The journal. (Caldwell, Ohio) 1934-1961, 1958-01-23

u J1oOaSt1OlIs &A1S1L NAoy l., I4iI SSAii-
pany will gather oil in the four
counties only at pump stations
and from trucks furnished by pro-
ducerS.
However, oil men feel that
many producers will haul their
oil directly to refineries once the
pipelines are abandoned. 1t was
mentioned that one result of the
Buckeye decision may be the
eventual discrimination of the 90
pump stations scattered over the
four counties. Area stations are
located at Belle Valley, Harrietts-
vile, Hendershot, Warner and
Whipple.
Because of complicating factors,
it is not known what will take
place in the marketing Of crude
oil in the area. Meetings of oil
and gas men are expected to be
called soon for discussion Of the
situation and possible solutions.
One factor which is involved is
the condition of many of the rural
bridges in t h e oil-producing
areas. They were not designed to
carry the heavy transport trucks
which would be needed to make
oil hauling profitable, oil men
said.
While rumors of the abandon
ment of the Buckeye lines have
prevailed in recent months, the
decision was announced this week
at Newark by G.. A. Scrafford,
vice president and general mane-
ger of the Buckeye Pipe Line Co.
Scrafford read statement at a
meeting of the Ohio Oil and Gas
Assn.
AS a result of the announce
ment, officials of the association
declared they will make every
effort to assist producers in the
four counties in finding satisfac-
tory substitute trucking service
to replace pipeline facilities.
Buckeye agreed to maintain the
pipelines until May l to give pro
ducers the benefit of better
weather to move lines and tanks
to access roads.
The pipeline company also
agreed to sell lines from tanks tc
the nearest roads or truck-load,
ing sites. The company will sci
| pipe in place-tWo-inch at 6lz
cents a foot and three-inch at |;
cents a foot.
In order to handle Pennsyl
vania grade crude oil trucked tC
Buckeye stations, the company
viii set 100-barrel tanks intt
which the oil may be delivered.
| Buckeye has notified the Pub
lie Utilities Commission of Ohio
of its intention to discontinue op
Grafton of lines upstream from
pump stations.
The Buckeye Pipe Line Co. ha
| operated oil-gathering lines il
| Southeastern Ohio since the lat
1600's. Its pipeline system il
| Noble, Washington, Monroe ant
Guernsey counties is connected t.
more than 1900 producers tank
and it maintains 780 miles of line
to serve the area.
From the 20 pump stations, OF
is sent to the tank farm at Bell
Run, between Marietta and New
port. From there, it is loaded O
barges or sent by pipe line to tn
Quaker State Refinery at S
Mary's.
Several refineries get Buckley
crude oil shipped by barge.
In telling of Buckeyes financis
status, Scrafford said operation
in the four counties have show
a monetary loss running into 81
figures year for more than l
years, and there is no indicatio
of Improvement because of heav
loss.
eve have come to the concll
sion that the only sensible cours
to follow is to discontinue the us
; of the lines upstream from OF
pump stations" Scrafford told til
Oil and gas association member
meeting at Newark.
Scrafford pointed out that o
production in the area is declil
ing.