Found it:

THE BEGINNING OF TEXAS

The Devil in Hell, we are told, was chained.
Ten thousand years he there remained.
He didn't complain nor did he groan,
But he swore he would have a Hell of his own,

Where he could torment the souls of men
Without being chained in a prison pen.
So he asked the Lord if he had on hand
Anything left when He made this land.

The Lord said, "Yes, I have plenty of land,
But it's down in Texas on the Rio Grande.
The fact is, old boy, the stuff is so poor
I don't think you could make a Hell anymore."

The Devil went down to look at the tract,
Said, "If I get if for nothing, I surely am stuck,"
But in order to get the stuff off his hands,
The Lord promised the Devil to water the lands.

He had lots of water for which there which there was no use:
'Twas the Rio Grande River and stinks like the deuce;
So the bargain was made and the deed was given,
And the Lord went back to His seat in Heaven.

"Now," said the Devil, "I've all that is needed
To make a good Hell," and he nearly succeeded.
He put thorns on all the trees,
And filled up the sand with millions of fleas.

He put thorns on the cactus and horns on the toads,
And scattered tarantulas along the road,
Made the rattlesnake bite and the scorpions sting,
And the mosquitoes amuse you with the buzz of their wings.

He covered the country with millions of ants,
So when you sit down, they eat holes in your pants.
He lengthened the horns on the Texas steers,
And built two additions on the jackrabbits' ears.

The wild boar roams through the black chaparral.
What a hell of a place he got for his Hell!
The heat in the summer is two hundred and ten,
Too hot for the Devil and too hot for the men.

Red peppers grow wild on the banks of the brook,
And the Mexicans use them in all that they cook.
Just dine with a Mex, and no more will you doubt,
That it's hell on the inside as well as the out.

But now things have changed, for the soil was so rich,
They could feed the whole world by the side of that ditch.
The finest legumbers and fruit in the land,
Are grown in Texas by the Rio Grande.