Officials said the explosion occurred about 9:30 a.m. at a rig near Milford, about 40 miles south of Dallas. A Chevron crew punctured a 10-inch line, and company spokesman Justin Higgs said the accident involves a liquefied petroleum gas pipeline.
Flames could be seen shooting into the air and some vehicles at the worksite burned. A column of billowing black smoke could be seen from miles away.
Sheriff's spokesman James Saulter said no injuries have been reported.
Chevron requested that Milford be evacuated. Saulter said deputies went door-to-door advising people in the town of about 700 to leave.
Milford school Superintendent Don Clingenpeel said all students and staff were evacuated to the nearby town of Italy.
"The biggest concern right now is the pipelines that are around to make sure there's not going to be additional explosions," Saulter said.
He said Chevron has indicated it could take 24 hours to bring the fire under control and cap the ruptured line. He said it's not clear how long the evacuation will last.