The Oklahoma City times. [volume] (Oklahoma City, Okla.) 1908-1984, 1914-12-19

Owing to the large ROYALTIES that
the stute lrsscc- are compelled to pay
tn the school land department and
diffimltir- IN connection with sccur-
Ing land upon which 10 build their
tanks they are unable to hulld storage
facilities tu handle tlcir production.
As result some of the wells belong
Ing ~ the state lcssecs are shut down
while private owners along the river
banks are taking out the flush produc.
ton and draining the pool beneath
the river.
Apply for Relief
Two Of the state lessees recently
requested the state corporation com
mission to permit them To sell their
oil for 10 cents barrel. These are
the Cloverlcaf oil corporation ana
the NorramIc company, which are pay
ING the state II royalty Of 81 per cent.
They claim that they cannot a1oru
10 build storage and that they nave an
opportmlty to sell all their produc
tion AS n comes from the wells ut W
cents They applied TO the corporation
commission for rermiSsiOn 20 ae'' their
al at 40 cents hut that body thus
far has withheld its consent. taxing
the position that To permit cnt on
the pricr would break down the pres
ont market price ~ OH and Violate the
nreaent rule NJ the commission IN
Ing the minimum price AZ 30 cents u
barrel
The state seems 10 hc confron'e'
with one " Its own rules In these cas
es and IL losing money ~ rapid rnte
through lts operation. !. ", Chambers
ATTORNEY for the state school lana De
nartment. sald today that unless some
relief is soon granted the state VIII
loae nnprovimately $GO0O day for the
\ next ~ days by reason ~ the inahi'
nv Of It's lrssccs to dnll offsets
10 wells ~ the hlg oil companies ol'
the river hnnl;s and secure thelr
share NJ the flush production Thc
state lessees brought IN n well with
approximately 1000 barrels produc
tiop and the oh companies on the riv
ar hanks Immediately hegnn sinking
nine wells. Unless the state lessee'
can sell their oil and drill nine offset
wells the state win lose millions OF
dollars,
Must Drill.
Each state lcnr contains n require
mcnt that the lpsfne must drill MI OFT
set we'll Within fifteen days for encl
line we'll drilled on adjoining proper
Ties. This safeguard. however prove'
valualcss where the state lessee Is nm
nhle to store ar scll his production
while hls competitors hnvc mllmltc,
storage md marketing facilities Th'
priynte lessees nlso have n hig Hdvnn
tnge IN thar they my only one-elghtl
ROYALTY while the state lesSces pay II
some cases more than half NJ thel
gross production IA the state.
ATTORNEY ChnmherS suggested todn!
TINT the legislature could solve IN
difficulty IN two wnys one 10y makinI
nm appropriation 10 build state re
fInery to take care ~ the portion q
the oil received 10y the state In royal
ties. and the other hy making m an
rrrnrlatIon whereby tho state cuui'
huild tnnlneo trr its lcsSees IN whicl
10 store the p0rtIon " the oil belong
Ing 10 the enhNol fund
Take state OllS
II II resls'cnt'v rumOrcd tina
some ~ the hig nil comunnies nlon
tho river hunks nre drilling wells IN
side The government meapder lne an
thus encrnachng unou the portion o
the river he'd which belongs to IN
state II Is said TINT thousands q
barrels ~ ou are helng drawn eacI
dav from nromrly helonrlDr to IN
statr because ~ wells drilled wlthl
tho mcnndcr lipe Attorney Chamber
stated todnv TINT he did not know q
any wells drilled Within the l'no hu
IN case such dlscovcrv were made IN
state could nrocccd to condemn theS
prcwrtIes and tnke them over,
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