The Kevin review. [volume] (Kevin, Mont.) 1922-1929, 1926-06-24
MARKET FOR MONTANA
CRUDE MADE POSSIBLE
IN TWIN CITIES BY 6. N.
RAILROAD WILL GRANT RATE
WHEN TONNAGE is ASSURED
BY SIGNED CONTRACTS

A rate of 3715 cents per hundred on
crude oil shipments to the Twin Cit.
les from Kevin-Sunburst field has
been tentatively agreed upon by the
Great Northern Railway company, ac-
cording to Walter f Britain, secre-
tary of the Montana Chapter of the
Rocky Mountain Oil & Gas associa-
tcon. who returned Wednesday from
the Twin Cities, where he conferred
with railway officials with regard to
the Montana situation.
AS a result of Mr.. Brittan's inter
view with traffic officials of the Great
Northern a rate was offered which is
approximately in line, on a mileage
basis, with what other oil producing
sections are enjoying.
The main necessity of the present
time is to establish markets, Mr.
Brittan reports, as the carriers re-
fuse to grant rates until such time as
contracts are entered into, onsuring
volume of traffic.
When markets are established, the
Great Northern officials agreed, a rate
of 371s cents per hundred will be
granted on crude, from Shelby and
Sunburst to the Twin Cities, includ-
ing intermediate points such as Minot
and Grand Forks, North Dakota.
''This rate would place the Twin
Cities and North Dakota refiners on
a relatively better basis for drawing
supplies of crude from Montana than
from the Mid-Continent fields" said
Mr.. Brittan. "The present rate from
the Mid4Continent, in what is known
as Group Three" to the Twin Cities
and adjacent points, is 391a cents per
hundred.
added to this advantage of two
cents per hundred on the freight
rate is difference of "a cents in
the price of crude of similar quail
ity. The Montana crude now brings
$1.05 per barrel and Mid-Continent
crude of similar gravity and gasoline
content carries price of $1Sa."
Mr. Brittan was informed from |
other sources that there are already |
plans afoot for the construction of |
4 refinery In the Twin Cities. It was
from one source that 20 !
)00barrel plant is contemplated and |
hat plans have progressed to the
acquisition of site. There is talk,
ilso, of the construction of smaller
'efineries in Minot and Grand Forks.
"The Twin Cities and the inter-
Mediate points offer the greatest
market within the Montana trade
erritory," Mr.. Brittan states. There
ire million people within radius
If so miles from the Twin Cities,
ind gasoline is now being shipped
n from the MidContinent There
re but two refineries in Minneapolis
handling Mid-Continent crude, each
With a capacity of 10000 barrels a
lay"
Mr. Brittan says that the Twin
,ities afford an especially attractive
market for fuel oil. Were fuel oil
lvailable from the residue Of Mon
ana crude it might be used for in
ustrial and domestic heating, mas
much as the Twin Cities now pay $19
ton for anthricite coal Road
prinkling is all done with oil, also
hipped in from the Mid-Continent,
nd with the advantage of both rates
nd lower prices might be expected
0 afford tremendous outlet for the
over refined ends Of Kevin -Sunburst
rude, making the refining business
cry profitable and insuring a con-
inuous and potentially large output
or Montana producers.-Oil Journal.