New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-22
Only 2 Senators
Oppose Opening
Vast Oil Fields
Bill to Rescind Withdrawal
by Taft Is Re-
ported
Effect on Motor Cars
Measure Expected to Prevent
Amy Restriction on Use
of Gasoline

WASHINGTON, Aug. 21.-Providing
fc- the opening up to development Of
hundreds Of thousands Of acres Of
proved oil-bearing lands withdrawn
from entry By the famous Taft order,
the oil bill agreed on By all the Sen
ato-s interested save two, as predicted
in The Tribune on August II, was re-
ported 10 the Senate to-day.
4 minority report will be fled by
Senator Hus..ag, Of Wisconsin, which
probably will be signed also by Senator
Norris, OF Nebraska.
It is estimated that the opening up
os these oil lands will increase the
coantry's oil production not less than
- per cent, which means not only an
increase of that amount Of fuel oil for
the navy and for commercial purposes,
but a like increase in the production OF
gaso.eae. 1t is declared by Senator'S
that the passage OF this measure will
postpone indefinitely any proposal TO
restrict the use Of gssOlene for pleas
ure cars.
It is also declared that the opening
I'd Of these oil lands, which include
the famous naval oil reserve in Cali
fornia known as No. ?. will solve the
British navy's oil problem, said to be
acute.
Senator Husting said to-day his mi
nority report would favor retaining
this No. . reserve in California as
naval reserve for twenty or twenty
FIVE years.
Would Buy OF Operators
Owing to the fact that there are
several hundred wells now producing
oil from that reserve, it IS contended
that before twenty years certainly all
the gas would be blown of and that
the oil supply itself might be seriously
deuleted. Do you believe that incor-
rect?" Mr.. Husting was asked.
II don't take issue with that, SAID
Mr.. Husting, but my substitute
which I will offer for the committee
bill. will contain provision that the
Secretary of the Navy shall buy on the
operators who have entered on TINS
reserve, where they have cases that
will hold water, and thus retain the
field untouched
The oil bill as agreed upon provides
that a royalty Of one-eignth Of all OIL
produced on the lands opened up shall
be paid TO the Federal government.
The oil on which a royalty must be
paid not only includes all oil TO be
produced in future, but also all OIL
produced from these reservations from
the original date Of entry. This Is
aimed at those producers who have
been operating wells on the reserva-
tons.
Preference in Grants
The bill gives preference in max
ing the leases 90 those oil operators
who have discovered oil on the lands
and have developed in good faith, and
also those who desisted from oper-
ating at the time Of the Taft with
drawal order, and because Of that or
der only.
A protective clause inserted at the
demand of the navy's oil experts, and
directed against those who have in
sisted on operating, despite the navy's
efforts TO make the field a reserve,
reads as follows:
THAT 10 claimant who has been
guilty Of fraud in the location Of any
claim for oil or gas bearing lands
shall be entitled 20 any of the bene-
( fits of this section, nor shall his as
sirree be entitled thereto unless he
afFirmativelv shows that, prior TO the
passage of this act, he purchased such
lands in good faith for a valuable con-
sideration and without actual knowl-
edge of such fraud"