Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1942-02-07
WHEN THE LOG JAM BREAKS

IS the fee simple purchase, by war
ranteed deed-surface rights and $50
OF the mineral rights. The purchaser
who becomes the landowner will receive
IL barrels out of every 100 barrels of
oil produced, delivered free of cost of
production, with a standard 87159o
lease in the hands of a competent op-
orator who will finance the develop
ment.
There is no royalty for sale on this
tract. Figured on a basis of royalty
cost, the price means paying less than
90 cents an acre point, with the land
thrown in" The surface rights will
earn the taxes; the oil and gas lease
rental will pay interest on the invest
ment until such time as a we'll is drilled.
With 71a96 royalty, it does not take
much production to bring a good in
come. One 15-barrel we'll would Weld
over 1000 per annum.
Persons who have yearned to own
potential oil land now have an oppor-
tunity to do SO in purchases now avail
able. This is an especially low price, but
a good example to prove that a modest
investment can be made in securing
good potential oil land with perfect
title, well located structurally and with
the affirmation of competent operator
who is willing to lease the land for
development.
We will send details regarding this
and other properties available in fee
simple to those who inquire
The situation in the oil industry to-
day has been likened to that created
when fallen tree blocks the channel
of stream. The flow is reduced
perhaps to a mere "trickle" for a
time. But meanwhile an ever-increasing
head" builds up behind the barrier
until one day, the pressure becomes
sufficient to sweep away, or around, the
obstruction
The cessation of drilling activity ap-
plies to every state and every field in
the United States, with a more serious
outlook in many other states than in
Montana. The new system of priorities
has brought to a standstill all drilling
activity. That means that one or two
months hence will see the number of
compilations dropping off to a place
where national oil production will drop
down at an alarming rate. That will be
true in Montana, as elsewhere.
Flush production is an important fac
tor in the daily average production. Re
finers have been operating pretty much
at capacity throughout the winter
months yet there is little or no storage
in Montana today. Spring with its
heavy agricultural demand will find
many refiners with empty tanks, con-
dition more particularly applicable in
Montana than in other states If refin-
ers could continue to operate at full
capacity, there would be no worry about
an adequate supply of refined products
in the spring and summer peak of de-
mand. But with production falling off,
as it will, there is some doubt whether
there will be enough oil to care for re-
finery demand.
The damming up of the oil industry
is the result of confusion attendant to
the start of the war-just two months
old on Feb. 8. The change-over from
a peacetime to a wartime basis of OPP
Grafton is responsible for the ''log jam"
New rules are being evolved that have
never been tried provision is made for
new affidavits for which no forms are
printed regulations which apply in one
place must be modified so that they will
apply in many places and on top of it