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DAILY AVRRAGE PKWOCTiON Week Ending Dec. XI, 1M1 4,139,MO Decrease *0.70« Decrease 81.900 Increase POSTED nXLB Kevta ,SU0 'Wf . Pondera . v . ,v> ... .»LOO ^ iff Cat Bank ..^V.X.r.$196 Æ 9 Cat Cr^ V O^A\ v ^-..«US f J W- 1 1 ^Journal Ü. 8. Montana Wyoming 100 3*. iv 1,650 ontanal I* -x * MG it H \ B o*o -iftATA M * 5« PER COP &f VOLUME 21—NUMBER 41 Great Falls . Montana Saturday, Januar y 3, 1942 iNADA 10c New Year Opens With Oil Industry in Doubt About Newest Rulings by 0PM The New Year 1942 starts with a deep fog of doubt hanging over the Mon Una oil industry, in common with the rest of the conntry, with producers, refluera and marketers entirely in doubt how to proceed with their business, As a result of the doubt raised by the new priorities order covering oil fields equipment, no new wells were announced in any Montana oil field this week, None knew whether a well can be started without violating the law. Even Cut Bank operators who have all necessary tools and equipment to drill and com Bank operators who have all necessary tools and equipment to drill and com plete wells were uncertain whether they could proceed, since there was the impression that permission must be obtained from the office of the petroleum co-ordinator at Washington, D. C n and no present agency is able to speak for OPM. Refiners were In doubt whether they should continue to operate at capacity or whether they should curtail against the day when curtailed gasoline con sumptlon will result from the withdrawal of tires from the market. Whereas there are millions of automobiles with good tires that will be in operation for many months to come, despite the lack of tire sales, refiners are uncertain what the gasoline market will do. Cut Bank operators who Interprets the OPM priorities order as saying that only one well can be drilled to 40 acres find themselves between the one branch of the government, the Depart ment of the Interior, which says that they must drill two oi- more wells on a given tract during the year, and the order of the OPC that they shall not drill. The Indian leases all have drill ing requirements which cannot be voided by any present civil procedure. Marketers are likewise In doubt and filling station men who have been somewhat dependent on tire sales for their livelihood face some lean months because few sales are likely to buyers on the eligible list. Large transporta tion companies buy their tires direct; state and similar agencies buy their tires under contracts. Those firms equipped to do retreading will doubt less do a rush business—if they can get the rubber. It is the purpose of the government to save rubber for military purposes, but the recapping of old tires will serve largely to save the cords which are the base of the tire. Everyone is confident that the con fusion, resulting from sudden war measures, will be eradicated as soon as someone in authority can explain them and adapt them to local condi tions. Temporarily, at least, it will stagnate drilling and refining oper ations. Co-ordinators for Tire Rationing The growing list of federal agencies representing OPM and like wartime bureaus had the addition this week of the name of O. W. Campbell, as sociate regional co-ordlnator, division charge of Montana, Utah and Wyo ming in tire rationing. Campbell lives In Berkeley, Calif. C. L Long of Minneapolis is in charge of North and South Dakota, Minnesota and Iowa. DAILY PRODUCTION MONT.-WYOMING WEEK OF DEC. 27 MONTANA— Cut Bank . Kevin-Sunburst . Border . Cat Creek . Dry Creek . Pondera . TOTAL MONTANA WYOMING— Big Muddy . Garland . Lance Creek .... Oregon Basin ... Rock River . Salt Creek . Wertz . Badger Basin ... Black Mountain . Byron . Cody Dome . Cole Creek . Dallas Derby .... Dutton Creek ... Elk Basin . Grass Creek, light . Hamilton Dome . Hidden Dome . Hudson . Iron Creek . Labarge . Lost Soldier . Medicine Bow . Mahoney .. East Mahoney Ferris _ Maverick Springs . Mule Creek . Osage . Poison Spider . Quealy Dome . Bex Lake ;. South Caspar . Teapot . Warm Springs .. Frannle . TOTAL WYOMING .... TOTAL COLORADO .. TOTAL ROCKY MT. STS ...113867 15680 5060 70 460 455 890 22615 1150 1430 22392 8670 2595 14930 5730 150 I 60 4400 40 960 330 70 565 .... 1570 720 70 290 20 2390 7520 730 1040 130 2720 380 550 250 510 90 480 10 70 3010 86022 5330 WASHINGTON—The department of the interior announced that a call.has been Issued for sealed bids for sale ] of royalty oil accruing In the United States from leases on government land CALL FOR BIDS FOR CAT CREEK ROYALTY OIL I , in the Cat Creek oil field In central j Montana. The bids would cover sales for a period of 1, 3 or 5 years, beginning Feb. 1. At present, this royalty oil Is being sold under a five-year contract with Continental Oil Co., expiring Jan. 31. Accruals of oil at the present roy alty rate total approximately 15,000 barrels yearly. The Cat Creek field produces high grade oil ranging in gravity from 49 to 50 degrees A. P. I. There are 11 federal leases located on public lands producing the oil on which royalty ac crues to the government payable in value or in kind. Under the existing contract, the gov ernment receives $1.56 a barrel for the royalty oil, a rate which at the present time Is 31 cents above the Mid-Con tinent price of $1.25 for oil of 40 de gree gravity or above, and 41 cents above the Cat Creek field price. Copies of the call for bids and speci fications and details concerning the sales may be obtained from the di rector, geological survey, department of the interior, Washington, D. C., or the supervisor, geological survey, Cas per, Wyo. Oil Conservation Board of the State of Montana 414 Ford Building, Great Falla, Montana STATEMENT OF CRUDE OIL PRODUCTION, REFINING, STORAGE, ETC., IN MONTANA NOVEMBER. 1941 (Figures represent barrels of oil with fractional Bbls. omitted) All Other Pondera Montana Fields Kevin & Border Cut Bank Cat Creek Total 133,813 623 27 640.709 7,765 1,402,557 647.316 2,049,8731 587,705 283 8,430 81,500 677.898 IN STORAGE NOVEMBER 1st: By Producers.. By Transporters. By Refineries. By Purchasers for Storage. 3,813 19.164 9,821 1,488 51,131 2.438 4.500 67,946 465.099 360,828 7,600 6,106 17,026 . 52966 . 78 770 250,596 1,673 1,592 59.557 22 021 32 405 19448 32,798 13,596 893,873 449980 383,924 .142,971 TOTAL STORAGE. Produced During Month 81578 46,394 51,853 1943.153 .526,895 TOTAL. 2,675 25,701 12,927 377947 2928 * 169.055 Refined in Montana.... Used for Fuel or Lost.. Shipped to Canada. Shipped to Other States. 513* 2,115 645 544 642 7,788 1939 80161 29,797 2,162 13.572 454980 .177987 TOTAL. IN STORAGE NOVEMBER 30th: By Producers. By Transporters. By Refineries. By Purchasers for Storage. 138,739 648.452 578 «O' 7,092 8,819 2,361 72955 None 4900 4,160 18 288 10.374 78,174 472,380 337,619 45925 80,388 .222,303 1,592 4.841 .1 8996 79,4 f 6 1971,975 22 056 32.822 888,173 349908 TOTAL STORAGE, In Storage Nov. 30. '41 •Pipeline Gain (Deduct) November Receipts Montana Refiners 275,026 Refined Lost, Etc. 262955 In Storage Nov. 1. '41 25,376 38,047 WYOMING OIL IMPORTED Barrels of Crude Oil Production by Fields, Year 1941 Kevin Sunburst Pondera Sweetgraaa Hills Lake Basin Frannle Batin Elk Cat Cedar Border Creek Creek Dry Cut Total Creek Year Bank 1941 596.958 558.690 595.897 587959 611911 617,026 640.688 644975 645990 685.393 647 316 617940 26928 22,647 26978 24959 21,694 23,091 23,758 24,018 22.612 23,718 22,021 22900 353 151971 136 902 128921 120.976 136.068 150.723 150,097 161,141 156 893 152 805 142971 135900 1982 2986 11.071 13993 4.636 18,937 15.746 15938 16 677 15.73« 14378 13908 11959 10.000 , 1,114 1,747 1955 1938 1,431 1080 1.000 1,860 1,448 1,659 1957 1,100 1,703 1986 15131 13988 15 257 14923 13988 14,178 14.444 14.899 14,161 14175 13996 13900 January February March . April .. May ... June ... 386919 363,612 410939 401,119 415,153 403903 423911 419938 429,788 472,090 449980 430 500 390 1970 2 257 388 2987 1.430 1.59« 2,535 2.693 2,101 447 1917 932 2 221 2,102 . 2959 4,325 . 1.665 880 675 1,393 2998 1990 401 1,793 2,732 2,626 1,550 July 787 1 493 1.114 August . September .. October . November . December (Estimated) 435 1967 1,688 1929 1,096 951 1937 1,603 i 951 1.399 1.003 1964 2 363 968 1,402 8903.845 350 1900 1,600 890 1900 8,002 334,477 2,004,156 22948 31,858 164988 19,414 28983 300933 10,031 5.740906 TOTALS O'NEIL'S new WELL FLOWING 175 BARRELS : The holidays plus snow and sub zero weather plus uncertainties grow ing out of new priorities orders by OPM made a quiet week in Cut Bank, with no completions and no new wells started. The outstanding well was the | Santa Rita-Tribal No. 15, on the ex treme north end of the Lander "trend" which continued flowing 175 barrels j per day, appearing to be perhaps the creates! well since the Tender No. 1 per day, appearing to be perhaps the greatest well since the Lander No. 1 which was the first million dollar pro ducer In Cut Bank field, completed In _ _ _ _ j str ë'ak of production in the upper Sun burst sand horizon, running from [ nor theast to southwest. Wells on either | si( j e t b is narrow ao ne ge t no pro duction, One well on the east side of the zone, the nearby Cobb-Jeffries Pee No. 1. as an example, produced an average of 8 barrels of oil and 33 bar rels of water per day during the first 10 days on production. Cobb and Jeffries are speeding an other well, located farther north and more nearly in line with the "trend," drilling with rotary tools. Spudded last week it is now at 1824 after having had Colorado shale at 655. Surface pipe was set at 407. The well is known as Cobb-Jeffrles-Stufft No. 2, ln NE SEI NE! 3-35-6W. January, 1936. The Lander "trend" Is a narrow Santa Rita-Tribal No. 16, on the tren d southwest of the No. 15, ln C ' NW1 SEI 3-35-6W,, is drilling at 630. Cobb-Tribal 206 No. 2, SW NW1 SWi 10-32-5W. in the Tribal pool, averaged! 175 barrels during the first 10 days, Francis Oil-Tribal 197 No. 3, NWj SWi NW1 30-32-5W, 625. Frances Oil-Tribal 201 No. 2, SE SEI NEi 30-32-5W, 700; Colorado shale, 500; 10-inch pipe cemented at 620. Glacier Production - Barrington No. % c SWI SEI 18-33-5W, swabbed 35 bar- j rels In 24 hours, SWi SWi 9-33-5W, was shot with 100 quarts and is now shut down, on ac I Lawler-Hoerr-CIarkson No. 2, SW count of weather. McDonald-Henderson-Overcash-Trib «1 190 No. 3, SW NEI NW1 29-32-5W, averaged 65 barrels in the first 10 days Par Oil-Tribal 204 No. 1, Lot 3, Sec. 13-32-6W, is sidetracking lost tools at 2640. Santa Rlta-Jacobson No. 3, C SEi SWi 7-32-5W, drilling, 1930. Tarrant-Lenolr No. 1, SW SWi NWi 17-31-5W, a wildcat well south of the Tribal pool, is shut down at 2170, ow hig to the storm, Texaco-Govt. B. No. 5, C Lot 2 Sec. (Continued on Page Pour) Cut Bank Field Producing Area Doubled T a R 5 w -♦ w KGW . . ^ » ■ , , f — . t Tj £N T55N TMN ; T53N ■ ! mm n i » % 1 •y V ■ I •- L"i r: & »7 y. //// ùf-4 — U n H ■ m % > > » it C Ü t' > II >>■ II i»l it M I« * ~~rr I a 3* n I ;a I ;4-* - i M >1 » V ■ < n n m n M M r'T ! * M M » >1 M » - » ! 1 r i..t w o.l -, I . • •'»Vi -V J-rr » 1* S f*. I f . • > .*,1 ii »8 18 If 19 "ST n n M - - v n * \ t* V - » 31 « •2 CaJ - »3 » II 13 W U n it » ON r. » 8t M M U 1* ♦ ft; »9 3«^ t % 8 * f 8 U t II II K 14 * U 13 It II € 1 T5£N > M It ■> zi » » < » United States Geological Survey has issued a new designation of ( proven area in Cut Bank field including chiefly areas southeast and south and northwest, totaling 100,293 acres, not including area in the Blackfeet Indian reservation. The reservation lands are not des ignated, since the U. S. G. S. deals only with areas of government lands. The shaded portion is the added producing area. The black portions are areas formerly designated as part of the producing portion, now eliminated. MONTANMlL YIELD IN%1 8,573,845 DDLS. i The November report of crude oil production in Montana. Issued thla week by the Oil Conservation Board, made available preliminary total fig ures for the year 19«. revealing estimated total production for the year for nil fields of 8.573.845 barrels which Is hiKher than estimates before offi cial November figures were announced. December Is expected to show a slight decline from November produc tion, owing to the storm and holiday j Interruptions and the total for De cember may be down about 30.000 bar rels from the November total of 647, ; 316 barrels produced which was a drop from the October record of 685,393 j barrels. The 8.573.845-barrel production in i 1941 compares with 6 696.737 barrels In 1940—nearly a 2,000.000 barrel gain. Nearly 70 percent of the state's pe I troleum yield came from Cut Bank field, although Kevin production amounted to the highest figure sine* 1929, with a total of 2,004,156 barrels in 1941. November saw Montana reflnerlea back on stream after the October over haul which reduced runs to 384.819 barrels. November runs were 587,705 barrels. Exports were at about the same rate: 8,430 to Canada and 81,500 to Idaho and Washington. Exports In October totaled 89,930 barrels. M a result of Increased runs, stor age was reduced by 30,580 barrels dur ing November. Kevin storage was re duced from 393.924 to 340.508 barrels. Cut Bank storage was little changed. A tabulation of production by fields In November, compiled by the Oil Con servation Board, and a preliminary field summary for 1941, with December estimated. Is printed In this edition of the Journal. an ■& DESIGNATED CUT BANK AREA IS 100,293 ACRES The designated producing area of Cut Bcnk oil field has been more than doubled, according to the newlv Issued U. S. O. S map of north Montana's youngest but largest producing oil field. The producing area, formerly desig nated as 47.691 acres. Is now shown es 100,293 a'-res. not counting the Dar ling pool which Is designated as a separate peel. The Darling pool la north of Cut Bank field proper. The U. 8. O. 8. does not Include the producing area of the Blackfeet Indian reservation as part of the proven area Inasmuch as the Interest of ü. 8. O. 8. Is merely in withdraw ing public lands from filing under ordlnery leases. To acquire leases with in the designated proven area, oper ators must have the tracts put up for public sale. The producing area as designated now extends southward to include the n territory along Cut Bank creek to the Marlas river whereas It formerly stopped near the town of Cut Bank. Had the designated area included the ! Blackfeet Indian reservation the total j would have been 120,000 acres rather j than 100 293 acres, according to the corresponding maps prepared by tha j Oil Conservation Board of Montana j which include the new south Tribal ; pool and the Lander pool, both within ; the Blackfeet Indian reservation, in its boundaries. Cut Bank field compares In total area with the East Texas field and produces from the same Cretaceous sand horizon at approximately tht same depth. Sr Snow Storm Shuts Down Kevin Wells A snow storm and sub-zero weather ( halted all drilling wells In Kevin field this week and only four wells reported any progress. One of these, the Montana Explora tion-Lash ba ugh No. 1, SW NE! NWI 34-35-2W, found lime contact at 1500 1502, dry. and continued on to 1540 where a lime "break" showed gas and slight saturation of oil. Preparations are being made to acidize. Coolldge A Coolidge-State A No. 9, CSL SWi NWI 36-36-2W, shut down at 680. Big West- DahIqu 1st No. 2, C SEi 6-34-4W, drilling for gas. reached 20IQ feet and is due to get the Cut Bank sand production at around 2200. Dakota-Montana-Govt. No. *6, CNL NEI NWI 19-35-1W, reported to have an Initial o I 8 barrels per day, aver aged 25 barrels during the first 18 days. Parreiit-Davls No. 1, C SEI SEI 8 36-3W, west of Sunburst, shut down at 900 feet to repair engine.