Executive Order 6980-C—Order No. 2 Under Act of February 22, 1935

By virtue of and pursuant to the authority vested in me by the Act of Congress entitled "An Act to regulate Interstate and Foreign Commerce in petroleum and its products by prohibiting the shipment in such commerce of petroleum and its products produced in violation of State law, and for other purposes", Public No. 14, 74th Congress, approved February 22, 1935, and the Executive Order of the President of the United States, No. 6979 (February 28, 1935), and pursuant to my order No. 1, this date promulgated thereunder; and

Whereas, I find that large quantities of contraband oil, as defined in said Act of Congress, are originating in the East Texas Field, as hereinafter defined, and are being shipped and transported in interstate commerce from the East Texas Field; and

Whereas, I find that the potential production of petroleum in said East Texas Field is very large and greatly in excess of actual production at this time; that the actual production of petroleum in said East Texas Field is approximately seventeen per cent, of the total actual production of petroleum in the United States; that there has been over a long period of time and is now substantial actual production in said Field in excess of the amounts permitted to be produced under the Laws of the State of Texas and under the regulations and orders prescribed thereunder by the Railroad Commission of Texas, a substantial part of which moves in interstate commerce; that there is actually situated in said Field at this time large quantities of contraband oil, a substantial part of which is immediately available for interstate transportation; that there are in said Field numerous wells, refineries, reclamation plants, casinghead gasoline plants, pipe lines, railroads, loading racks, gathering systems, tank trucks, storage facilities, and other equipment and plants used in connection with the production, refining, processing, manufacturing, storage, and transportation of petroleum and petroleum products; that by-passes and other devices and operations have been used over a long period of time and are now used in said Field to obstruct the enforcement of the Conservation Laws of the State of Texas and the orders of the Railroad Commission of Texas thereunder; that the foregoing facts relating to the facilities, plants and equipment, and the methods of operation thereunder, make it difficult, if not impossible, to prevent shipments in interstate commerce prohibited by said Act without the use of certificates of clearance as authorized by said Act; and

Whereas, I find that it is necessary and appropriate for the enforcement of the provisions of said Act to require certificates of clearance for petroleum and petroleum products moving or to be moved in interstate commerce from said East Texas Field, and to establish a Board for the issuance of such certificates; and

Whereas, I find by reason of the matters and things hereinabove set forth that the regulations prescribed by my order No. 1 under said Act are necessary and appropriate for the enforcement of the provisions of said Act in said East Texas Field;

Now, Therefore, it is ordered:

Article I

That part of the State of Texas included within the Counties of Gregg, Upshur, Smith, Rusk, and that part of Cherokee County covered by the Miguel de los Santos Coy, Pratt and Wesley Dikes Surveys (to be known as the East Texas Field) is hereby constituted a designated area within the meaning of Regulation II of my order No. 1 under said Act and Executive Order, and the regulations prescribed by said order shall apply to all petroleum and petroleum products originating in said area and to all persons producing, refining, processing, manufacturing, storing, shipping or transporting petroleum or petroleum products originating in said area.

Article II

I hereby appoint and designate Norman L. Meyers, Chairman, M. S. McCorquodale and John F. Davis to act as a Board to be known as Federal Tender Board No. 1, for the purpose of issuing certificates of clearance for such area under said Act and administering the regulations prescribed by my order No. 1 under said Act and Executive Order. The principal office of Federal Tender Board No. 1 shall be located at Kilgore, Texas.

Article III

Federal Forms numbered 1, 2, 3 and 4, including the reverse sides thereof, copies of which are annexed hereto, are hereby approved and made a part of this Order as though fully set forth herein. Applications for certificates of clearance in the respective situations to which said forms are applicable, supporting affidavits for said applications, and returns by transporters shall be made on said forms in accordance with the instructions appearing on said forms.

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Article IV

Federal Forms A, B, C and D, including the reverse sides thereof, copies of which are annexed hereto, are hereby approved and made a part of this Order as though fully set forth herein. Monthly reports by refineries, reclamation plants, casinghead gasoline plants, pipe lines and producers operating in the East Texas Field shall be made on said forms in accordance with the instructions appearing on said forms.

Article V

All terms defined in said Act or in my order No. 1 prescribed under said Act and Executive Order shall, when used in this Order or in the forms approved hereby, receive the definition given in said Act or Order.

Article VI

The operation of this Order shall begin at seven A.M., March 1, 1935.

Approved, prescribed and promulgated this 1^st day of March, 1935.

HAROLD L. ICKES
     Secretary of the Interior.

Approved
     March 1 1935

FRANKLIN D. ROOSEVELT