Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1942-10-31
INDEPENDENT OPERATORS-H GIN Be Done

Our article addressed to Independent oil
operators last week was apparently widely
read At least, the comments we received
showed that those who read 1t were inn
pressed by it.
We pointed out that there is a military
need for new drilling in Montana. More oil
is needed New reserves are needed Nothing
is being done about it,
The reason that nothing is being done
about it is: ID Scarcity Of materials. 90
Lack Of finances, due to the abolition of the
American system of public financing
In Kelvin field there are hundreds of well
locations which would produce, If drilled In
Cut Bank field there are tremendous OPP
portunities for exploration of the top of the
Madison lime-in the newly opened Reagan
horizon-if materials and finances were
available In Pondera oil field there are
many locations on the north slope that
would give oil of a particularly needed type.
if the wells could be drilled
All this is related to our desires as land
owners and royalty owners to get develop
ment on our lands-of course. But that con-
sideration is secondary to the necessity of
meeting the needs of the United States gov
eminent in carrying on this war It is true
that every well drilled will be on land that
belongs to SOMEONE. Some individual or
groups Of individuals or the Indian tribes or
the State schools or the government will
get 1913 barrels out of every 100 barrels pro-
duced, free of cost Of production. That is
the ever-present royalty and someone is of
necessity going to participate.
But that is not our incentive in pointing
out the necessity of DOING SOMETHING
fha oil {nr,. &c oF efa
with the new order-be the new order right
or wrong. 1t is here and we must live under
it. OIL men are inclined to shun government
participation in their business. It is too
late. The government sits across the table
in every transaction in the oil business, TAX
ing bigger share Of the profits than the
stockholders and in many instances even
more than the payrolls. The camel has his
head in the tent. He is not COMING in; he
is already IN There is only one thing to do
and that is to learn to capitalize the stu
alton.
The point we are making is that we be-
lieve that Independent operators of Mon
tana should begin thinking in new deal
terms that is, of financing with govern
ment funds. They should not let the politi-
clans work out typical pain-in- the-neck
hAA4 bAAdS VIII GeinC w WOIk Oub lIlCy
should get in and ask the government for
funds with which to drill They should
work out plan of financing that viii work,
and they should call upon the right" rep
resentatives to present them
Senator ONfahoney of Wyoming viii ac-
cept with open arms any plan formulated
by the industry, we believe No such plan
has been presented; no such cooperation
given Instead, he was called upon to formu-
late plan to be sold" to the industry His
senate public lands subcommittee has
that steps be taken by the
OPC, WPB and RFC to finance exploratory
drilling on a sound financial basis under
existing authority to the RF'C. Long term
loans of not less than years on good oil
land security, OAdahoney said in his re-
port, should be extended particularly to in
dependent wildcatters who are otherwise
unable to finance a drilling program
The larger operator doesn't want govern
nent finances in their business They may
suddenly change their minds, however, and
lake government money with both hands.
If the little Independents will get in line
FIRST they will not have to take what is
eft