The Alaska daily empire., 1923-07-21
KANATAK PEOPLE SURPRISED WHEN
 DRILLING STOPS
Cause of Suspension by Asso- ciated Oil Is Unknown
 Believed Temporary.

more about the cause behind the suspension of drilling operations by 4he Associated Oil Company than do those elsewhere in Alaska ae- feording to letters received in Jul neau on the Alameda. The company quit when it was down 920 feet in one well and 575 in another, and those in charge of the work on the ground were as greatly surprised as outsiders and, it is said, know no more about what it is all about. They say the indications for oil were never better than when they got the order to stop.
 Derrick Lane, well known in Al aska and Seattle, who went to Kanatak six weeks or more ago to have charge of the Kanatak town. site. writing from there, says:
 "The Standard is down 26O feet and now going strong. They have had all kinds of trouble straight ening out this hole. They are now equipped to go down 5000 or 4,O00 feet.
 Meets Requirements
 ."The Associated is down 920 feet in one hole and 575 feet in the sec, ond They had no casing here to speak of-about 1900 feet-and could not control a well if they brought 1t in. They have done all the law and their lease requires for 1923 and have quit apparently for the year. They and the Standard are still building the new road to the oil field, and the Government is building a nine mile cutoff to helr out in the future. The Associated leaves three watchmen and its radio man here. The drillers were as much surprised at the order to quit as the public as the indications were of the best Why the quitting we don't know, and 1t is too earl, to get Outside advices."
 Mir. Lane asys the action of the Associated oil Company may near one or more of many things, they have no idea out at Kanatak what but, he declares.
 a, "I feel confident that I am cor rect when I say that the prospects sihad nothing to do with it."
 s MT. Lane says the action of tht Associated in quitting has made | hard on the merchants and others at Kanatak The merchants have laid in large stocks and have ex tended a good deal of credit based on the progress of the camp.
 e4 Title Trouble Denied
 Local people, interested in claims in the Cold Bay field which art under contract to companies no1 yet in the field, were today advised from Anchorage that reports had been received there alleging the sus pension of work to be the result of trouble over title to the claims on which drilling was being dont by the Associated Oil. and that tht company, having performed all tht prospecting required for this year shut down to await settlement o' the difficulties by the owners o1 claim permits. These reports, how ever. it was added had been em phatically denied by ]. J. Finnegan one of the original permittees or
 
 whose claim the company was drill ing, who said the company hat shut down in order to change its equipment to a standard drill sucf as is now being used by the Stand 1ard Oil He also said that the As eociated oil had done all the pros pecting work required for this year
 Land Additional Supplies
 MT. Finnegan's statements were onfirmed by additional information Heceived at Anchorage to the effect that parts for the standard, 1S-inch drill have been ordered. Some oi them are already at Seward and others at Seattle awaiting shipment The company also made big ship ment of gasoline and other supplies for its power plant in the field or the last trip of the Starr prior tt closing down and this is still or the ground. It was also stated tha on the day before orders were re ceived at the scene of operations t shut down. instructions had been is sued to prepare for changing to thu standard drill.
 It was stated that no uneasines is felt over the situation and tha 1t is assured the company has nt present intention of abandoning thu