, 1923-09-12

PR. CORPORATION
REPLIES TO CHARGES
Of Salt Creek Agreement Denied by Vice
President Who Says Other Operators Are
Running 100 Per Cent Production

our oil run during tests of others in
the middle and north zones. These
figures were considerably less in our
estimation that our wells would have
actually produced on a 100 per cent
test. but the same were accepted by
US.
Since that time our pipe line de.
partment has been running less than
our prorata amount according to these
agreed figures and are, at the pres
ent time. taking less than IS per cent
of their total Salt Creek production
as estimated and agreed to by mem.
bers OF the committee.
You r aware that other
tors in the field have been running
100 per cent production from their
properties and have admitted this to
u.s. Further. / an now advised that
certain producers IN tho field have
been notified TO get their wells off.
setting Producers and Refiners prop.
critics in shape that they might be in
a position to run 100 per sent Of their
oil from these wells II they were SO
instructed.
apparently other producers in the
field have been permitted to run 100
per cent production. Nothing has
besn said to them and the only pub
Hcity that has been given out is to
the effect that the Producers and
Refiners corporation has, and is
violating the promises and state.
ments made by officials Of this com.
many IN thu co~noftta. .,4 a.. a.
lieved you were misformed as to the
true status OF the matter when
giving out your statements.
This company is now in a position
to test its wells in the middle and
north zones. Our pipe line having
made connections to all the leases
and most Of the wells are in condition
to be tested I therefore, wish to
advise you that. at your pleasure.
We will make tests OF our wells ana
submit results Of the same to the
committee for their information ana
on the basis OF these tests we win
run IS per cent Of or production. the
prorata amount set by the com.
mittee.
However. We wish to inform yor,
that II at any point in the field where
we are convinced that our neishbors
r running 100 per cent production
that we expect TO do likewise, but II
you hold other producers in line,
which has not been done in the past,
you may be assured that we will do
likewise. We are. however, unwii-
ling to permit anyone to drain u
properties. as has been done in the
past.
I'VE are fully In accord with the
decisions of yourself and the Salt
Creek Conservation committee to
limit pipe line runs from the salt
Creek fled to IS per cent of total
production and again state that we
nave run 100 per cent from only
those properties where It was known
to ourselves that 100 per cent was
being run from offset properties.
w seriously object TO the state
ments made in your wire to Mr.. Kist.
Ter as the statements made therein
are not In accordance with facts. we
feel that there has been undue and
unjust criticism of our company
through the publicity given the
matter by you and which has peen
confined entirely 10 this company
when It was known there were viola.
lions in the field by others OF which
you were aware and to which no
publicity has been given. As advised
you above. we wfll begin tests of our
wells in the middle and north zones
of the field at the pleasure OF your
committee. submitting the results
thereof to the committee for their
records and on which basis we will
establish the S. per cent pipe line
rvns.
Yours very truly,
Producers & Refiners Corporation.
By T. B. HOTTER. vice.president.