Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-04-16
SALT WATER CUTS
INTO OIL OUTPUT
$4,000 Acres in East Texas
Affected by Industrial
DOGGY.

DALLAS, Tex, April 16.-Salt water,
most feared of oil field bogeys, appeared
in the edge of one of the East Texas
pools this week to lop off approximately
$4,000 acres from the potential produc-
ton AREA in the Kigore district
Condemnation of this acreage, sit
uated on the west side of the Bateman-
Grim field, was only one of a conglomer-
alton of developments, including threat
ened investigation of alleged boarding of
tank cars, steps by the State Railroad
Commission to enforce proration of the
pools regardless of a restraining order
and what some termed virtual col
lapse" of the market.
Some operators argued that when salt
water showed in the Magnolia Petro-
leum Co.'S No. Florey and the Burton
Drilling Co.'S No. Florey, the theory
that unrestricted production, such as
had obtained in East Texas since the
discovery of oil there five months ago,
caused channeling and coming to ruina-
ton of fields, had been borne out.
While the salt water disappointment
west of Kilgore caused abandonment of
extensive drilling plans in that section,
1t having been reported the Sun Co.
especially discarded several locations in
the vicinity where derricks were up, the
Pathrop pool, near Longview, had been
extended half mile westward by COM
pletion Of three producers. One of these,
the B. A. Skipper Oil Co.'S No. l Thad
Snoddy, was regarded by oil men as the
largest yet found in that field.
More than half a hundred producers
had been completed during the past
week in the Kilgore, Joiner and Lathrop
areas of the field and the estimated
daily production had been fixed at in
excess of 100000 barrels.
East Texans, opposing proration of
their field, were advised by the Railroad
Commission that, acting on advice from
the Attorney Generals Department it
had decided to issue an order curtaiIing
production in the field.
The Attorney Generals Department
held that a restraining order issued by
a Travis County District Court on petit
ton of Carl Estes, Tyler newspaper
editor, in fact applied only to Estes
holdings of 70 acres and was not effec-
tive as to other operators and lease
holders In the field. With this interpre-
tation Of the law before it, the Rail-
road Commission gave notice it would
soon invoke its previous order to pro-
rate the pools. It was limited, how
ever, that the original allowable of co.
600 barrels daily might be raised.
Appearance of salt water and reduc-
LOH OF the price OF OIL IN the f1eld to
25 cents per barrel, announced by sew
eral large buyers, was said to have in
fluenced some of the anti prorationistS
to temper their previous uncompromis-
ing attitude toward orderly curtailment
of production. There were reports that
some oil had been contracted for at 10
cents per barrel.
The State had sent investigators into
the field in response to complaints that
discrimination against small operators
had been shown In the allotment of
railway tank cars for transporting oil.
The complaints charged this action had
been taken to force the little fellows
to sell oil at ridiculously low prices to
brokers.
Some relief from congestion in the
Held was offered by announcement of
Daniel t. Pierce, assistant to the chair
man OF the board of the Sinclair Con-
Sol.dation Oil Corporation, that plans
had baen completed by Sinclair to ship
10000 barrels of crude oil daily, either.
TO its northern or Gulf Coast refinery
Under joint tariff arrangement with
the Prairie Pipe Line system.
This would be accomplished, it was
announced, by construction by the Sim
clair Pipe Line Co. of a 12-inch line
from East Texas to a connection with
tha Prairie Pipe Line Co. at Mexia.