Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-09-05
Reclamation Not Matter For Party Faction Taft Deca

| Is not suitable TO such lands, and for the
| further reason that il seemed desirable to
reserve certain fuel oil DEPOSITS for the
use OF the American navy Accordingly
| the form OF all existing Withdrawals was
changed, and new Withdrawals aggregat-
| ing , 10000 acres were made In Arizona
California. Colorado. New Mexico. Utah
/ and Wyoming. Field examinations dur
| ing the year showed that OF the original
Withdrawals 217O0O acres were not valu-
able for oil, and they were restored for
agricultural entry. Meantime. other with
drawals OF public oil lands in these states
were made. SO that July |. 1910 the out
standing Withdrawals then amounted to
$50. 900 acres.
The needed oil and gas law is essen
tally leasing law. In their natural oc-
currence oil and gas can not be measured
in terms OF acres. like coal, and II fol-
lows that exclusive title to these products
can normally be secured only after they
reach the surface. Oil should he disposed
OF as commodity In terms of barrels of
transportable product rather than in acres
OF real estate. This is OF course the rea-
son for the practically universal adoption
or the leasing system wherever oil land is
in private ownership. The government
thus would no. he entering on an expert
ment. but simply putting into effect a
plan successfully operated in private con-
tracts Why should not the government
as a land owner deal directly with the oil
vention of a middleman TO whom the gov
| eminent gives title TO the land?
Plea for Beneficial Control.
The principal underlying feature Of
such legislation should be the exercise OF
beneficial control rather than the colIec-
ton OF revenue. AS not only the largest
owner OF oil lands. but as a prospective
large consumer OF oil by reason os the
increasing use OF fuel oil by the navy the
federal government is directly concerned
both In encouraging rational development
and at the same time insuring the long
est possible life to the oil supply The
royalty rates fixed by the government
should neither exceed nor fall below the
current rates. But much more important
than revenue Is the enforcement of regu-
lations to conserve the public interest so
that the covenants OF the lessees shall
specifically safeguard oil fields against
the penalties from careless drillings and
or production in excess of transportation
facilities or Of market requirements
"One of the difficulties presented. espe-
cially in the California fields. is that the
Southern Pacific railroad owns every
other section Of land in the oil fields
and In those fields the oil seems to be in
common reservoir, or series of reser-
voirs. communicating through the oil
sands. 20 that the excessive draining OF
oil at one we'll or on the railroad terri
tory generally would exhaust the oil in
the government land. Hence II Is impor-
tant that II the government is to have
its share OF the oil IL should begin the
opening and development OF wells on its
own property.
I'm view OF the joint ownership which
the government and the adjoining land
owners like the Southern Pacific railroad
have in the oil reservoirs below the sur
face, II is a most interesting and intri-
cate question. difficult OF solution. but
one which ought to address itself at
once to the state lawmakers, how far
the state legislature might impose appro-
pirate restrictions to secure an equitable
enjoyment Of the common reservoir and
to prevent waste and excessive drainage
by the various owners having access to
this reservoir.
1T has been suggested. and I believe
| the suggestion to be q sound one. that
permits be issued to a prospector for oil.
giving him the right to prospect for two
years over a certain tract OF government
| land for the discovery of oil. the right
| to be evidenced by a license for which he
pays a small sum. When the oil is dis
covered, then he acquires title to a certain
! tract. much in the same way as he would
acquire title under a mining law. OF
course. IL the system OF leasing is adopt
| ed. then he would be given the benefit of
| a lease upon terms like that above sug-
gested. What has been said in respect to
| oil applies also to government gas lands.
The Leasing System.
Under the proposed OIL legislation. cs-
peciaily where the government oil lands
| embrace an entire oil field. as in many
cases prospectors. operators. consumers
! and the public can be benefited by the
adoption OF the leasing system. The pros
pector can be protected in very expensive
work that necessarily antedates discov-
/ cry: the operator can be protected against
| impairment OF the productiveness of the
wells which he has leased by reason of
| control of drilling and pumping of other
wells too closely adjacent, or by the pre-
vention Of improper methods as employed
| by careless. ignorant or irresponsible OPP
| orators in the same field which result in
| the admission Of water to the oil sands.
while OF course the consumer will profit
| by whatever benefits the prospector or
| operator receives In reducing the first
| cost of the oil.