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Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, May 19, 1945, Image 2

Image and text provided by Montana Historical Society; Helena, MT

Persistent link: https://chroniclingamerica.loc.gov/lccn/sn86075103/1945-05-19/ed-1/seq-2/

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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


isk foi

Home Oil & Refining Co.
Refinery and General Oificee—Great Falk. Mont
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
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
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
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
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
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.
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
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.
rn the
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:
NE NW NW 35-8S-23E
Drilling, Mil.
sw nw gw aees- 23 E
Drilling, 5920.
NW SW 36-68-23E
Spudded 4-12-46; drilling, 2537.
C NE 8E NW 34-9S-23E
Drilling, 4574.
NE SW SW 27-OS-23 K
WOC, 5375.

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