In Gulf Land Co. v. Atlantic Ref. Co., 134 Tex. 59, 131 S.W.2d 73 (1939) the court reviewed a Railroad Commission order granting a drilling permit. The permit was granted on the ground that it was necessary to prevent confiscation of property.
The holder of the permit sought to sustain it on appeal on the ground that it was necessary to prevent waste.
The court held, "In this case we are unable to uphold this permit on the waste theory, because the Commission made no finding on that question, and we are unable to say, as a matter of law, that this record shows a necessity for this well for such purpose." Gulf Land Co., 134 Tex. at 76; 131 S.W.2d at 83-84.