Evening public ledger. [volume] (Philadelphia [Pa.]) 1914-1942, 1922-04-29
PROBE OF NAWO|[ .
ILEASESlS.0RDERED
La FolIstts's Attack on Change
in Conservation Policy Leads
to Senate Action
SAY SUPPLY sEEPED AWAY.
BY CLINTON w. GILBERT

by ChACAUEN W.
stsR Correspsndsnt Evenins Public Ledger
Washington, April 20. = 1nvestiga
tion of the change in policy by which
the naval oil reserves have been leased
for exploitation was ordered today BY
The Senate, following Senator La Fol-
iette's speech yesterday attacking the
~ The policy Of putting aside certain
Government lands containing oil,
adopted in the heyday of the conser-
vation movement, which reached its
climax under President Roosevelt, has
been abandened. The idea was to have
when the stocks in the United States
became exhausted, which, It is said,
will take place in twenty years.
The Navy Department had three large
reserves, two in California and one In
Oregon. The California reserves were
leased some time ago. The reason
which led to their leasing was that con.
servation did not conserve.
Other Wells Took the OIL
The Navy Department held reserves
which did not constitute the whole of
the basin containing oil. Around the
navy lands were other lands captaininp
oil and the drilling of this private land
sucked oil out OF the navy lands. Grad.
ually BY seepage most Of the oil in the
navy lands would have been pumped out
through wells bored around the edges
Of the reserve BY oil producers. In this
way is IL said that $1,000 900 worth
Of the navy. oil in the California reserves
had been drawn out before the leasing
Of those reserves was permitted.
Nn AN En- - I'll
IN California. II what seems to be een.
orally admitted 10 true, the Government
had no choice. It could not Conserve
its California oil no matter how much
II wished to do so. II it excluded its
lands from development in the end II
would have little or no oil and tho
Government would have lost what II
might have made through royalties by
Z system Of leasing.
The Wyoming case presents another
question. In this case the Government
owned the whole basin, and the geo.
logical formation was supposed to be
such that the boring Of wells near the
= Navy field would not tap that field.
Tho reason for leasing the California
lands did not, It was supposed until
recently. control in the case Of the
Wyoming or Teapot Dome reserve, as 1t
was called.
Senator La Toilette quotes various
authorities to the effect that conserva.
tton was possible at Teapot Dome and
that the boring Of oil wells near the
reserve there would not tap the Navy
oil. Among others he has letters from
the Governor of Wyoming, the state
seolosist Of Wyoming and the Mayor of
town near the Navy field all saying
that tho Teapot Dome was distinct
basin Of oil with no connection with
outside fields.
On the other hand Government geolo.
glsts say that there has been discovered
In tho last few months a geologic fault
connecting Teapot Dome with the oil
Held ut Sincline and that oils drilled
in the latter place were impairipg the
value of the Nevy field. Gas pressure
In the Teapot Dome was being reduced
by these outside drilling. as gas passed
along the fault to the Sincline wells.
Geologic Fault Is Crux
The whole question seems to turn on
Gently discovered and the effect that it
had upon Teapot Dome reserves. If
the fault existed, the Wyoming field
was exposed to the same loss of value
% the California fields.
The changed policy with regard to
these Navy oil lands marks the Begin
ming Of the end of the conservation
policy over which SO many bitter fights
we're fought from the days of President
Roosevelt to the present. II what is
now said Of Teapot Dome is true, the
conservation of oil for the national
defense was impossible when it was
undertaken.
Public interest in conservation has
everywhere fallen off. The Govern.
ment has not been able to develop lands
Y has held out from exploitation. The
Navy never had the money to develop
its own oil lands nor did there seem
any good reason to develop them ut
present, the real object Of holding being
to secure q future supply.
Moreover, conservation has checked
enterprise. Alaska, under conserva-
ton, has declined in population. The
present Administration has less sym
pathy with conservation than had any
oS It's immediate predecessors. and un-
!Sss the investigation which Senator La
Follette has probably started with re.
gard 70 Teapot Dome reveals scan.
dal, tho bars are likely to be let down
everywhere and what has happened to
the Navy oil reserves IL likely to happen
to the other Government reserves.