The San Francisco call., 1910-11-23
BALLINGER DESIRES
new OIL Land LAW
Secretary Outlines Recommen-
dations to President as
Result of Investigation
[Seeeial Dispateh 10 The Call

WASHINGTON, Nov. 22.-That the
existing law providing for the location
and entry of mineral oil land on the
public domain is wholly inadequate is
the opinion of Secretary Ballinger of
the department of the interior. The
secretary in his annual report will
recommend important amendments.
Assistant Secretary Pierce visited the
California oil fields recently and made
a personal inspection of the situation.
Since his return he and Secretary Bal
linger have had several conferences on
the subject as result of which the
secretary has formulated his recon-
mendations.
by act Of congress approved Febru-
ary II. 1891" said the secretary today,
public lands containing mineral oils
were declared to be placers and were
opened to entry under the general
placer mining law. Under that law no
valid claim can be located without dis
covery of mineral
This is satisfactory as to placer
mineral, which usually lies in or near
the surface, but not as to oil. 1t takes
from six months to a year or more to
test oil lands and make an actual dis
covery The initial expense of the dis
covery ranges from 100000 to 100000
and in many instances to more than
this.
"A paper location of prospective oil
lands made prior to discovery is not
usually respected by other oil pros-
pectors. One prospector erects his der
ricks and proceeds with work upon his
claim; another prospector will erect his
derricks upon the same claim and pro-
ceeds with his work also. It is then
a contest between the two for the first
discovery.
LEASING SYSTEM FAVORED
The law should be amended so as
to protect the first bona fde locator
and to give him a reasonable time to
make his discovery. This recommends
tion applies only to bona f1de occupants
or claimants who are in diligent prose-
cution of work leading to discovery of
oil or gas at the time Of any with
drawal Of the land under executive
direction.
L am in favor OF a general leasing
system Of oil and gas bearing lands
such a system as will promote legiti-
mate development of this industry, pre-
vent monopoly and conserve one of the
great national resources of the country.
The oil lands of the five civilized
tribes in Oklahoma is developed on the
leasing system, the term of the lease
extending as long as oil is found in
commercial quantities. The lessee usu-
ally pays to the government for the
use Of the Indian one eighth in value
Of the oil produced as royalty. This
system has worked out very satisfac-
torily and is in use in many oil regions
Of the country where land is held in
private ownership and not by the gov
ernment.
I would apply the leasing system
only to areas withdrawn for classifca-
ton or classified by the geological sur
ri, L.
lands / would leave open to exploration
and location under the general placer
act as amended as [ have suggested
This would give a reward to the dill
gent prospector. Even then the sur
rounding lands could be withdrawn
from further location after the dill
gent prospector had secured his first
claims.
I'm California quite extensive oil
fields have recently been developed
The price of coal for fuel there is
enormous, ranging from s11 to SIS per
ton for bituminous coal and much
more for anthracite. Much of the coal
consumed in California comes from
foreign countries-Australia and Brit
and wyoming bituminous coal costs the
California consumer about the same
price as foreign coal
Low PRICE FOR FUEL
Crude oil is piped from the Califor-
MIA oil fields to the bay cities and sold
at the present time at IS cents per bar
rel Three barrels of crude oil at the
total price of S2.55 is substantially
equivalent in fuel value to one ton Of
bftuminous coal costing from S11 to SIS
THE use Of oil for domestic con-
sumption will reduce the price of fuel
TO the small consumer several times 1
have had the patent office examined
and find that many patents have been
issued for stoves which may be sue
cessfully used for the consumption of
crude oil for family use. The reason,
I am told, why crude oil has not been
used extensively for family use in Calf
fornia is because of the heretofore un-
certain production Of crude oil in that
state. The railroads and stea mship
companies are using it with satisfac-
tory results.
Il shall recommend that the govern
nnent adopt a liberal policy in opening
the oil lands in California and other
oil bearing states containing public oil
lands. The government ought to sup
port any movement which would re-
duce the enormous cost of fuel
The state ought to be asked to CO.
operate with the government to pre-
vent the monopoly Of the oil business
and effectually to secure a reasonable
price to the consumer In my judgment
this can be accomplished If the state
should declare the consumption of oil a
public USE The state should pass
law TO this effect and place the regu-
lation Of the price of crude oil in the
hands of a discreet commission"