The Richmond palladium and sun-telegram., 1910-12-06

dement, OK S04I1U& IN the 0CEC16cU
price OF coal and the additional profit
made by the tenant. BY imposing con-
ditions In respect to the character OF
work to be done In the mines the gov.
ernment may control the character OF
the development Of the mines and the
treatment Of employees with reference
to safety. BY denying the right to
transfer the lease except by the writ
ten permission Of the governmental au-
thorities 1t may withhold the needed
consent when 1t IL proposed to transfer
the leasehold to persons interested In
establishing a monopoly Of coal pro-
duction in any state or neighborhood.
held by the government. 1t seems wise
that il should retain such control over
the mining and the sale as the relation
Of lessor to lessee furnishes.
The secretary Of the interior thinks
there are difficulties in the way of leas-
ing public coal lands. which ohjec-
tions he has set forth In his report.
the force Of which freely concede I
entirely approved his stating at length
IA LILO ACfott Nhc o0yCN1AoAS Ia ShaSh
that the whole subject may be present
ed to congress, but after fun consid-
Grafton, for the reasons I have given
above. favor a leasing system and
recommend it.
Oil and Gas lands.
In the last administration there were
withdrawn from agricultural entry
2,S2O.OOo acres Of supposed oil land In
California: 1.451.52O acres In Louisi-
ana, Of which only $500 acres were
known to be vacant unappropriated
land: 74.4s9 acres in Oregon. making
a total Of 4.346, $50 acres. In Septem-
ber, 1909. I directed that all public
oil lands. whether then withdrawn or
not, should be withheld from disposi
ton pending congressional action, for
the reason that the existing placer
mining law, although made applicable
to deposits Of this character, is not
suitable to such lands, and for the fur
ther reason that 1t seemed desirable to
reserve certain fuel OIL deposits for
the use of the American navy.
Accordingly the form Of all existing
''@sA0A0 oAS "00 Sa0A8COt duu new
Withdrawals aggregating c,75O.OO0
acres were made in Arizona, Califor-
MIA. Colorado. New Mexico, Utah and
Wyoming. Field examinations during
the year showed that OF the original
Withdrawals 2,10O,424 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 Nov. 15, 1910, the outstanding
Withdrawals then amounted to 4,G54,
600 acres.
The needed oil and gas law IL es-
sentially leasing law. In their nat
ural occurrence oil and gas cannot be
measured in terms Of acres, like coal.
and 1t 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 a
commodity in terms Of barrels OF
tansportable 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 plan sue
cessfully operated in private contracts.
Why should not the government as a
landowner deal directly with the oil
producer rather than through the In
tervention Of II 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 a
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-
BILE life to the 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 COW
enants OF the lessees shall specifically
safeguard Oil fields against the penal.
ties from careless drillings and OF pro.
duction in excess Of transportation IA
c1lities or Of market requirements.
One OF the difficulties presented, espe-
cially in the California fields. Ia that
the Southern Pacific railroad owns ey.
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 well or on the
railroad territory generally would ex-
haust the oil In the government land.
Hence it is important that IL the gov
ernment 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 adjoining land
owners like the Southern Pacific rail-
road have In the oil reservoirs below
the surface it is a 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 IN
equitable enjoyment of the common
reservoir and to prevent waste and
excessive drainage by the various own
ers having access to this reservoir