gas be allowed to blow for a longer period than three days. Mud fluid used for protecting oil and gas bearing sands in upper formations while oil or gas is being produced from deeper formations shall have a density of not less than 25 per cent mud and should contain not less than 28 per cent mud. Rule 23. MUD-LADEN FLUID TO BE APPLIED IN PULLING OR REDEEMING CASING. No outside casing from any oil or gas well in an unexhausted oil or gas field shall be pulled without first flooding the well with mudladen fluid behind the inside string of casing, after unseating the casing, and as casing is withdrawn, well shall be kept full to top with said mud-laden fluid and same shall be left in the hole; and said mud-laden fluid shall be so applied as to effectively seal off all fresh or salt water strata, and all oil or gas strata not being utilized. (Rule 23, Order No. 937.) Rule 24. MUD-LADEN FLUID-WHEN TO BE APPLIED TO COMPLETED WELLS. When necessary (or in any event when ordered by the Corporation Commission) to seal off any oil, gas or water sand, casing shall be seated in mud-laden fluid; and concerning wells already drilled, the operator shall, upon the order of the Corporation Commission, raise any string or strings of casing and re-seat them in mud-laden fluid when it is thought advisable to do so in order to avoid existing underground waste, pollution or infiltration. (Rule 22, Order No. 937.) Rule 25. FRESH WATER TO BE PROTECTED. Fresh water, whether above or below the surface, shall be protected from pollution, whether in drilling or plugging. (Rule 14, Order No. 937.) Rule 26. GAS TO BE SEPARATED FROM OIL. No gas found in the upper part of a level or sand which can be separated from the oil in the lower part of the same sand or in a lower or different sand shall be allowed or used to flow oil to the surface and all gas, so far as it is possible to do so, shall be separated from the oil and securely protected. (Rule 19, Order No. 937.) Rule 27. SEPARATING DEVICE TO BE INSTALLED UPON ORDER OF COMMISSION. Where oil and gas are found in the same stratum and it is impossible to separate the one from the other, the operator shall, upon being so ordered by the Corporation Commission, install a separating device of approved type, which shall be kept in place and used as long as necessity therefor exists, and after being installed, such devise shall not be removed nor the use thereof discontinued without the consent of the Corporation Commission. (Rule 20, Order No. 937.) Rule 28. GAS WELLS NOT TO PRODUCE FROM DIFFERENT SANDS AT THE SAME TIME THROUGH THE SAME STRING OF CASING. No gas well shall be permitted to produce ga, from different levels, sands or strata at the same time through the same string of casing (Sec. 3, Ch. 197, S. L. 1915) and when gas upon being found is not needed for immediate use, the same shall be confined in its original stratum until such time as the same can be prodood and utilized without waste (Sec. 3. Ch. 197, S. L. 1915) and in confining zas to its original place, the mud-laden fluid process shall be used unless the Character of the formation involved is sufficiently ascertained and understood how that the casing and packer nethod with Braden head attachment can le safely applied and competently used, and in the use of the casing, packing and Danden-head method, separate strings of casing shall be run to each sand and the application of the latter method in preference to the former shall not he tabe without notice to and consent of the Corporation Commission. (Rule 21, * No. 37.) The 29. VACUUM PUMPS NOT TO BE INSTALLED EXCEPT EPON APPLICATION TO THIS COMMISSION. The future installation of vacuum Mags or other devices for the purpose of putting a vacuum on any zas on oil bearing stratum is prohibited, provided that any operator desiring to install such apparatus may, upon notice to adjacent lease owners or operators, apply to the Commission for permission; and in the matter of vacuum pumps heretofore installed, the use of same is authorized unless specifically discontinued by order of the Commission upon notice and hearing. (Rule 22, Order No. 937.) Rule 30. SHOOTING OF WELLS. (a) Wells Not to Be Shot Into Salt Water: No wells shall be so shot as to let in salt water or other foreign substance injurious to the oil or gas sand. (b) Reports to Be Made to the Corporation Commission: Reports shall be made to the Corporation Commission on all wells shot, showing the condition of the well before and after shooting, including the size of the shot, sand or sands shot, production before and after shooting, per cent of water in well before and after shooting. (c) Damaged Wells to Be Abandoned: In case irreparable injury is done to the well, or to the oil or gas sand or sands by shooting, the well shall immediately be abandoned and plugged as provided by rule No. 14 herein. Rule 31. GAUGE TO BE TAKEN-REPORTS TO COMMISSION. All oil and gas operators shall between the first and tenth of each calendar month take a gauge of the volume and rock pressure of all wells producing natural gas, and shall forthwith report to the Corporation Commission on gauge blanks furnished by the Commission. (Rule 26, Order No. 937.) Rule 32. PRODUCTION TO BE RESTRAINED TO 25% OF POTENTIAL CAPACITY. When the gas from any well is being used, the flow of production thereof shall be restrained to 25 per cent of the potential capacity of the same; that is to say in any day (24 hours) the well shall not be permitted to flow or produce more than one-fourth of the potential capacity thereof, as shown by the last monthly gauge. (Rule 29, Order No. 937.) Rule 33. NOTIFICATION OF FIRES AND BREAKS OR LEAKS IN LINES. All drillers, operators, pipe line companies, and individuals operating oil and gas wells or pipe lines shall immediately notify the Commission by telegraph or telephone and by letter of all fires which occur at oil and gas wells or oil tanks owned, operated, or controlled by them or on their property, and shall immediately report all tanks struck by lightning and any other fires which destroy crude oil or natural gas, and shall immediately report in the manner heretofore described any breaks or leaks in tanks or pipe lines from which oil or gas is escaping. In all reports of fires, breaks, or leaks in pipes, or other accidents of this nature, the location of the well, tank, or line break shall be given, showing location by quarter, section, township, and range. Rule 34. REPORTS FROM PIPE LINE COMPANIES. The Commission will from time to time require oil and gas pipe line companies to make reports to the Corporation Commission showing wells connected with their lines during any month, the amount of production taken therefrom, names of parties from whom oil and gas are purchased, the amount of oil or gas purchased therefrom; and all oil and gas pipe line companies shall, in addition to the other reports required by the rules of the Corporation Commission, furnish to the Commission duplicates of all reports made to the State Auditor under the oil and gas gross production tax laws. The Commission will, in case of over-production or for any other reason which it deems urgent, require oil or gas pipe line companies to furnish daily reports of the amount of oil or gas purchased or taken from different wells or parties. Rule 35. PRESCRIBING CONDITIONS UNDER WHICH PIPE LINE COMPANIES MAY CONNECT WITH OIL OR GAS WELLS. Pipe line companies shall not connect with oil or gas wells until the owners or operators thereof shall furnish a certificate from the Corporation Commission that the conservation laws of the State have been complied with; provided, this rule shall not prevent the temporary connection with any well or wells in order to take care of production and prevent waste until opportunity shall have been given the owner or operator of said well to secure certificate showing compliance with the conservation laws of the State. Rule 36. CONSERVATION LAWS AND RULES OF THE CORPORATION COMMISSION TO BE COMPLIED WITH BEFORE CONNECTING WELLS WITH PIPE LINES. Owners or operators of oil or gas wells shall, before connecting with any oil or gas pipe line, secure from the Corporation Commission a certificate showing compliance with the oil and gas conservation laws of the State and conservation orders of the Corporation Commission; provided that this rule shall not prevent temporary connection with pipe lines in order to take care of production until opportunity shall have been given for securing such certificate; provided, further, that the owners or operators of such wells shall in a known or proven field make application for such certificate in anticipation of production. Rule 37. DRILLING RECORDS TO BE KEPT AT WELLS. All operators, contractors, or drillers shall keep at each well accurate records of the drilling, re-drilling, or deepening of all wells, showing all formations drilled through, casing used, and other information in connection with drilling and operation of the property and any and all of this information shall be furnished to the Commission upon request, or to any conservation agent of the Commission. Rule 38. CONSERVATION AGENTS TO HAVE ACCESS TO ALL WELLS AND ALL WELL RECORDS. Conservation agents of the Commission shall have access to all wells and to all well records, and all companies, contractors, or drillers shall permit any conservation agent of the Corporation Commission to come upon any lease or property operated or controlled by them, and to inspect any and all wells and the records of said well or wells, and to have access at all times to any and all wells, and any and all records of said wells. Provided, that information so obtained by conservation agents shall be considered official information and shall be reported only to the Corporation Commission. Rule 39. NOTICE TO CONTRACTORS, DRILLERS, AND OTHERS TO OBSERVE RULES. All contractors and drillers carrying on business or doing work in the oil or gas fields of the State, as well as lease-holders, land owners, and operators generally, shall take notice of and are hereby directed to observe and apply the foregoing rules and regulations; and all contractors, drillers, land owners, and operators will be held responsible for infraction of said rules and regulations. Rule 40. CONSERVATION AGENTS TO CO-OPERATE WITH OIL AND GAS INSPECTORS OF THE DEPARTMENT OF THE INTERIOR. All conservation agents appointed by the Corporation Commission shall co-operate with and invite the co-operation of the oil and gas inspectors of the United States Bureau of Mines of the Department of the Interior. Rule 41. CONSERVATION AGENTS TO ASSIST IN ENFORCEMENT OF RULES. All conservation agents of the Commission shall assist in the enforcement of these rules and shall immediately notify the Commission upon observance of any infraction thereof. ADDITIONAL RULES WILL BE PRESCRIBED FROM TIME TO TIME. The Commission will from time to time prescribe additional rules, regulations, and requirements for the conservation of crude oil, or petroleum, and natural gas. This Order shall be in full force and effect from and after August 20, 1917. IN WITNESS WHEREOF, we have hereunto set our hands and caused to be affixed the seal of said commission, this the 16th day of July, 1917. Corporation Commission. J. E. LOVE, Chairman. W. D. HUMPHREY, Commissioner, (ATTEST): J. H. HYDE, Secretary. oil That in addition to the taxes now provided for by law, every company, doing business in this state, shall pay to the state of Oregon, a license of three (3) per centum upon the gross earnings of such company in this state, which license shall be paid annually by such company to the treasurer of this state. (Laws 1907, p. 9, sec. 1.) Sec. 3547. Oil Company Defined. Any nonresident person or persons and every joint stock company or corporation not having its principal place of business within this state, or not being organized or incorporated under the laws of the state of Oregon, engaged in the business of buying and selling, or buying or selling oil (petroleum in its various products) within the state of Oregon, and any and all persons, companies, and corporations doing business in this state as the representative of any or either of the aforesaid persons or corporations, on commission or otherwise, and any person or persons, joint stock company, or corporation, resident within this state or organized or incorporated under the laws thereof, engaged in the business of buying and selling oil (petroleum in its various products) produced, obtained, or refined by either or any of the aforesaid nonresident persons, companies, or corporations, and whose business done annually in such special line amounts in the gross to twenty-five per centum of the total annual gross receipts of such person, company, or corporation from all lines in which he or it deals, and any person |