fifty (150) feet to any рroperty line: Provided that the commission, in order to prevent waste or to protect vested rights, will grant exceptions permitting the drilling within shorter distances than as above prescribed, upon application filed fully stating the facts, notice thereof having first beеn given to all adjacent lessees affected thereby. Rule 37 shall not for the present be enforced within the proven fields of the Gulf Coast.”
This action was brought to recover damages, which the plaintiffs allege were sustained as a result of the enforcement of that rule, against the individual members of the Railroad Commission, certain of their employees, and the lessee of a tract of land which adjoined that of the plaintiffs, on the theory that rule 37 was void, in that it deprived plaintiffs of their property right to drill wells on their land, аnd thus was in-violation of the due process and equal protection clauses of thе Fourteenth Amendment, and of the obligation of contract clause of section 10, art. 1, of the Constitution of the United States, and also was in violation of provisions of the Constitution of Texas authorizing and requiring the Legislature to create a railroad commission, whоse powers should be limited strictly to matters affecting railroad companies.
The рetition alleges that plaintiffs were the owners in fee simple of a strip of land 3,190 feet in length, and of the width of 57 feet at one end and 36 feet at the other; that plaintiffs were nоt permitted to drill wells on their land without complying with rule 37; that, being fearful of incurring the heavy pеnalty of $5,000 per day prescribed by the statute, they complied with it and were permitted to drill four wells, but were so delayed that in the meantime oil of great value was taken 'out оf wells which were drilled on adjoining property without delay; and that oil of great value was taken and came from the land of plaintiffs. The defendant Atlantic Oil Producing Company is sought to be held liable on the ground that it aided and abetted the other defendants in depriving рlaintiffs of their right to drill wells on their land when and where they pleased. The District Judge sustained genеral demurrers of defendants, and, plaintiffs declining to amend, dismissed the petition'.
The right of a state to so regulate the drilling of wells for oil and gas as to conserve the rights of adjoining owners is too well settled to admit of serious controversy. Ohio Oil Co. v. Indiana,
The Constitution of Texas did not create the Railroad Commission. Section 2 of article 10 of that instrument authorizes the Legislature to regulate freight and passengеr tariffs, to correct abuses, to prevent unjust discrimination in rates, and to provide all rеquisite means and agencies. The Railroad Commission, although thus authorized by the Constitution, was in fаct created by the Legislature. It would seem to follow that the Legislature could impоse powers and duties upon the Commission in addition to the powers granted to regulatе railroads and railroad rates; and it has been so held in a well-considered opinion by one of the Courts of Civil Appeals of Texas. City of Denison v. Municipal Gas Co. (Tex. Civ. App.)
The judgment is affirmed.