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April IT, IMS ■»'ay ■mum' ■ — « ■ > !■ Ï1.9S1 ha«» JK WyMBim H4N bcnav /■ C«M «.4M Ihmh /-voflän _I KM y ■ M IM 1M TM Skbid 4. mjM oum h 7 ( fA Volume 23—Number 6 GREAT FALLS, MONTANA, APRIL 24, 1948 5c Per Copy—Canada. 10c CARTER FARMS OUT LEASE BLOCKS t PAW Asks 35 Cent Increase In Oil Price An increase of 35 cents per barrel in the price of erode has been recom mended by Harold lefces, petroleum ad ministrator for war, and the proposal is now in the hands of the OPA, accord ing to James W. Johnson of Shelby who returned Tuesday morning from Washington where he was summoned to appear before the hearing of the Patman small business committee. Johnson states that the price increase is being held tip by Fuel Price Chief Pike of OPA who, apparently alone, is holding ont against a price increase, contending that there is plenty of pros pecting for oil and that present prices are adequate. His view is shared by none of the PAW and, so far as can be ascertained, by Price Administrator Brown. — Administrator lekes announced that he had heeommended on April 7 an average increase of 35 cents * ba rrel for crude, ranging up to 50 cents in some fields. He pointed out in his letter to OPA that wildeatting must be stim ulated to prevent an oil shortage; urged that the price must be high enough to make possible the drilling of margi nal locations and that the price must allow tke maintenance of stripper wells which will otherwise be abandoned if the price is not increased. Chairman Patman asked lekes: "Do yon think the situation so alarming now that an increase should go into effect immediately T* "I made the recommendation," said lekes. Pike indicated that he wonld hold the matter up for two months and indi cated that his decision wonld be nega tive; that thereafter it would go to Eco nomic Stabilizer Byrnes and would be held np for another two months, by which time the 1943 drilling season \ DAILY PRODUCTION MONT.-WY O.-COLO. WEEK ENDED APRIL 17 MONTANA— Ont Bank - . 14754 .. Border Gat Creek —. Dry Creek - Pondera - AH othere .. 20 ... • 294 132 527 167 TOTAL MONTANA WYOMING— Big Muddy '_ Garland .. LaneeCr eek.. Lost Soldier Oregon Basin- Bock Biver „• . ■ Salt Creek - Wertz ... Badger Mountain Byron ___ Cole Creek Dallas Derby - Dutton Creek — Klk Basin Light . Elk Basin Heavy 21001 1070 1116 . 20910 . 5530 — 13495 2650 - 13490 _ 5710 100 7085 1140 400 40 550 910 0 OUR WISH COMES TRUE Entrance of John B. Hawley, Jr., Into Northern Montana oil develop ment comes as an answer to a Christ mas prayer or wish expressed In the Journal in Its last edition of the year 1942. At that time the Journal hoped that Northern Ordnance might engage in large-scale opera tions in Montana—a hope that is near fulfillment, with the movement into Montana of five rotary drilling rig»- Frary Chosen President Oil Association Gerald 8. Frary, Cut Bank producer, was elected president of Montana Oil & Gas Producers Association at the annual meeting of that organization at Shelby on Tuesday afternoon. L. B. Hannah of Shelby was elected first vice preaident, E. J. Hnpp of Cut Bank was elected second vice president; La- * Bne Smith of Great Falls was re-elected secretary-treasurer and James W. John son of Shelby, retiring president, was named chairman of the board, a newly created position. The complexion of the association was entirely changed by the election, with Cut Bank producers controlling the board of 15 members, whereas Kevin has had a dominant hold on the association activities in the past. The new board will meet in the future in Ont Bank where the majority reside and the association offices will accord ingly be in Cut Bank. Frary is a business associate of John son, who withdrew in favor of Frary despite protest of several of the direc tors who held that Johnson should carry on the work of the association for another year. Johnson has made numerous trips to Washington and else where in the interests of the associa tion and has contributed much time and money to the interests of the in dustry and it was generally believed that be would be re-elected in order to, capitalize the contacts so made. He insisted upon the withdrawal of his name and the directors in turn elected (Coatfanud os Pee* 4) f his Is An Editorial Directed te One Man This is a one-man editorial, dl rooted to one man. That man Is E. B. "Hardrock" Coolldge. The publisher of the Journal has been identified as one of Hard rock's best friends for more than 20 years and believes that Ooolidge would not knowingly injure the industry at large. There are few men who have contributed more ef fort to the upbuilding of the in dustry than be. The Journal has admixed his fighting spirit and has backed him many times. We have disagreed with him at other times but always fought it out without breaking friendship, granting that Hardrock loves a fight better than Northern Ordnance is Moving Five Rotary Rigs Into Northern Montana Entrance of John B. Hawley of Northern Ordnance Company of Min neapolis into north Montana oil development was announced this week by R. E. Damp and O. A. Seager of Carter Oil company at Cut Bank. Northern Ordnance company has contracted with Loffland Drilling company of Tulsa to move five rotary rigs into northern Montana to conduct drilling operations for that company. The Carter Oil company has recently sold a divided interest in sev- eral of the blocks they have recently acquired in the Sw'eetgrass Arch area of northern Montana to the Northern Ordnance. At the same time, it was announced that Northern Ordnance had purchased acreage in Carter's Gage block in Musselshell county, Montana, in the Camp Crook block in Harding county, South Dakota, and Carter's Linton block in Non-Recourse Loons Proposed For Wildeatting North Montana oil operators bave joined with Wyoming operators in pro mulgating a plan for RFC loans to the oil industry for financing wildeatting, under the plan of Senator O'Mahoney. The original plan called upon operators j to mortgage their production in order j to finance prospecting. The new plan would provide non-recourse funds, matching dollars with any operator who wished to drill an approved wild cat well. The loan would be repaid in the event of commercial production. On their recent trip to Washington, D. C., K. D. Pardee and Wilfred Na deau of Cut Bank met with sponsors of the plan and gave their endorse ment, later circulating petitions among Montana operators. Treasure State Refinery Running Treasure State refinery at Shelby Las been reopened by C. Leonard Smith, who recently took it over. Ho has George Ferry and O. M. Russell in charge and expects to run largely on his own production in Kevin field. Smith built the plant, sold it to Frank Walsh, and after Walsh shut it down, owing to lack of crude, Smith bought it back. Recently Hardrock clashed with lease men who competed with him for oil and gas leasee on state school lands. He choae to fight by replacing cash bids with offers of over-riding royalties. The state land board has not yet handed down a ruling and it is not too late to prevent the establishment of this dangerous precedent. We do not know ONE Montana oil producer who believes that the state land board should issue any other than 87V»% lessee. We doubt that the land board wants to start that sort of business, knowing What cut-throat over-riding royalties did to Kevin field. Everyone is agreed Emmons county. Northern Ordnance Co. has recently announced the following locations for wildcat tests on its acreage: Gage area: V HW% SW14 15-9N-26E, the Northern Ordnance-Louise T. Mor ris No. 1. Camp Crook area, 8. D.: C 8W»4 S W V» 1-17N-IE, Northern Ordnance Stute School land No. 1. Linton area. N. D.: C NW% HW% 35 - 133N - 7nW, Northern Ordnance Franklin Investment Co. No. 1. North Montana locations have not yet been announced, pending comple tion of geological and possible geo physical work. Northern Ordnance started a well on Clarks Fork structure, northwest of Elk Basin, in southern Montana, but that well is now shut down short of its ob jective, pending settlement of lease matters. This company also suspended drilling on a well in Badger Basin, northern Wyoming, short of its objec tive. Hawley is reputed to have amassed between $10,000,000 and $15,000,000 from government contracts, manufac turing gun mounts for merchants ves sels. Knowing that any such profits must be utilized to be retained follow ing the war, Hawley is said to have determined to invest his money in the oil industry, Jioping to find new oil reserves which will not only help win the war but which will afford a perma nent and profitable asset after the war. Formerly engaged in a modest pump manufacturing business, John B. Haw (Continued on Pace Z) that none can compete with inte grated companies in that kind of bidding, if it comes to a finish fight. They don't want such a fight unless it is forced upon them. Believing that it is all a mis take, this is to publicly ask Hard rock to withdraw his pending bid for state lands subject to over-rid Ing royalty below the customary 12*/»% landowner's reservation and we ask that he allow the land to go np for sale another time. There is room for everyone in the Montana oil industry and to forego the fnn of a fight is the patriotic thing to do at this time when Uncle Sam needs all the fighting energy.