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

2 because many independent pro-
ducers are without market and
i because many other producers are
pumping their wells at capacity,
Governor Roy e. Ayers called upon
the OH Conservation Board to
meet and consider ways and means
OF appeasing the demands OF those
who have no market. The Board
Is giving attentive hearing but the
evidence Is being presented with all
the care of a lawsuit which may be
carried to the supreme court. There
are two court reporters present,
taking down all testimony and the
Witnesses are being examined and
cross examined amid objections
from counsel.
Fully 200 operators were present
when the meeting opened on Mon
day, all expecting a good old
fashioned ''rassle" and Chairman
L. B. O'Neil whetted their appetites
by announcing that all those in
terested were urged to give free and
full expression to their opinions and
desires.
After two hours OF preliminary
parliame ntary proceedings the
meeting" began to realize that the
hearing was serious business.
Present were all members of the
board: Chairman O'Nei1, w. e. Rice,
Roy Tarrant. o. M. Webb and
Howard Alger, with r. p. Jackson.
Also in attendance were
members of the Montana Public Ser
vice commission, present at the re-
quest of Governor Ayere. and s. C.
Ford and Edwin Booth, attorneys,
appearing for and on behalf Of
the board.
Arrayed at adjacent tables were
Louis p. Donovan, Shelby, c. H.
Hall, Great Falls, and Cedor B.
Aronow. Shelby. as attorneys for
opponents Of the petition while
George Hurd and LaRue Smith sat
at the table of the petitioners.
Smith took no part in the proceed
inRs, however.
While the proration movement
was actually started in Cut Bank,
Kelvin producers appeared to be
the chief opponents of proration In
bhe first week OF the hearing. The
greatest number of operators with
out market are in Cut Bank.
But when the hearing started. pc
titions for and against prora4ion
were read by Secretary Jackson.
showing that large majority OF the
Cut Bank producers
we're opposed to proration. with
0ut attempting to count noees''
~ comparing the counter petitions,
he board proceeded with the hear
ng.
Secretary jackson had provided
/ statistical background for angu-
nents over the Kelvin situation, re-
)orting that there are III oper-
'tors In this field, 225 producing
eases, and 1043 producing oil wells
4 which 294 are shut in.
John Blixt, geologist for The
'exae company, was the first wit
Tess, providing a survey Of the field
which showed a developed potential
4 213,755 barrels per month. with
'27. 405 barrels Of water-an av-
rage OF 7,125 barrels Of oil and
ABB barrels OF water per day;
n average of 6.8 barrels OF oil
'otential per well per day and 23.3
arrels OF water per we'll per day.
ie reported a market Of 117,177
arrels OF Oil per month or $3.50
NAAaCAo pei Jay. ne T6DOTJSQ 90
Eases out of the 225 inactive, with
64 wells shut In with a potential
Z 27,78O barrels of oil per month
r 926 barrels daily.
The examination and cross ex-
In which five attorneys
anticipated. gave the assembled
perators their first definite rea-
cation that this was a lawsuit
nd not a 'lrasele.'' Attorney
ord waited until the other at10r-
eys had examined. csoss~examtned
nd re-examined the witnesses 10
SIX the questions which the COVER
Continued on Page Fivel