El Paso herald. (El Paso, Tex.) 1901-1931, 1919-01-08

won't know everything necessary anc
could not meet those questions as they
should be met.
7 want TO see west Texas made a
great mining section like New Mex
leo and Arizona While I am here. let
me call your attention 10 the FL PasO
school OF Mines. We want you 70 help
in developing il and consider il a part
OF the southwest as wei as Of Texas
Wants Chambers Endorsement.
Judge Adrian Pool, elected TO the
house, said; 7 want 10 add my sup
port TO that suggestion of senator
Dudley and say: Go with your pre-
pared bill 10 the FL Paso chamber OF
commerce and get that body TO put
up sun clenr sum 10 sent men who
know to Austin TO help US in getting
1t through the legislature. Mining is
the great industry Of the southwest
upon which FL Paso is very largely
dependent The chamber Of commerce
can well afford TO put up $1,000 or
more to send men there TO help put
your bill through"
Several other speakers took part in
the discussion which at no time was
tagging in interest Among them
were julius krakauer. D. A. Carpen-
ter. L. H. Davis and judge ". D Howe
Judge Howe argued for q royalty
feature as a general principle while
all the other speakers argued that a
production tax and q moderate state
and county tax were the more eQuit-
able and the practice in real mining
states and had proved big sources OF
tax revenue TO other states. Encour-
age the prospector for all minerals.
was the spirit Of this meeting Of these
practical men and miners.
c. R. TrOxel OF the Troxel Oil com
pany just beginning the drilling Of an
oil well near Toyah, Tex. being pres
ent was called upon He presented
. H. - Ill
laws regarding that mineral on pub
lie lands. Substantially, he spoke as
follows:
~Oil men are interested deeply IN
getting more liberal and encouraging
laws for the development OF prospec-
tive oil lands in Texas
These laws need amendment. GER
tsinly," continued Mr.. TroxeL AS 10
oil lands, the state gives no title TO
oil or gas. merely the right or priv
iege. which is subject 70 the discre-
tionary authority Of the state land
commissioner This privilege IS di-
vided into two periods. permission to
prospect and then for development
The first Is for two years by paying
10 cents per acre per year, drilling 10
be commenced in the first year and
every condition must be strictly com
piled with, under penalty Of cancela-
ton
Must Pay Penalty at Once.
within 80 days after gas or oil is
struck in commercial quantities the
holder Of the permit must obtain a
permit for ten years. subject TO re-
newal but the application for this
permit must be accompanied by So per
acre OF the tract, and payable yearly,
and also pay for the states 1-sth
royalty every 80 days This last fea-
ture requires the producer to produce
and pay, no matter whether he has
any oil or gas markets or not This
condition is most unusual and unrea-
sonable. Minerals are generally dis
tant from railroads or pipe lines and
the financing OF the marketing is a
bigger job than that for the drilling.
But the -wildcatter' must pay and pro-
duce, whether he sells or not. under
this law
i think the law should be changed I
by eliminating the prospecting permit ]
period and should empower the land
commissioner to lease to the operator /
for period Of 10 cents per acre cash /
for, say five years. each year in ad. /
vance, which is more than the state
gets from any other source. When 1
drilling is commenced. then let the 1
rental fee cease, but lease to cease
automatically unless drilling is con-
tinuous. The lease should provide for I
18th royalty 70 the state OF oil pro-
duced and sold by the operator. These /
present regulations are so hard that
big operators have 50 far refused to 4
do anything on state lands, and no /
development ever will be made under |
them"