Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-05
RECENT PRICE GAIN
CHEERS OIL TRADE
Mid Continent Operators See
Hope for Industry in
Higher Quotations.
~ ths Astoetatea Press

~ The A.soetatea Press
DALLAS. Tex. November 5--in-
creased prices posted for crude oil
throughout the mid continent area By
major purchasers have dispelled the
gloom In which the industry had
CROPPED for many months.
one Justification for the increases
vas The confidence oil men derived from
the evident determination ~ Gov. Ross
s. Sterling AZ Texas 70 maintain order
Indefinitely in the East Texas Field
with martial law. 70 insure the immu-
nifty OF proratiOn plans from legal at
tacks, He also indicated he would take
steps 20 halt unnecessary drilling In the
vast East Texas area.
Dollar oil" Talk.
oil men we're beginning 10 talk OF
the return OF dollar oil" 70 the market
with more assurance OF fulhllment, as
several purchasers posted prices rang
Ing as high as &C cents per barrel The
MAGNOLIA Petroleum Co led the way In
Texas. posting i5-ccat increase Mon
day In all Texas fields excepting Darst
Creek where the price was raised
cents 10 60 cents per barrel at the
wells Magnolia prices in Oklahoma
flelds likewise were boosted Is cents
per barrel Magnolias top was 80 cents
per barrel IN East Texas and several
other fields
That action was followed quickly by
tho Texas Co, Humble OIL a. Refining
Co. and the Guy Pipeline Co. The
Texas Co posted a price Of 86 cents
for best grades of Gulf Coast crude.
Gov Sterling last week asserted he
intended 10 place production proration
h
rather than the present well basis OF
$50 barrels daily, as soon as an equit-
able acreage basis could be devised.
The Texas oil e. Gas Conservation
Association recommended an acreage
basis of four barrels per acre daily for
East Texas and the Governor granted
a hearing yesterday at Austin for a
group OF East Texas producers protest
ing adoption of such method.
Attack on PROBATION.
Still unsettled, however, was the
Brock-Lee OIL Co.'S attack upon pro-
ration regulation of its East Texas
wells. The company obtained tenn
porary injunction october Is from
Federal Judge Randolph Bryant, at
Tyler, restraining military authorities
in the East Texas field the Texas Rail
road Commission or the Texas attorney
ReneTHl from enforcing pIOIdbAOl lulCo
against the company's wells.
The Texas Railroad Commission had
iust issued a modified order. reducing
the pre-well allowable from 1875 barrels
daily to 1856 Gov. Steering quickly in
corporated this into new martial law
order and directed Brig. Gen. Jacob F.
VOTERS, commandment in the field, not
TO obey orders from any one but the
executive.
Judge Bryant cited Gen. Wolters for
contempt and set the hearing for Oc-
tober 30 at Beaumont, before three
judge Federal court when the Brock
Lee Co.'S plea for a permanent injunc-
ton also was set for argument. POST
ponement was granted, however until
January 4, when both cases will be
heard by the three Judge tribunal at
Tyler
Gov. Sterling again modified the mar
tial law orders, reducing the per-well
allowable TO $50 barrels daily. to keep
the field within the unofficial limit of
400, 900 barrels daily regarded by Rail-
road Commission members as the
proper maximum to prevent waste Of
the fields resources.
Drilling Rapid.
Gen. Wolters proceeded with the
work of putting this into effect and
Judge Bryant said no further action
would be taken regarding the contempt
citation before the hearing at Tyler
January 4.
Reports showed there were more than
2,700 wells in the field and drilling
continued at a rapid rate.