Lapas attēli

Midland Oil Company, lessee, designated Martin Bertagnole as operator on following:

T39N-R78W: Sec. 35: SW/NE, E/2 SE/NW.
September 30, 1955 : Base Lease now as follows:

M.K.M. Oil Company, 75% of 82.5% W.I.
Midland Oil Company, 25% of 82.5% W.I.
Midland Oil Company, 3% ORI.
Harland J. Brown, 12% ORI.
Mark J. Davis, 142% ORI.

United States, 1212% R.I. March 12, 1957: Midland Assigns to Bertagnole operating rights to and including Shannon ss. as follows:

T39N-R78W Sec. 35: SWANE, E/2 SE/NW. March 20, 1957 : Partial Assignment to Bertagnole creates "A" lease as follows:

SW/NE, E/2 SE/NW of Sec. 35-T39N-R78W. Bertagnole assigns full record

title to Canada Southern Oil, Inc. February 1, 1958: “A” lease now as follows:

Canada Southern Oils, 30% of 82.5% W.I.
The Wyoming National, Bank of Casper, A/C, Canada Southern, 70% of

82.5% W.I.
Harland J. Brown, 12 of 1% O.R.I.
Mark J. Davis, 14% 0.R.I.
Midland Oil Company, 3% O.R.I.


January 21, 1922: Original oil and gas prospecting permit was Douglas 028826
(changed to Cheyenne 037842) issued to Neal Beaton as follows:

Sec. 2: Lot 2.
Sec. 9: W/2 E/2, SE/SE, NE/NW.
Sec. 12: W/2 SW.
Sec. 15: SW/SW.

Sec. 26: SW/NE.

Sec. 26: SE/SW.

Sec. 35: N/2 NW, SE/NW, W/2 SE, NE/SW (720.20 acres). Assignment No. 1: Beaton to w. D. Weathers, 742 percent reserved by Beaton;

138N-R78W, Sec. 9, 12, 15, and 26 as above; T39N-R78W, Sec. 35: N/2 NW,

SE/NW (520 acres). Assignment No. 2: Beaton to M. J. Burke, 100 percent; T38N–R78W, Sec. 2: Lot Division order dated 21 August 1928 shows interests as follows on DeLong permit:

2; T39N-R78W, Sec. 35: NE/SW, W/2 SE (160.20 acres). Assignment No. 3: Weathers to J. J. Chapman: All of Weathers' interest, recog. nizing the 7142 percent to Beaton: T38N-R78W:

Sec. 9: W/2 E/2, NE/NW.
Sec. 12: W/2 SW.

Sec. 26: SW/NE.
T39N-R78W: Sec. 35: N/2 NW, SE/NW (440 acres).
Assignment No. 4: Weathers to A. H. DeLong: Reserve 712 percent, recognize
712 percent to Beaton:

Sec. 9: SE/SE.

Sec. 15: SW/SW (80 acres).
Assignment No. 5, April 23, 1928: Burke to Teapot Consolidated Oil Company:
160.20 acres as shown above:
Chapman to Teapot Consolidated Oil Company:

T38N-R78W, Sec. 9 : W/2 NE, NW/SE, NE/NW.
T39N-R78W, Sec. 35: N/2 NW, SE/NW (280 acres).

Percent United States..

5 Neal Beaton.

5 Teapot Consolidated Oil Company

74 Carl F. Shumaker..

14 P. H. McNally

214 John H. Casey.

24 A. H. DeLong-

80 Derrick Oil Company-



CHEYENNE 037842 (a)

Issued to M. M. DeLong on June 8, 1928 covering:

Sec. 2: Lot 2.

Sec. 9: SE/SE.
T39N-R78W: Sec. 35: W/2 SE/NW, NE/SW (140.20 acres).

5 percent royalty to United States.

CHEYENNE 037842 (c) Issued to Teapot Consolidated Oil Company on June 8, 1928 covering: T39NR78W, Sec. 35, NW/NW (40 acres).

5 percent royalty to United States.

CHEYENNE 037842 (d)
Issued to Teapot Consolidated Oil Company on April 15, 1937, covering:

T38N-R78W, Sec. 9:W/2 NE.
T39N-R78W, Sec. 35 : NE/NW, W/2 SE (200 acres).

Sliding scale royalty to United States.
March 1931 : Drilling Agreement on Chey. 037842(a) covering SE/SE of Sec. 9-

138N-R78W between A. H. DeLong and The Wind River Oil & Gas Corp. May 14, 1937: Partial assignment Chey. 037842(a) from A. H. Delong to M. M. DeLong covering SE/SE of Sec. 9-T38N-R78W.

Leo A. Benedict appointed receiver of Buckeye Wyoming Oil Company by court order No. 662, U.S. District Court for southern district of Ohio Eastern Division.

USGS-Casper has no evidence of Buckeye Wyoming owning ang interest

subject lease as of August 1938. August 1, 1947: Chey. 037842 (a): G. Alvin Ostler assigns to Martin Bertagnole

and Jesse Alfred Miller. June 1, 1918: Renewal lease 037842 (a) issued to Bertagnole and Miller covering August 1, 1956 : Teapot Consolidated Oil Company assigned 037842 (c) and (d)

to M.K.M. Oil Company. July 1, 1956 : Miller assigns 50 percent interest in 037842 (a) to Bertagnole

giving Bertagnole 100 percent interest in lease, except for override.

Present ownerships of leases as follows:
December 3, 1956: Cheyenne 037842(c) NW/NW of Sec. 35-T39N-R78W:

M. K. M. Oil Company, 82.5% W.I.
Derrick Oil Company, 144% ORI.
Angus Beaton, 242 ORI.
Iona B. Shumaker, 5/16 of 1% ORI.
Elanor S. Miracle, 5/48 of 1% ORI.
Genevieve S. Owen, 5/48 of 1% ORI.
Iona M. Shumaker Dwyer, 5/48 of 1% ORI.
Teapot Consolidated Oil Co., 81/8 of 1% ORI.
United States, 5% R.I.

October 18, 1957: Cheyenne 037842(d) NE/NW, W/2 SE of Sec. 35-T39N/

M. K. M. Oil Company, 82.5% W.I.
Derrick Oil Company, 144% ORI.
Angus Beaton, 242% ORI.
Iona B. Shumaker, 5/16 of 1% ORI.
Elanor S. Miracle, 5/48 of 1% ORI.
Genevieve S. Owen, 5/48 of 1% ORI.
Iona M. Shumaker Swyer, 5/48 of 1% ORI.
Teapot Consolidated Oil Co., 55 of 1% ORI.

United States, 12.5% R.I.
May 1, 1957 :Renewal on Cheyenne 037842 (c) issued to M. K, M.
November 1, 1957: Cheyenne 037842(e) is created as Partial Assignment of

Cheyenne 037842(d) with Canada Southern Oils, Inc., taking record title of
NE/SW, W/2 SE/NW, of Sec. 35-T39N-R78W:

James L. & Nina S. Carlton, 12 of 1% ORI.
Teapot Consolidated Oil Co., 2.86% ORI.
John Beaton, 12 of 1.43% ORI.
Angus Beaton, 12 of 1.43% ORI.
Lance Creek Royalties Company, 0.36% ORI.
Iona B. Shumaker, 0.175% ORI.
Elanor S. Miracle, 0.0583% ORI,
Genevieve S. Owen, 0.0583% ORI.
Iona M. Shumaker Swyer, 0.0583% ORI.
Canada Southern Oils, Inc., balance after deducting 5.499% and modified

step scale royalty of U.S.
June 1, 1958: Renewal on 037842(e) issued to Canada Southern.
June 1, 1958: Renewal on 037842(a) issued to Martin Bertagnole,
September 8, 1960: Drilling and operating agreement between Bruce Anderson,

R. L. Peterson, W. L. Hjorth, Lessees (No records of assignment in USGSCasper office), CI renne 037842 (c) and (d) and Lind C. orton, et al., DBA M. K. M. Oil Company.


Trigood Oil Company:

Fred Goodstein, owner.

H. B. Gernert, general manager, Box 1689, Casper, Wyo.
M. K. M. Oil Company :

Harold C. Morton, H. S. Kohlbush & L. C. Morton, general partners.
A. W. Lyddon, general manager, 1241 East Burnett, Long Beach, California.

Warren A. Morton, division manager, 254 North Center, Casper, Wyoming. Canada Southern Oils, Inc. Subsidiary of Canada Southern Petroleum (Ltd.) :

John W. Buckley, president.
James A. Masterson, vice president, Intermountain Building, Casper,

Bertagnole: Martin Bertagnole, owner, 635 South Durbin, Casper, Wyoming.
Pubco Petroleum Corp. :

D. W. Reeves, president.
Frank D. Gorham, chief of executive committee, P.O. Box 1417, Albuquerque,

New Mexico.
James Holderman, section area geologist. P.O. Box 716, Casper, Wyoming.
Mark J. Davis: Mark J. Davis, owner. P.O. Box 355, Casper, Wyoming (room
301-302, Odd Fellows Building).

Mr. Flood. The officials of those companies are probably writing me letters about not wasting money on an education bill or something like that.

Mr. ANDREWS. Tell us about your wells on the reservation up near the land line. Are they producing at full capacity ?

Captain LOVELL. Yes, sir.

These are not very good oil wells. They are only 30 or 40 barrels a day, that type of thing.

Mr. ANDREWS. How about the wells on the Government-owned land operated by private companies?

Captain LOVELL. They are also producers.
Mr. ANDREWS. Are they good producers?
Captain LOVELL. At about the same rate, sir.

Mr. ANDREWS. That is just a question under existing law as to who gets there first with the wells?

Captain LOVELL. Yes.

Mr. Flood. Federal property leasing to company A a hundred feet from your border, to sink a well, to take out whose oil-your grandmother's

Captain YOUNGBLOOD. It would make no difference if that were private owned property.

Mr. Flood. Really, I have been practicing law for over a hundred years.

Mr. ANDREWS. Does the Navy have an opinion as to what should be done about an offset law passed by Congress to protect the naval reservations! Have you discussed it in your shop!

Captain LOVELL. This is a problem that the naval petroleum reserves have been confronted with since they were established. In Naval Petroleum Reserve No. 1, the Standard Oil Co. owns approximately 18.5 percent of the land; in Naval Reserve Petroleum No. 2, about two-thirds of the land; and the remaining third is leased out to private operators by the Government and has been since 1921.

Mr. FLOOD. This is not the fault of the U.S. Navy or the DOD. This is the fault of the Congress of the United States and politicians of both parties since the Nation was born, who don't give a hoot. That is all this is.

Mr. ANDREWS. I agree with you.

Mr. Flood. This is conspiracy to a degree that the criminal codes could not match.

Mr. ANDREWS. Tell me this: How do you sell that oil ?

Captain Lovell. It is sold under contract to the high bidder. The present purchaser is the

Captain YOUNGBLOOD. Western Crude Marketers of Denver.
Mr. ANDREWS. Are any of your neighbors buying any of it?
Captain LOVELL. No, sir.
Captain YOUNGBLOOD. They are producers, not refiners.

Captain LOVELL. Nor were they permitted to bid on the operating contract for developing the naval petroleum reserves. They were excluded from bidding. The contract operator on our reserve is the Intex Oil Co. of Bakersfield, Calif.


Mr. FORD. If the chairman will yield, we have just been looking at the Naval Petroleum Reserve No. 3 problem. You mentioned in passing 1 and 2, where there seems to be some degree of similarity. What are the facts on the others?

Captain LOVELL. A close similarity does not exist, as I might have indicated. In Naval Petroleum Reserve No. 1, the Navy owns ap

rels per day.

proximately 81 percent of the land, Standard Oil Co. of California owns the rest.

The field is operated under a unit plan contract, which was drawn up, agreed to by Congress and placed in effect in 1944.

Under that contract the Navy controls the rate of production from the entire reserve. In other words, in that instance, because of this special contract, Standard is not permitted to remove their oil to the detriment of the United States.

Mr. ANDREWS. How do you keep them from doing that?

Captain LOVELL. We have people out there in my office who say they can only produce so many barrels.

Mr. ANDREWS. Limited production?
Captain LOVELL. Yes, sir.
Mr. ANDREWS. Are you producing any oil on reserve No. 1!

Captain LOVELL. Yes, sír. At the present time Naval Petroleum Reserve No. 1 is producing approximately 12,000 barrels of oil per day.

Mr. Andrews. Is that about the same level of production that Standard Oil Co. operates on the adjoining property?

Captain LOVELL. No, sir. If they were turned loose they could produce by themselves something in the neighborhood of 50,000 bar

Mr. WEAVER. If they only own a third of it they should not be producing more than a third.

Captain LOVELL. That is why I say that figure, against the 200,000 we are capable of doing. This production from Naval Petroleum Reserve No. 1 is necessary to protect the oil reservoirs and to prevent the ultimate loss of oil.

The production from the shallow zone, which is most of the production that is going on out there, is to prevent water from encroaching in the oil sand in one area of the zone, to prevent oil from migrating into water sands in another area of the zone and to obtain data on reservoir behavior so that we can make shifts in production from individual wells to prevent this loss, complete loss out of the oil.

In other words, what we are taking out of Naval Petroleum Reserve No. 1 would be lost, ultimately, if we did not take it out.

Mr. Flood. You will wind up like Mother Hubbard, open the cupboard and it will be bare.

Captain LOVELL. No, sir. We know we have more oil there now than we thought we had 40 years ago.

Mr. FLOOD. You are living right.

Mr. FORD. Is this a satisfactory arrangement which precludes the problem that arose in oil reserve No. 3?

Captain LOVELL. Yes, sir.
Mr. ANDREWS. This is done under an act of Congress?

Captain LOVELL, Yes, sir. Under the United States Code and the actual contract; consultations were held on the contract with the Armed Services Committees of both Houses and they approved it; the President approved it and this is the contract under which we are operating

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