The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1910-01-13
CONSERVING THE OIL
Chief Geologist Suggests Some
New Legislation.
LAW is IN CHAOTIC STATE
Comments by Large Operator
Nation Owns the Oil Lands and
Should Deal Directly with
Producer.
BY WILLIS J. ABBOT.

Chicago.-For once 1t would appear
that an executive bureau of the United
States government has been able TO
issue bulletin bearing upon the
mooted question of conservation with.
out arousing the wrath of those whose
interests are involved.
Some days ago the administration
withdrew from entry over 100000
acres of public oil lands.in California,
Wyoming, Utah and Oregon. DR.. G.
H. Hayes, chief geologist of the United
States geological survey explains this
action in bulletin recently issued
by saying that the withdrawal is but
temporary and intended to be effec'
tive only until congress acts. There
is no law now existing which covers
the case of public lands under the
surface of which the presence of oil
or gas is suspected. The essence OF
a legal location under that portion OF
the law relating to mineral lands is
discovery. That is to say, there can
be no legal entry or location of land
as mineral land unless the claimant
shows that he has discovered min
eral deposits upon it. This is simple
and just when applied to coal, lead
or the precious metals, all of which
are manifested by surface outcrop-
pings.
But when oil is sought there can be
no discovery until after a we'll. is
Ifil1 cd OF Of
Until the oil is found the prospector
cannot perfect his claim; If the well
gushes host of rivals will seize upon
every quarter section about him and
upon his own if they can reach the
land office first. If he strikes neither
oil nor gas he is out the price of his
we'll with nothing to show for his out
lay. DR.. Hayes notes that lands pre-
sumably containing oil are located as
gypsum lands" though there may be
only a trace of gypsum in the soil
1early fraudulent this, but excused
y the failure of congress to enact a
rIltable law regulating the location
and entry of oil and gas lands.
DR.. Hayes further points CUE that
claims have been patented where
there was no oil or any mineral, but
purely for the purpose of obtaining
thp ownership of the soil for $3.50 an
acre On the other hand, lands in the
region of successful well are swift
ly covered with homestead entries,
not for the purpose Of agriculture,
h,tt fnp ri
is in so chaotic state that the gov
eminent is continually the sufferer
and bona fide prospectors and settlers
suffer with 1t. The suggestion of the
chief of the geological survey, which
will be incorporated in the secretarys
report, is that the government should
retain the ownership of the soil, act
itself as land owner and lease out the
oil or gas rights to individuals with
out granting them the right to tillage.
Furthermore, he points out that If the
oil fields be kept out of exploitation
for term of years it means the
storage and conservation by the gov.
eminent of a great natural product
which will never be less, but is cep
tain to be vastly more valuable in the
future than it is to-day.
In Chicago alone are thousands of
stockholders in oil land companies.
There are not less than two score of
firms in that city doing business in
oil lands. Most of these, it is true,
are exploiting the fields of Oklahoma,
where oil rights are leased, not from
the government, but from the Indians.
Secretary Ballinger's recommends
ton that oil lands still owned by the
| nation be withdrawn until congress
provides a suitable leasing law is
conmendable," said R. l.. Henry, one
of the largest operators in Chicago.
parts of DIR. Hayes report read as
If they were written by practical oil
man. We in Oklahoma lease from
rrivate parties, from Indians mainly
Il used to be the rule, before Okla
oma was admitted as state, that
contracts made with landowner of
liked blood. that is to say having
L,r"c than three-eighths Indian blood
lad to be approved by the secretar,
OF the interior, but that was done
away with by congress. But we rent
My the oil rights. Forty feet square
will accommodate one well and pump.
Pipes are sunk dea1 enough for the
low to pass over. The owner of the
land gets $3.50 year rental for each
well, and can farm his land as
though the well was not there.
Heretofore the governments meth
cd of handling oil lands has played
directly into the hands of the Stand.
ard Oil Company. Under the law the
holder of lease must begin pumping
within year. If he fails the lease
reverts to the government. He can
not hold the land idle, nor shut down
his well to avoid adding to an over
stocked market. We in Oklahoma
have but one real customer, the
Standard, though there are two other
companies processing to be indepen.
dent, but which in fact are in col
fusion with it. The Standard pays us
35 cents a barrel, taking just what IL
wants and no more. AS there Is al
ways a surplus of some $4,000. 900 bar,
rels on hand. and as operators on gov
eminent lands are compelled to keep