The Washington herald., 1921-10-02

petroleum law, copies OF which have just reached
Washington II is the first legislation enacted by that
country on the subject, the only previous reference in
BolVias statutes to petroleum having in the gen.
eral mining laws, which stated that the stu en-
joys the ownership of all deposits, layers strata or
other beds OF inorganic substances such petroleum,
and other nonmealiferous substances capable OF be-
ing used for industrial purposes. whether found in
the interior OF the earth the surface thereof"
Bolivia, which is believed to possess valuable de-
posits OF OIL is understood to be anxious to this
natural wealth developed; and with that purpose in
view has framed the present law so as to encourage
the development Of her which must largely
be by foreign capital, while at the time amply
protecting the national rights. In drafting her
petroleum law, Bolivia reported to have tried care
fully to avoid the complications and difficulties which
some other countries, notably Mexico, have en-
countered in dealing with the foreign capital interested
Biologists and other representatives of both Brit
ish and American oil concerns realizing the possibi
ties OF Bolivia, already reported to be in the field
looking the ground; and il is probable that there
will be considerable jockeying between the oil in
of the United States and of Great Britain in
their to secure favorable locations.
The Bolivian law maintains the right Of the state
provided in the old mining law, to sub-soil de-
posits, declaring that oil deposits and other hydro
carbons "are of direct dominion OF the government,
adding that they only be explored and exploited
by the executive power, either directly by
of concessions in association, according to the
visions of this law" The law asserts that "the dis
tncton between the soil and the sub-soil is main
tanned established by the mining law. the owner
of the soil not losing his rights it."
|oNCESSIONS granted by the state for explora-
~ ton will be limited to 100000 hectares (74Iyooo
acres and the exploration must be carried within
four years. Concessions for exploitation will be linn
tied to 100000 hectares. "and only be granted
individual association" The term Of
the concession for actual development will for
ifty-6ve years. The state is receive minimum
royalty of ii per cent and both in the OF grantees
and of Goncessionaires in association with the state
this royalty is to be delivered in gross product,
fined product or cash. the state may choose
Furthermore it is required that grantees or conces-
sonaires having pipe lines must convey the govern
ment's royalty, if demanded in kind, far the
terminal stations, the government, however, paying
the actual cost of transportation Similarly the gov
"can also have those products refined in the
re6neries Of the concessonaires, on the same cost
basis and with extra charge"
Companies having pipe lines also ARE bound to
convey the products Of their neighboring conces-
sonares who may not have that means at a rate ap-
proved by the government" and the applies to
refining provided the proved capacity of company's
refinery s greater than the needs Of the production
of the owner company"
To oncessonaries in association with the govern
ment, the law grants a number of rights, including
that "of occupying without payment and by previous
permission of the government, the surface of
lands necessary for the exploitation for de-
posit of the petroleum. in part Of the national ter
rory;" also that Of constructing elegrsphic lines
wireless of constructing and owning railroads, street
cars, navigation canals, roads, docks and SO forth;
and the right of using free Of charge strip Of land
twenty meters wide Of state lands zone OF Sc
cury for the railroads, pipe lines and canals. The
law also gives them the right of importing free Of
duty tools and machinery necessary.
At the end of the term Of ffty-6ve years for
which the concession is granted, the whole estab-
lshed industry of the company becomes the property