The Kevin review. [volume] (Kevin, Mont.) 1922-1929, 1922-11-09
2 YEARS OIL
STATE INCOME
is $i2i,387
Official Says $l72,8OO May be
Expected Annually From
Now On

Helena, Nov. Z. The treasury
Of the state Of Montana received
an income Of $121 1897 from oil
produced within it's borders in
the two-year period which ended
June 80 of this year.
This sum, represented b
checks for S43,1 and $78,219
received by State Treasurer, j.
N. Walker, was the states three
eighths share of the royalty col
lected b y the federal govern
ment from all oil production from
Montana lands on which Uncle
Sam owns the oil rights. The
prediction which paid the state
this S121 1897 was entirely in the
Cat Creek field, as the Elk Bais-
in field, the only other one in
Montana producing in market
able quantities during the two
\ years, has no production from
government lease.
It is figured that at the present
rate Of production n the Cat
Creek field with price of 81 a
barrel for oil, Montana may ex-
pact to receive a. uearlu sum of
$172,800 a ass Of the
government Jrding
to Carl C. Auams, field assistant
to the state board of equalization.
The federal government now
receives its royal ty portion in
actual crude oil and sells it to the
United States shipping board
which by an arrangement with
the Midwest Refining company,
deliveries so barrels Of Cat Creek
oil at the field and reoo;ges 90
barrels of crude oil on the Pacific
according to Adams. This ar
rangement, which will expire at
the end of this year, proves for
payment to Uncle Sam by the
shipping board on the baisis of |
Cat Creek field prices.
Because independent refneries
now operating in Montana have,
according to Adams, consistently |
paid from S1.75 to 1925 a barrel
for oil. Governor Joseph M.
Dixon recently proposed to Sec
retary Of the Interior A. B. Fall /
that Montana hereafter receive
it's share of the federal royalty
oil in crude oil direct from the
field, instead Of cash through the
sale to the shipping board and it's
transfer agreement with h e
Midwest Refining company.
1t is on the basis of such an
arrangement being put into eff
feet, and the state selling it's
share Of crude oil direct to in
dependent refneries within the
state, that Adams bases his cal
culation that Montana may look
forward to the annual receipt of
at least $172,8OO from the Cat
Creek field.
Adams said:
Legal notices recently publish
ed in the Rocky mountain district
contained bids for the purchase
Of federal royalty oil in the Cat
Creek field in Fergus county and
the Salt Creek field in Wyoming.
The federal oil leasing act Of
1920 provides that the oil and gas
of the public lands may be pro-
spected for, produced and mark
eted under a leasehold and
royalty interest in such produc-
tion to be retained by the public
and proceeds from the sale be
bald to the secretary of interior.
"A royalty Of 5 per cent is pro-
vided for the first lease in new
field and royalty ranging from
IL to Is per cent on subsequet
leases. /
AT present 92H per cent of
all the oil produced in the Cat
Creek field comes from govern
ment leases. The three-eights
share which the state receives of I
the federal oil royalties must be t
used, according to the fedaral
act, for roads and school pur- :