This affiant J. B. Morrison being duly sworn says:

I reside in Los Angeles County State of California. In the year 1868 I went to the oil region of Pennsylvania. I commenced as a helper in an oil refinery – worked in that capacity for about one year and afterwards took charge of and commenced running oil stills. I continued in the capacity of refiner until about six years ago when I took charge of a refinery in Pennsylvania and continued in charge until I left for California in December 1877.

On my arrival in California, I went directly to Ventura County. I remained there at the refinery of the defendant corporation in said action, repairing the refinery for about two weeks. I then came to Lyon Station in this County of Los Angeles State aforesaid, and took charge of the refinery under J.A. Scott, General Superintendant. I continued there until the refinery was moved to its present location at Andrew Station, about one year ago, and have continued in charge of said refinery ever since it was built.

I am now the refiner in charge of said refinery and have exclusive control of it and am refining oil daily. I am a practical refiner and my business and experience since I have been in California has given me practical knowledge and information as to the character and qualities of California oils and especially as to those produced in the Pico Claim.

I am of the opinion that the deterioration from evaporation of these oils for the first five or six months would in the California climate be three times as great as oil in Pennsylvania. This great deterioration is caused not only by the dryness of the California climate, but also by the nature of the Pico oil, which is in many respects different from the Pennsylvania oils. The Pico oil is of lower quality than the Pennsylvania oils but, owing to the peculiar properties, evaporates much more rapidly and only has to fall 8 or 10 degrees after it is tanked at a refinery before it becomes too heavy to produce a paying percentage of illuminating oil and can then only be profitably refined for lubricating oil for which there is however only a very limited demand on this coast.

I know Wait, Rapp, A.L. McPherson, Weed, H.A. Barclay, and R.C. McPherson, and do not think either of them have any practical experience in handling California oils so as to enable them to speak understandingly respecting its evaporation as compared with Pennsylvania oils, as I know neither of them have been connected with oil producing wells or refineries in California so as to obtain such knowledge.

When I just came to California and commenced handling and refining California oil I was much surprised at its rapid deterioration from evaporation, it being so much greater than that of oils in Pennsylvania, and it must be difficult for a person, although skilled in the art, to realize the extent of such evaporation if he had no experience other than in Pennsylvania.

I have read the statement in R.C. McPherson affidavit filed in this case to the effect “that there is nothing in the quality of the oil produced from the Pico oil wells that would make it any more liable to injury or deterioration from being left in its crude state than the Pennsylvania oils” and from this am convinced he has given the matter little or no attention, as no one possessing information on the subject could truthfully make such an assertion. The difference in the quality of the two oils is an apparent and the greater liability of California oils to evaporation, so marked, that no one possessing even a small amount of practical information in the subject could be deceived.

I have also seen said McPherson’s statement that the oil could be brought back to its original condition by pumping in fresh oil and am satisfied he is mistaken. The Pico oils, as it comes from the wells, is not too light to produce good illuminating oil and every degree of evaporation is actually an injury and loss to it. It is evident pumping in fresh oil could not restore or bring back the volatile portions back, but that the fresh oil would be deteriorated. Again, it is now well known to those skilled in the art that where oil has become too heavy by reason of evaporation to work for illuminating oil, it can never be restored so as to work well even if the volatile portions in proper proportions are scientifically added to, or incorporated with, it.

I am confident that the Pico wells can only be profitably operated by refining the oil shortly after it is produced, and I would not in the present state of the market, furnish tanks for the oil as a free gift if I had to hold the oil for six months, as I do not think it would at the end of that time, or even a less time, be worth the cost of constructing the tanks.

No demand was ever made upon me for any royalty under the Denton lease, although I have never been, since I first came to the refinery, absent for more than 24 hours at a time and have in my business talked with many, including nearly every one who has filed affidavits in this case on behalf of plaintiffs.

I have never heard any intimation that Mentry was improperly operation the Pico wells until after this suit was brought. I have no recollection of making any of the statements attributed to me in Sanford Lyon’s affidavit and know that I did not make any in the way he states. I may have said that if the well was drilled deeper I thought it probable larger deposits would be struck, but this was more matter of conjecture and from what I know about the business, I do not think any practical or careful man would change or deepen a well flowing as finely as No 4 especially as there is always danger of injuring instead of improving a flowing well by drilling it deeper.

John B. Morrison

July 11, 1878