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Image provided by: Montana Historical Society; Helena, MT
Newspaper Page Text
Gerlough Application Ignored;
Supervisor Muddle Unclarified (Continued From Page 1) dent service, the Montana Oil Con servation Board, using a portion of the % of a cent a barrel pro duction tax collected from all op erators in the state, has in the past aided fhe commission in paying the expenses of the inspectors. The board was not obligated to do so, but has done so only in the best in terests of the industry. It was an experiment in coopera tive regulation by state govern mental agencies that operated effi ciently and satisfactorily under the supervision of Platt, ana L ley, the Billings supervisor. There were no complaints and numerous favorable comments from operators who recognize and appreciate good field supervisory service. At the original meeting held in Great Falls to name a successor to Platt, a joint session attended by oil board members and the three commission members, the oil board members voted unanimously to name Gerlough to the post vacated by Platt. Gerlough applied for the Shelby post only, hence action by the two board members in appoint ing him to the Billings post came this week as a shock to the board members, who had felt the commis sioners would be willing to co-oper ate in obtaining efficient and quali fied supervision of an important state industry. Gerlough was favored and named by the oil board because his applica tion, plus Investigation, showed him to be the only applicant profes sionally qualified. Gerlough is a geologist and mining engineer and has had about 20 years experience in Montana fields as manager of oil and gas field well drilling and producing operations fore named, as the fully qualified. Because of the demands made up on it by governmental agencies, and private industry, the oil conserva tion board must employ the services of a geologist or engineer, qualified to handle oil and gas production, storage and conservation problems, to estimate oil and gas reserves, de . G. Hink . He was there only applicant I Montana people * s * ? t » - 9 * * ■ » I s » ■ * isk foi 5 * J * » a T « I m ■ Montana produced I » t i Montana refined » * » « S Home Oil & Refining Co. * * s s 5 « Î Refinery and General Oificee—Great Falk. Mont t i 4 l I termine gas pressures and oil-gas producing ratios, survey well sites, determine well site elevations, and so on. , Gerlough was also the only ap plicant entitled to pre' the veterans prefen ference under veterans preference employ ment laws of Montana. On April 2o, R. P. Jackson, secretary of the Mon tana Oil Conservation Board, noti fied the board of rail commissioners, by telegram, that the board had picked Gerlough for the Shelby post. Members of the oil industry here this week were hopeful that Com missioners Smith and Casey would review their decision with regard to Gerlough, in order that the oil conservation board might be justi fied in continuing to meet part of the expense of maintaining two in spectors. regulatory laws of Montana applicable to drilling wells and oil and gas producing Industries give the board of railroad commissioners exclusive authority to regulate the location, drilling, casing and plug ging of wells, and therefore the sole right to employ -field men to supervise such activities. The Oil Conservation Board has authority to appoint field men to perform any service that it may re quire. If the members of the two boards cannot agree on appointees to serve in any field or district, at Joint ex pense, the only alternative appar ently will be for each board to select its own appointees. Such a procedure would be gen erally wasteful, uneconomic, and not in the best interests of the state, the oil industry, or the public. In making clear the oil board stand with regard to applicants, R. P. Jackson, board secretary, said: "The Oil Board's selection of Mr. Gerlough to succeed Mr. Platt at Shelby was no reflection on the abilities and merits of other appli cants considered. Many of them are known to be high class work men of unblemished reputation in the oil fields for skill and industry in drilling wells and most of them are personal friends of one or more of the Oil Board members. If the The % selection had been made on the basis of personal popularity in the oil field fraternity and endorse ments by prominent operators, Guy Young of Shelby would undoubt edly have been the choice. Mr. Gerlough was chosen on account of his professional qualifications and long experience in managing oil ana gas field operations in execu tive capacities and since the Oil Board members have since then be come convinced that he is also en titled to the appointment under the Veterans' Preference laws, the chance of a withdrawal of their selection must be considered a very remote possibility." Send a contribution to the Sun burst Badger. One Hurdle Surmounted • • • The Fifth Circuit Court of Appeals at New Orleans has "laid aside" its previous ruling, which had invalidated the option to expense intangible drilling and development costs. This means the internal revenue bureau may now go ahead as it has for more than two decades, continuing to allow operators to charge off intangibles to expense, if the operators desire. However, the matter is not being allowed to rest there. It is felt some other court, at some future time, may explode a similar bombshell. Hence, legislation to permanently legalize the intangible chargeoff is now pending in con gress. There is overwhelming support for the move, and no visible opposition. It now appears that any firm or individual now may drill, secure in the knowledge that he will be allowed to charge off his intangible drilling costs. Thus ends a condi tion that had the entire industry in chaos. STILL ONE TO GO ... ' However, independent crude oil producers of the na tion still have had no favorable response to their long standing request that the present ridiculously low price of crude oil be raised, to a point commensurate with the actual cost of replacing the crude now being sold. The attitude of the governmental agencies with respect to the independent oil man is in startling contrast to the governmental attitude toward the horse racing racket. The same Vinson, who for so long turned a stony ear to the e independent oil producer, nearly broke his : the horse racketeers the "go-ahead" signal, immediately following V-E day. So, we will have horse racing. But—men who produce crude oil will continue to be required to do so at a price that does not come anywhere near what their costs will be when it comes to drilling and replacing that same crude oil, so needed now in prosecu tion of the war against Japan. It does not seem right. plight d!j neck giv This advertisement Is one of a series, sponsored by Montana independent oil producers, to acquaint the producers with facts vital to their welfare, and from time to time to acquaint the public with some of the problems now confronting this vital Industry. These advertisements will be continued throughout IMS. You Need This Map ... (If you are Interested in any aspect of the Montana oil Industry.) This complete amLhewly revised map, a very clear white 50 by 36 inches^glvÄR a glance information that otherwise require weeks oiFresearch. And—the Information Is CORRECT! Every well shown on the map has been checked against well logs on file with the Montana CHI Conservation board. Here's the information contained on this map: Location of all producing oil and gas fields. Location of all principal anticlines. Location of every wildcat ever drilled In the state, in cluding name of the well, depth to which It was drilled, section in which it was drilled, and results obtained, as Indi cated by symbol. County boundaries and county seats. Township boundaries. Two cross sections showing geological formations, taking In the area from Glacier Park eastward through ] doin dome, the other taking In the section eastward fro Elk Basin field through the Baker-Glendive anticline. This map may be seen at our office. Price 16.26 for paper. $8.75 on linen backing. MBl would om Bow rn the MONTANA OIL JOURNAL SUPPLY DEPARTMENT Great Falb. Meat. 518 Ptanrt Avenue South Elk Basin Five drilling wells in the Mon tana portion of the Elk Basin field reported progress during the week as follows: CABTKR-HKHDBBSON KA-J NE NW NW 35-8S-23E Drilling, Mil. HTANOLINO-DENGLKK «a t sw nw gw aees- 23 E Drilling, 5920. STANOLlSfD-BliK A NO. IS NW SW 36-68-23E Spudded 4-12-46; drilling, 2537. 8TANOUND4 TP NCGEN« 1AMA C NE 8E NW 34-9S-23E Drilling, 4574. STANOUHD-TOOBBK NO. t NE SW SW 27-OS-23 K WOC, 5375.