The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1921-02-27
CONTINENT AS
SOCIATlON PRESENTS
PLAN FOR MEETING
PRESENT CONDITIONS

FLAlN run MEEllNU
PRESENT CONDITIONS
The central committee on conserva-
ton and Cancellation of the Mid-Conti-
TO all producers in the states of Kan
sas and Oklahoma plan which is be-
lieved TO be the most feasible for meet
ing the present market conditions and
curtailment OF pipe line runs. The
plan is contained in pne following cir
cular issued by the association:
Cooperation Among Operators
Indispensable
The plan submitted here originates
from the following self-evfient propo-
sitions: First, that every operator IN
the districts involved recognizes the
imperative necessity of restoring the
equilibrium between production and the
market demand; second, that the logi-
cal and natural method TO accomplish
this result is to restrict the drilling of
wells upon some fair and practical
basis third, that the efficiency of
the plan is entirely dependent upon
the whole-hearte1. thorough-going and
unSelfish support of every operator
in the two states named fourta, that
public sentiment among producers lis
now 80 aroused that no operator,
whether he be large or small, can af-
ford TO lose prestige and standing
among his fellows by resisting this
movement for purely selfish reasons.
The Alternative Should Cooperation
Fail
As already stated the Oklahoma sta
tutes by express provision, prohibits
the production of oil in excess OF the
market demand. The corporation COM
mission Of that state is given the
broadest power TO enforce this statute.
To acquit the producers with the sit
uatiOn which may confront them a
copy of this statute is submitted here
with. But the business OF producing
oil is so individualistic in character
and so sensitive to outsid interference
that official regulation should be the
last resort. Oklahoma operators must
meet the situation themselves, and we
believe that the corporation commits
sion will sanction our effort in this
direction. While the Kansas operators
are not CONFRONTED with a similar
statute, the necessity for united action
in that state is just as imperative as it
is in Oklahoma AMI accordingly reason
dictates Aat the operators in the two
states should take common counsel
in this matter.
The Plan
Producers in Kansas and Okla
homa arc hereby urgently requested
TO conform their operations TO the fol-
lowing plan:
(a This plan become effective Feb
ruary "A, 1921.
CD Beginning with the day men,
toned the plan shall remain in force
until such time as the pipe line com
panies and other purchasing agencies
in Kansas and Oklahoma are accepting
for purchase all of the oil offered
them in the two states just mentioned
Or. in other words, the plan shall re-
main in force until there is ready
market for all oil produced in Kansas
and Oklahoma.
(c) Where, on the date the plan
becomes effective, an operator has
commenced preliminary work on a
well but has not begun actual drill
ing, and where the well is not an Off
set as hereinafter defined, or where
the well is not necessary to protect
the operators title to his lease. the
operator is urged TO suspend further
operations on that we'll so long as this
plan remains in force.
i'd Where, however, ON the date
mentioned above, an operator is actu-
ally in the drilling OF a well, the plan
contempiates that he may drill such
well TO the top OF the sand: Provided
should such well be an offset as here
matter defined, or should such well
be necessary TO protect title to a lease
the operator may complete the same
and produce therefrom.
(e) Even while the plan remains
in force it is contemplated that an
operator may drill and complete an
offset to u paying well on adjacent
lands where the production must be
800 feet or less from the operator's
line. The plan also contemplates that
an operator at any time may drill and
complete such well or wells az are
necessary to protect his title to a
lease or leases.
90 Aside from wells OF the class
hcreinbefore described. all operators
in Kansas and Oklahoma are hereby
most urgently requested to suspend the
drilling Of any new well or wells while
ntns plan remains In force: Provided,
this committee reserves the power 10
relieve an operator from AN unusual
burden imposed by these suggestions
upon good cause shown, but the spiri,
of the plan conternplates that cases
OF tins kind will be- reduced TO mini
mum.
Method to Carry Plan Into Effect
(a) This committee shall be known
as the central committee on conserva-
tion and Cancellation, shall meet upor
call of pnc chairdman ". in his alb.
sence, on the call OF two members. and
four members shall constitute quo.
rum for the transaction Of all bust.
ness. The central committee. under the
resolution calling II into existence has
the power to appoint local commit.
tee on cancellation. consisting OF three
members, Tor each OF the importan,
producing districts In Kansas and