The people's voice. [volume] (Helena, Mont.) 1939-1969, 1952-11-14
Continued from page one)

One Texas Company on private
lease in Dawson county, over the five
month period, April through August
1862, had an average monthly pro-
duction of 1854 barrels. Considering
S2.65 a close approximation of the
barrel price of crude oil, gross in
come from this we'll per month would
be S16,S3S.10.
Under present law, because this
well is in excess of 5000 barrels per
month, the state school fund would
receive rs per cent, or $4,209.52, for
one month, or $50,514.24 in one
years time.
Under oil lobby proposal both fig
ures would be cut in half, or, $2,1O4.-
76, and S25,257.12.
EXAMPLE NO. %
Nine Shell Oil wells on private
leases in Fallon, Dawson, McCone and
Wibaux counties had average pro-
duction of 4,429 barrels per well in
September. Smallest producer was 1 >
447 barrels, largest, in excess of s.
600. One Shell Oil we'll in August
produced 6,858 barrels, another 6,588
barrels. Gross production income of
these nine wells was approximately
S105,624 in one month. Foregoing
the considering of 25 per cent |
royalties on the larger wells, let US |
assume that all nine of these wells |
came in the 5000 to 5000 barrel per
month bracket.
Under present law these nine wells
would be chargeable at 171z per cent
for royalties accruing to the school
fund, $18,484 in one month; $221,-
808 in one years time.
Under oil lobby proposal of flat
121a per cent the school fund would
receive only S13,203 per month, or
S178,43 in years time.
EXAMPLE NO. 81
Seven Murphy Petroleum wells on
private leases in Roosevelt county in
September produced an average of
AGA barrels per we'll per month.
Largest producer was 1927; next g.
$50; smallest, $50 barrels. Total
3
in one month was S82,709.
Under present law these seven
wells, on the 177a per cent royalty
basis, would provide the school fund
with S14,474 in one month, or $173,-
688 in a 12-month period
Under oil lobby proposal of flat
12H per cent the schools would re-
ceive only $10,334 in one month, or
$124, OO8 in a years time.
Source: Public Service Commits
sion, Oil Division, Capitol, Helena.
NO. a
Murphy Petroleum, according to-
Great Falls Tribune, Saturday, No
vember 8, has just brought in 300 |
barrel per day well near Poplar, on
another private lease. This $1,000 Il
barrel per month well will gross $685. II
$50 per month. II
Under present law, a 9,000-bar- H
eel per month we'll on a state school II
ease would provide royalties of $5,- H
937, figured on the 25 per cent II
basis, or $71,244 over a 12-month H
period, for the school fund H
Under oil lobby proposal royalties II
from a 9,000-barrel well brought in H
IN school lands would be cut to ST. n
)68 per month, or S35, 1922 over the H
period of year. H
NO. 5 H
Finally, in the same Nov. issue II
# the Tribune, announcement was H
made that Shell Oil had just brought H
n 1,675-barrel per day well on an H
lPRR lease near Richey. T his H
mounts to 50,25O barrels per month H
production with a gross crude value H
If $133,162. H
Under present law similar large H
veil would provide the state 25 per H
,ent of its gross income or $33,290 H
IS royalty in one month; or 1895, 480 II
n one years time H
Under oil lobby proposal, the roy H
atty for school fund would be cut II
% $16,645 for one month, or $780, H
40 over a period of year. H
III