Los Angeles herald., 1910-09-06
The Number Is Limited

owner deal directly with the oil pro-
ducer rather than through the inter
vention of a middleman to whom the
government gives title to the land?
GOVERNMENT CONTROL
1.-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 a
prospective large consumer of oil by
reason of the increasing use of fuel
oil by the navy, the federal govern
ment Is directly concerned both in en-
couraging rational development and at
the same time insuring the longest pos
sible life to the oil supply. The royal
ty rates fixed by the government
should neither exceed nor fall below
the current rates. But much more i'm
portant than revenue is the enforce
ment of regulations to conserve the
public interest so that the covenants
of the lessees shall specifically safe
guard oil fields against the penalties
from careless drillings and of produc-
tion in excess of transportation facili-
ties and of market requirements.
"One of the difficulties presented es-
pecially in the California fields, is that
the Southern Pacific railroad owns
every other section of land in the oil
IGluS, ana Ill LIlOS6 llGluS lilO Oll SS6lilo
to be in a 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 ii the gov
ernment is to have it's share of the oil
it should begin the opening and de-
Velopment of wells on it's own property.
Tn Iyiaxx nf tho iOiT1f narSbiTO which
the government and the adjoining land
owners like the Southern Pacific rail-
road have in the oil reservoirs below
the surface, it is q 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 own
ers having access to this reservoir.
PERMITS FOR PROsPECTORs
"It has been suggested, and I be-
lieVe the suggestion to be sound
one that permits be issued to a pros
pector for oil giving him the right
to prospect for two years over a GER
tain tract of government land for the
discovery of oil, the right to be evil
denced by license for which he pays
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 min
ing law. OF course If the system of
leasing is adopted, then he would be
given the benefit of a 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,
especially where the government oil
lands embrace an entire oil field, as
in many cases, prospectors, operators,
consumers, and the public can be ben
efited by the adoption of the leasing
system. The prospector can be pro-
tected in the very expensive work that
necessarily antedates discovery; the
operator can be protected against inn
pairment 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 prevention of improper methods
as employed by careless, ignorant or
irresponsible operators 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 re-
ceives in reducing the first cost OF the
oil.
POWER SITES
Prior to March 4, 1909, there had
been. on the recommendation of the
reclamation service, withdrawn from
agricultural entry, because they were
regarded as useful for power sites