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Show 32 COMMISSIONER INDIAN AFFAIRS. Yet another waste, impossible of estimate, has been caused by the failure of operators effectively to confine water encountered in drill-ing to its own stratum, with the result that it has been permitted to flow into and flood lower oil and gas bearing strata. Not all of this waste has been on restricted lands, which comprise but about 30 per cent of the area onwhich oil and gas operations are conducted. Prob-ably the greater amount of waste has occurred on lands not under the control of the Government. Some waste is probably unavoidable, but there is no doubt in my mind that the greater part thereof could be avoided if the operators would take proper precautions in advance. Aside from the loss to the landowners of the royalty, there is a greater loss to the State of Oklahoma in general on account of the dissipation of its natural resources. The lack of a market for natural gas has been due in a great meas-ure to the waste of the gas. A gas-selling corporation will not care to construct its pipe lines into a field producing both oil and gas, while this wanton waste of the gas is permitted, for there would be no assurance that there would be any return on the investment. If proper methods were used to conserve this gas, there seems to be no doubt that it would eventually find a market, and thus prove a source of great revenue. The Bureau of Mines has made a careful study of drilling methods, and has introduced the so-called mud-fluid system, by which the production from any stratum, whether water, gas, or oil, may be 'effectively sealed in its own stratum and not permitted to flow into and mingle with the production of other strata. Contrary opinions are held as to the effectiveness of the mud-fluid method of drilling. It has been highly praised, and it has been adversely criticized. From a careful study of the matter, how-ever, I am convinced that where the method has been given a fair chance and has been employed conscientiously it has done all that .is claimed for it. The difficulty is due to failure of operators to pre-pare to use the method until trouble has overcome them, then there has necessarily been some delay in applying the method, because the apparatus was not at hand. Oil men are conservative. They think their own old methods are sufficient, and hesitate to institutenew systems, particularly if there is any additional first cost, overlook-ing the vast advantages to be gained in the end. They must be educated to the use of proven scientific methods. The efforts of the Bureau of Mines in this direction are encouraging. The Oklahoma State authorities are fully alive to the conditions, and are endeavor-ing to control operations so as to benefit the greatest number. The indications are that operators themselves are becoming impressed with the necessity of using better methods, so as to conserve oil and gas. |