Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-12-21
MINERAL WEALTH OF NORTHWEST
DEVEL OPED UNDER LEASING LAWS
Substantial Beginning Made in Vast Oil and Coal
Fields; Montana Fields Pro-
crossing Rapidly.

of oil through failure to drill offset
wells. OF this, on the scale now in
effect, the governments loss in royalty
may be estimated at 6,S00,00e bar
rels, equivalent to $4,000, GOO.
Prevent Losses
Tie prevent further losses. leases
were accordingly granted to such lands
as were being drained and offset wells
have been drilled with remarkable
speed. At the same time the navy de-
partment elected to take it's royalty IN
kind. and provision was made under an
exchange agreement for the storage of
the equivalent value of fuel oil at such
points as the navy might elect Under
this arrangement the Pan-American
Transport company is now erecting and
filling storage to the amount of 1000
900 barrels for the navy at Pearl Har-
Dor. Hawaii. None of the royalty oil
is being used by the navy for current
operations, since it is felt that such
use would violate the spirit of the law
setting aside the deposit as q reserve
for national defense. The crude OIL
in the ground is merely being converted
into fuel oil such as the navy requires
and is being placed where it viii be
Immediately available for use. This is
being done without calling on the treas
ury for appropriations for building
tankage. as the lighter fractions of the
oil not needed by the navy are ex-
changed at market prices for the neces-
Sary facilities.
Studies having shown that similar
drainage al impending in the case of
reserve No. 3. a contract was made by
the interior department in April with
the Mammoth Oil company. whereby
the reserve will be- Systematically de-
veloped and fuel oil and other prod
ucts furnished the navy in exchange.
The United States government is one
of the largest coal land owners in the
world and also holds important re-
serves of phosphate and other salts.
Although just at present, because of
the prior development of mines and
industries III the eastern states, o.
mining IN the public domain is over
Swallowed by private industry. in the
years ahead the leased mines may well
become the more important. Every eff
fort is accordingly being made to estab-
lish the new system on a correct basis
properly to protect the public interest
in safe and efficient mining. and not
unduly to hamper private initiative in
operation.
Coal Leases
Coal is now being mined under
lease in Washington, Montana. North
Dakota. South Dakota, Wyoming.
Utah. Colorado, New Mexico and
Nevada. Phosphate rock is being
mined in Idaho, and coal and other
mines on Indian lands are being SUI
peryised in still other states. On the
public lands proper the Bureau of
Mines is now charged with super
vision of % coal leases, 200 coal
,o.,o.t, fin aa,J Eon,.o. |
one phosphate lease, one oil sane /,
lease one potash lease, and several
potash prospecting permits. In all.
nearly 100000 acres scattassd through !
10 states require supervision, and
the acreage is rapidly increasing. |
The work is directed through a min
ing supervisor with headquarters at
Denver. Colo.
In addition to the technical super
vision of mineral production on pub
lie lands. the Bureau of Mines en-
gagged in numerous activities asso-
ciated with problems of safety and eff
tries. During the year 1921 persons
were trained in first aid work and
rescue work, thus constituting a con-
siderable addition to the legion of
skilled men and women standing
ready to render valuable humanitar-
ian aid to those subjected to peril in
times of mine disasters. Studies of
health hazards in the petroleum indus
try were made by the bureau in CO.
operation with the public health serv-
ice and the American Petroleum In
Smoke abatement surveys
were made at Salt Lake City, Buffa-
10. y. Y, and Grafton. w. Va. A
fuel economy survey of the govern
ment heat and power plants in the
District of Columbia was undertaken
New plans were justified and set for
impurity allowances in the Salt Creek,
Wyoming, oil field, which will in
crease government revenue $4,000
per annum on present production.
The value of waste coal in dumps
ut Wilkeson, Wash, was demonstrat-
ed, with the result that a plant for
the recovery Of 10000 tons is now
being erected. The difficulty in the
way Of using low priced cyanides in
work was discovered
and remedied, resulting in the break
ing OLA monopoly in thM important
material.