Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1938-02-19

such expansion. and /, for one. hope
that IL will be an early realization. Ihis
is. likewise. true with respect 10 the re-
duction Of freight rates, which has also
been suggested as one Of the means or
meeting our present problem.
While the Board says in its findings
that reduced freight rates are virtually
assured | think every one, who is IA
milar with the business Of financing, and
.esta hlishing new refineries or bringing
about new freight rate schedules. espe-
ciaIly In view OF the railroads demands
for Increased freight rates, now pending.
will agree with me that these are Objec
tivaS which at best viii be obtained only
In the distant future. They are not
forms OF relief which can he accomplished
Immediately so as to correct our present
distressed condition. which has been
continuous since last October, and is be-
coming more and more aggravated. As
matter Of fact, while the loss of the
Canadian market created an acute crislS
for the Montana crude oil producers the
problem Of over production. and the
necessity Of some plan to correct II, ana
10 prevent waste and conserve our natur-
al resources. has been, more or less.
pressing ever since the latter part Of
1894 and should, in my opinion. have
been faced and solved before the Canad-
ian situation arose last fall.
am also very heartily in favor Of the
campaign which the BOARD SAYS has
been inaugurated. to induce Montana
people 70 use gasoline made in Montana
from Montana crude. No one disputes
that the more Of our refined product we
can sell the more Of our crude Oil we
will he able to refine. Increased crude
oil markets. lower freight rates wlder
u-e Of Montana refined products. are all
helpful and viii afford some degree or
relief, but they are not arguments against
the necessity OF prOrating our crude
production among all the producers eqult-
ably so as to keep production within
the market demand and avoid the waste
which ensues by the present slip-shOd,
uneconomical and inefficient methods
Of producing and marketing crude oil.
Again. I am in entire accord with the
BOARD when ii saws that IL will investi-
practices in the Kelvin Sunburst field
Finding No. VI and take such action
thereafter a. the facts disclosed by their
investigation warrants. However SUD
nit that the facts disclosed az the hear
ing show that there IS both physical
an economic waste in both the kevin-
Sunburst and Cut Bank fields and that
the showing Is sufficient 10 require the
Board to act in accordance with its
duty under the law to prevent waste
and to conserve natural resources.
I. likewise. agree with the Board in
its finding that serious water problems
exist. and have for many years existed.
in certain areas Of the Kelvin Sunburst
field While there is some difference
Of opinion expressed by witnesses about
the question Of waste in connection with
the water problem, the expert testimony.
as well as the prepOnderance Of all of
the evidence, in my opinion. demonstrates
that there is resulting waste by reason
Of the complete or partial shutting down
down Of wells In the water flooded areas.
The history of the oil business shows
that all experienced producers recOg
nize the necessity for protecting the
strinper well and for permitting wells
in water flooded areas to pump to capa-
city. If possible. in order to obtain
the greatest amount Of recoverable oil
nd 70 vol act
Whether or not a well producing
large ratio Of water is commercial de-
ponds in each case on the circumstances
as is shown by the testimony of all Of
the witnesses who testified about this.
For instance a well producing a high
ratio Of water but pumped with a group
Of other wells might be commercially
productive where the amount Of oil re-
covered was much less than an isolated
well producing a lower ratio of water.
It may he that plugging certain wells
of this character will he in the interest
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