Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1937-12-04
OIL BOARD HEARING.

legged discrimAnationR on the part
of pipeline companies. This was
for the benefit OF Railroad Com
missioners Horace T. Casey and
Thomas Carey. Casey stayed on the
Job while Carey went north on
Tuesday, to hold other hearings.
The petitioners showed from the
start that they proposed to estao-
dish the following facts:
1. That waste Of natural resour-
ces is resulting from a shutdown OF
stripper wells, in that II operators
stop pumping strategic water wells,
entire districts may turn 70 water,
lowering the ultimate recovery OF
the field.
2. That where one lease Is shut
down for lack OF market and SUR
rounding wells are produced at ca
pacity. that the curtailed producer
is robbed of the oil by under
ground drainage and because he has
no physical means of defending ms
property, should have legal recourse.
3. That solution of this prob
lem is a function of the oil con
servation board.
Opponents of pnoration maintain
ed that:
1. No injury occurs to stripper
wells when shut down and that
natural water drive would serve to
preserve the ultimate recovery, pre-
venting waste of natural resources.
2. That If actual drainage oc-
ours, am operator can protect him
self from lose by pumping his wells
and running the oil 20 storage;
/ e.. :. k.o fostsf la olaIo
| borrow half Of the posted field price
on the oil to tide him over until
the market adjusts itself.
3. That market expansion and
not curtailment through state re-
gulation will be the ultimate sOlu-
tiOn of the present problem.
Mechanic Testifies
The first proponent witness was
A. F. Mechanic OF the Barmac Oil
company whose testimony required
practically all of Tuesday. He de-
clared that unless stripper wells are
operated at capacity they win be
ruined and urged that the 500
''strippers," defined as wells making
5 barrels per day or less. be al
lowed to produce at capacity They
would make 2,4OO barrels per day,
he said, the balance OF the market
to be divided among the 200 wells
which are making more than five
barrels per day. Against a 1000
barrel demand this would mean
eight barrels average per we'll Dor
the non-strdpper wells. He asserted
that stripper operators are prevent
ed from pulling casing and alban-
dondng wells which will make three
barrels per day.
Sandal Testified
Dewey ]. Sandal, superintendent
of Texas Pacific Coal G. Oil Co.,
testified that after stripper wells are
shut in for as short a period as
a single day, they show increased
water. His company's principal
lease ie stateLowned land. Attow4l
ney Hurd sought TO show that theI
state win lose its royalty OH
through drainage If the wells onl
the East Sunburst pool are not
ratably produced.
Benoit Claims Drainage
r. C. A. Benoit, president OF
the Kevin-Sunburst Oil Producers
association, and manager of the B. |
C. Montana Oil company, testified I
unat whenever he keeps his wells on /
production he holds down the water
but that if the wells are shut in, /
the water shuts off the gas pressure
and water invasion follows after
five or six days. He said that he
believed that offset wells are drain
ing his lease by reason OF the effect
of acidization on these wells which
indicates, he said, that all were
pumping out of a common pool.
His companies, formerly selling to
Imperial, are now without a market
and surrounding leases, he said, are
being produced.
Montgomery Testifies
e. H. Montgomery of the firm OF
Neptstad, Vanderpas & Montgomery,
testified that he believes that oper-
ators without a market are being
robbed of their oil by more FORUM I
ate operators on adjacent proper
ties. and while most Of his wells ]
are above the stripper class he
would be ready to share the mar !
Het, ne said He thought proration
The only method by which to save
the stripper wells and to delay the
of the field by the en-
column OF water which is
moving up into the structure 10 re-
place the large amount of Oil tnat
mas been withdrawn.
WEIGH Defends Shippers
A. A. Welch of Oilmont, of yell
iowstone Production Co., and Welch
Bros, said that unless stripper
wells are kept alive, a pipe pull
ing machine could do very well in
,ur area" He said that Etripper
wells would be lost unless steady
pumping continues in the areas
which are producing quantities OF
water.
Ofen F'avOrs PROBATION III
Casper Ofen Of Oilmomt testified
hat his experience Is that shutting
Iown webs results in increased vol
Ime of water and he concluded that 4
Iroration Is the only plan whereby
he water table can be held back.
Day Wants Water Pumped
]. C. Day, Cut Bank, manager OF
,. M. X. Petroleum Corp, oper-
ring an 1VnHh Kawfv. AMI Cfrf RauE.