Phillips Petroleum Co. v. Kerotest Mfg. Co.

81 F.2d 339, 28 U.S.P.Q. (BNA) 7, 1935 U.S. App. LEXIS 3981
CourtCourt of Appeals for the Third Circuit
DecidedDecember 17, 1935
DocketNos. 5849, 5850
StatusPublished

This text of 81 F.2d 339 (Phillips Petroleum Co. v. Kerotest Mfg. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phillips Petroleum Co. v. Kerotest Mfg. Co., 81 F.2d 339, 28 U.S.P.Q. (BNA) 7, 1935 U.S. App. LEXIS 3981 (3d Cir. 1935).

Opinion

BUFFINGTON, Circuit Judge.

The here litigated patents particularly concern flowing oil wells in Oklahoma City, Old. That field is exceptional in character. Underlying it are several oil and gas zones, one of which, the Wheaton, which was developed in 1930, presents the unusual problems to which these patents are particularly addressed. The wells were drilled to and through the Wheaton sand, were some six thousand feet in depth, and a tremendous gas pressure was tapped. When struck, the gas, sometimes in volume of a hundred million cubic feet daily, vented itself through the well tubing and casing at the velocity of from three to five hundred feet per second. The vent was seven inches in diameter, and through it the gas carried with it [340]*340in an hour as much as 4,000 barrels of oil and 1,000 barrels of sand. The proof is that “the particles of sand were absolutely round and frosted grains of pure silica sand and were almost microscopic in size, that is they were somewhere around twenty to thirty thousandths, but they were uniform in size.” When such wells were struck and these great elemental forces 'came into play and when the wells were located in populated places, the control of such “wild wells,” as they were called, was necessary because, with their inflammable oil and gas venting themselves in torrential volume, they were exceedingly dangerous. Indeed, these factors created a situation that called for quick control. A former assistant oil inspector of Oklahoma City testified to having inspected more than 400 wells: “One of them was directly across the street from a large school, also we had one on the four hundred block East Main Street, Oklahoma City, that blew the expansion chamber off and cut the gates off. This well was wild; we had no control over it.”

Describing the field generally, this witness testified that the trouble came from the sand cutting the metal controlling agencies, a cutting which can be readily appreciated when we consider the tremendous abrasive power of a sand blast, where in an hour a thousand barrels of fine silica sand passed through a seven-inch orifice impelled by a volume of gas traveling at from three to five hundred feet a second. Some wells gave, no trouble, the inspector testifying: “We had quite a number of wells that gave no trouble at all.. Part of the field there was in the lime but part in the' sand area; in other words, the east side of the field had very little sand. Q. So it wasn’t all the wells in Oklahoma you had this terrible trouble with? A. We had an awful lot of trouble with 411 wells that I know of. 'There is better than a thousand wells there. As I stated above, I had charge of inspection inside the city limits of Oklahoma City, and in this territory I think there are at the present time 528 wells, and we had trouble with four hundred and some.”

The field of Oklahoma presented another difficulty which had to be met. That state allowed only a certain oil pro rata to be produced by these flowing wells. This state pro rata was ascertained by allowing a shut-in well to flow wild for certain test times, so that at these test times control was released and the well ran wild. In that regard the proof is (see record, p. 59): “It is necessary to control or choke the wells' in the Oklahoma City field, and those wells are controlled while the production — the allowable production — is being produced. However, it is necessary also to take as large a flow as possible from the wells at certain given intervals, which are called potential periods. In the Oklahoma City field we take a four-hour open flow test to determine our potential. This potential then measures the amount of oil that we are allowed over a six months period.”

Prior to the patents in suit, the best methods known to the oil industry in wild well control were the Christmas tree devices and the expansion chambers. Both these are based on allowing the escaping gas to expand; the idea being that, the more gas is expanded, the less sand cutting there will be. The Christmas tree device is shown in the accompanying draw-

ing, concerning which the testimony is (page 63): “This drawing illustrates a Christmas tree, of which there were examples similar to this in Oklahoma City field, showing the well pipe coming up through the derrick floor, and the upper master gate; and from this well pipe are several branches which have gate valves, at least two gate valves on each branch, and an adjustable flow bean at the end of each branch, and from the [341]*341flow bean the oil passes through that into the flow line to the tanks. This multiplicity of gates and valves and crosses —also there arc two large crosses there, from which the branches come from the flow line — are necessary in certain fields where a severe condition exists, due mainly jxist as auxiliaries, because of the cutting effect of the sand. Usually just one branch — or possibly two — was used at a time, and when those would cut out the gates would be closed, if possible, and the flow diverted through another branch. Obviously this type of equipment is very expensive, costing from $4,000 to $5,000; and even with all that cost, it was found early m the field that it was almost impossible to even use this type of equip- , ment to handle the severe conditions that existed tnere.

The testimony of Knowlton, one of the patentees, in regard to the Christmas tree device-and in the absence of contradictory proof we accept it — is as follows / 54 55) • ^ J

... , . As I mentioned before, the Christmas tree was not practical, because of the fact it would cut out sometimes m ten minutes; and it was, of course, very expensive to replace these valves. The expansion heads had many disadvantages. In the nrst place, they are very dangerous and very hazardous m expanding thxs volume of gas and oil and enlarging the cross section of the head the breaking strength was very much m-creased, and if anything happened by cloggmg up or sand, or anything m the outlet, the full pressure ot the wel was imposed on that head; and several of them blew up ano. caused a lot of damage and actual loss of life. The principle of these heads was to expand the gas and the fluid so that the velocities would be decreased; but in expansion, of course, they caused a turbulence which started cutting out anything in front of it; and this was experienced in many cases, and caused the well to go wild. Also, there is no way by means of these heads to shut in the flow and keep the pressure and the velocities from the master gates below, and whenever the head cut out, or the flow line cut out between tbe head and the separator, you would have to depend entirely on the master gates to close the well; and in closing the well against this pressure, and with these velocities, the master gates very often cut out, and of course, when all three mas-ter gates cut out you had a wild well on your hands.

“These master gates cost almost a thousand dollars apiece, depending upon the size; and there was a requirement jn the field to put three of these on each Well, just for safety’s sake. Ordinarily, ¡n m0st fields maybe one master gate is sufficient, but where this extreme sand con-dition existed sometimes the three weren’t enough.

«As j inted Qut aboye; ^ christ. mag tree wag very expensive; ^ cut Qut frequently within ten or flfleen min_ utes_ It wag algQ difficuit tQ t a wide opeQ flow th b the Christmas and where ,any sand existed at all ^ christmas tree just didn>t stand up under the gand blagt»

. , , , In addltl?n the above’ tbe °f the/w?tne”“ (p,agc 69: When we entered the field m the spring of 1930.

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81 F.2d 339, 28 U.S.P.Q. (BNA) 7, 1935 U.S. App. LEXIS 3981, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phillips-petroleum-co-v-kerotest-mfg-co-ca3-1935.