THE MINERAL INDUSTRY OF TEXAS 749 
 
extended the coastline a mile or more beyond the 1845 shoreline. Potentially
rich oil and gas deposits are in the disputed area. The dispute originated
from a 1960 Supreme Court decision which vested to the Federal Government
title to all lands, minerals, and other natural resources underlying the
Gulf of Mexico more than 3 nautical miles seaward from the coastlines of
Louisiana, Mississippi, and Alabama, and more than 9 nautical miles seaward
from the coastlines of Texas and Florida. At that time, the Court made no
decision as to the exact position of the Texas coastline. 
 A milestone in proration regulations was being considered by the Texas Railroad
Commission relative to applying oil allowables on a lease basis in flush
fields rather than on a per-well basis. This principle would permit an operator
to shut in lowproducing and expensive wells and transfer the allowables to
high producing wells on the same lease. The same principle of lease allowables
was used by the Commission in stripper oilflelds and unitized waterfloods.

 An appraisal of oil pipeline capacities and terminal capability of the gulf
coast oil industry was made by the Railroad Commission. The study headlined
the logistical situation of the State's and Nation's petroleum industry and
problems resulting from the Mideast crisis. 
 State and Federal agencies continued flood and water pollution control projects
and research studies on the conservation of mineral resources. 
 The Air Quality Act of 1967 became Public Law 90-148 on November 21, 1967.
The law requires States to develop air quality standards and enforcement
programs. The law obligated $428.3 million over the next 3 years for research
and operating costs of the pollution and control program with $125 million
allocated to research on fuels. 
 The General Land Office collected $5.1 million in offshore oil and gas leases
at a hid opening held April 4, 1967. At a November 7 bid letting, the Office
collected $2.5 million for offshore ~il and gas leases and $1.7 million for
sulfur leases in Culberson County in West Texas. One sulfur lease of 555
acres drew a high bid of $1.06 million. 
 The Texas Legislature modified the mining act of 1913 relating to leases
on 
coal, lignite, sulfur, and potash. The State's portion of bonuses, rentals,
and royalties was increased to 60 percent with a royalty fee of not less
than one-sixteenth of the value of minerals produced. The General Land Office
reserved the right to approve proposed mineral leases on State lands. 
 The University of Texas System received over $766,000 in bonuses at a December
1967 sulfur lease sale. University Lands offered 20 tracts involving 13,430
acres, with 15 offers involving 
10,007 acres being accepted. This was the University's first sulfur lease
offering. 
 New emphasis was placed on water in Texas and along the gulf coast; studies
were started of resources and quality for industrial purposes, as a mode
of transportation for ocean freight via the Intracoastal Waterway, and for
potential barge traffic via a number of rivers entering the gulf. 
 The U.S. Army Corps of Engineers completed or was building several dams
on Texas rivers or on boundary rivers between Texas and adjoining States.
Pat Mayse Dam and Reservoir, 10 miles north of Paris, was completed in 1967.
The multipurpose Bardwell Dam and Reservoir near Ennis will provide water
supply for municipal and industrial purposes for Ennis and surrounding communities
and will control floods on the Richland-Chambers Creek segment of the Trinity
River Basin. The Big Fossil Creek Dam, a flood-control project for residents
in the Richiand Hills section of Tarrant County, was completed. San Antonio
Floodway project, to control flooding of the San Antonio River and three
tributaries flowing through the City, was over 50 percent complete in 1967.
Somerville Dam and Reservoir on Yegua Creek, 2 miles south of Somerville,
was completed during 1967. Wallisvile Dam and Reservoir on the Lower Trinity
River, 44 miles east of Houston in Liberty and Chambers Counties, was scheduled
for completion in 1970. The project provides a multipurpose dam and reservoir
for navigation, salinity control, water conservation, fish and wildlife,
and recreation. An enlargement project of the Lavon Dam and Reservoir began
in 1967. The project will furnish storage space for supply water for communities
served by the North Texas Municipal Water District.