Interline Resources Corporation participates in five areas of business: used oil re-refining, natural gas gathering, NGL fractionating, Crude Oil Refining, crude oil gathering, and exploration/production. Interline has commercialized a novel proprietary technology for refining used oil worldwide. Interline Resources Corporation is a public company listed under the symbol irce.pk.

COMPANY HISTORY & HIGHLIGHTS

1980's

The Iranian political crisis of 1980 would eventually lead to the formation of Interline Natural Gas Inc., and therefore, is worthwhile to understand.

Prior to 1980 most oil reserves came to the US from Middle Eastern regions, which included Iran. After the Iranian revolution in 1979 when the Shah fled and the Ayatollah Khomeini took control, US relations with Iran deteriorated. The Embassy hostage crisis in late 1979 resulted in the termination of trade with our former Iranian crude supplier. This action restricted oil sales to the United States, leading to oil shortages and higher prices at the pump.

When oil and gas became scarce in the US, the government established a tax incentive program for investors interested in drilling petroleum reserves. Small investors formed limited partnerships and capitalized on the government’s offer. Thousands of these small companies sprung up all over the country.

In 1981 Interline founder Michael R. Williams, (Brigham Young University: 1975, BA Business Communications) became a partner in Quest Energy, an oil exploration company raising funds for limited partnerships to drill oil and gas wells in Utah and Wyoming. During this time he personally raised approximately $2 million for five limited partnerships, drilled approximately 50 wells and became an expert in acquiring oil and gas leases, permitting, drilling and completion of wells. This background provided a broad foundation for the understanding of the financing, production, and management of oil and gas wells.

After the crisis in Iran passed, oil prices plummeted. The government rescinded the tax exemption, causing the tax benefits for funding new wells through limited partnerships to evaporate. Most of the small companies failed, including Quest energy.

With wells left isolated in the Rocky Mountain States of Colorado, Utah, and Wyoming, few major gas companies were willing to build pipelines to bring the gas to market. Gas reserves remained isolated and useless to consumers due to the oversupply of Natural Gas. Stranded gas wells presented the perfect opportunity for a new type of pipeline business.