The Liberal democrat. [volume] (Liberal, Kan.) 1911-1924, 1919-07-24
BIG OIL CORPORATION
SEEKS MORE LEASES

The American Fuel, Oil and Trans
portation Company, of New York, a
$30,O00,000 corporation, has lately
purchased the Traders Oil Company,
of Los Angeles, California, including
the holdings of the last named COM
pany resting five miles west of Lib
eral.
About eighteen months ago, the
Traders Oil Company, which had OBJ
tanned block of leases in the vicini-
ty named, erected derrick and op-
Grated their drill for a period Of eight
months. According to the statement
of H. M. McQuigg, who has looked
after their interests here, the drill
ing process met many obstacles and
proved a very expensive effort. One
of the most troublesome features was
the driving of the drill and placing
the 12h inch pipe through depth
of 100 feet of running red quick
sand, in which the piping would fire.
quently get disconnected, causing a
great amount of trouble, work and
of work, the drill reached depth of
nearly 1920 feet, and the l2 inch
pipe was inserted to depth Of 1856
feet At this juncture, owing to war
conditions, it was impossible to get
needed materials to continue the
drilling, and the plant was shut down,
and the drill hole capped, after the
Traders Company had gone to an ex-
pense of over $4,000.
/ tka infarina follOurinar tha tra N
fer of the control Of these holdings
to the American Fuel, Oil and Trans
portation Company has taken place.
The directors of the new holding
company, after thorough investiga-
ton, have come t., the conclusion
that this is deep well section, and
some Of them are reported to be
averse to further work on this pros
pect, which they figure will cost an
other $4,000 to complete the test
However, thru their president, they
have submitted final proposition to
President Magruder of the Liberal
Chamber of Commerce, asking the
aid of this organization in securing
leases on about twenty quarter Sec
tions, belonging to about fifteen
property holders, and if these can be
secured, they announce that work
will be resumed on the prospect at
once, otherwise their derrick, ma
chinery and piping will be removed,
and the test abandoned,
In order to show their good faith
in the premises, the American Fuel,
Oil and TRANSPORTATION Company
make the land owners a proposition
that we gather to be about as fol-
lows:
The leases to be put in eslrew in
local bank, subject to the develop
ment of the prospect, and not to be.
come effective for the company un-
til they have produced a commercial
oil well, work to commence and be
carried on continuously as soon as
the leases are 50 deposited.
In case a commercial oil well is
brought in from this test, the leases
are to be turned over to the company |
subject to a provision that the COM
pany commence, within one year
from the bringing in of a producing
well, the drilling of well on each
quarter section Of land and that
should the company fail to commence
within one year the lease
shall be cancelled and revert back to
the lessor.
A force of operators are now
at this prospect, getting the
machinery cleaned and in shape for
either drilling operations or removal
of casing from the hole. Just which
action will be taken we are informed
will depend upon the land owners
who are to be asked to make a
prompt decision.
Just what effect a removal of this
plant would have on future develop
ment work is hard to calculate, but
to the ordinary observer, it would
seem that such fair proposition
should meet with prompt acceptance.