, 1921-11-17
INDEPENDENT OIL OPERATORS
3 II. ], Neely)

Occasional flashes of jagged light
ming but only the faintest sign of
poison gas invaded the recent history
making battle of Independent Oil
Operators at Casper last week.
When Ex-Governor B.. B. Brooks
suggested in that easy. gracious
way of his that possibly some of the
matters worthy of discussion by the
meeting would include the differen-
tial between Wyoming and Mid
continent crude; the Midwest penalty
charge of 3 per cen for B. S. or
foreign substance in oil: the limita-
ton of production to 80 per cent
of capacity and a few other matters
Of equal Importance to ~lndepend-
eats, he did So in such a way as TO
thoroughly impress everyone present
that he knew what he was talking
about.
But it is invariably true that some
one has IA pet grievance that is
nursed above all the rest. When Mr..
Brooks had finished and introduced
Governor Carey. many other phases
of the grievances were dealt on by
the Governor who. when finished.
had convinced all present that he
was in the battle for the right. He
dlSp IillC" W plo" uOSP hoAeH ssNO
some of the suggested wrongs. And
then the fireworks. f. T. Williams.
of the f. 7. Williams Oil Co. needed
no second invitation to speak his
, mind. 1t was then hat the first gas
fumes became noticeable. He grab
bed hold of old 3 per cent B. S. with
both hands. held it in the fire re-
tort of a life's experience and when
the button was weighed it was found
that Salt Creek crude was pure, un-
adulterated oil with not a trace of
water in It: therefore producers were
being scotched for the 3 per cent B.
S. charge. 1t was quite evident many
in the audience were hungry for
morsels of that kind.
The Governor had given an unde-
batable reason why the pipe lines
could not at present be declared to be
and forced to operate at common
carriers. But that did not matter.
for soon afterward that great Casper
Republican politician. Pat Sullivan,
who recently declared hat he would
rather be Il national committeeman
thar a candidate for Governor OF
Wyoming, took issue with the o
ernor by making the assertion thai
If he were boss he would see to 1t
that the constitution and laws were
changed Or force operation under the
present laws. And the crowd ate 1t
up.
All in all the meeting was con-
Quoted in a most dignified way.
every phase of the grievance analyz-
ed and then set aside for further and
more complete study by the, newly
appointed executive committee work
ing in conjunction with the lover
nor and the United States Mining
Bureau.
The main contention. according to
nearly every speaker at the meeting.
is over the difference in posted
rrices Of Wyoming and Mid-contin-
ent crude oil which is at least go
cents per barrel in favor of Mid
continent. wyoming Independent
operators claim Salt Creek oil car
ries 20 per cen more gasoline than
Mid-continent. consequently carries
additional values to not only pay the
TRANSFORMATION to Mid-cOntinent ter
ritory but entitle Wyoming to more
money than the general run OF Mid
continent oil. In other worlds Oil Is
being treated purely as barrels OF
oil and no consideration given to
grade. The price as paid by the two
principal oil purchasers. Midwest and
Ohio,,is based on the posted price OF
Mid-continent oil less freight charges
from wyoming to that territory. This
freight charge deduction is not h
bone of contention. h real value
of wyoming oil is what is being
asked for; then deduct the frelght
charge.
The next. if not still more i'm
portant claim than the d~ifferential,
appears to be the limitation placed
on production by h pipe lines. all
of which are supposed to be com
mon carriers. but being owned Dv
Midwest or Standard Oil OF indiana
makes a difference-so it is claimed.
independent operators contend that
the overhead cost of operation is as
great for supplying 80 per cent of
production as it would be for so or
100 per cent, therefore a great loss
is sustained through limitation by
pipe lines.
1t matters not so much to the
nublic or operators either as a mat
Ter of fact, Just what was said at the
Casper meeting. 1t does matter in a
very vital way that all these differ
ences be passed upon by experts rep
%resenting all parties at interest so
that an adjustment may be made at
an early date. The National govern
ment. the State and every taxpayer
in Wyoming is deeply concerned in
this problem. Approximately two
million dollars annually come to the
state from royalties alone. Immense
sums in the way Of taxes is paid in
by oil operators and every business
and almost every individual prospers
and therefore pays increasing taxes
when normal conditions prevail in
Wyoming oil industry. When the
nation and state and the taxpayers
lose these benefits through any
cause, each taxpayer is forced to dig
deeply into its assets to make up this
loss-and there Is where the rub
comes to Wyoming taxpayers. If the
nlairnS of tho I-ndanandant 0naratnrs