The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1909-12-01
He Explains Governments Act
Why Uncle Sans 100000 Acres of Petroleum Land Were
Withdrawn From Entry-Hayes interviewed.

| ing the law is to locate Oil under the
guise of gypsum claim. In many of
the California oil land fields the SIR
face soil contains a small amount OF
gypsum, although rarely in sufficient
quantity or purity to be profitab.y
mined, even if favorably located for
transportation and market. 1t affords
a pretext. however, for a location I'm.
der the placer law, and large numbers
of claims have been patented where it
! is a matter of common knowledge
| that the real object is to acquire title
to the Oil. In this way land worth
thousands of dollars an acre has been
acquired from the government for two
dollars and half an acre, and this
without oil development. Moreover it
| is not generally the man of small
means but rather the wealthy corpor-
alton that resorts to this subterfugc
to secure title.
"Although many of the oil fields in
the public land states, and particular
ly those in California, are in regions
| wholly devoid of agricultural possibil-
tiles, no sooner is a successful well
drilled than the entire district is coy
cred by homestead and scrip entries
the purpose of which is to secure
title to the OF! under cover of the aS-
ricultural land laws. 1t is to meet
these conditions that a thorough re-
vision of the law is needed.
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. Those elu-
sive products can be drawn from a
distance under ground across bound
airy lines, and exclusive title to the
product is acquired only after it
reaches the surface. 1t follows, there
fore, that Oil can be disposed of by
the government or other owner of the
land in which it occurs only as a
commodity and not in terms of acres
like coal or other minerals occupying
fixed locations. This difference is so
well recognized that it has determi,I-
ed the leasing system which is practi-
caliy universal in all the Oil fields
where the land is in private owner
ship. The government cannot do bet
ter than to adopt the plan which has
been worked out through long expel-
fence. and, where the holdings are SUI
ficiently large, found thoroughly salts.
factory. both to the oil operator and to
the private land owner. Why should
deal directly with the producer rather
than through the intervention of a
middle man to whom title to the land
has passed?
ANY ideal or practical law must
further recognize the fact that the &C.
tual discovery involves heavy exren-
diture and considerable time. and that
the prospector must be adequately
protected in his investment before as
we'll as after the discovery is made.
The area to which he is given pre-
ferred right must therefore be suffi-
GENTLY large to justify his initial
heavy investment and in such com.
pact shape as to protect his discovery
from encroachment by drilling on sub
sequent entries
"A well considered leasing law will
give certain incidental advantages of
great Importance both to the govern.
meat 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.
Under the present system the own.
er of 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 viii take a
large share of it away from him. In
| the resulting feverish exploitation
half dozen or more wells may be
drilled when one would have secured
the same amount of ola serious eco.
nomic waste to the nation and heavy
tax on the ultimate consumer. Also,
unrestricted drilling by careless or ig-
norant operators may ruin a valuable
field by admitting water to the oil
sand from a higher or lower water
bearing stratum. Many examples of
criminal waste resulting from the un.
restricted exploitation of oil fields
might be cited.
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 American
Navy are equipped for the use Of eth
er oil or coal. and the fourteen largest
destroyers use oil exclusively. The
question of fuel supply for these yes
sells is certain to become an exceed
ingly important one in the near future
and the law should provide a means