Today in History: Tioga touts position as ‘Oil Capital of North Dakota’

On this date in 1951, Tioga and nearby Ray, North Dakota, quickly adapted to the oil boom by expanding housing, services, and jobs for incoming drilling crews.

Here is the complete story as it appeared in the paper that day:

By Cal Olson — Fargo Forum Staff Writer

Tioga, N.D. — Field headquarters in the continuing search for oil beneath the wheat fields of North Dakota is this town of some 456 persons.

Although a sign at the intersections of Highways 2 and 40 three miles south of Tioga welcomes travelers to the “oil capital of North Dakota,” most residents of the town recognize that their facilities are too limited to fully warrant the title.

As one Tiogan put it: “We don’t expect the big oil companies to set up their main state headquarters here, but we hope Tioga will be an advance base.”

At present, drilling is at the Iverson wells being drilled and one producing well three miles south of Tioga and four miles east—the state’s discovery well; the Math Iverson No. 1, still drilling, and the Dillard No. 1, still drilling. Three miles north of Tioga is the Bakken well, where Amerada Petroleum Corporation officials are continuing to drill deeper, even though oil has been found there.

With these wells, and with the possibility of additional drilling, comes the need for homes and apartments for oil field workers, plus storage and warehouse space for oil field supplies—the countless tools, equipment, and services essential to keep the search for oil going forward.

Here is where Tioga comes in; Its central location makes it ideal as a “jumping-off place.”

From the time oil first was discovered on the Clarence Iverson farm last April, the town has been busy adapting itself to the oil industry. Restaurants have added help to feed hungry oilmen; housewives and school youngsters work part-time cooking and serving meals. At Helga’s Cafe, operated by Helga Lauritsen, Shirley Iverson, 17-year-old daughter of the state’s first oil royalties recipient, works part-time waiting on tables.

Vacant buildings in Tioga are being snapped up by companies specializing in oil field services. An old garage on Main Street, vacant for years, now is the field headquarters for the Oil Field Service Company, while a lumber yard now houses the J. J. Stanton Transportation Company, which specializes in oil field trucking.

Across the tracks, the old county hospital has been taken over by a crew of independent oil welders.

According to one city village council member, vacant lots in Tioga are “going like hot cakes; although no one knows why.” The common assumption is that the lots are being purchased for business building sites.

Right now, Tioga is at a disadvantage when it comes to finding housing for oil workers. There are few available dwellings, and the town is just installing water and plumbing. Most of the workers have been living in Ray, about 13 miles to the west of Tioga.

However, plans are being made by Clarence Gilbride, mayor of Tioga, to plat property east of town and to construct three or four houses for rental.

Town officials hope to have the water and sewer problem defeated this fall, with the completion of a $139,000 water program.

Work on modernization of the village was started two years ago, but was delayed by court actions opposing the plan. Early last August, however, work was started on a 100-foot water tower, which will hold a 50,000-gallon tank, and water and sewer lines are being laid. Contractor for the work is W. H. Noel of Jamestown, N.D., while the engineering firm is the Dakota Engineering Company of Valley City.

Although Tioga still is predominantly a rural town, dependent upon area farmers for its business, oil is the center of attention. Four grain elevators form Tioga’s skyline, but in their shadows farmland is leased to oil companies.

Almost every Tioga property owner now takes a personal interest in the search for oil; all property in town has been leased on non-production leases by the Amerada company. Under these leases, property owners receive $50 for a 10-year lease on a residential lot, and $10 for a 10-year lease on a 25-foot business lot.

If drilling started, wells would be sunk on the edge of town, with residents receiving a percentage of whatever royalties may be forthcoming.

Back-room strategists have figured that, if land under the town produced oil comparable to the Iverson well — which has produced 210 barrels in 12 hours of production each day — Tiogans would receive royalties of 50 cents a day on a 50-foot lot.

“Pennies, perhaps,” one hopeful resident said, “but it sure would count up.”

The village of Ray, although further from the developing oil field, has benefited through the infant industry. According to Evelyn Knudson, Ray mayor and owner of a lumber yard, many of the oil field workers are housed in the 750-person town. In addition, he said, many of the “roughnecks,” or common laborers, have been recruited from Ray, Tioga and neighboring areas.