The Oklahoma City times. [volume] (Oklahoma City, Okla.) 1908-1984, 1917-09-26
OIL PR0sPECT0R
NEEDS PROTECTION
Wildcatter, So Necessary to
Increased Production, Is
Hit in Walsh Bill.
TO RESTRICT LEASING
Pending Oil Lands Legisla-
ton Is Discussed by an
Expert of Industry.
BY MAX W. Ball, Formerly Chairman
OIL Board, United States Geological
SURVEY

Survey.
nIlTH the continued decli, OF the
" eastern oil fi.ldI and the pos
sible early decline OF the Mid
Continent and gulf areas, the oil orera-
tor must turn his a,'en;,on more and
more to the public l.ud fields Of the
west Already these fields are produc-
ing large fraction OF the country'j
supply, and tremendous areas remain
unprospected. Sooner or later the west
seems certain to be the oil producing
center of the United States 1t is i'm
portant, therefore, for every oil man to
know something of th. laws present
and proposed, under which oil devel-
opment in the west must be carried on.
Some Of the lands are in private
ownership, and these can be leased or
purchased in the sam, manner as pri-
vate lands elsewhere. Some have been
granted to the states, and these r1ay be
leased on terms fixe by state laws
and the judgment OF STATE officials. But
by tar the greater part Of the promising
areas is public land, and for these
lands the operator must deal with the
United States government.
The present oil-land law was intend
ed to provide for deposits of placer
gold II gives a freehold title or pat
ent to the dlscoverer OF I'll, but limits
each claim to 100 acres, provides that
a discovery Of oil must he made on
each claim, and gives inadequate pro
lection to the pTospectors holdings
while he IS attempting 10 make dlScov-
cry. In operation the law has led 10
claim jumping and fard, and TO many
hasty, careless and waStciul practices.
In most cases II has prevented block
ing Of acreage, and has thus directly
increased the number Of unnecessary
wells and indirectly brought about rae
ing, water troubles, storage losses and
kindred evils
The Pending Walsh Bill
These defects in the placer law be
came so obvious that in 1872 the gov
ernment began the policy OF Withdraw
ing all known public oil lands from en-
try pending the enacincn. of new leg
islation. Since that tire many bills
on the subject have been introduced in
congress, some good. some bad, and the
senate is now considering the passage
Of one of the worst of them--a bill
known as the Walsh bill Inasmuch
rs most Of the oil dr,tlcpment cf a
large part Of the United States will
have to be undertake, under this bill
II il becomes law, every man in the
oil industry should know its provisions
and should be in a position to give his
opinion regarding it.
AS approved by the senate comUi'tcl
on public lands, the bill provides tha,
mo person, association or corporation
can hold any interest, as a stockholder
or otherwise, in more than one lease
In all the vast extent of the public
domain only one lease II a man should
hold a single share of stock in a com.
pany with lease in California and an
other share OF stock in company with
a lease in Wyoming, he would be guilty
OF felony, II the Kern Trading and
Oil company took lease in Coalnga
and Empire Gas and Fuel lease IN
Grass Creek, a man who held hot,'
Southern Pacific and Cities Service
stock might be fined $1,000 and Sent
TO Jail for three years What an al
surdity
Try TO picture tho result. Any com.
pany whose stock is on the market (ant
this includes nearly every producinc
company would have either TO stay of
the public lands or to de,isc som,
method OF determining that no individu,
al stockholder had a share Of stock II
any other company holding lease. Nc
map would dare to have more than on,
kind OF oil stock at once, lest botl
companies should prove to hold public
land leases, or be interested in o,hel
companies holding such leases No
many people would risk fine md i'm
prisonment for the sake OF buying OF
stock. Not many bankers would car,
for the bonds OF companies operating
in the public land states
Diseourages Capital.
Where would the capital come from
to develop the new fields Very few in
dlviduals have the money needed for 81
expensive a proposition as the develop
ing OF an oil lease, Practically EVER
one OF those few would have stock it
a corporation holding some OF the bond
OF some other corporation, one OF who's,
subsidiaries had a lease somewhere IL
the west Perhaps an occasional catil
king or sheep baron would be able Il
take a lease and operate it. but the Fl
nancier, the small investor. and the oi
company would be excluded Woul,
the public lands be developed unde
such circumstances No, unless publi
officials winkcd at violations Of In
lava condition neither probable no
desirable.
An oil man reading these so-calle,
"sn,i-monopoly provisions" would ex
pect 20 find each lease so large tha
more than one lease would not b.
necessary He would be wrong Tn
bill provides that an individual 10
company or association may With,
twenty miles OF producing oil or ga
well, have a two-year prospecting per
mi, covering o4O acres, and when h
has discovered oil he may have pa,en
fot one fourth of the area. He ma
have lN acres as his reward for IN
discovery Of the oil.
Only Small Leases Permitted.
Lands not patented to dScovcrcrs q
oil would, under the bill. be leased i
tracts of $50 acres each-hut lttl
more than half the area that tho ,,,s,;,