The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-10-09

Shntdown Committee Seeks
Interpretation of GoUerH.
ment Orders

OHHIuOuH tOUtNNtttt oftho
Interpretation of GoUerH.
ment Orders
oil producers In the Usage and
other areas coming under govern
ment jurisdiction continued yestcr-
day 10 discuss the possible results
of the various shutdown orders Is
sued by Commissioner Burke OF the
Indian service and Secretary OF the
Interior Fall A meeting OF the shut
down committee OF Mid-Continent
producers will be held I'm the rooms
" the Mid-Continent oil s; Gas Assn.
sos Cosden building, at 1880 o'clock
this morning, when the Usage situa-
tion will be discussed. NJ. NJ. Doan,
chairman OF the committee. Is es-
peclally anxious TO have "A large
number OF Usage producers on hand
to participate IN the discussion.
Secretary Fall IN his telegram 90
the committee late saturday asserted
that instructions already had been
sent TO Indian agents and govern
ment officials having jurisdiction
over naval reserves in California and
wyoming looking toward the cur
tallment OF production. but asking
them 20 keep in mind the factors
ot drainage and salt water incur
zion. The shutdown committee Is
seeking moro specific information
than was contained IN the tele-
gram as TO the details of these shut
down orders. In his telegram, the
only specific reference made by Sec
rotary Fall 10 the Teapot dome area
was that the well would be shut
ln as soon as Il is possible TO do 20,
and that government agents are on
tho ground. He did not say. how
over, whether drilling there is to he
halted either in whole or in part.
n may be that he Intended the ref
crence TO naval reserves In Cali
fornia and wyoming to cover the
much-discussed Teapot dome. At any
rate the committee would Ike 20
know for certain whether conces-
sion OF 2O.O00-barrel wells Is TO be
expected at Teapot dome.
Tempest in Teapot.
n there Is TO be a continuation
Of development there, this particu-
lar Teapot undoubtedly will cause a
tempest that will make the original
one resemble a balmy zephyr.
Aside from the present "diplo-
matte crisis" regarding Teapot dome,
IL appears TO be very ridiculous
proposition 10 develop the area Mt
present. Geologists who have stud
led the dome are pretty generally
agreed that Il Is structure entirely
separate from the adjoining salt
creek area, in which case the salt
creek wells would not be draining
the teapot dome. Present pipeline
facilities are inadequate for the salt
creek production. There would be
no way OF running the Teapot oil
until new lines could be constructed.
Even II rSw line were laid TO CAS-
per. the refining center OF wyoming,
it would require the enlargement OF
refining facilities before the oil
could re cared for. II line were
run east TO connect with the present
Mld-Continent system, the better
part of 10 years undoubtedly would
clapse before the oil would he run
ming eastward. II the oil. which II
" a high gravity. should be brought
10 the surface and put in steel stor-
age, there is aound to he an evapo-
ration loss that is decidedly not In
Keeping with the many times reit-
Grated government policy OF con-
servation.
Regarding the big Teapot dome
well. Secretary FAN calls attention
10 the fact that the government IS
to receive n royalty OF 80 per cent.
n It's interest is that great, say the
Mid Continent producers, all the
more reason why the oil should be
kept in the ground free from evapo-
ration and other losses until the
price Is sufficiently high TO perhaps
double the government royalty In
come. II the government should see
flt 10 step I'm and Curtail operations
In the Usage in order that the In
tans. with their one-flfth and one
sixth royalties, may receive Just
compensation for their oil, 1t would
appear that by the same token II
would be good business 10 take the
same step In cases where the gov
ernment itself recei es the royalty
Uncle Sam should be as good 20 him
self, say the Mid-Continent pro-
ducers. as he is TO its indian wards.
And then, too, II is pointed out
every tax payer is concerned as 10
the manner in which the government
handles It's business affairs ana
would like TO see 1t conserve its
nancy
The Mld-Continent producers ore
thoroughly in sympathy with the
phut- down policy and the Usage rul-
ing has met almost unanimous APP
proval. However. they want TO see
the ruling made general with regard
10 all districts over which the gov
ernment has control. They do not
want to see production curtailed
in the Usage and have the decline
perhaps more than counterbalanced
by permitting operators in some
other government-contro area 20
20 right ahead with their drilling
What they want. say local operators
u an even break all around, no ray,
orltes and a set Of rules which VII
stand but one Interpretation.