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Traveller's Tales

Land Claims and the First Oil Well in Western Canada National Historic Site of Canada

The First Oil Well in Western Canada is located in Waterton Lakes National Park, Alberta. Waterton Lakes was the center of a flurry of activity in the late 1800’s as oil seepages were discovered and small reserves located. Early strikes in the Waterton area generated excitement, development plans and further drilling but not much success.

Rocky Mountain Development Company Ltd.

In 1889, Allan Poyntz (A.P.) Patrick, a land surveyor from Calgary, filed the first oil claim in the Cameron Creek area. Without substantial funds, Patrick’s claims expired, unsuccessful. The oil reserves were brought to the attention of wealthy Calgary businessmen, George P. Leeson and John Lineham, who established a mineral claim beside Oil Creek in 1897. These two entrepreneurs recognized Patrick’s earlier attempts and in 1901, the three men formed Rocky Mountain Development Company Ltd.

Getting Established

Formed to work the rich oil deposits surveyed on Cameron Creek, the Rocky Mountain Development Company Ltd.’s first order of business was to import a “Canadian Pole” rig from Petrolia, Ontario.

The rig was shipped to Fort Macleod by rail, but transporting the heavy loads through rough terrain to the claim site proved difficult. The original horse trail needed upgrading. Roads had to be cut through brush and bridges built so heavy loads could be transported by horse teams through the rich foothills mud.

The ordeals of establishing a drilling site worsened as the weather deteriorated. Bob sleighs with large boxes took over and the cold weather, avalanche threats and icy conditions made these transfers from Fort Macleod to the rig site dangerous and time consuming, taking over a week to complete.

Drilling

On November 1st, 1901, the Rocky Mountain Development Company Ltd. began drilling. The going was slow as the “Canadian Pole” drilled by impact and had to be retracted and sharpened frequently. Each time the pole was removed from the well bore, water was poured in and the resulting slurry brought up, which removed the cuttings. This process was arduous and progress of 328 feet per month signified a busy and successful month of drilling.

The drill site in 1902.
The drill site in 1902.
© Glenbow Museum 1585-3

Although oil shows appeared immediately, a large steady flow was not reached until September 21, 1902, at 1,020 feet. This oil reserve was still not enough of a flow to use commercially, although it reportedly pumped 300 barrels a day. Further drilling did not increase the flow and a majority of the initial showing was lost, as the company had no means to cap the well. Also, just as equipment had been hard to bring in, so was the oil difficult to transport out of the camp.

Original Discovery No. 1

Even though the amounts were small, enough crude oil was discovered to christen the well “Original Discovery No.1” because this was the first site to produce commercial quantities of oil. Due to the success of their operation, Patrick, Lineham and Leeson were able to purchase or secure six sections of land from the Dominion Government, giving them control of 10 km (6.2 miles) along the creek a half a mile wide. The flurry created by this discovery spanned the country and soon, the Canadian Pacific Railway sent surveyors out to the Waterton area to look into the potential of continuing the tracks south from Fort Macleod.

Collapse

In October of 1902, the well casing failed and gravel that had fallen into the hole caused the rig to jam in place. In an attempt to remove the drill, the boiler burst, shutting down the operation for the winter. This later led to the abandonment of the well site as tools and pipes had been lost or broken in the wellhead.

Unwilling to give up, two new well sites were established by Patrick, Lineham and Leeson which were disappointingly unproductive. In 1904, they returned to the “Original Discovery No. 1” and cleaned out the debris they’d abandoned two years prior. They managed to get about 8,000 barrels of oil before the equipment jammed again, sealing the well one final time. By 1905, all three holes had failed to produce substantial quantities of oil and the Rocky Mountain Development Company Ltd. pulled out of the Waterton area for good.

Today, the national historic site is distinguished by the drill tools, which still remain jammed in the well bore. A monument incorporating the embedded drill tools was designed specifically for the site and was erected over the well in 1968.

The monument marking the national historic site.
The monument marking the national historic site.
© Parks Canada

Fast Facts:

Fast Fact:

Lineham owned two ranches south of Calgary, one of which was ironically located in Turner Valley, immediately across the river from the first big oil discovery in the province, Royalite #1 well at Black Diamond.

Fast Fact:

Leeson and Lineham worked together on a number of entrepreneurial ventures throughout their lives. As well as their work with the Rocky Mountain Development Company Ltd. they built the Leeson and Lineham Block in Calgary. This impressive sandstone and brick building on Stephen’s Avenue is still a landmark of the city today.

Sources:

Dormaar, Dr. Johan and Watt, Robert A., “Oil City: Black Gold in Waterton Park,” Lethbridge Historical Society, Lethbridge, Alberta, 2007

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