The circle banner. [volume] (Circle, Mont.) 1914-1939, 1922-10-13

Sunburst Field Fayorably Mention
ed in Bureau Report.
Some months ago, when Cat Creek
oil district had but 81 producing
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 its
rating 43 producers have been
brought in in the Cat Greek 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 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 mill
| lionaire oil producer, received in the
month of August the neat little sum
of $778,378 in royalties from the
production of oil, natural gas 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 $34,807
to Montana. Royalties on the pro-
duction of oil constituted by far the
largest portion of these federal rev.
enues and amounted to s745,696;
royalties on natural gas were $685.
760; and on natural gas gasoline
1921.
During August, 271 oil and gas
prospecting permits were received by
the bureau of mines from the gem
eral land office, making a total of
8,538 permits received. Five leases
were received, making a total of 307.
Royalty Varies
"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 121a to 33 1-3 per cent,
according to the rates of produc-
ton. During the fiscal year ended
June 80, 1922, the total government
royalty amounted to approximately
Under the leasing acts
this amount is divided, 10 per cent
to the United States treasury, 81 II
per cent to the state in which the oil
and gas are produced, and 81 ~ per
cent to the United States reclama-
tion 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
were 366 producing wells on gov
eminent land, of which 267 were in
the Salt Greek 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
lease of naval reserve No. 8 on Tea
pot dome. In order to maintain a
force of competent men
adequate for such large scale opera
ions, the bureau of mines is erect
ng a permanent camp adjacent to
he town of Salt Creek.
Developments have also proceed
I'd rapidly in Montana, where at the
end of the fiscal year 81 wells we're
producing from government leased
ands in the Cat Creek field. BY
hese developments the Cat Creek
ield became the third largest pro-
Iucer in the Rocky Mountain district.
In March oil was discovered near
Sevin in the north central part of
dontana in what is known as the
field. At the end
4 the fiscal year nine wells we're
eing drilled on government land in
hat district.
1.-THE production of gas and casing
cad gasoline from government leas-
lands In the Rocky mountain dis
-ict has undergone a phenomenal in
rease during the fiscal year. At the
nd of the year, gas was being pro-
uced in Wyoming from 23 leases in
he Salt Creek field, four in the Poi
IN Spider field, one in the Iron
reek field, and three in the Lost
1ldier field, the aggregate monthly
,yalty on the gas and gasoline hav-
g increased from $4,000 at the be-
ming of the year (July 1, 1920
$4,000 at the end of the year
Tune. 80, 1922).9
Government Prevents Waste
1.-THE work of supervising opera
)ns on the, extensive government
ased lands In California, including
val reserve No. and No. 2, has
en- conducted from the Bakersfield
flee of the bureau of mines. En-
neering investigations were also
with a view toward the
reservation of oil and gas. One in
stigation was conducted in coop
alton with the California state min
: bureau to determine the best
,thods of drilling wells for oil in
. gas producing area of North
ena Vista Hills to prevent damage
waste in the gas sands which
Ist be penetrated in order to reach
, underlying oil sands
This investigated terminated May
in a joint conference between bu-
u of mines engineers and repres-
atives of the state mining bureau,