The Fallon standard. (Fallon, Nev.) 1920-1958, 1920-07-22
United States Senator Key Pidman
Explained Workings of Leasing Law
Falon Oil District Association Members Informed BY
United States Senator Key Pittman of What Oil
Investors Must Expect From New Law

When United States Senator Key
Pittman announced his intention OF
addressing the residents of this dis.
trict, interested In oil, on the re-
Gently enacted oil land leasing law
of which he was Trainer and sponsor
over a period of several successive
congresses, only hazy notions were
entertained by the best informed oil
men here of the intent of the law
When he left here last Sunday, fol-
lowing talking to q crowded house
at the county high school auditor
ium Saturday evening aud spending
the greater part of the following
day inspecting the developments In
the Fallon oil field, most of us
knew about what to expect as a re-
suit OF Uncle Sans alleged bene-
factions. Senator Pittman worked
for seven years on his project to
enact into . national law, provis-
ions that would operate for the
rapid development of western oil
lands, but he found himself hamp-
cred by the dominating interests OF
the east where natural resources
have been utilized and disposition
Ia exhibited to share to the fullest
in the potentialities OF the west. His
bills were cut and trimmed until the
law enacted by the last congress Is
but . shadow of what was originally
intended and Senator Pittman finds
1t necessary, thanks to Clifford Pin
chot's disciples, to explain the
quirks of the oil land leasing law,
the provisions OF which are In fnll
force and effect on all of Uncle
Sans domain wherever 1t may be.
The following is Senator Pitt
mans speech:
"Our government Is composed OF
three departments, legislative. exc
cutive and judicial. They do not al
ways work In harmony" Senator
Pittman declared in opening his ad-
dress. "The legislative end enacts
lews, the executive department at
tempts to enforce them, and very
often the judiciary steps In. puts an
entirely different construction on
the legislative acts and the efforts
of the executive department In car
rying them out. This Ii well in
stanced In what Is known among oil
men as the Honolulu case. | cite
this as II Is widely known. This
company started drilling on 5000
acres OF land. put down well 1900
feet, then they were shut down 80
days while raising sdore capital sa1d
then sank 1900 feet and struck oil.
"The government took the prop
erty away from them on the grounds
that they had not used diligence In
prosecution OF their work as re-
quired by law.
For yei.rs there had been much
discussion as to under what heading
oil should be classed. Was 1t min
eral or did 1t come under the min
eral laws or not? To settle this
question. congress In 1897 passed an
act by which oil claims might be To-
Gated under the placer laws. A
recognized basis for oil operations
thus came into being and prospec-
tors went into the field. Then
came the Taft withdrawal In 1903,
and the conservationists gained in
number. With this withdrawal
hundreds of oil prospectors and cor
porations who were drilling and
scouting for oil had their land taken
away from them. Congress saw the
INJUSTICE OF this. and In 1910 passed
the Pickett act as remedy. Here
the word 'diligeacei originated In
it's application to oil. and the courts
placed the most severe interpreta-
ton on the meaning OF the word.
There was disposition TO continue
the same construction In tho rules
and regulations laid down by the
secretary OF the interior department.
hut l believe these were greatly
modified, II Nevada had brought
In a producing we'll In 1909 every
acre OF prospe tive oil land In In the
state would have been withdrawn.
As matters now stand You are going
through what California. Wyoming
and other oil states had 10 a few
years ago.
Withauf influence
.During tn VIC years committee
after committed from oil states visit
ID Washington They col their
Hearings bull the. was I'll. have
beeu working On q leasing bill ever
eince my first year In congress. MY
bill OF two years ago WAS much more
favorable To the prospecfor. II was
laid over for another session. ana
then Senator smoot took u In
charge.
rWhep he came 10 draft II he
found two very pronounced conser-
yatists on the committee, with the
result that the prssant bill was the
hest that could be obtained. II must
be borne In mind that the western
men form a very small number in
either house and there arc many
prejudices to overcome and many
senators and congressman know
nothing Of mining or oil. They do
not understand the motives ana
spirit which move the prospector.
The great majority OF the eastern
peopio are consumers OF oil. know
ing and caring little about Its pro-
duction.
Must Prove Field
Under tho present law and as
matters now stand In Nevada the
only item of concern to you Ia the
application OF permits to prospect
for oil. Nevada has not as yet been
clrssed as an oil producing state
nor your field as proven field.
Leases are only granted in proven
fields. Secretary Payne has al
ready committed himself In that he
will give original locators the
preference In applications for per-