He fought to uphold the local political and economic autonomy of the region, and opposed the central government of Mexico City.
The ranchers decided to join the Francisco Madero revolution hoping to keep economic and political control of the Huasteca away from the central government of Porfirio Díaz.
[6] In October 1913, Pancho Villa won a major battle over seasoned federal troops and took the city of Torreón, Coahuila.
Greatly disliking Carranza and his followers, he decided to support the Government of the Convention ostensibly headed up by President Eulalio Gutiérrez, but actually controlled by Pancho Villa and Emiliano Zapata.
Peláez could not abide Carranza or his plans to bring the oil industry under control of his central government, so he reorganized his irregular forces and took to the field again.
Calling himself a General, he imposes taxes on the local oil companies to support a small loyal and well armed rebel force.
The prevailing opinion for many years was that Peláez and his forces started the fire when the oil companies refused to pay him money he demanded.
The heavily thicketed terrain, the extensive waterways, his access to weapons and ammunitions, and the support of the local population worked to his advantage in launching random surprise attacks on Carranza garrisons, payroll trains, and pipelines.
His soldiers intimidated, killed, stole, and set fire to Carrancista garrisons and oil company properties at will, while leaving the Huasteca natives for the most part unharmed.
[13] On September 9, 1919, Peláez, Félix Díaz and Gildardo Magaña, Zapata's successor, issued a joint communiqué to U.S. President Wilson urging his recognition of their belligerencies, in the hope that the United States would somehow internee on their behalf and oppose Carranza, but nothing came of this.
For his support, Obregón rewarded Peláez by having his rank of General confirmed, and he was named Chief of Military Operations in the Huasteca.
[16] Peláez returned to Mexico in 1923 with intentions of joining the Adolfo de la Huerta rebellion, but he was arrested before he could participate.
While the civil war raged on in Mexico, bringing destruction, poverty, and hunger to most parts of the country; the oil-producing Huasteca region remained an enclave of prosperity.