The Lexington advertiser. [volume] (Lexington, Miss.) 1904-1985, 1948-04-08

tees are now believed to have all
been abandoned the field Ia BE-
ginning to play out" much sooner
than expected.
Oil Price Hike Agar
Following q 20 cents per barrel
across-the-board price increase for
crude last month. major compan-
les announced an additional in
crease of so cents per barrel
across-the-board, effective Deem
Der 6. This price rise will mean a
SO, 100000 per day increase in the
States income from the severance
tax as well rs a great Christmas
gift" for all well owners and land
owners of the state. 1t also means
that crude now Is at its highest
price since discovery of oil in Mis-
sissippi. The price rise also spot
lights the states equitable sever
ance tax structure and the wisdom
of the Legislature in making the
tax rate six per cent; with most
oil selling at over 81 per barrel,
this means the tax runs IL cents
or more per barrel-as against
the II cents per barrel top that
some legislators wanted to set.
Whenever the crude price rises,
the tax automatically goes up.
Rice Favors New Board
Attorney General Greek L Rice,
well known in every county Of
the state, came out fatty last
week for a new conservation law
to supersede the ancient and IN
wieldy 1882 oil and gas conserva-
ton law under which the state
now operates. Although the old
law gave the Gas and OIL Board
right to establish any rules for
prospecting, drilling and producing
that 1t sees fit, General Rice de-
clared that most Of these funda-
mental rules should be written
into the law with proper safe
guards for exceptions where nee
essary. The new law, he said,
should be administered by q full
time board of experts who would
devote all their time to seeing that
this multi-million dollar resource
of the state is properly conserved
and that none of it is wasted. He
made no recommendation about
how the board should be named,
saying only that it should be COM
posed of men fully qualified for
their work and declared his faith
in the ability of the legislature to
provide for such a board.
What Is A Gusher?
One of the colorful and glamor-
Gus terms Of early oil strikes was
the "gusher" and before drillers
learned how to control the pres
sure of wildcat" wells, it was
common practice to bring wells in
as gushers. So, continuing our def
milton series. I found this defini-
ton in the Petroleum Diction-
ary," a standard volume used by
the State Gas and Oil Board,
among others: "Gusher "a flow
ing oil well, the term is rarely
used by practical oil men. 1t is
used almost exclusively by pro-
motors and stock jobbers." Elk
banding on that, H. M. Morse, Di-
i, rector of the State Oil and Gas
Board. added that wells are never
brought in as gushers any more:
the production is controlled at
every stage Blowout preventers
are required by the board on all
wells to prevent any well coming
in without being under control"
While the old practice of bring
ing in a gusher' was fine for stock
selling purposes and a colorful dis
play, it caused the waste of mil
lions of barrels of oil which would
have been saved by modern con-
servation methods. / am looking
up some definitions you
might be interested in: meantime
If you have suggestions or any
questions about oil and gas in Mis-
sissippi. send them in and I'll do
my best; just address Jack Han
cock. Oil and Gas Views, Room
351, Edwards Hotel, Jackson, Mis-
sissippi.