The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1926-12-31

inc the terms and conditions upon
which lands may be sold and leased, |
as well as changes in the procedure |
to be followed in classifying lands |
for sale and lease, and in effecting |
the sale o rlease thereof
without commenting upon other
! features of the proposed act, be-
/ lieve / would be subject to criticism
for dereliction of duty were l to fail
to call attention to what l regard
as important matters that should be
submitted to the next legislature re-
garding the leasing of state lands Tor
oil and gas purposes, and which are
not embraced in your proposed bill.
Montana Price Higher.
Before advertising specifically to
the precise matter, concerning which
I believe the thought OF the legisla-
ture should be directed, l desire to
make some general observations that
are patent to everyone.
coil and gas are natural resources
of the state of Montana. Many OF
our neighboring states do not pro
duce oil Oil is refined and gasoline
produced in Montana. Many OF our
neighboring states do not refine oil
or produce gasoline.
: Consumers of gasoline in Montana
are obliged to pay from SC to loo
, gallon more for gasoline used by
them than consumers of gasoline IN
non-producing neighboring states are
obliged to pay for gasoline consumed
? by them.
Freight Rates Less.
"The freight rates on gasoline
! from the point of production to the
point of consumption in Montana are
I less than the rates from the point OF
= production to the point of consump-
r ton in n-producing neighborng
o states.
!. "Our neighboring nOn-producng
states have a tax on the sale of gaso-
,, line equal to ours and it has beer
k paid to the state without exception
In Montana, some gasoline dlstrbu
e tors have collected the tax from deal
r ers and consumers Of gasoline ant
have refused to pay it to the stat
e. of Montana and have appropriate
10 it to their own use.
% There appears to me no rea-
io s son why the people of Montana
should be compelled to pay more
10 for gasoline than the people Of
o. neighboring nonproducing states.
On the other hand, since Mon
40 tana. produces nearly as much
as gasoline as is consumed in the
state, it would seem that the
90 price of gasoline in Montana
% should be less than the price IN
nonproducing neighboring states.
Uo The people of Montana ought to
90 be in a more pronounced degree,
the beneficiaries of the subter-
-6S ranean wealth of the state. The
wv people of Montana ought to be
% able to buy Montana-manufac-
- tured gasoline at a lower price
10 than the people of Minot, n. d.,
80 have to pay for Montana-manu-
featured gasoline. The fact is,
0V however, that the people of Mi
so not. n. D., can and do buy Mon
-0 90 tana-manufactured gasoline at
'VV less price than the citizens OF
100 Montana are obliged to pay for
.o the same product.
so "a remedy for relief from the c
90 orbitant, unreasonable and eXcessl
price of gasoline in Montana lies
l97 the hands of the legislative assemb
1t ought to be provided. The st;
SU1 land board ought to be compell
zoo by appropriate legislation, to accC
70 royalty, under its oil and gas leas
0''V in oil and gas, rather than to Ia
o 90 the option to receive cash as you Ia
700 provided in your proposed bill and
. m is now the practice.
:. 20 For State Refineries.
900 coil and gas in place is a part
0 y ~ the real estate. The production
7.5O oil and gas from state lands, as v
0.0U as from any lands, impairs and
I'm SV minishes the fee to the extent Of
500 value of the oil and gas produced.
S.75 "In my opinion, appropriate les
* ~ lation should be inaugurated by
.7.4O legislatures to authorize the state
Montana to refine oil thus secu
90 - from its lands and to establish
s ing stations at such points as
S.46 legislatures may determine for
,Eoh purpose Of selling gasoline to
81 public
were TO illustrate the advantage 20
state from such legislation, let
90. 90 take the month of July, 1926,
5000 example During that month,
state received as royalty on its
amp lands S43, 5000. This was on
Ser basis of S115 for each barrel Of
% Had che state received oil instea'
order cash as its royalty, it would have
ceived approximately 38,25O ban
of oil BY the process of refil
ucted known as Swimming" the ave.
Vest recovery of gasoline from the G.
s saIor oil is % per cent, or approxima
10 gallons of gasoline per barre
Board oil; 3S, $50 barrels of oil would
= 20 duce Approximately $4,000 gal
made. of gasoline.
the m Fuel Oil Valuable
a., "The fuel oil remaining in the
: foI- cess of refining crude oil, I am
liably informed, is sufficiently y
able to take care Of the cost Of r
Ter Of ing the crude oil into gasoline
st on to yield a fair return upon the
stern tern vestment Of property used in tn
tn Of filming process.
Istrict Had the state received the
during July, 1925, instead Of ca
p south ~ the sum. Of S4S,996,20, and chad
7 line. state refined the gasoline and
asst to it for. 24c. per gallon, it would
WV received $70,800 instead Of S43