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MONTANA-MADE GASOLINE WEEK, JULY 25 to AUGUST 1-BUY MONTANA-MADE GASOLINE
DAILY AVERAGE PRODUCTION •| OK Creek - 1.17 j Journal Week Ending Joly 11, 19M United States 8,947,700 lacreos 55,400 17,050 o a tan 3 I« II n I IPs, I m A £»û Pr^fA I «BEAT FALLS, MONTANA tUTCRDAY. JTULY IS. 19M. VOLUME 1 »—NUMBER 19 5e PER COPY, CANADA lOe -Î MONTANA REFINING INDUSTRY WEEK FROM JUEY PS TO 31 Starting next Saturday, Montana motorists will load up with Montana-made gasoline in practical observation of Mon tana-tnade Gasoline week. Governor Elmer Holt has called upon all Montanans to Montana-made gasoline next week, and if every automo-1 mobile owner in the State will fill up just once during the week with Montana-made gas, the refiners of the State will be able to buy a little extra crude, give a few extra hours of use employment and thereby put extra money in circulation in the Treasure State. In his proclamation Governor Holt emphasises that Montana people need all the employment that can possibly be afforded. He points out that Montana oil wells are standing Idle, state revenue which should be accumulating are cut off and the regular business channels of the state suffer as imported brands of gasoline continue to dominate the Montana market. During the year 1935 there was more Imported gaso line used than the Montana-made variety, Inasmuch as Montana refin ers exported over six million gallons to Canada. Had this gasoline been sold in the Montana market, the use of Monatna-made gasoline would have for the first time exceeded use of imported brands There are 32 refineries in the state, nine of which are shut down. The active refineries have a capacity of 26,880 barrels per day. Against this refinery capacity is a daily average production of 17,000 barrels per day—nearly 10,000 bar rels per day less than refinery ca pacity Montana has 11 oil fields in which are 412 producing oil farms and a total of lefts 5 producing oil wells. The landowners' share of the oil is divided among 2,80« royalty owners, who received about three quarters of a million dollars. There are nearly 30,000 men, women and children In Montana de pendent upon the oil industry for their llvlhood. This Includes oil field employes and their families, refinery employes and their families end filing station owners and em ployes and their families. There 2,313 filling stations in Montana including bulk plants. The production of crude brought 16,000,000 of new money into the business channels of Mon tana in 1936—a figure which could easily be doubled, were Montana re finers to use enough Mtontana crude supply the Montana gasoline oil to market. MONTANA-WYOMiNG WEEKENDED JULY 11 MONTANA Cat Creek . Cut Bank .. Kevln-Sunburst — Pondera . Buckley Border ... Dry Creek. Lake Basin - 7f>0 9000 4500 1190 220 „ 1350 40 .17060 totai*-. WYOMING 1500 ÜÎ 355 1340 Grass Creek Labarge Lance Creek. Lost Soldier....!.. Oregon Basin.... Rock River Salt Creek.. Black Mountain Badger Basin . Byron . Dallas Derby ... Dutton Creek . Ferris .. Prannie . Garland .-— Hamilton Dome Hidden Dome .... Hudson . Midway Osage ... Pilot Butte — Poison Spider Quealy Dome - South Casper Teapot.. Warm Springs - I.«?«» 930 0 3706 . 1460 . 2635 1910 .16460 40 110 670 <0 60 _ 790 _ 1000 _1410 90 340 40 790 30 170 110 20 20 50 A6340 ...,4560 TOTAL. Total Colorado, Total Rocky Mt. States.*7**0 some# ACID JUMPS KEHR HELL TO 200 BBLS.I A lO-barrel well in Kevin S an burst field started making 10 barrels an hour when treat ed with acid and what appears to be a second Stewart No. 1 producer is now in production on the famous Kesnn-Stewart lease in the west central field. The well was drilled nnder a sub-lease to a group of Lew istown people and is known as the St. Judge-Stewart, in the center of the east line of the NBM NEK 85-S5-8W and not far from the that has nude worth of oil producer *800,000 i The 8», Jude started off a* 10 barrels an hour after acl dieatlon and at last reports was said to be making better than 10O barrels per day Frazer ft Smith are moving in nearby, on NW SW% NW% 30 35-2W, Rist-Von Note lease, and will be spudded early next week Acid did not do so mach for Continental Oil State No. 9 well In SE SW»4 SB>4 16-35-2W. Treated a third time, it failed to respond and while It is being hooked onto the power it will make only a few barrels a day. on the famous George company on Its Continental has oil in its No 8 location, NB SJBK, SE*4 16-35 2W, and Is running 2-Inch tubing to acidize today. The Sunburst sand from 1315 to 1345 was dry. The contact at 1639 carried oil and it was drilled to 1647. WEST KEVIN Agan ft Goeddertz No 1 SE *4 NE% 16-3 6-3 W, are drilling at 600 feet.having been forced to un der-ream casing to shut off water. In the extreme west end of the field, Watson-Leach No 1, SE SE% NE% 31-36-3W, Is being put on the pump. It is a six or seven-bar rel well. Nearby, Sorrel-Alexander-Federal Land Bank No 1. NW NW% SW»4 3)2-3 5-3W, is drilling at 680. NORTH KEVIN In the northwest end of the field, Superior Oll-Haugen No 6, SE SEK NW»4 11-36-3W, has a showing of oil that may develop, with acidization. Without acid it ia a dry bole. It had Sunburst sand from 1630 to 164/5, dry; with rain bow colors at 1776, drilling to 1807. It will bo "shot" with acid. White-Haugen No 2, CHL NE >4 SBK 11-3 5-3W, which had com mercial production in the Sun iContinued From Page Om) OHIO WINS SUIT OVER EXCESS INCOME TAXES Ohio Oil company won Its f7,000, 000 suit against the government for refund of excess income and proflts tax for the years 1917 and 1929. The major issue at stake, decided in favor of the oil company, was whether the Income and excess pro fits tax for 1917 be computed by the decline in 'flow or by the gov ernment production methods in ob taining the allowance for depletion. Judge Hahn also ruled that In come and excess profits conld not be collected on the output of oil and gas leases obtained from the state of Wyoming, would be unconstitutional tor the government to usurp Wyoming's state rights He ruled It proclamation A dollar spout for a MoBiasa made article is said to remain in circulation in Montana until it has been used eight différant times, thus bringing eight dollar, of new business for each Dollar so spent. On the other hand, a dollar eent out of the Slate is not likaly to return. « It is a matter of emergi keep Montana dollars in «it industrial institutions in owr give all possible «qploymcBt As an example; When w» Montana crude we pay no that impels us this year to to build up sob In and cities, that we may* £ our own people a tank of gasoline made from than for imported gasoline, but the money gom to Montana laborers and Montana landowners and through them to Montana »tores and wholesalers. Farther, a part goes to support our Mbools and to lessen oor taxes The Montana oil industry pey» «ome eight differ«! kinds of £™£ ont> of which «re paid iRto Montana coffer, by imported Five yean ago only one-third of the gasoline need in Mon tana was Montana-made. Two-thirds of our being sent out of the State. At that time, was not producing enough oil to supply the local market, nor did the State have adequate refining facilities Today we have in Montana some of the most modern re fineries in the world, producing a gasoline nowhere excelled. Montana oil fields are today able to produce enough crude to for Montana people, when Montana crude prices will determine the price of gasoline. That day cannot come until Montana people use more Montana-made gasoline than they do of imported brands. The local industry cannot dominate a market in which more than half of all gasoline used is produced in other states. During the year 1936 a total of 89,410,361 gallons of gaso line was used in Montana- Of this 44,648,894 gallons were Montana-made. Oil fields and refineries in other States pro vided 44,861,367 gallons. It is true that Montana refiners exported 6,074,180 gallons bringing the total of gasoline refined to 61,106,253 gallons, but the fast are sending more than half of Omfcr gasoline money out of the gasoline money was however, Montana entire gasoline supply t the day if at hand manufacture the We recognise that th&t Montas» people Thi« y gar will m« Moatanlf f»»oli»e pttKfcictitm-coiunttnp tien paw the one hundred million mark for the find time. Tet we find the strange spectacle of Montana oil wells shat down half of the time in senne of oor field*. Whenever oil wells are dint in, some buyers reduce prices paid for crude and the State of Montana suffers the loss of revenue« from gross production taxes, net proceeds and other forms of taxes which imported gasoline does not pay into the Montana treasury. Likewise, State school funds suffer as production from State School lands is curtailed to half of capacity- All this in addition to the loes of employment and of income for Montana landowners having royalty interest in this oil The solution rests solely with the people of Montana. Were we to use nothing but Montana-made gasoline the present receipts in taxes from the oil industry might be doubled and we might then find the price of gasoline determined by a ratio to the price of crude from Montana oil fields. Few people appreciate these facts, else they would demand the superior Montana-made gasoline every day in the year. To bring these facts forcibly home to the people of the State I, Elmer Holt, as Governor of the State of Montana, do hereby designate and proclaim the week of July 25-31, inclusive, as Montana Gasoline Week. IN WITNESS ' WHEREOF 1 have bereut« wt mjr hand and eadaed the Great Beal of the State to he affixed. DOME at the City of Helena, the Capital, thta the eleventh day of Jill, B the year of oar Lord one thoneaad nine hundred thlrty-alx. ANKl BAH MITCHELL, Secretary of State KLMKB HOLT, Governor ot lb* Suite of Moatoao NEW TEST IS STARTING ON FLATWILLOW _ _ ____ a ...nvA GAS PIPE LINE STARTS H. Clark Rowland with George 3,600 Brundage has taken over acres of leases In Flatwillow struc ture from the Kalispell-Kevin group and has started a well in NE NE *4 E% 35-14N-25E. A well was drilled on this struc ture about two year* ago. tion was on the down-throw of a fault but it had to be drilled to validate leases, yet the owners took out better than a barrel of oil which the Arro refinery at Lowlstown tested and pronounced a very good product. After this, the Kalispell-Kevin people went In and bought outright all the land they conld get and it was part of this tract that Row land has taken over. Rowland ex pects to get the first Cat Creek sand at 650 and will continue on to the second sand If there is no oil in the first. Loca Contraction of the pipeline from Lloydminster to North Batfleford, Saskatchewan, will start on the first of August, according to word received from Grenville Howard, I geological engineer, who with Dor-| Hager Is supervising the pro-1 "•■V Jecf SHOW OF OIL CUT BANK SAND, PENDR0Y TEST A showing of oil in a 30-foot Out Bank sand it reported from the Tarrant-Walleiutine te»t on Ponderay structure, west of Pon dera oil field. The sand was found from 2285 feet to 2315 and the slush wss reported covered with oil Friday morning. The amount of oil was not commercial, hww ever, and drilling entinues to the objective sands in the base of the Ellis- The presence of any oil in this horizon is surprising for this sand usually carries sajt water in Pendory district.. - Drilling with 10-inch hole, Tarrant is ready to care for any water flow that may be found, circumventing the trouble that ha« prevented completion of commercial wells in previous teste. Location is NW NW swy, 028-6 w WILL DRILL WILDCAT R. W. Kirkpatrick of Conrad was a visitor at the Journal office this week. He Is seeking either a string of tools and rig, else he will let a . tuni *«y drilling contract. If he can Ret a good contractor, for a wild Icat well north of Pondera oil field. MONTANA PRODUCERS FORM COMPACT TO REGULATE OIL A compact along the lines of the independent association of California and under the banner of the Independent Petrol eum Association of America, was adopted in skelton form at a largely attended meeting of independent producers in the new court house at Shelby on Wednesday of this week. Expected to be the battle of the century, the meeting was marked by friendly feeling and an unprecedented spirit of cooperation between Kevin a nd Cut Bank WILKINSON GETS 200 BBL WELL A Butte oil Investor took big money" this a step innto week as the Wilkinson-Allot ted Tract 187 No. 1 well came into production with an Initial of 800 barrels per day. Wilkin •on is a Butte man who wow has four producing oil wells and a fifth drilling:. He alrendy has » dally income running in to three figures sud he Klj m Und In the famous Big Bend pool of Cut Bank oil field. Wllkinsonsc newest well bad Cut Bank sand from 3005 to 3022 and drilled into the Ellis three feet, to 3025. Oil rose 2,000 feet and it swabbed 200 barrels in the first 24 hours. It will make around 100 ■barrels on the pump. This was one of two completions in the field. The second was Mon tana Headlight-Ynnck No. 6, 8W»4 NW14 1-34-3W, near the dlscov (Continued on Page Five) LEASING LAW SUBJECT OF CONFERENCE From the wide-spread interest evinced in the public lands situation, large delegations of citizens from every public land state are expected for the meeting on the O'Mahoney Oreever Act to be held in Casper, July 20. Time of the meeting is 10 o'clock, Monday morning, and place is the Masonic Hall The purpose of the meeting is to formulate plahs for bringing about a modification of the Department of Interior rules and regulations governing the leasing of federal oil lands in the public lands states. Rocky Mountain oil and gas op erators feel thet the government roy alty scale is excessive, and western ers in general feel that the regula tions are so stringent as to hold back the development of natural resources "The meeting is non-political as far as party affiliation, Robert Taylor, Wyoming oil op erator, named temporary chairman of the meeting. "It is called for pnrpose of forming a strong organi zation of westerners interested in public lands. We plan to assemble facts and ammunition for Western Congressmen in presenting our problems to Congress toward se curing more equitable laws gov erning the leasing of federal oil lands, so that citizens living in the west may enjoy the benefits of the development of western oil lands and may share in the control and management of those lands." «old SMITH DRILLING TWO MORE WELLS B. L. Smith is drilling at 400 feet on his Hines No. 1 well on Devon structure, in 8E% SE14 Sec. 20-33N-2E. He recently com pleted a 3,500,000-toot gasser font is in quest of oil in his Hines well. Smith is also drilling on Benton Lake stnructure, north of Great Fails This well Is known as the Smith-Walsb-Scfawfngel No. 1, in NB14 SW* 14-22N-2B. There were about 100 producers meet I nr. «."MHO ou i no OU 1700 OU L52S present when called to order by W. »' I. P. A. chairman * Pulton president and unanimously . and th« mc_f its raemf' with thç the was r 1410 The 3340 ing w tee t 26-22N-17E or Î-21N-17E fie _ Figures show that the amount at . money spent by five foreign powers for their air forces for the current fiscal year is from 200 to 400 percent greater < than that expended by the united States. agi «&L. j(CLr* ** Kevin-Sunburnt: A. B. Crumley, P. L. Eddy, Wra. M. Knight, W. F. Maclsin and H. L. Postflewalte Crumley was elected chairman. Cut Bank; A. B. Cobb. George Nadeau. George MirCabe. Dan Drum heller, Jr., and U R. Hannah, Cobb was elected chairman. Pondera: L. F. Sonntag. K. D. Pardee. J, W. Keifer. Dave Mill» and Ray Clugh. No chairman has yet been elected. The Kevin committee is meeting Sunday. July 19. at Shelby. The Cut Bank committee met Friday evening. Pondera producers will meet some evening next week. Bach committee will draw up a set of proposed rules and the general committee will meet at the call of President Fulton to draft a complete code and by-laws. The general pnrpose Is to form a working compact similar to that adopted in other states, providing self protection and stabilization for the industry; protection for strip per wells and othfer regulations similar to those need by Oklahoma, New Mexico, Texas and California Independent organizations. Early in the meeting a resolu tion was adopted urging that there should be no personal criticism in m B. O'Neil, Lon Crumley, A. B. Cobb, N. C. Norton. W. N. Cassidy. George MbCabe, P. L Eddy and others took part in the discussion and no disputes arose. The central agent in the formu lation of the plan is R. P. Jack eon who will confer with the three committee chairman as the rales are written. GAS TAX LAW IS NOT INITIATED DUE TO FEW SIDNERS Montana gas producers sighed with relief as the initiative peti tions were printed for the coming election, omitting the proposed law Increasing the tax on natural gas to two cents per thousand cubic feet Imagine a producer who Is get ting 3 cent's per thousand for his gvie paying a tax of 2 cents per thousand? The proposed bill was drawn by some dumb-head who thought he was going to tax the big gas com panies. He did not know that the p'an as worded would hit the land owner and the 'Tittle" operator who is tied up under long-time contracts for the sale of his gas. The gas industry though absent treatment was the best method and gave no publicity to the peti tions as they were being circulated. They failed to get sufficient signers, having only 2,113 name«, against a required 18,000 A chain store measure had suf ficient signatures to have the bill placed before the people. It does not effect filling stations.