Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1933-06-24
ARrroLK i

PRODUCTKON
ARTICLE i
fa) The production Of crude Pc
troleum In the United States In ex-
cess Of the reasonable market de-
mand inturiously affects interstate
commerce, Is contrary to the con-
servatfOn policy OF the united States,
and contrary TO the Industrial re-
covery policy as expressed n tae
Therefore, the allowed production
in the United States, plus imports
and Withdrawals from storage shall,
as nearly as may be. equal the car
rent domestic consumption plus the
demand for export. The amount OF
crude petroleum. necessary 70 meet
such requirements shall be equitaoiy
aIlOeated between current production
Withdrawals from storage, ana I'M
ports. and there shah be equltably
allotted q maximum production to
the various producers areas, prop
critics and wells located thereon, all
as determined or approved BY the
President. Production Of crude Pc
troleum In excess OF such maximum
allotment is an unfair method Of
competition within the meaning Of
the National Recovery Act Any per-
son who receives crude petroleum
produced in violation OF this code, or
the products OF such petroleum for
the purpose OF transportation, stor-
age. refining or purchase, shall be
guilty Of unfair competition Such
all0tments Of production shall be
naatle with due regard TO the cunsef-
vation or oil and gas and reservoir
energy IN oil fields Allotments Of
production shall also be such as
VIII, to the fullest practicable ex-
tent, preserve wells Of small pro-
duction.
(b) Wild-catting should not be
prohibited because the future main
tenance Of the petroleum supply de-
ponds on future discoveries Of new
pools, but when new discovery Is
made there should be no further
drilling in that pool area until a
plan for the Development thereof
shall have been approved By the
President.
In order that the production of
crude petroleum may be held within
such reasonable amount as not to In
juriOuely affect Interstate or foreign
commerce, no person shall be per-
mitted to commence the drilling Of
a web for petroleum within the Tn |
tied States without first obtaining
permit for such drilling from the
President. Such permits shall be is
restrictions as the President may APP
prove.
ARTICLE III
PRICE
(a) II is estimated that there are
approximately 100000 wells In the |
United States known as stripper l
wells, producing an aggregate OF APP l
prOximately 100000 barrels per day, /
and representing an estimated reserve I
Of several billion barrels OF petrol
eum. These wells are all on the pump. |
prices represents a loss. II aband- /
0nment OF these wells is forced, the /
reserves OF oil which they repre-
sent VIII be lost to the owners and 1
to the American people. Conservation /
Of the national supply requires the 4
preservation Of these reserves and 1
they can only be preserved by a
price which permits their production
without loss.
(b) The sale OF crude petroleum
below the actual cost OF production 4
Is contrary TO the policy OF c0nser
Walton expressed In the National In
dustrial Recovery Act, Is conducive
to waste, tends to create monopoly,
is IN many instances an unfair meth
% Of competition and injurionsiy AZ.
fects interstate commerce To avoid i
these evils the President Is request
ed to establish, from time to time.
minimum prices for crude petrol /
cum In the various petroleum pro-
ducing areas OF the United States.
and In order 10 protect consumers
may also fix maximum prices there
for.
fcl Every purchaser OF crude Pc
trolenm shah be required currently
to post publicity the price offered
and 70 report monthly under oath
20 the President each purchase made,
indicating quantity purchased, how
and BY whom transported, from whom
and the price paid,
(d) 10 pay = secret price, or q
price other than the one poefed by
the purchaser. shall be deemed IN
fair competition and . violation Of
this code II the transaction occurs IA
interstate or foreign commerce or
Affects such commerce By coming II
with other crude pc
troleum OF q product thereof, which
Is sold or moved IN interstate or for
eign commerce.
ARTICLE uK
PETROLEUM IN STORAGE
There exists At the present time
petroleum IN storage IN the United
states 10 excess Of the reasonable re-
quirements thereof Excessive with
drawals from such storage VIII tend
10 reduce prices below cost 81 pro-
1uctloB, win create waste, and VIII
affect interstate and f0s-1
siRn commerce. Therefore withdraw.
alE from storage may be limited By
The President under rules and feRu-
lntiOns prescribed BY him. with
irswaia from storage shall be eqnit
ably all0cnted amongst the various
persons holding 1uch storage VITA
af2walg 81 crude petroleum ia eK-
nees ~ current supply uhal not
exeeed ~ tAe aggregate ma nsefNNe
ef $4,000 barrels peg dAy. Suitable
.qEulaflens shalt eiee b. made fpf