Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-12-05

the public land states, and partic-
ularly those in California, are in
regions wholly devoid of agricultural
possibilities, no ooner is a successful
well drilled than the entire district is
covered by homestead and scrip en-
tries-the purpose of which is to Sc
cure title to the oil under cover OF
the agricultural land laws. 1t is to
meet these conditions that a thorough
revision of the law is needed
OH Leasing System in Gener
l.. aciice.
ANY law which will adequately
meet the requirements of the case
must recognize the fundamental diff
ference between oil and gas and other
minerals, namely mobility. These
elusive products can be drawn from a
distance underground across boundary
lines, and exclusive title to the product
Is acquired only after II reaches the
surface. 1t follows, therefore, that oil
can be disposed of by the government
or other owner of the land in which
it occurs only as a commodity and no
in terms of acres like coal or other
minerals occupying fixed locations.
This difference is so well recognized
that it has determined the leasing
system which is practically universal
in all the oil fields where the lane is
in private ownership, The govern
ment cannot do better than to adopt
| the plan which has been worked out
through long experience, and, where
the holdings are sufficiently large,
found thoroughly satisfactory, both to
the oil operator and to the private
land owner. Why should not the gov
eminent as a land owner deal directly
with the producer rather than
through the Intervention of Il middle
man to whom title to the land has
passed?
Any ideal or practical law must
further recognize the fact that actual
| discovery involves heavy expenditures
and considerable time, and hat the
~prospector must be adequately pro-
| tected in his investment before as well
as after the discovery is made The
area to which he is given a preferred
| right must therefore be sufficiently
large to justify his initial heavy in
Vestment and in such compact shape
as to protect his discovery from en-
c%roachment by drilling on subsequent
entries.
"a well considered leasing Law will
give certain incidental advantages of
great importance both to the govern
| ment and to the oil operator. 1t will
constitute the most effective means for
the conservation of the oil and gas
resources of the country by enabling
the government to regulate develop
ments so as to prevent much of the
criminal waste now prevalent.
Present Law "a Hardship; Also
WastefuI.
Under the present system the
| owner of a twenty acre placer claim
is compelled to drill and pump the oil
from his land with all possible speed,
regardless of transportation facilities
| or market, for otherwise his COMPETE
tors on adjoining claims will take a
large share of it away from him. In
the resulting feverish exploitation
half a dozen or more wells may be
| drilled when one would have secured
the same amount of OLA serious
economic waste to the nation n a
heavy tax on the ultimate consumer.
Also, unrestricted drilling by careless
or ignorant operators may ruin a
valuable field by admitting water to
the oil sand from a higher or lower
water-bearing stratum. Many ex-
amples of criminal waste resulting
from the unrestricted exploitation of
oil fields might be cited.
Oil for American Naval Vessels.
"The government is not only the
largest owner OF oil lands, but it is
likely to be the largest consumer. The
six largest battle ships in commission
or under construction in the Ameri-
can navy are equipped for the use or
either oil or coal, n the fourteen
largest destroyers use oil exclusively.
The question of fuel supply is in the
near future. and the law should pro-
vide a means of perpetuating a sup
ply for this certain future need.
The fact is gaining recognition
that the natural resources remaining
| n the possession of the government
are the heritage of the whole people,
and the idea that they should be
economically utilized for the general
good rather than exploited for the
| enrichment of n few individuals is
| rapidly crystallizing n public opin-
ion. The enactment by congress of a
law providing for h leasing of oil
| lands will be a logical and much
| needed action in the governments
management of its great petroleum