New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1919-04-18

|ton-Albuquerque highway will bring
San Juan nearer to civilization. A
railroad will also come in from the
south before long that will hasten
the development of this great basin
Other Localities
Some years ago several test holes
were sunk in Colfax county. Little
noise was made over this work as
the men back of it were spending
their own money. No reports are
available at present as to this ex-
plorat on for oil in Colfax county.
The last two years the Toltec Oil
Company has spent around $4,000
exploring for oil in New Mexico. This
company has drilled on state land,
having leased large blocks in several
counties. One of the conditions was
that the company should sink twen-
ty holes. Drilling has been in pro-
gress near Roswell and Lamy. So
far no big flow of oil has been locat-
ed. The company has paid up the
old lease and taken a new lease OF
over 100000 acres in Santa Fe, San
Miguel and Torrance counties.
In the aggregate large amount
OF money has been spent in exploring
for oil in New Mexico the last twenty
years. But in spite of this expendi.
ture no thorough test has been had
in any location. The tests as far as
they have gone. however. have de-
monstrated the correctness of the
opinion of geologists that the oil lies
deep. No shallow oil of any con-
sequence has has ben found encent
in San Juan, Mckinley, and Eddy
counties.
What may result from the present
statewide oil activity, remains To
be SEEN 1t would appear that capital
is now at hand to tests the various
fields thoroughly the next two years
Oil was never so much IN demand
and the demand is increasing. Six
million motor vehicles in the United
States alone consume an ocean of
gasoline. 1t is therefore an oppor.
tune time to test out the New Mex
leo oil fields.
The present activity has become
statewide in a few weeks. The in.
terest is keen and the demand for
information as to what is going on.
general The following summary has
therefore been prepared as far as
reports are at hand as to present
conditions, but laws no claim to being
complete. The State Record apnre-
ciates the vast resources that New
Mexico holds and the need for their
development. The State Record VIII
therefore from week to week pub.
fish reports bearing on the exploring
and developing of the oil resources
of the state that the public may
know.
Oil Leases on State Land
1t was a bright idea to provide that
state lands could be leased for the
exploration, development, and pro-
duction of coal, oil and gas. and other
minerals. House bill No. 1856, approv-
ed March 18th. provides that such
leases shall run for a maximum term
of ten years or as long thereafter
as mineral in paying quantities shall
be produced from the leased lands
The min; mum rental for oil and gas
leases shall be $1,000 per annum, and
the minimum rental for leases for
other minerals shall be SIS 90 per
annum. On all oil and gas leases the
state shall receive a royalty Of not
less than one-eighth Of the oil and
gas produced and saved from the
leased lands, or the cash value there
of oavahIe month1v
The commissioner of public land
has power to prescribe the minimum
rental and the rental agreed upon
shall be paid whether the lands are
operated for mineral or not. An.
nuai reports showing the details OF
operation must be filed. State lands
sold, or which may be
sold on any deferred payment plan
under contract containing reserva.
ton Of mineral rights. the full amount
OF the purchase price not having
been paid, may be leased as other
state land; provided, however. the
applicant for a lease shall file a
satisfactory bond to secure the pay
ment for damage to live stock, range,
water, etc. to the purchaser. The
purchaser may waive the right to
require a bond.
Among the rules issued by the state
land office under this law, are the
following:
No lease shall be issued for less
than a rental of $1,000 annually.
Not more than sixteen sections
shall be included in any one lease,
A rental of $4,000 shall be re.
quired for each four sections.
If leases are advertised and sold
to the highest bidder rental Of not
less than $1,000 per section will be
required and not more than appro.
ximately eight sections will be in
cluded in any one lease.
One person may take as many
leases as desired.
Lease will be made for not to ex-
ceed five years, with privilege OF
renewal
Transfer fees are as follows: $40
acres or less $500 and ten cents for
each additional section or fraction
transferred or assigned.
To saw the land commissioner is
doing land office business is putting
i mildly. Applications have been
rushed to the Office until the office
force is practically swamped. Pos
sibly more than three million acres
have already been applied for and
the end of the rush is not N sigh
either. There has been no time to
FIGURE up the totals or the revenue
that is coming in from oil and gas
leases. As far as can be. estimated
a. this tine. notifications have been
filed for practically all the state
lands in the following counties
Union. Quay, Curry, Roosevelt, Chav-