[Letter from Sam E. Wohlford to Truett Latimer, February 27, 1954] Page: 3 of 4
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obligations and, in time, far more. Moreover, this action is
dictated by conservation interests alone, since only a free
gas price can halt the serious waste now unavoidable.
There is another aspect to this which we can no longer
ignore. Because natural gts is so grossly underpriced in re-
lation to other fuels, exports from Texas have begun to exceed
our abilityto discover new reserves. Statistics show that
gas production has increased at a faster rate than proved re-
serves since 1945. Something must be done to assure that our
own State needs will be satisfied before exports are allowed
to expand further.
In my own counties-Dallam, Hansford, Moore, Oldham,and
Sherman-- farmers car. not buy gas-to run irrigation wells, even
though the gas is being produced from their own farm. The
pipelines say all this grs is 'dedicated" for export and will
not even sell it to the farmer.
The town of Sunray, Moore County, was unable to buy gas
for municipal purposes from a pipeline, although it is lo-
cated in one of the nation's main gas-producing areas. The
town had to go out and buy its own lease to get a gas supply.
You can well imagine the near revolt this has left farmers in
when they have to go out and buy more expensive butane,propane,
or electricity to do the irrigating necessary to make this the
agricultural utopia it can become.
Here is a matter that concerns us all; something must
)e done as long as pipelines are allowed to pay prices ranging
as low as 2.6171 cents per thousand. The normal forces of
supply and demand in any other commodity would correct this
situation, but they are not allowed to operate in old gas
fields.
Furthermore, by eliminating the purchaser discrimin-
ation which allows a range from 2 to 14 cents in this field
we would provide a base upon which taxes could be settled and
abolish the varied and highly arbitrary tax settlements now
enjoyed by major pipelines in reporting their 5.72 percent
severance tax. Here alone is an inequity which the Legislature
aill want to correct promptly; the price the royalty owner pays
Zis 5.72 percer.t tax on should establish also the value of the
reneini-ng 7/8ths upon which others pay taxes. 9urbest esti-
nate re that i:DT.slat oni t ) correct phisdiscrimintion in
cOL nin would aet 1 St te_ "Tl_over_ nlon more a
r P 7e Saofn (gr ned. By applying this to
otherr similar distress situa iions, the Goveraor and we of the
egisla:ure would have no difficulty providing needed funds.
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Wohlford, Sam E. [Letter from Sam E. Wohlford to Truett Latimer, February 27, 1954], letter, February 27, 1954; (https://texashistory.unt.edu/ark:/67531/metapth1196327/m1/3/: accessed June 21, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting Hardin-Simmons University Library.