The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1910-09-05

total OF nearly 100000 acres.
In September. 1900. | directed that
ell public oil lands, whether then with
drawn or not, should be withheld from
disposition pending congressional ac-
ton for the reason that the existing
placer mining law, although made ap.
plicable to deposits of this character.
Is not suitable TO such lands and for
the further reason that it seemed de
Firable to reserve certain fuel oil DE-
posits for the use of the American,
navy.
Accordingly the form OF all existing
Withdrawals was changed. and new
Withdrawals aggregating 2,75O,00O
acres were made In Arizona. Califor-
MIA. Colorado, New Mexico, Utah and
Wyoming. Field examinations during
the year showed that of the original
Withdrawals 2,170,O00 acres were not
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 July /, 1910. the outstanding with
drawals then amounted to 4,550,OO0
acres.
Oil For Navy.
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 n
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 pos
sible life to the oil supply.
The royalty rates fixed by the gov
eminent 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 cove
nants OF the lessees shall specifically
safeguard oil fields against the penal
ties from careless drillings and Of
production in excess of transportation
facilities or Of market requirements.
One of the difficulties presented, es-
pectally 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 a common reservoir or series
Of reservoirs communicating through
the oil sands, so that the excessive
draining Of oil at one well or on the
railroad territory generally would ex.
haust the oil in the government land:
hence it is important that If the gov.
eminent is to have its share Of the Oil
1t should begin the opening and devel-
opment OF wells on its own property.
In view of the joint ownership
which the government and the adjoin.
ing landowners like the Southern Pa.
cific railroad have in the oil reservoirs
below the surface, it is most inter.
esting and intricate question, difficult
OF solution, but one which ought to ad-
dress itself at once to the state law.
makers 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 owners having access to this
! reservoir ......s ...- ..
| Water Power Sites.
Prior to March 4, 1900, there had
been, on the recommendation of the
reclamation service, withdrawn from
agricultural entry, because they were
regarded as useful for power sites
which ought not to be disposed of az
agricultural lands, tracts amounting
to about 100000 acres. The with
drawals were hasGily made and in
cluded q great de- Of land that was
not useful for power sites. They were
intended to includ~ the power sites on
twenty-nine rivers in nine states.
/ Since that time S,475, 442 acres have
been restored fo' settlement Of the
original 100000, because they do mo-
contain power s":es, and meantime
there have been newly withdraw
1,245, 1892 acres ON vacant public LAND
and 211,O0T acres on entered publk
land, or a total Of 1,456,S99 acres
These Withdrawals made from tim,
to time cover ali the power sites in
cludei in the first Withdrawals and
many more on 13J :ivers and in eleven
/ states.
The disposition - these power sites
involves one Of the most difficult queS
tons presented II carrying out prac.
teal conservation.
The forest service, under q power
found in the statute, has leased
number Of these power sites in forest
reserves by revocaNle leases, but nc
such power exists with respect to
power sites that are not located with.
in forest reserves, and the revocable
system Of leasing is, Of course, not
satisfactory one for the purpose of In
viting the capital ISeeded to put in
proper plants for the transmutation OF
power.
The subject is one that calls for new
legislation. 1t has been thought that
there was danger of combination to OBJ
tain possession Of all the power sites
and to unite them under one control
Whatever the evidence Of this or lucl;
of it, at present we have had enough
experience to know that combination
would be profitable, and the control of
a great number Of power sites would
enable the holders or owners to raise
the price OF power at will within GER
tain sections, and the temptation
would promptly attract investors, and