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Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, January 03, 1942, Image 1

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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
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*
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
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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.

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