Feds regulate "hot" oil

February 22nd, 1935

On this day in 1935, the Connally Hot Oil Act became law. The act came about as a result of the federal government's attempts to deal with the problem of "hot" oil--petroleum produced in violation of state and federal quotas and regulations. In the early 1930s the overproduction of oil, largely a result of the East Texas oil boom, was adversely affecting the oil market. Sponsored by Sen. Thomas Connally of Texas, the law enacted in 1935 was intended to protect foreign and interstate commerce against "contraband oil" and encourage the conservation of domestic crude-oil deposits. It prohibited the shipment of hot oil. Under the law the president had the power to prescribe regulations and require certificates of clearance for petroleum and petroleum products to be moved between states. The law also called for the establishment of boards to issue certificates. Boards could conduct hearings and investigations regarding the enforcement of the act, and the United States District Courts had exclusive jurisdiction regarding judicial matters and disputes over denied permits. Though the legislation was intended to expire on June 16, 1937, it was maintained afterwards as a permanent law.

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Feds regulate "hot" oil

February 22nd, 1935

On this day in 1935, the Connally Hot Oil Act became law. The act came about as a result of the federal government's attempts to deal with the problem of "hot" oil--petroleum produced in violation of state and federal quotas and regulations. In the early 1930s the overproduction of oil, largely a result of the East Texas oil boom, was adversely affecting the oil market. Sponsored by Sen. Thomas Connally of Texas, the law enacted in 1935 was intended to protect foreign and interstate commerce against "contraband oil" and encourage the conservation of domestic crude-oil deposits. It prohibited the shipment of hot oil. Under the law the president had the power to prescribe regulations and require certificates of clearance for petroleum and petroleum products to be moved between states. The law also called for the establishment of boards to issue certificates. Boards could conduct hearings and investigations regarding the enforcement of the act, and the United States District Courts had exclusive jurisdiction regarding judicial matters and disputes over denied permits. Though the legislation was intended to expire on June 16, 1937, it was maintained afterwards as a permanent law.

«   Previous Next   »

Related Handbook of Texas Articles

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With more than 27,000 articles about Texas history, the Texas State Historical Association's Handbook of Texas is the largest online encyclopedia about all things Texas. Now you can celebrate the history of Texas every day by activating your free subscription to Texas Day by Day. Each day's email tells a little bit more of the story of Texas and links to our collection of more than 27,000 articles. It's one of the best ways to learn more about Texas history — in only 15 minutes a day!

Activate your free subscription to Texas Day by Day and you can:

  • Explore Texas history each day in bite-sized pieces conveniently delivered to your inbox each morning
  • Astound your friends with your Texas history prowess
  • Get in-depth looks at some of the overlooked events and landmarks in Texas history
  • Discover new places to explore in the Lone Star State
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