This affiant W. C. Chapin being first duly sworn deposes and says:

I am now, and have been for two years last past, a resident of the State of California In 1864, I commenced operating in petroleum oil, and working with oil wells in the oil regions of Pennsylvania and so continued until the year 1876, at which time I came to this state, but I retained some interest in oil wells in Pennsylvania, and still have them, that during the time I was operating as aforesaid in Pennsylvania and between the years 1864 and 1876 I was extensively engaged in the oil business, and in locating, drilling, operating, and working oil wells and oil machinery and have been interested actively superintending the drilling of over seventy five (75) different wells, and my experience as to the operating and management of oil wells is very extensive, and I consider myself as an expert in the oil business and in the location, operation, and management of oil wells.

Since I have been in California, I have made a number of visits to the premises described in the complaint being known as the Pico oil wells. I have examined the wells on the Pico claim and machinery used and the operation of said wells carefully, my visits being with special reference to examining the country as an expert for the purpose of ascertaining the capabilities of California petroleum lands, and as these wells were the only wells in California which had been operated successfully and with perfect machinery, I considered them of very great importance in determining the questions which I desired to solve, and therefore gave them their character and the manner in which they were operated great and particular attention.

I am satisfied that said wells, and each of them, have been operated in a careful, workmanlike, and proper manner, and I see nothing whatever indicating that the mode of operating and working the wells adapted by said defendant corporation had any tendency to injure tem in the slightest and I cannot see, and do not believe, they have been in any aspect injured.

I know the superintendent in charge of the wells, Mr. C. A. Mentry, and have known him personally for some time and by reputation for many years, and know that Mentry worked as an oil well driller and had charge of wells in Pennsylvania, for many years and that he had there a reputation as an unusually skillful and competent man in locating, drilling, and operating oil wells.

I state further that I have had large experience in providing tankage and transportation for oil and I believe that the cheapest and, in fact, only practical mode of preserving the crude petroleum. as it comes from the wells, would be to place it in tanks near the wells or at some point where it could be led from the wells in pipes, and that such tanks could not be provided, as affiant verily believes, for less than seventy cents and perhaps not for less than one dollar, per barrel.

There are only two refineries west of the Rocky Mountains for refining petroleum oils both of said refineries being owned by the defendant corporation, the California Star Oil Works Company. I have knowledge of the crude oil oil trade in this state, and of the consumption of crude oil, and I don’t believe that more than fifty barrels of crude petroleum are used by consumers in this state, or on the Pacific Coast per month, and don’t think that a market could be found in this state or on said coast for a larger amount than fifty barrels per month of crude petroleum, and I also know that it would not do to transport crude petroleum outside the state as the cost of transportation to any market would be greater than the value of the oil.

Petroleum is very difficult to preserve in tanks, both from its liability to go through the smallest cracks in the tanks, and its constant evaporation. From my experience I have found in the very best and most expensively constructed tanks, the deterioration of oil of this character is very great, and I believe that oil of this character produced at the Pico wells would, in that climate, deteriorate from fifteen to twenty per cent within thirty days, and that within six months it would be wholly valueless for refinery purposes and could only be used for making gas and lubricating purposes which would greatly decrease its value and prevent in fact any large quantity having value at all be reason of the very limited market.

This oil is heavier than the oils produced in Pennsylvania and used for refining purposes and therefore its value would deteriorate more by evaporation than the lighter oils, as it would soon become too heavy to be refined for illuminating purposes, which is the chief use to which petroleum is placed.

I am convinced that if this crude petroleum as it runs from the wells be tanked and kept for several months that the market value would be almost entirely destroyed and, in fact, I don’t believe that it could be sold for then per cent of its present value.

I have no interest of any kind in these wells or in the California Star Oil Works Company, or in any of the matters in issue in this action.

In the working and operation of oil wells, especially in new districts, it is impossible to tell without experiment the best way to operate them. I have known some oil wells in Bradford District, Pennsylvania, where constant pumping of the wells has, in fact, stopped them entirely and oil wells in that section are now pumped by heads, as it was found by experience that much more oils could be obtained by pumping them by heads or at intervals, than by constant pumping and much less danger of having the wells stopped up.

One of the wells on the Pico claim is a flowing well apparently producing a large number of barrels every day. This well flows with great violence and a large amount of gas escapes from it and it would be, I think, impossible to stop this flow by plugging or otherwise without greatly injuring, and perhaps entirely destroying, the well and I have known a number of wells that were entirely destroyed by plugging them up.

There are three other wells which are pumping wells and while I don’t think it necessary that pumping in these wells should be constant, I am satisfied that they ought not to be left idle for any great length of time, say for more than ten days.

William C. Chapin

June 8, 1878