•
Friday, Siipfernber 27, 1946
THE JEWISH NEWS
Avaitibility of Gas
Creates New Doubts
Phillips to deliver any minimum quan-
tity of gas.
4. Already a number of wells drilled
in the 436,000 acres dedicated to the
proposed pipe line have been plugged
and abandoned as worthless. If fur-
ther exploration proves that gas can
not be obtained in quantities sufficient
to repay the cost of drilling wells—
at about $30,000 each—the contract
specifies that Phillips need not "drill
any wells which would not be drilled
by a reasonably prudent operator."
5. If Phillips is unable to develop
enough gas to meet the requirements
of the proposed pipe line, the spon-
sors may seek to buy gas elsewhere.
but only after Phillips has failed to
meet the requirements for 90 con-
secutive days.
gan-Wisconsin pipe line, sponsor-
ed by Michigan Consolidated,
these facts stood out:-
1. The proposed- Michigan-Wisconsin
line is entirely dependent for supply
Fresh doubt as to the ability of on 436,000 acres in Texas and Okla-
homa to be developed by Phillips
Michigan Consolidated Gas Com- Petroleum
Company.
pany to obtain enough Texas
2. Much of the acreage in the con-
natural gas to supply the Detroit tract between Phillips and the Mich-
Pipe Line Company. is
market has been raised by recent igan-Wisconsin
marginal land on the edge of the rich
testimony before the Federal producing land where Panhandle
Eastern Pipe Line Company obtains its
Power Commission.
gas.
At the conclusion of searching
3. The contract with Phillips Petro-
does not specify the number of
examination into gas reserves leum
wells Phillips must drill nor does it
available for the proposed Michi- contain any guarantee compelling
Page Twen+y-tfiree
at the Federal Power Commission drill wells that a reasonably pru-
hearing on the application of dent operator would consider
non-profitable. His testimony also
Michigan Consolidated Gas Com- showed that about
50 wells of
pany -to build the new pipe line. more than 500 scheduled for drill-
For Detroit residents, this sub- ing, were located in acreage that
stitute line would be used in Ralph Davis, production expert
place of the system of Panhandle for the proposed pipe line, de-
Eastern, which has been trans-
porting natural gas to the city
for ten years.
Testimony of P. McDonald Bid-
dison, consulting engineer of
Phillips Petroleum, brought out
These points were developed that Phillips was not required to
clared was unproductive.
Also before the FPC is a re-
quest by Panhandle Eastern for
authority to expand its facilities
so as to carry more gas to. Detroit
and other cities. The hearings are
expected to last into October.
I
AGREED, MR. DETROIT • • •
and there are quite a few thousand other Detroiter
who echo your sentiments.
But, as you know, your city faces the prospect of a long, long
gas shortage. The 'reason? Well, in the words of James H. Lee,
Assistant Corporation Counsel of Detroit: "Michigan Consoli-
dated (your local gas distributor) wants a pip* line and wants
to create a shortage so the Federal Power Commission will
give it permission to go ahead and build it."
Mr. Lee refers to the plans of the interests controlling Michigan
Consolidated to spend over $84,000,000 (mostly your money) on
a line from Texas that would duplicate the service Panhandle
Eastern has given Detroit for the past ten years.
In order to justify this expensive promotion, Michigan Consoli-
dated interests must demonstrate, one way or another, that the
Panhandle Eastern system . . . (two giant pipe lines with a total
capacity of approximately 400 million cubic feet a day!) cannot
bring sufficient gas to Detroit.
And so, by stubbornly refusing to negotiate with Panhandle
Eastern fat an additional supply and by attempting to block
Panharbdle Eastern's expansion program, these interests are respon-
sible for a gas shortage ... one that may last for several years at least.
Is this in the public interest . . . in your interest? Hardly, but
consider what Michigan Consolidated is gambling for ... a com-
plete monopoly upon the gas supply of your city, in addition CO the
monopoly it already has on gas distribution.
Of course, plans like those of Michigan Consolidated take time
months and months of hearings before public authorities ... then,
if approved, more months and even years before materials can be
delivered and construction begun.
Panhandle Eastern is past the planning stage. Already con-
struction crews are hard at work up and down our huge system,
carrying out the first part of a big post-war expansion program
that proposes to add a third giant pipe line to the two now
serving Detroit.
The question of whether or not your gas-hungry city will
benefit from Panhandle Eastern's new construction ... gain relief
from the present shortage ... rests largely in the hands of Detroit's
citizens. Unless the pressure of public opinion forces Michigan
Consolidated interests to abandon their ambitious plans for a
duplicate pipe line—costly and unnecessary—your gas shortage will
continue for years.
How do you feel about it?
11110110'S 6REATEST RESERVES
fia
■
ILDI/1211
SWEI.01111114111
Panhandle Eastern
produces and trans-
ports natural gas
from the Southwest
to the ..‘gates" of
Detroit, *here It is
sold at wholesale to
the local gas utility
for distribution.