Norwich bulletin., 1910-12-07
recommend it.
Oil and Gas Lands.

Oil and Gas Lands
 In the last administration there were withdrawn from agricultural entry 2S2O. O.OO0~acres of supposed oil land in California; 1,451 .520 acres in Louisi- ana, of which only 6,5oo acres were known to be vacant unappropriated land; 74.4S9 acres in Oregon, making a total of 4,346, ,369 acres. In Septem- Der, 1909, I directed that all public oil lands, whether then withdrawn or not, should be withheld from disposi- tion pending congressional action, for the reason that the existing placer mining law, although made applicable to deposits of this character, is not ther reason that it 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 aggregating 2,75O,O0 acres were made in Arizona, Califor~ mia, Colorado, New Mexico, Utah and Wyoming. Field examinations during the year showed that of the original
 
 valuable for oil, and they were re stored for agricultural entry. Mean time other withdrawals of public oil lands in these states were made. so that Nov. 15, 1910, the outstanding withdrawals then amounted to 4.654,- GOO acres
 The needed oil and gas law is es- a " Io- ural occurrence oil and gas cannot be measured in terms of acres, like coal, and it follows that exclusive title to these products can normally be se cured only after they reach the sur face Oil should be disposed of as commodity in terms of barrels of transportabfe product rather than in acres of real estate. This is, of course, the reason for the practically uni versal adoption of the leasing system wherever oil land is in private owner ship. The government thus would not be entering on an experiment, but simply putting into effect a plan sue cessfuily operated in private contracts.
 Why should not the government as landowner deal directly with the oil producer rather than through the in tervention of middleman to whom the government gives title to the land?
 The principal underlying feature of such legislation should be the exercise of beneficial control rather than the collection Of revenue. As not only the largest owner of oil lands, but as prospective large consumer of oil by reason of the increasing use of fuel oil by the navy, the federal government is directly concerned both in encourag- ing rational development and at the same time insuring the longest possi- ble life to tine oil supply.
 The royalty rates fixed by the gov ernment should neither exceed nor fall below the current rates. But much more important than revenue is the enforcement of regulations to conserve the public interest so that the GOV chants of the lessees shall specifically safeguard oil fields against the penal ties from careless drfllings and of pro- duct1on in excess of transportation ia c1lities or of market requirements.
 One of the difficulties presented, espe- cialiy in the California fields. is that the Southern Pacific railroad owns ev- cry other section of land in the oil fields, and in those fields the oil seems to be in & common reservoir or series of reservoirs communicating through the oil sands, so that the excessive draining of oil at one we'll or on the railroad territory generally would ex- haust the oil in the government land Hence it is important that if the gov ernment is to have it's share of the oil 1t should begin the opening and devel- opment of wells on It's own property.
 In view of the joint ownership which the government and the adjoining land owners like the Southern Pacific raiI- road have in the oil reservoirs below the surface 1t is most interesting and intricate question, difficult of solution, but one which ought to address itself at once to the state lawmakers. how far the state legislature might impose appropriate restrictions to secure an equitable enjoyment of the common reservoir and to prevent waste and excessive drainage by the various owE- CTS having access to this reservoir.
 It has been suggested, and I believe the suggestion to be a 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 gov ernment land for the discovery of oil, the right to be evidenced by a license for which be pays small sum. When the oil is discovered, then he acquires title to a certain tract, much in the same way as he would acquire title under mining law. Of course if the system of leasing is adopted then he would be given the benefit of lease upon terms like that above suggested. What has been said in respect to oil applies also to government gas lands.
 Under the proposed oil legislation, where the government oil lands embrace an entire oil field, as in many cases, prospectors, operators, con sumers and the public can be bene- fitted by the adoption of the leasing system. The prospector can be pro tected in the very expensive work that antedates discovery, the op- orator can be protected against impair ment of the pr0ductiveness Of the wells which he has leased by reason of con trol of drilling and pumping of other yrafIG tno al o,s aa