The Kevin review. [volume] (Kevin, Mont.) 1922-1929, 1922-10-12
CAT CREEK THIRD
PRODUCING FIELD
IN THE ROCKY MOUNTAIN RE-
GION, ACCORDING TO FED
ERAL DESIGNATION
Bureau of Mines Gave it this Rating
When it Had but 81 Producing
Wells; Now it Has 100; Kelvin
Sunburst Field Favorably Mention
ed in Bureau Report.

OIL ulSLTlCL udu UuI % pIOuuCluS
wells, the government bureau of
mines rated it as third largest pro-
ducing field in the Rocky Mountain
region. Since the date for the report
in which the government made it's
rating 43 producers have beer
brought in In the Cat Creek field,
most of them second sand producers,
which means that their yield aver
ages about four times the yield of
first sand wells.
The Kevin-Sunburst field also is
given a place in the last bureau news
report, the number of wells being
drilled on government permits at
that time being given as nine.
The news report follows:
Uncle Sam, in his role of mil
~lionaire oil producer, received in the
month of August the neat little sum
of $778,378 in royalties from the
production of oil, natural a and
natural gas-gasoline on government
lands in the west, according to the
bureau of mines, which exercises
technical supervision over such oper-
ations. Total net royalties, accru-
ing to the government, to August 81,
from these sources amounted to ST.
187,493. Of the August royalties,
$388,819 is credited to Wyoming;
$354,751 to California; and s34,807
to Montana. Royalties on the pro-
duction of oil constituted by far the
largest portion of these federal rev.
enues and amounted to $745,696;
royalties on natural gas were $685.
100; and on natural gas gasoline
1921.
During August, 271 oil and gas
prospecting permits were received by
the bureau Of mines from the gen.
eral land office, making a total of
1888 permits received. Five leases
were received, making a total of 307.
Royalty Varies
1.-THE governments sliding royalty
scale on oil produced from govern
ment leased lands, as provided by the
leasing acts, Is an important innova-
ton for the petroleum industry. I'm
der it, the governments royalties
vary from 12h to 33 1-3 g cent,
according to the rates of produc-
ton. During the fiscal year ended
June 80, 1922, the total government
royalty amounted to approximately
100000. Under the leasing acts
his amount is divided, 10 per cent
to the United States treasury, 37h
per cent to the state in which the oil
and gas are produced, and 52k per
cent to the United States reclama-
ton service.
Notwithstanding the business de-
preston and curtailed production,
field Developments have proceeded
rapidly in the Rocky mountain dis
trict where on June 80, 1922, there
nnc --@l,,-~ malls ON
eminent land, of which 267 were in
the Salt Creek field in Wyoming.
There were on that date 100 new
wells being drilled In the Salt Creek
field. Active preparations were also
in progress for the drilling required
under the Mammoth Oil company's
of naval reserve No. 3 on Tea
pot dome. In order to maintain a
supervisory force of competent men
adequate for such large scale opera
tions, the bureau of mines is erect
ing a permanent camp adjacent to
the town of Salt Creek.
Developments have also proceed
ed rapidly in Montana, where at the
OF the fiscal year 81 wells were
producing from government leased
lands in the Cat Creek field. By
these developments the Cat Creek
field became the third largest pro-
Queer in the Rocky Mountain district.
I'm March oil was discovered near
Kelvin in the north central part Of
Montana in what is known as the
.evin-Sunburst field. At the end
Of the fiscal year nine wells were
being drilled on government land in
hat district.
1.-THE production of gas and casing
head gasoline from government leas-
I'd lands in the Rocky mountain dis
riot has undergone a phenomenal in
,rease during the fiscal year. At the
md Of the year, gas was being pro-
in Wyoming from % leases in
he Salt Creek field, four in the Poi
Spider field, one In the Iron
field, and three in the Lost
,oldier field, the aggregate monthly
oyalty on the gas and gasoline hav-
ng increased from $4,000 at the be-
inning of the year (July /, 1920
$4,000 at the end of the year
June 80, 1920.
Government Prevents Waste
''The work of supervising opera
.ons on the extensive government
lands in California, including
q iODOl W wv l. oho 4NOs q las
conducted from the Bakersfield
of the bureau of mines. En-
Ineering Investigations were also
,nducted with a view toward the
observation of oil and gas. One in
sstigation was conducted in Coop
alton with the California state min
g bureau to determine the best
ethods of drilling wells for oil in
le gas producing area Of North
uena Vista Hills to prevent damage
Id waste in the gas sands which
ust be penetrated in order to reach
e underlying oil sands.
''This investigated terminated May
in a joint conference between bu-
of mines engineers and repres-
tatives of the state mining bureau,
d of the companies operating in
Q field. A drilling procedure was
opted which it is thought will ade-
otolv protoof the VqQ and ouob1o