What Is the Craddock Test?The Workover Blog | Apr 10, 2026

In order to do business in Texas, operators must have a current P-5 Organization Report on file with the Railroad Commission, and they have to resubmit the form every year. When they resubmit the Form P-5, operators must list each inactive well they own and show that it was either plugged, or that the operator has approved plugging extensions on file with the Railroad Commission.

If operators fail to show compliance with inactive well requirements on time, the Railroad Commission makes a default judgment to revoke an operator’s P-5 license to operate. Oil and gas operators may then file “motions for rehearing” challenging the decision to revoke their license.

When the Railroad Commission considers motions for rehearing, they apply the “Craddock test,” which is based on a Texas Supreme Court judgment held in Craddock v. Sunshine Bus Lines, Inc. The Craddock test has three key elements:

1. Respondent’s failure to appear at the scheduled hearing was neither intentional nor the result of conscious indifference, but was due to accident or mistake;
2. Respondent presents a meritorious defense; and
3. A rehearing will not delay or work any injury to the Commission or its mission.

Rehearings are granted only if the evidence satisfies each of the elements of the Craddock test.