The Hawaiian gazette., 1917-01-16
NEWSOLUT|ONOF
O|L.LANDS TANGLE
IS NOW PROPOSED
Seeks To Find Relief For Those
Affected BY Taft With
aa drawal Order
SENATOR PHELAN'S PLAN
Is FINALLY SUPPLANTED
Many Local People Affected BY
Present Situation In Cali
fornia Oil Fields

Another proposed solution of the
California oil lands problem, in which
is concerned the fate Of Honolulu Con
solidated Oil Company, largely owned
by local capital, has been offered in
congress where a bill to grant relief to
the oil land holders is now pending.
D The new plan TO grant relief to the
holders Of lands affected by the Taft
withdrawal orders is in the form of an
amendment to grant leases to those
companies which entered into develop
ment work in good faith. The amend
ment applies only to naval reserve
number two in California in which the
lands of Honolulu Oil are largely
located
Details Of the new turn in the oil
land situation are contained in an &C.
count in the San Francisco Chronicle
despatch from Washington, January 4.
The account follows:
+.Abandoning hope of overcoming
opposition of the navy to pending leg.
islation 70 relieve California and
Wyoming oil lands claimants, the sen.
ate lands committee today determined
tOy eliminate the so-called Phelan
amendment from the mineral land-leas.
ing bill and to substitute for il a relief
provision suggested by the Interior
Department. .....
siThe department 8 amendment would
provide that claimants on oil lands
prior to the withdrawal in 1910 who
had entered in good faith into the
prosecution of development shall have
preference TO leases
Proposed Amendment ~.
Following 10 the amendment Civ
ing relief to the ousted California
claimants, who have been held out Of
their lands by the Taft withdrawal or
der: Is. 49,.
THAT upon REIMBURSEMENT to the
United States within ninety days from
passage of this act, or within ninety
days after final denial OF withdrawal
of application for patent of any claim
asserted under the mining laws to any
unpatented oil or gas lands included in
an order of withdrawal or within naval
petroleum reserve No. 2, in the State
Of California, the claimant shHil be en-
: titled to lease for each asserted min
eral location of $50 acres or less upon
(which such claim Is based and upon
which said claimant, his predecessors in
interest, or those claiming through or
under him, have prior to the date of
this act drilled one or more producing
oil or gas wells, such lease to be upon
royalty Of one-eighth of the prOduc.
ton Of oil or gas produced and saved
therefrom after first deducting from
the gross oil production such oil or gas
as may be used in development and
operating such land, and otherwise on
the same terms and conditions as other
oil and gas leases granted under the
provisions of this act.
Demands Pun Payment
Provided, that within ninety days
from date Of this act or of final denial
or withdrawal Of application for pat
emit, applicant for lease shall pay to
the United States for one-eighth of the
oil or gas produced and saved from the
lands included in said claim subsequent
to February %, 1915, at the current
field price at the time of production,
which shall be in full satisfaction for
all oil or gas extracted from said land
prior to said lease.
Provided, further, that all royal
ties received under the provisions of
this section from naval petroleum re-
serve No. 2, whether in oil or money,
shall he delivered or credited to the
United States Navy, and, provided,
further, that none Of the provisions of
this section or this act shall be ap-
plieable to or affect lands or minerals
included within the limits of naval
petroleum reserve No. ] in the State
of California or naval petroleum re-
serve No. 3 in the State of Wyoming,
That where public. lands contain
ing deposits Of oil or gas were, prior
to withdrawal thereof from mineral
entry, occupied or claimed by bona
fide claimant under the placer mining
laws of the Unitel States, and the
occupant or, claimant thereof had,
pricr TO such withdrawal performed
or commenced 70 perform, L substan.
tiai amount of work, either within
o. outside of such claim, intended
for. adapted and, CLEARLY related to the
physical development Of the lands as
oil or gas.bearing lands and has since
said Withdrawal drilled one or more
producing Ill or gas wells upon such
lands, with only such delays in drilling
ns we're reasonable in the economic
development of such lands and under
existing conditions, such occupant OF
claimant is hereby declared to have
complied with the law of diligence as
TO- such claim and upop application
II