Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1933-02-18

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MeManus has taken up the
plans abandoned by Power Cor
poration Of Canada which had
arranged for the franchise and
had practically completed nego-
tiations for gas reserves with the
Drake-BaIIard interests of Min
neapolis. Power Corporation
was ready to proceed when the
insult organization crashed. In
suIl held a 2O% interest in the
Power Corporation, it is reported.
and the latter abandoned all
plans for pipeline financing.
Pipe Is Assured
McManus has dealt with the
Tenney-Williams interests, which
have had a hand in the Regina
situation from the start, and is
reported to have assurance Of
financial backing from National
Supply company and Page-Hersey
Tubes Of England.
McManus has assured the city
of Regina that # a franchise is
allowed, his company will spend
$S,5OO,O0O in developing a sup
ply of gas, building gathering
lines and other work preparatory
to placing an adequate supply Of
gas at the disposal of Regina
for 90 cents per 1000 cubic
feet. It viii cost another $4,-
5OO,0 900 to $5,OOO.O0O to build
the pipeline, compressor stations
and distribution systems in Re-
gina and Moose Jaw.
A rate schedule ranging from
% cents per thousand for indus
trials up to A cents per thou
sand for domestic use is pro-
posed. McManus has asked the
government to back the bond is
sue for the construction of the
line, he to guarantee to finance
the balance Of the venture.
Americans Object
collection to the plan is ex-
pected on the American side OF
the line, instead of the Canadian
side as in previous years. Here
tofore, Canadians have blocked
all plans for taking American
gas into Regina on the grounds
that enough gas could be devel-
oped in Saskatchewan to supply
that market. All available
sources have been pretty well
tested with no notable success
and Regina is still without gas.
It has become apparent that if
any gas is to be developed in
Saskatchewan, it will be in the
extreme southwest portion. Ac-
cordingly, Canadian gas prospec-
tors are said to be anx-
ious to see the line built to the
American border, knowing that
with an assured market, Ca
madam operators can finance
drilling in the southern part of
the province and that Canadian
gas will be gicen preference over
American gas. Without assur-
ance Of a markekt, the financing
OF Saskatchewan drilling is now
virtually impossible.
Is Part of Larger Picture
However, the use of Bowdoin
gas for export is now stoutly OPP
posed by people interested in
the larger and more important
project of building a major line
to the Twin Cities. This line can
be built only in the event ade-
quate reserves can be establish
ed in Eastern Montana. There
is enough gas to justify the line
at the present time, If Bowdoin
is included. Were Bowdoin gas
to be taken out of the picture,
Montana would hazard the loss
of a market that will consume
ten times the consumption Of the
Regina line.
Whereas no definite program
of opposition has been started
on the American side, such oppo-
sitiOn will likely take form when
ever It is apparent that the
Canadians are going to try to
take the Montana gas. Conserve
tionists point out that cheap
natural gas can hasten the indus
trial development of the trade
territory adjacent to Montana as
80 M ofhar factor ana the ax-