The Ocala evening star., 1922-12-21
BEGIN DEVELOPMENT OF
VESTS MINERAL WEALTH


Washington, Nov. ia substan-
tial beginning of the active develop
ment of vast mineral wealth, hereto
fore locked up in the public domain of
the various western states but now lib
Grated under the general leasing law,
was recorded by DIR. FL. Foster Balm,
director of the bureau of mines, in his
annual report submitted recently to
the secretary of the interior.
Oil is the foremost product of these
lands so far, but DR.. Balm said that
when coal resources of the east start
to give out, the government owned
coal fields in the western states would
be of prime Importance.
In the fiscal year ended last June,
there were produced from government.
lands, other than Indian lands, 49,
236,362 barrels of oil, of which the
federal government received as roy
atty 3,616,853 barrels, worth, $4,76S,-
397, not including bonuses. In addi-
tion, at the end of the year $14,00 a
month was being received by the gov
ernment from natural gas leases on
public lands in Wyoming
| In the Rocky Mountain field alone,
there were on government land 336
oil wells, of which 267 were in the
Salt Greek, Wyo., field. A hundred
other wells were being drilled.
Under the terms of the development
there had been issued 2s4 oil and gas
leases in four states and 7727 pro-
sreetive permits, on each of which
drilling is required, in eighteen states
and Alaska.
The largest number of producing
wells belonging 60 the government is
in the Salt Greek field, where the gov
Iernment holds title to nearly all the
land. Such an immense amount OF
Ecrude petroleum was produced that
the capacity of the wells was fan
greater than the pipe line facilities to
transport il.
i In Montana also, development pro-
Iceeded rapidly and at the end of the
fiscal year there were ST producing
wells in the Cat Creek field and nine
i drilling on government land in the
newly discovered and promising Sun
burst-Kevin field. Last June a wei
near the center of the Cat Greek fefc
/ drilled into a second and prolific OF
; sand and flowed naturally at the dahl.
; rate of 1000 barrels. Another wei
= came IN at 2408 barrels. By these de
Evelepments this field became the thirt
largest producer in the Rocky Noun
! tain region.s
E These developments are exclusive
to activity in naval petroleum re
4 serves. Final adjudication was reach
ed m outstanding contests on such oi
lands, leases were granted and drill
: ling arranged. A study made by th
r bureau OF mines showed the govern
= Iment lands were losing heavily b
drainage and that approximately q
I0o0, 900 barrels had been lost. Of thii
r on the scale now In effect, the GOV
e ernment's royalty would have bee
d worth ss,s00,e00. To prevent thes
losses, leases were given to, drill o
such lands where drainage occurre
o and the navy Is receiving royalties
e oil which is converted TO fuel oil fc
l. naval vessels and shipped at sue
l. points as necessity warrants for tin
Of emergency.
The United States government
n one of the largest coal land owners
II the world, and also holds importal
r reserves of phosphate, potash ar
other salts. Coal is now being mine
in these lands, under lease, In Wyon
le ing, Washington, Montana, North al
IT South Dakota, Utah, Colorado, Ne
N Mexico and Nevada. Phosphate ros
Iis being mined in Idaho.