xt70zp3vt865_129 https://exploreuk.uky.edu/dips/xt70zp3vt865/data/mets.xml https://exploreuk.uky.edu/dips/xt70zp3vt865/data/63m46.dao.xml unknown 14 Cubic Feet 31 boxes archival material 63m46 English University of Kentucky Copyright has not been assigned to the University of Kentucky. Contact the Special Collections Research Center for information regarding rights and use of this collection. Harkins Family papers Mineral rights -- Kentucky -- Floyd County -- History. Law reports, digests, etc. -- Kentucky. Mining leases -- Kentucky -- Floyd County -- History. Practice of law -- Kentucky. Bankers -- Kentucky. Banks and banking -- Kentucky -- Prestonsburg. Coal trade -- Kentucky -- Floyd County -- History. Lawyers -- Kentucky. Consolidation Oil and Gas Byproducts Company text Consolidation Oil and Gas Byproducts Company 2016 https://exploreuk.uky.edu/dips/xt70zp3vt865/data/63m46/Box_16/Folder_6/0001.pdf undated section false xt70zp3vt865_129 xt70zp3vt865 ' e
. J
‘ CONSOLIDATION oggpgsirﬂpwspommr.

_gggpﬁgggr: In Floyd, Knott, Magoffin, Perry and Letcher Counties
Kentucky, on the waters of of Right Beaver, Liddle, Upper Quick- ,
sand, Troublesome, Carr and Rockhouse Greeks, and trubutaries
thereof. Beginning at Maytown and estending in a South
Westerly direction across Floyd and into Magoffin and hnott
county, hentuCKy following the well defined 45° line, and, within
the range of the great Appalachian Oil & Gas belt, extending
in an unbroken line from South Western New York through Western
Pa; 8. E. Ohio into the western portion of W. Va; crossing
at Warfield, and extending through into Tennessee and Alabama.
All of these leases have been specially selected with Bference
to geologiaal fromaticns as respects oil and gas measures, and
no well has been drilled upon these leases which has not been
paying producer of oil or gas.
gigggsz As these leases were taken from theland owners their
titles were examined by a competent attorney, and only leases
taken and accepted where the title of the lessors to the oil
and gas were marketable.
gég; The estimates of income are based upon contract now
existing with the Louisville Gas a Llectric company, alone,
to fill which the Company now has approximately 8,233,000
cu. ft. of open flow gas from four wells and 7,000,000 cu. ft.
from wells which gave been drilled for oil and when gas was
found the casing was pulled and the holes plugged. We own
such leaseholds. The following is a statement of the wells:

T. A. Martin, No. 1(R.P.35o lbs) Booyooo cu. ft.

T. A. Martin, No. 2(R/P.350 lbs) 2,150,000 cu. ft.

Bolen, No 1, (R.P.550 lbs) 4,8ooyooo " "

Estep, No 1, (R.P.550 lbs) 483,000 ” “

‘BTEEETBBETYETEWi'"'
(Note that the Estep well was drilled spedially 20 oil
1,000,000 Cu ft. of gas was cased off at 712 ft.; salt sand;
HARKINS AND HARKle
‘"°"""3$.§3£§§ilﬁ"§i‘f‘ " “w

no oil found but 483,000 Cu. ft. of gas found at 1506 ft. in
Big Injun sand.)

Gas has been found ans wells abandoned by other
interests, which leases arenow owned by this Company, as fol—
Iows: .

Reffert Branch, 2,000,000 cu ft

Head Left Bord, middle Creek, 5,000,000 " “

Head Prater fork, Rush Creek, “___..~_m~___"~_O,
(The information as to the volume of the Reffcrt Branch well
and the Middle creek well, was given by John W. Huff, Superin—
tendent New Domain Oil & Gas Company— a Standard subsidiary.
hr. Huff further reports that only four wells ever dilled in
the Beaver Creek district did not produce oil or gas in paying
quantities and it is the opinion of hr. Huff that if these wells
had been drilled deeper paying production Would have been found
in them) .

The average production from the wells drilled on this
Company‘s properties is 2,058,000 cu. ft.; and the average
production of 17 wells in this field, as reported to the
Louisville Gas & Electric Company by A. A. Lee, Jr; its
hngineer, is 1,537,400 cu. ft. daily.

We have offset wells locations to wells 1,2,3, a 4,
of the Keystone Gas Company referred to in Mr. Lee's report
totalling 5,427,000 cu/ Ft.

Until within the past two years there has been prac-
tically no market for the gas found, and the wells have
usually been plugged and easing pulled, and the well abandoned.
One of the companies having gas production in this district
has ﬁr about six years been supplying gas for domestic pur-
poses to the coal own of Wayland. Within the past two years
the Keystone Gas Company, having 10,841,000 cu. ft. of gas
has contracted a substantial portion of its production to the
Liberty Carbon Company, which has established a plant cost-
ing memes $150 OOUMQM‘WH PM“ “We, WW

PRESTONSBURG, KY.

station of the C. & 0. By; They have additional production
not included in contract to Liberty Carbon Company, and it is
expected we will be albe to obtain this additional production.

According to statements made by Mr. Haiford Erickson and
by mr. Donald McDonald, Vice-Presidents of the Louisville,
Gas & Electric Company, this field has been selected by the
Uompany as being the most promising for their future supply
of gas, after having made a thorough inbestigation of some
sixty-five to seventy fields and propositions submitted to
them. They have further stated the purpose and intention of
the Company to take all the gas shich can be produced by this
Company in this field, as the field develops, ad as the
production can b increased.

No wells have been dilled by the people who have developed
this proposition, so they sport to us, that have not been
paying producers of oil or gas. There as eight proven
producing sands. It is expected that by dillign Wenty
additional wells, where we have off-set locati ns, that the
total production of this Company will be increased to at
least 50,000,000 cu. ft. of gas daily. There will be no
difficulty in disposing of whatever priduction the Company
may have, as in addition to the Louisville Gas a Electric
Company as a market, several glass plants have been materi-
ally interested in coming into this section to obtain the
benefit of this fuel, particubarly Equitable Window Class
Company.

It is believed that the leaseholds of this company are
the choice of this district, and no reason can be advanced why
with proper development the field in the future should not
equal the yest Virginia gas fidds.

HARKlNS AND HARKINS
A"°“""S.‘.§ZEOS§’§L'$‘E3‘T’ " L”

OIL: The field in which the Company's holdings are located
is known as the Beaver field; Oil and has have for sometime
been found in this district, and for a long number of years
the Cumberland Pipe Line Company has had a line into the
district. The oil shipped in the year 1917 is understood to
have been in excess of 14000 bbls; and since the fields was
established, there has been shipped from the district are
than 300,000 bbls; as we are advised. The oil is of high
parafine base, 43 Be, and at he present time commands a
price of $2.60, being classified as Somerset Oil. It is
really a higher grade oil than that general known as Somerset.
and would command a higher price, if shipped in tank care.
As a matter of illustration of the lasting qualities of the
oil wells in this district, within the past month the writer
has been called upon to prepare papers incident to the trans-
fer of title to a well which has been pumped, so he was in-
formed, for about eighteen years, and the price now paid for
the same was on a basis of One Thousand ($1,000.00) Dollars
per barrel.
MATEBIAL: We have responsible offers for all necessary mater-
ial and equipment for pipe lines, compressors, gasoline plant
and dilling equipment.
PERSONAL: Joseph D. Harkins, President, Prestonsburg, Ky.
ﬁarking & narkins, Counsellors, Representing
Chesapeake & Ohio Railway Co;
Elkhorn & Beaver Valley Railway Uo;
Western Union Telegraph Co;
Southern Bell T a T 00;
American Railways Express Company.
American Car & Foundry Co;
The Bank Josephine.
HARKlNS AND mems
ATTORNEYS AND COUNSELLORS AT LAW
Pnesronsnune. KY.

George T. Wood, Vice President, Louisville, Ky.
George T. Wood & SBn, Brokers.
Derector, West Penn. Railways 00.
Richard V. Wood, Secreatry & Trasurer, Louisville, my;
George T. Wood & Son Brokers.
Walter S. Harkins, General Counsel, Prestonsburg, my;
Harkins & Harkins, Counsellors,
President, The Bank Josephine.
Vice Pres. harris)stanely anl a Land U0;
Coals & minerals.
A. B. Erode, V P & Gen mgr. Huntington, W. Va.
A. B. Erode & son, Drilling Contractors, Pro-
ducers of oil_and gas. Mr. Brods has had ten
years field experience in oil and gas production,
six years in this territory. He personally
selected the leaseholds of this company after
spending considerable time in the field with
the U. S. Topographical Survey, and after various
consultations in field and in office with J/.8.
Hoeing, State Geologist of Kentucky.
W. W. White, Director, Welsh, W. Va;
Secretary and Treasurer, Excelsior anl 00.
Clerk, Uounty bourt, McDowell County, W. Va.
(To be named by syndicate)
.__..___.__..__.__...__.___u._
EARNINGS. (From Louisville Gas & Electric Company contract alone)
Based upon contract dlivery of 5,000,000 cu. ft. daily.
1919, 12 1/2¢ $228,125.00. Gasoline s54750.00 $282,875.
1920 13 1/2g 246,375.00 301,125.
1921, 14 1/2g 264,625.00 319,375.
l922,ect15 g 273,750.00 328,500.
Based upon contract maximum of 12,000,000 cu. ft. daily.
1919, 12 122g $547,500.00 Gasoline s1314oo.00 $678,900
1920, 13 1/2¢ 591,300.00 722,700
1921, 14 112¢ 635,100.00 765,500
l922etc 15 ¢ 657,000.00 788,000.
(In making the above calculations, gsoline has been estimated at
a net return to the company of 3¢ per thousand feet of natural
gas, this being the net amount given us by gasoline experts who
have made examingation and tests of the gas.)

It is expected that the earnings of the Company will be
materially augmented by the drilling of the additional wells and
the priduction and sale of additional gas and gasoline, and oil.

anms AND Huxms
ATTORNEYS AND Coustuons AT LAW
Pnzsronsnunc, KY.

EXPEKDWTWRES: Salaries, office expenses, stenegraphers, book-
keeper, meter reader, track men, gsoline plant, $30,000.00
Rentals 6,000.00
Taxes 2,000.00
New Development, yearly, 25,000.00 '
Sinking Fund 6% 00,000.00
Interest, first year, 20,000.00
193,000.00
(Decreasing each year by purchase of bonds
with finds arising fem Sinking fund
RECEIPTS? Aﬁy INTEREST hAREINGS: Income from first year shows
net earnings of $219,875.00 or approximately three times in—
terest Bquirements and commencing at the fourth year, and each
year thereafter net eartings of $265,000.00 or approximately
four times interest requirements.
DISTRUBUTION OF FUNDS ARISING ROM BOND ISSUE.
Pipe line and conpressor station complete $600,000.00
Gasdline Plant, 50,000.00
New Wells, 100,000.00
Gathering lines, 25,000.00
' Real estate-other than Right of way for pipe 10,000.00
measuring station, line 5,000.00
General Expenses, 10,000.00
Contingencies, 25,000.00
$ 75,000.00
QAPITALIZATION APPROVED BY CAPITAL ISSUES CUHHITTEE.

The Capital Issues Committee after investigation and ap-
proval of the proposed company by the United States Fuel Admin-
istration, approved the following capitalization;

Capital Stock, 25000 shares of stock of non par value and
$1,800,000 of bonds to be issued for the following purposes:
Oil and gas leases andproduction, 1,000,000.00
Pipe line complete, 600,000.00
Gasoline Plant, 50,000.00
New Wells, 100,000.00
Gathering Lines . 25,000.00
HARKINS AND HARKINS
ATTORNEYS AND COUNSELLORS AT LAW
Pnesronsnuao. KY.

Real Estate other than ﬂight of Way 10,000.00

Measuring Station, 5,000.00

General Expenses 10,000.00
QUESTRUCTIUH AND DEVELOPMENT:

We have had preliminary negotiations with hope entineering
and Supply Company, and with J B CnCloskey, epresenting a
company with which he is commectied to do the work and construction
of the pipe line, compressor, and gasoline plant. The Hope
Uompany makes a specialyt of this kind of constuction work. hr.

~ MoCloskey was ﬁrmerly assistant Superintendent of the Columbia
Gas and Electirc Company, and charge of he construction of that
Company's pipe line from the West Virginia fields to Cincinnati,
Ohio, and is regarded as most capaable and efficient.
CONSOLDIDATION OIL & GAS BY-PRODUCTS COMPANY
WW
TERMS OF LEASES: The average term of these leases as for
ten years; the rental in 10¢ per acre except as to a few acres
where the rental runs 25¢ and there are about 1000 acres where
the rental runs higher. As to this higher acrgage rental
we expect to drill in the near future and thus decrease the
rentals to be paid. The roylaties run one)eight oil and fﬁomu
$25. to $200. for each gas wll fom which as is produced and
marketed.
NUMBER OF LEASES: Approsimately 125
ACRRJAUE $0,000 to 42,000; approximately 25% of which is in
the districts in which oil is being produced, and the
remainder of which is in territory in which gas is prodiced.
(The exact number of leases and exact acreagecannot new be given
as we 3e checking over the titles and acreage of the lessors
in the divers leased. When such examination and checking is
completed, then as exact statem‘nt can b made both as to the
* AmnNE’YQRfﬁéé'ENEL‘L’EL‘: n m
PRESTONSBURG. KY.

number of leases and as to the acreage which the company will
have. In a large portion of the County, accurate surveys have
been made and the axact acreage is easily accertainable; others
of the tract have not been so surveyed and acreage would be
based upon the estimated quantity of land as set out in the
divers deeds under which the leasors hold title to the property.)
EELTS DRILLIKQ; The Great Central Company isnow drilling

near the mouth of MiddleCreek in Floyd County, and according

to telegraphic information there will gives promise of at

least thirty barrels per day. This well should be drilled

in within a few days. The same Company is making another location
the exact site of which we are not advised.

The Eastern Gulf Oil Comgany (Gypsy interest)
are moving to location on property leased them by Walter B.
Harkins on the Trimble branch immediately adjacent to Prestonsburg

and have made location for another well on Sugar Loaf Creek.

The Elkhorn—Piney Coal Co. are assembling
material to drill four wells at theri industrial town of Weeksbury,
expecting to obtain gas for lighting and heating purposes.

There has been drilled within the last few
weeks a well on Left Beaver Creek on the Joe hall property which
is reported at 40 barrels. The name of the comaany drilling this
well is not known but George Harmon is the manager of the company
and there is some New York capital interested inthe same.

There are two other wells drilling on Right
Beaver Creek and trnbutaries but I am not advised at the present
as to the interest drilling there wells.

We have loaseholds in the near vicinity and
the same general territory where the above wells are being drilled
and locations are made.

HARKlNS AND HARKle
A"°“"“3R223052;L12'f§3‘.“ " L5" W

AT NEW YORK,00TOBER 16, 1918.
Messrs. Bonbright & Co;
120 Broadway,
New York City.
Gentlemen:-
Eurthering conversations bah with your hr. A. h.
Lockett, we understand that you propose the following system
of financing the Consolidation oil a Gas Byproducts Company.
Common Stock $1,000,000. ,
Preferred Stock 600,000.
bonds 7% 10 yr. 1,000,000.
That from this capitalization the $600,000. of
Preferred Stock, 8» cumulative, shall be paid to the owners
of the oil and gas leases and oil and gas prodiction, in
addition to which they shallalso be paid $600,000. of the
Common Stock; that $400,000. of the common Stock shall be
issued to you covering your compensation for marketing the
bonds of the 004pany; that the bonds of the company shall be
10 yr. bonds, bear interest at %o and be sold at a price
to net the investor 8%, or $93.20; that in addition thereto
the further sum of five points shall be paid to you and
your associates for services rendered and expenses incurred
in marketing these vonds, netting the company $80.20 therefor.
We futher understand that you will endeavor to form
a Syndicate to take over these bonds and to furnish
the net amount thereon to the company, and that you will advise
us within the week of October let asto such Syndicate; and
that if such byndicate is formed, you would then ésire to
' and would send down such engineer as you might desire to check
up such property and to make such investigations as you might
desire; and that if such engineer's report is favorable you
whould then be in line to furnish the net proceeds of such bonds
upon proper execution therof.
HARKINS AND HARKlNS
A"°“""3:.£LS§:ETEZT“ " L”

weeds . bOth’IcEiT & co . (g) 1m? you}: ocT . 16, 1218.
In the preparation of Prospectus of the company

we overlooked stating that we expected to obtain the services
of an efficient and capable Consulting Lngineer to Wnom would
be submitted the plans of the proposed dvelopment and the
general details incident to the construction and operation of
such pipe line, gasoline plant and compression plant.

Very ruly yours,

HARKINS AND HARRINS

ATTORNEYS AND COUNSELLORS AT LAW
PRESTONSBURG. KY.

} .4,
CONJOLIDATION 01L & GAS BY—PHUDUCRS CUiWANY.
VPnOEhhTY: In Floyd, Knott, Magoffin, Perry and Lotoher Counties
Kentucky, on the waters of of Right Eeaver, hiddle, Spper Quick—
sand, Troublesome, Carr and dockh use Greeks, and trubutarics
thereof. hcginning at iaytown and estending in a oouth
Westerly direction across Eloyd and into hagoffin and hnott
‘ county, Kentucky following the wgil defined 45° line, and, within
the range of the great Appalachian Oil m Gee belt, extending
in an unbroxen line from South Western ﬂew York through Western
Pa; 3. E. Ohio into ' e w «tern portion of ”. Va; crossing
at ”arfield, and on ‘nding through into Tennessee and Alabama.
All of these lenses haJe been v- ially selected with rforence
to gcologiaal fromatione oats oil and tgas Izzeasures, and
no well has been drilled upO' . ese 1 on which has not been a
paying producer of oil or gas.
Illé2§3 As these leases were taken from thel‘ d owners their
titles were examined by a competent attorney, and only leases
taken and accepted where the title of the ‘ sore to the oil
and gas were marketable.
£59; The estimates of inooae are based upon contract new
existing with the lonisville has a Llectric dompany, alone,
to fill which the Company now has approximately 8,233,000
cu. ft. of open flow gas from four wells and 7,000,000 cu. ft. :
from wells which gave been drilled for oil and when gas was
found the casing was pulled and the holes pluaﬁod. Ye own
such leaseholdo. The following is a statement of the wells:
'1‘. A. islartin, No. 101.19.350 lbs) Booyoco cu. rt.
*3. A. nartin, ho. 2(Rﬁ’.350 lbs) 2,15o,ooo cu. ft.
Bolen, No l, (R.P.550 lbs) 4.8002000 " "
satep, K0 1, (R.P.550 lbs) 483,000 " ”
W
(Hate that the Estep well was drilled spedially to all
1,000,000 Cu ft. of gas was cased off at 712 ft.; salt sand;
/
HARKINS & HARKINS .
A"‘TORNEYS AND OOUNSELLORS, AT LAW ‘ ‘
PRESJMNHnVnn, vv; .

‘,‘ l
9’
no oil found but 483,000 Cu. ft. of gas feund at 1506 ft. in
Big anun Band.)

335 has been found ans wells abandoned by other
interests, Which leases areNow owned by this Company, as fol-
Iowa:

ﬁeffert Branch, 2,000,000 cu ft

dead Left Ford, xidole Creek, 9,000,000 " “

ﬁead fraiox fork, Rush Creek, «.*. -.___”*M
(The information as to the Volume of the heffort :ranoh well
and ihé Middle creek well, Was given by John ﬂ. Euff, Lupezin-
LendenL ﬂew Qonuin 011 a has Jompauy- a Stanooro ouboidinry.
3411‘. Huff furtncr r ,or\~t.}mt only four wells over d'illed in
the ﬁeaver crock strict did not produce oil or nus Ln ya ing
quantities and it is the 0" ~\x or 91. Huff that ;r these walls
had been drilled (leopor.rouuct10n Wuulu have been found
in them)

‘l‘he average productlun‘o walls drillcd on this
dumpany'u properties 15 2,058,000 cu. ft,; «1a inc average
production of 17 wells in this fiolo, no rs ortsu to the
Louisville Gas & Electric Company by A. ‘ Lee, or; 1L5
thinoer, is 1,537,4C0 cu. ft. daily.

’6 hwve offset Wells locations to wells 1,2,}, x 4,
of the Kgysoone Gas Uompany referred to in Mr. Lee's report
totalling 5,427,000 cu/ Ft. .

bntil within the post two yearn there hao teen prac—
tically no market for the gas found, and the wells thr
usually been plugged and easing pulled, and the well abunocnoo.
One of the companies having gas production in this district
has ﬁr about six years been supplying gas for domestic pur—
poses £0 the coal bwn of Wayland. within the past tWO ysara

the Keystone Goo Company, having 10,841,000 cu. ft. of gas
has contracted a substantial portion of its production to the .
Liberty Carbon Company, which has established a plant cost-
ing approximately $150,000.00 at Langléy post office, maytown
HARKINS _Aﬂ HARKINS
ATTORNEYS AND COUNSELLORS AT LA‘V
PRICS'I‘ONHBURG, I{Y.
. ,\

‘3;
station of the C. k D. Ry; They have additional production
not included in contract to Liberty Carbon Company, and it is
expected we will be albe to obtain this additional production.
According to statements made by Lr. ndixurd Erickson and
by fir. Lonnld I'chonald, V'ioe-l‘residents of the Louisville,
Gas & Electric Sompany, this field has been selected by the
Uompany as being the most promising for their future supply
of gas, after havinb made a thorough intestigation of some
sixty—five to Seventy 's and propositions submitted to
them. They have fdr<§E::::§%ed the purpose and intention of
the Company to take a the llio‘n mm be produced by this
Compmxy in this field, as; develoJm, ad on the
production can b increased.

No wells have been (tilled byle who have developed
this preposition, so they nport to s, tact ha e not been
paying producers of oil or gas. There ae_oi¢n pr en
producing sands. It is expected that by di 6n Wenty
additional wells, where we have off—set locoti no, that the
total production of this Company will be increased to at
least 50,uc0,000 cu. ft. of gas daily. There will be no
difficulty in disgosing of whatever priduction the Company
may have, as in addition to the Louisville Gas x Electric
Company as a market, several glass plants have been materi-
ally interested in coming into this section to obtain the
benefit of this fuel. particudarly Equitable Window Glass
Company.

HARKINS :2 HARKINS
ATTORNEYS AND COUNSELLORS AT LA‘V
PRESTONSHURH, l{Y.

$
OIL: The field in which the Company‘s holdings are located
~ is known as the Beaver field; Oil and Gas have for sometime
been found in thin diatrict, and for a long number of years
the Litimberlnnd Pipe Line Company has; had a line into the
diztrict. The oil shipped in the year 1917 is understood to
have been in excess of 14900 bbln; and since the fields was
establisshocl, there.- Ems been slipped from the district. are
than 3tgt:,t;(2{.‘- rials; as ‘.',"o are advised. The oil is of high
parafine base, 43 ., an at. be present time commands a
price of £2.60, be .3 classified as Somerset oil. it is
really a hiaher grade oilfmt deneral known 33.3 Liormmaet.
and would command a iii-.3116: J if shipped in tank cams.
A8 a matter of illustration of the am»; qualities of the
oil wells in tilis district, wit‘ r . ;981} month trio writer
has been called upon to prepare papers incio t to the trans-
fer of title to a well it‘iiich has Linen :efruizi‘iie e was in-
formed, for about eighteen years, and the )rice now paid for
the same was on a hassle of one Thousand (§§1,0UU.OO) Dollars
per- barrel.
LiA’I.‘.i~tRI:U;-: ‘l’e have restoriiaible offers for all necessary mater-
ial and equipment for pipe lines, compressors, gasoline plant
and stilling diiuipmmnt.
Pii:iiS<33~iAL: Josgph D. lizirkina, President, i‘restonsburg, 22y.
Barking d: Marking, Llounsellors, Representing
Chesapeake is Ui'liu Hallway Go;
Elkiiorn oi Leaver Valley Railway L'0;
7esLerri Union Telegraph Go; .
Southern Bell ‘1" at '1‘ Co;
Junerican Railways impress Company.
American Car & Foundry Go;
The Bank Jodephine.
t
IIARKINS .32. HARKINS
ATTORNEYS AND COUNSELLORS AT LAW
PRESTONSBURG, KY.

ooorge T. Wood, Vice President, Louisville, Ky.
deorge E. Wood & Sﬁn, Lrokero.
borootor, ”03L Penn. ﬁnilwayn Jo.

gichnrd Y. 7003, ;ocrontry a Trauuror, Jouisvillo, Ky;
George T. Vcod o son Irckurs.

”alter o. Harkins, honoral Counsel, Trontonsbuzﬁ, ﬂy;
Earning g inrkins, Counsellors,
froaident, inc bank dose hihe.
vice iron. ﬁarrio+ﬁianvly dual m Lnnc do;
Goals a Linezuls.

&. L. Erode, V X i Gen hgr. Vuntington, 7. Va.

A. ;. 1>«« é son, grilling sentructorc, Iro~ .
ducer of a}, and gas. Ur. ﬁred: Lao nod ten

year» fiel£ experience in oil gnu gas production,

six . ago in this territory. In yzrsorolly

seine; iv'ﬂc lea oholds of this coupnny after

spending Cone? \1L time in Lhz fiflt with

the D. L. To , lionl Survey, out after various
consultation ’ old and in office ?lth u.’lu
i-{oeinm stat, - ogiot 3’:' Kentucky.

T, W, Vﬂite, Lireotor, ” ". va;

oecretary and Trea' e ‘olnior veal do.
Clerk, dounty “curt, ﬁCu' =11 County, ﬂ. Va.

’ww um, .."» (To C {{mmd by syndicate)
ggﬂuluos. (From ﬂuuisville Gan iihlectri. ,0mgany contract alone)
Raced noon contract élivery of 5,0LC,CLU cu. ft. daily.

191?, I 12 1’35 $22§,125.Qh. Ganoline i54?ju.cb @202,07§.
192c i5 11%;: @%IJ.3‘/2.90 30;,125.
1321, f": ifs}! .:o4,625.oo 319,375.
l922,ectl§ g 273,790.00 32d,bCC.
Based upon contract maximum of 12,0Lo,$o6 cu. ff. daily.
1919, la l/2ﬂ n547,50u.o0 ﬂasoline $1314LQ.CU $676,900
1920, 13 1%.: 331,530.0U '2:-22,700
192i, is 11.-2y: o35,1co.<;c 79;,590
lgzaem 15 g r337,0<2(;~.(..-<.; '/oo,oco.
(In making the above calculations, @solino has been estimated at
a not ruturn to the company of 34 nor thousand feet oi natural
gas, this being the net amount given us by gasoline experts who
have made examingation and tests of the gas.)

It is expected that the earnings of the Company will be
materially augmented by the drilling of the additional wells and
the priduction and sale of additional gas and gasoline, and oil.

HARK [NS _-:_n_ HARKINS
ATTORNEYS AND COUNSELLORS AT LAW
PRESTONSBURG, IiY.

EKEyHDmeRBS: Salaries, office expenses, etenegraphers, book-
kccpcr, mate; :cudcr, track men, gcolinc ylant, $30,000.00
nentals 0,000.00
Taxes 2,000.00
ﬂew Development, yearly, 25,UUU.UU
Sinking Fund Q0 u0,000.00
Interest, first year, (UIUUUJv-g

7 193,0U0.UU
_ (Decrclgciug; each your by purchase of bonds
1339;. with finds arising fcm Sinking fund ”
ﬁndnlrfgj §ggij§g§ﬂﬂ;ﬁ;éyﬁé ERR}: AHCome from first year shows
neL earnings of $21‘ 9 ‘p or aypruximately threc Lines in-
terest nquirement' 1nd commencing at tuc fourth year, and each
year thereafter net orting. u 9209,Umu.vu or approximately
four times interact requi (
1:1 .533in iju‘i‘lﬂi oF Djﬂgggjxﬁiii \- mi; Biff}: 150014;. ,
Pipe line and compressor suaziun co . \' Wadi-Amunw
Gasoline Plant, 50,uoU.UU
New “Fells, lUO,LU(}.CQ
Gathering lines, ' 25,000.00
Heal estatewthcr than night 01' way for pipe (J,LI'UO.UL"
measuring stanicn, line 5 000.00
general prcnses, ‘,UCU.UQ
Contingencies, 21g§§1g§£_

$575,0uu.uu

gﬁiﬁﬂuulu ;*¢‘."Lii.r"llé.l3 131’ U;u‘l'..’;\1. 1:011:35 ‘Jx/LBAL’JJTLé.

She dapitul 103065 committee after investigation anu ap-
proval of the propoccd uOanny by the Tnited Ltatva Euel Admin—
istration, approved the followina capitalization;

' Uapi tal ::Ltock, 2500b share-z; of {atoc}: of mm par value and

@1,8UU,U(JU of bonus to be issued for the following purposes:
011 and gas leases andproducbicn, 1,900,b00.tb

Pipe line complete, o00,000.00
Gasoline Plant, 90,000.60

New "‘Iellc, 100,000.00

' Gathering Lines 3;,Uco.bo

HARKINS J1. HARKINS
ATTORNEYS AND OOUNSELLORS AT LA‘V
PRES'I‘ONSBURG, IiY.

Real Estate other than dight of Way ' 10,000.00

Measuring Station, 5,000.00

General lxpenaos ‘ 10,000.00
QCNSTRUCTlUN AND IEVELDPEEHT:

We have had preliminary negotiations with Hope entincering
and supply Comyany, and with J B CnCloskey, nprooenting a
company with which he is commectied to do the “mrk and construction
of the pipe line, compressor, and gasoline plant. The nope
Company makes a spe _— t of tais kind of constuction work. or.
McCloskey was ﬁnéstant Superintendent of the Columbia
Gas and Electirc ‘.;;n y, and charge of he construction of that
Comoanﬂs pipe line from It Virginia fields to Cincinnati,
Ohio, and is regarded as as [apaa e and efficient.
CONSOLDIDATIUI‘I OIL dc GAS BY-PitUDUAdPANY

1 Supplement 5 N
TERES 0F LEASFS: The average term of these cases 36 for
ten years; the rental in 10¢ per acre exc t to a few acres
where the rental runs 25¢ and there are out 1000 acres where
the rental runs higher. As to this higher acr(age rental
we expect to drill in the near future and thus decrease the
rentals to be paid. The roylaties run one)cight oil and {comm
$25. to $200. for each gas '11 tom which as is produced and
marketed.
NUMBER OF LEASES: Approsimately 12b
ACRR.ACE $0,000 to 42,000; approximately 25% of which is in
the districts in which 011 is being produced, and the .
remainder of which is in territory in which has is prodiced. ¥
(The exact number of leases and exact acroagecdnnot new be given \-
as we 86 checking over the titles and acre Ue of the lesoora
in the divers loosed. When such examination and checking is
completed, then as exact statem‘nt can b made both as to the _
HARKINS _Ar. HARKINS
ATTORNEYS AND COUNSELLORS AT LA\V
PRESTONSBURG, KY.

.0
number of leases and as to the acreage which the company will
have. In a large portion of the County, accurate surveys have
been bade and the axact acreage is easily accertainable; others
of the tract have not been so surveyed and acreage would'be V
‘ based upon the estimated quantity of land as set out in the
divers deeds under which the leasors hold title to the property.)
apple DRILLING: The Great Central Company isnow drilling
near the mouth of mid’ eCreek in Floyd County, and according
to telegraphic inf mati there will gives promise of at
least thirty barre day. This well should be drilled
in within a few days. The z.m mpsny is making another location
the exact site of which w: - .t ad iced.
The Eastern G;3§QE:::ErH any (Gypsy interest)
are moving to location on proper le them by ”alter B.
Harkins on the Trimble branch immediately a ' cent to Prestonsburg ‘
and have made location for another well 0 gar Loaf Creik.
The Elkhorn-Piney Goal to. are assembling
material to drill four wells at theri industrial town of Weeksbury,
eXpecting to obtain gas for lighting and heating purposes.
There has bean drilled within the last few \
weeks a well on Left Beaver Creek on the Joe Hall property which
is reported at 40 barrels. The name of the com any drilﬂing this 1‘
well is not known but George harmon is the manager of the company
and there is some New York capital interested inthe same.
There are two other wells drilling on Right W
Beaver Creek and tributaries but I am not advised at the present
as to the interest drilling there wells.
We have loascholds in the near vicinity and ‘3
the same general territory where the above wells are being drilled
and locations are made.
—————-——~—————~——_________.
I HARKINS .1512. HARKINS
ATTORNEYS AND COUNSELLORS AT LAW
PRESTONSBURG, KY.

.‘.
AT may YUlﬂx’ﬁd’lJoiirﬁ 16, 1918.
ﬁessrs. Bonbright & Co;
120 Lroadway,
New York City.
Gentlemen:-
Furthering conversations ﬁsh with your ﬁr. A. h.
Lockett, we understand that you propose the following system
of financing the Consolidation Gil a Gas Byproducts Company.'
Common stock 31,000,000.
Preferred Stock 600,000.
bonds 7% 10 yr. 1,000,000.
That from - capitalization the $6UU,OUO. of
Preferred Stock, 8%