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

facts to the attention Of the State Board
or Railroad Commissioners and cooperate
with that Board In any way proper with
the view Of applying necessary remedies
VII
That the PROBATION Of crude petroleum
| production is not necessary or proper
in the public interest, or to prevent waste
OF the natural resources Of the State, or
TO relieve economic distress, in that, viz:
| (a) 1t would prevent. or greatly de-
/ lay, further development of the pOten-
tally productive oil lands situate in the
| fields affected;
% 1t would discourage, if not en-
/ tirely prevent, the drilling of wild Leaf"
test wells on geological structures re-
garded as promising for oil and gas
production. The oil industry is in its
infancy in this State and, in the opinion
OF the Board, development Of known
producing areas, as well as prospect
couraged until such time as oil prOduc-
ton actually exceeds existing and po-
tential markets and adequate reserves
(c) 1t would retard, if not actually
prevent. the construction Of new refin-
cries and the enlargement of refineries
now in operation.
(d) 1t would tend to effect and per-
petIlate monopoly by major companies
ing. and marketing Of crude petroleum
in Montana and neighbOring territory.
and would allow major companies to
dominate crude oil production and mark
citing to. the disadvantage Of. and pos
sihle destruction Of Independent produc-
ers and refiners.
(e) 1t would force Montana producers
and refiners to compete, under the handi-
cap Of state PROBATION, with crude Oil
and its products produced in states and
countries contiguous to Montana where (
there is not, and has never been, and /
where there may never be, any control /
of production assumed by the State or
Government, and from which crude oil /
and It's products may be imported into /
tyff ha n ffNrar n
tage of payment to the State Of
Montana of taxes on crude oil.
% 1t would. in effect nullify term
contracts for the purchase and sale Of 1
crude oil from the Kelvin Sunburst, Cut
Bank and POndera fields, which contracts
were procured by the initiative of in
dividnal producers, and at great expense
and loss of time.
(g) There IS no lack OF market de-
mand for all crude oil available in the
Kelvin Sunburst and Cut Bank fields, If
the consuming requirements, in the form
of refined products, in the territory sur
said fields, be taken into con
sideration, as 1t should be. 1t appears
from the evidence and the records avail
able to this Board, that more than
III 100000 gallons of gasoline were con
sumed in the State Of Montana during
1881 OF which approximately 800 was
prOces,sed from crude oil produced in
Montana and imported from Wyoming,
and approximately 1870 was imported
from refineries located in other states.
mere were approximately 1,ot7,84O par
-els of crude oil imported into the State,
processed and the products thereof
by refineries in Montana 1t
appears from said figures that crude oil
production in Montana, actual and esti
mated potential, is actually not sufficient
o supply consumption requirements or to 6
'upply the requirements of all refineries
n the state, if operated to capacity.
VIII.
Much evidence was produced by Pro-
Donents for prOratiOn to show that state ;
DrOration in Texas, Oklahoma, New ,
IeNicO and other states has been, and
s. working satisfactorily TO both indie :
opinion of the Board that conditions
n Montana are not comparable with q
ondtiOns existing In the states named :
or the reason that production in each =
nd all Of said states greatly exceeds h
market demands or consumer require =
0ntrols the crude oil and refined pro-
ucts markets throughout a large part -
the United States. For example, the
tate of Texas is conceded to have actual
rorated oil production amounting to
l0re than one million barrels per day,
nd potential production fixed at fan
astic figures by various experts, but
urely amounting to many millions Of
arrels per day; New Mexico Is credited
18th potential production between five
nd six million barrels per day, and A
ctual production around 100000 barrels
CONCLUSIONS: :
1. That the petition for the PROBATION q
( the production in the Kelvin Sunburst /
ut Bank, Pondera and Border fields
the State Of Montana, should be
enied
WHEREOF, 1T is ORDERED, That