Appendices

Finding the Mt. Pleasant Field, A Personal Reminisce

Thomas H. Hiestand started his career in 1919 in Tulsa, Oklahoma as a file clerk for an independent landman. A geology graduate of Indiana University in 1922, he became associated with Pure Oil Company, which he worked for until 1927. The following is extracted from a presentation Mr. Hiestand made in 1976.

The Ohio-Michigan division manager [of Pure Oil], Ed Clagget, spent his vacation in Michigan in 1925, during the hay fever season as he had done year after year. Upon his return to Columbus he called me in his office and discussed information he had received about the discovery well at the Saginaw field in Michigan, and assigned me the job of evaluating the producing properties in the new field, with the large objective in mind that exploration regionally in the Michigan Basin be given serious consideration. The work involved numerous trips to the field and to the Michigan Geological Survey offices in Lansing during 1925 and 1926.

Dr. [Richard A.] Smith [Chief Geologist for Michigan] reviewed all my work with me in November, 1926, and he mentioned that all attempts he had made since his appointment in 1919 had failed to obtain the records or samples of about 100 brine wells which produced the brine that was transported by pipeline from the Mt. Pleasant area to the Dow Chemical Co. plant in Midland, Michigan. He did not have a map showing locations of the brine wells. He indicated that he was hopeful that I could obtain the records when I told him one of my chores with the Pure had been supervising their brine well operations in the vicinity of the Pure's salt plant at Charleston, West Virginia. I promised I would try and I would furnish him confidential copies of my information in the event I succeeded in the undertaking.

We [the author and his wife, who was also knowledgeable in geology] made an appointment with Dr. Herbert H. Dow and his son, who had graduated at Yale University and was "learning the ropes" at the plant in Midland. The trip by car from Saginaw to Midland has never been forgotten. Most of the hard top road was a single lane in width and passing cars had to drive with the outer wheels on rock road metal. We arrived well before lunch. Dr. Dow received us graciously and suggested that we join him for lunch at the restaurant on the plant facilities.

In a relaxed atmosphere he told us about his chemical research. And he told us about his studies of field locations in several geologic basins to find suitable brine and his selection of the Napoleon Sandstone aquifer in the bottom of the Michigan basin at Mt. Pleasant. He purchased in fee a brine well site containing two acres, with easements for pipeline right-of-way. He told us his field superintendent was coming to the office after lunch to go over the operations with us. All of this background information was volunteered freely. In my introductory remarks I identified myself as a petroleum geologist, representing the Dawes Brothers of the Central Trust Co. of Illinois, the Management of the Pure Oil Company, and that the Vice President of the United States, Charles Dawes, was financially our founder of the company. He replied that he recalled when Gen. Dawes was chairman of the commission that re-established the financial solvency of the German Republic under its president, von Hindenburg, and the importance to Dr. Dow for the chemical industry to resume international trade after World War I. And from that moment I felt assured my success in obtaining the well records and map of the brine well properties would transpire.

In summing up our discussions I proposed to protect Dow Chemical Company's brine well properties in all cases that Pure's test well drilling program called for wells to be drilled through the Napoleon Sandstone and more than 1200 feet deeper to the carbonate reservoir beds in Devonian formations. I discussed the Pure's lack of success in attempts to use hydrochloric acids in treating oil wells for stimulating productivities and recoveries. Nothing specific was worked out; however, the idea was eventually formally negotiated in Dow and Pure companies jointly forming the Dowell service company, from which Pure withdrew many years ago. At the conclusion of the conference, Dr. Dow instructed his son to compile a complete set of brine well records, and maps with the wells and numbers, and with surface elevations, shown at the locations. In about two weeks we received word the records and maps were ready; my wife and I returned and found the job was efficiently and completely handled. Back at our room in Saginaw we computed datum.

The [resulting] contour map defined the Mt. Pleasant anticline, which extended 21 miles in length, from T.15N., R.3W, southeastward to T.13N., R.1W, across Isabella and Midland counties. We informed Pure's division manager, Ed Clagett, of our evident oil and gas prospect which would require a drilling block of approximately 64,000 acres to be leased as soon as practicable. The manager of the land department, Charles Hammond, instructed "Red" Davis to go to the field immediately, prepare take-off maps and begin leasing.

The No. 1 Root well was spudded approximately 12 months after Dr. Dow made the well records and maps available. The Pure Oil Company completed the discovery well, No. 1 Root, in Section 18, Township 14 North, Range 2 West, Greendale Township, Midland County, Michigan, on February 18, 1928. Initially the total depth was 3533 feet with initial production pumping at the rate of 85 BOPD. After deepening to 3607 feet, and plugging back to 3598 feet, and shooting the interval from 3580 to 3598 feet with nitroglycerine, the well was re-completed flowing 125 BOPD, in reservoir beds of Dundee, a Devonian formation. This discovery was followed by orderly development, and then in succession other local pools or fields were discovered. In 1929, the Leaton field was discovered; in 1931, the Porter field was discovered; however, development was accelerated nearing boom proportions when an extension development well was completed flowing 3200 BOPD, at a location in Section 22, Township 13 North, Range 1 West. In the fields on the Mt. Pleasant anticline, a combined total of 1054 wells were completed; in 1972 there were 278 wells remaining on production. The future reserves could be estimated with a small margin of error, indicating ultimate recovery will be 80 million barrels of oil and 13 billion cubic feet of gas.

Getting Michigan Natural Gas to Market - Then and Now

In the early days of natural gas production, the purchaser built a pipeline to the wellhead, owned the pipelines and sold the gas where they pleased. The Michigan Public Service Commission (MPSC), known in the 1930s as the Public Utilities Commission, campaigned to open more markets for the state's natural gas fields. The Six Lakes Field, also known as the Tri-Township Field, in Montcalm and Mecosta counties were the largest known gas fields at the time. This area became the focal point of a battle between producers who wished to open up more markets for the natural gas they had discovered and Consumers Power Company, who owned the pipeline into the field and was concerned that over-marketing would be "a disaster to users and producers." The difference of opinion brought about one of the most controversial proposals of the PSC.

PSC Chairman Paul H. Todd noted that the Reconstruction Finance Corporation, an agency of the federal government established to help reverse the effects of the Depression, had loaned $8 million to construct a natural gas pipeline from El Paso Texas to cities in Arizona. If it could work in Texas, why not in Michigan? In an address on Michigan State College's radio station, Todd proposed a RFC financed pipeline in Michigan at a cost he estimated between $2 and $3 million. Todd said "it is quite within the limits of possibility that the RFC would loan the cost of a pipeline connecting southern Michigan cities with the Consumers Power line to Saginaw and the American Light and Traction pipeline to Grand Rapids." Under the plan gas flowing to Detroit and Grand Rapids would also supply Battle Creek, Kalamazoo, Jackson, Ann Arbor and Flint.

Todd added that if the additional pipeline was built, it was "possible that the Consumers Power Company and the American Light and Traction Company could be required to connect with the terminals of the pipelines at Grand Rapids and Saginaw since they could probably be proven to be common carriers." As a "common carrier" both the Consumer Power and American Light and Traction Company would be subject to public rate setting and regulation, a possibility that delighted Michigan petroleum producers and the horror of Consumers Power and American Light and Traction Company (forerunner of Michigan Consolidated Gas, MichCon). The pipeline, Todd added, even if the RFC pipeline was constructed by a private firm, eventually it might become public property. Leaving the lingering impression that other, existing, privately owned pipelines might also eventually enter the public sector.

Dan E. Karn, then vice-president of Consumers Power, answered Chairman Todd by saying that his company would extend its pipelines without delay to Jackson, Flint, Kalamazoo or other cities "if engineering studies in which we have faith showed a sufficient gas supply." A few years later more pipelines were put in and more cities added to the natural gas network. Chairman Todd may or may not have been serious about the possibility of public ownership of natural gas pipelines, but his broad hints did greatly increase the number of Michigan's markets that had access to locally produced natural gas.

Family Leadership in the Michigan Oil And Gas Association

Two of the Michigan oilpatch pioneer families and/or their companies have furnished the Association with three or more chief elected officers:

• The Miller brothers, C. John (1966-67), Clyde E. (1976-77) and H. Jack (1988-89) all were President/Chairman of the Board, making MOGA the only petroleum association (or maybe the only association) in the nation to have three brothers elected to the head of the organization. Michael J. Miller, C. John's son, was elected Chairman of the Board for 2000 and 2001.

• The Myler family, because Muskegon Oil Company founder Charles Myler never aspired to office, saw Muskegon Development geologist Hugh D. Crider serve as MOGA President 1959 and 1960. Then Muskegon Development's William C. Myler (son of Charles) was elected MOGA President for 1968 and 1969, with the company's William C. Myler, Jr. elected Chairman of the Board for 1998 and 1999.

Antrim Shale development reached a crescendo in the 1990s, which saw Michigan reach new natural gas production highs. In the early 1970s, Michigan produced about three percent of the natural gas the state used. By the end of the 1990s, more than 25 percent of Michigan's natural gas usage was supplied from the state's own natural gas fields. In the same time frame, crude oil production continued to decline.

There were no startling discoveries of new oil or gas reserves or fields in new geographical of geological areas during the 1990s but drilling continued with rewarding result in every productive geological zone and in every geographical area of historic petroleum production in the state.

Success with horizontal drilling was heralded as the beginning of a new age of production when Traverse City's Cronus Exploration Company, led by Antrim pioneer Martin Lagina, found virgin pressure in the Tow well in Montcalm County's Crystal Field well less than 100 feet out from true vertical. Horizontal drilling technology development was hampered in Michigan by low crude oil prices but the technology remains viable as a source for what Western Michigan University Geology Department's William Harrison II calls "overlooked oil".

Crude oil and natural gas prices tanked in the 1990s, causing the worst depression in the industry in four decades. The decade opened with 1990 showing a high posted crude oil price of $39 and a low of $15.50 for an average of $21.34 per barrel. In1998, the highest Michigan crude oil price was $15.50 per barrel and the low was $7.75 per barrel for a 1998 average of $11.66 per barrel. 1999 was not much better with a high of $23.50 per barrel, a low of $8.50 and average for the year of $16.16. Natural gas average prices per Mcf (thousand cubic feet) opened the 1990s with $1.69 per Mcf in 1990 and closed the decade $1.67 per Mcf in 1999. In many cases it actually cost more to pump oil to the surface than operators obtained from 1990s prices. Oil wells, however, cannot be turned on and turned off like a water spigot. Operators pumped at a loss, unless they decided enough was enough and elected to cap the well, permanently ending production.

The 1990s saw Michigan produce128.050 million barrels of oil and 2.298 Trillion cubic feet of natural gas. 7,994 holes were drilled in the search for oil and natural gas, resulting in 225 oil wells, 6,160 natural gas wells (overwhelmingly Antrim Shale wells), 1179 dry holes and 430 facility wells.

The new century finds the Michigan oil and gas industry in some ways where it was during the 1940s and early 1950s; finding marketable quantities of oil and particularly natural gas but lacking any major new discoveries. But if the past is any guide, the future may well be one of promise. Over 50,000 holes have been drilled in Michigan to date in the search for oil and gas, and of those known; the result has been 14,744 oil wells, 11,518 natural gas wells and 20,961 dry holes. From less than two percent of Michigan land area, 1.240 billion barrels of crude oil and 6.358 trillion cubic feet of natural gas have been produced from 64 Michigan Lower Peninsula counties. The belief prevails among some that the elephants (big oil & natural gas fields) have all been found and there is nothing left but small discoveries and secondary, tertiary and quaternary recovery production. This belief flies in the face of the lessons of Michigan petroleum history which has followed a boom-bust cycle for nearly eight decades. As Michigan petroleum geologist Michael Barratt has said, "There is at least as much oil and gas to be found and produced in Michigan as we have already found."

There is reason to believe that bountiful oil and natural gas resources remain to be discovered in Michigan and the people who look for and find those resources continue to do so. They also continue to be a close-knit fraternity, linked through professional journals such as the Michigan Oil & Gas News and trade groups such as the Michigan Oil And Gas Association. But the fraternity is more than simply a matter of knowledge and professional courtesy. Over the years the personal relationships between those in the industry have grown. It is, in addition to everything else, a group of friends, sometimes friendly rivals, but often good friends.

Once a year, the third Thursday of June, that friendship is celebrated in Mt. Pleasant. For a day the town becomes again the epicenter of the Michigan oil and gas exploration and production industry universe as oilfolk with Michigan roots from around the state, the nation, and sometimes the world, gather for the Annual Michigan Oil And Gas Association Picnic/Reunion, a tradition that now spans more than 70 years.

Since 1933, every year but two (1943 and 1945 during World War II), oilfolk from points nationwide have held the date of the "Oil Picnic" sacred as a day for warm handshakes, fond memories, and greeting friends old and new in an informal, relaxed atmosphere. It's a day which weather can not dampen, a day for golf togs instead of neckties, a day when the only total depth fretted over is the few inches directly below the hole-flag and the only off set to be concerned with is that from the tee to the flag.

Originally what was to become the picnic was a formal banquet. The mid-year meeting of the Michigan Oil And Gas Association, from 1934 until 1939, was for directors only, held in Mt. Pleasant. But in 1939, then MOGA President Harold McClure, Senior, held a summer picnic in lieu of the banquet and declared the event open to "the oil fraternity as a whole", with all oilmen (MOGA members or not) invited. Mt. Pleasant and the Mt. Pleasant Country Club became the official home of the Annual MOGA Picnic/Reunion in 1946. Since then, regardless of where the current field action or "boom" is, oilfolk have known that on picnic day it was time to come to Mt. Pleasant.

Owing to my journalistic background, I'm not a footnote kind of guy and since I identify sources of quotes in the text, there is no need for a bibliography.

However, a few word of credit are due however.

• A great deal of the narrative regarding the early days of Michigan petroleum exploration (in addition to my own research) have been borrowed, rephrased, or blatantly stolen from my predecessor as Michigan Oil & Gas News (MOGN) Managing Editor Norman X. Lyon, who wrote a column for the publication called " Sample Bag" for the magazine into the 1980s and provided an outstanding treatise on early Michigan petroleumdom in the June 13, 1975 Progress Edition 1925-1975 edition of Michigan Oil & Gas News.
• Dick Bolton, who served as Editor of the Michigan Oil & Gas News between 1973 and 1981 was Sundance Kid to my Butch Cassidy in my early days as General Manager of the publication. We established many of the procedures and reports that continue as the publication's staples. Dick's photography is a large part of the photo database that accompanies this exhibit.
• Roger Lintemuth, MOGN Associate Editor 1983-1991, who with fellow Associate Editor (then) Scott Bellinger wrote many of the Michigan county petroleum history articles that with mine appeared in the Michigan Oil & Gas News Michigan Oil & Gas Story: County by County, edited by me in 1991.
• Scott Bellinger, current Editor of the Michigan Oil & Gas News, a friend and associate since 1982, who meets all the criterion of the hitherto thanked, and more, for taking the MOGN into the future.
• Clarke Historical Library director Frank Boles, whose superior editing expertise rendered my ramblings "suitable for academic consumption."
• Lastly, me. I've drawn upon my regular Michigan Oil & Gas News column "View from the Monkeyboard" which first appeared in 1999, articles I've done in the 32 years I've worked for the publication, and the two books I've edited, Michigan Oil & Gas Story: County by County, published in 1991 and Michigan Oil & Gas News 60 th Anniversary Photo Review, published in 1993. In discussing all this writing, MOGA President Frank Mortl quipped, "Serving a Great Industry in a Great State" [has] served well in assembling this ramble through The Michigan Basin's oil and gas exploration and production heritage."

Any omissions of people, places and events in this narrative are strictly my own, not by plan nor intent. And if I missed a big important one, my apologies in advance for any offense taken, none was intended - JRW.