Evening star., 1923-10-22
Naval Reserve, Leased to
Sinclair, Being Drained Away
by Adjacent Operators.
go, 900, 00-BARREL"
LEVEL FOUND TO BE DRY
Biologists Declare Bnt $4,000, 900
of Original 1876, 600, 900 Barrels
Remain in Wyoming Field.
By the Associated Press.

By the Associated Press
Teapot Dome, the Wyoming naval
oil reserve leased last year to Harry
r. Sinclair, is being drained so heav-
lily by adjacent private operators that
it will produce far less oil than orig
inally predicted. in the opinion of two
expert geologists who investigated
the situation for the Senate public
lands committee
The reports of the two investi-
gators. laid before the committee to-
day in its inquiry into charges pre-
ferred by Senate critics of the Sim
clair leases, supports in general the
contention of administration officials
that the geological position of Teapot
Dome made 1t no longer feasible to
continue the policy of leaving the
oil in the ground as an undeveloped
reserve
Although the bureau of mines esti-
mated originally that the reserve con-
tanned from l35.000,000 to 10000, 900
gists predicted that the yield from
the nain-bearing sands would not
exceed 100000 to 1900, 600 barrels.
This estimate is even smaller than
that recently made as result 4 a
separate survey by the Navy and In
terror departments.
Believed Lease Advisable.
The danger of drainage of the re-
serve by private operators in the ad-
jacent Salt Greek field was nut for
ward by former Secretary Fail of the
Interior Department as a compelling
cause that the leasing policy be in
corporated. In agreement with that
view. two biologists not only report
ed that it was impossible to hold the
reserve for the Navy indefinitely
without having it's oil drained off by
the Salt Creek private operators, but
both of them indorsed the policy of
developing Teapot Dome by leasing
to one efficient management
The two geologists, Frederick G.
Ciapp and James o. Lewis of New
York, were selected last spring from
list of 100 submitted by the geo.
logical survey.
There were indications today that
their report would have an impor-
tant effect on the trend of the COM
mtttee's inquiry, which was begun in
response to a resolution by Senator
La Toilette, republican, of Wisconsin,
after he and others had assailed the
sinclair lease as q colossal raid on
valuable government property.
About so per cent of the Teapot
Dome reserve was found by the two
geOlORlSIS TO De Oll- bearing ianu.
While the bureau of mines had esti-
mated that its FIRST wall' level would
yield 30.000,000 barrels of oil, the
geologists said that level had been
found to be entirely dry. From the
second walr' level, Mr.. Clapp esti-
mated a yield of 26.0o0,00o barrels.
Mr.. Lewis estimate was mot less
than 1900. 900 barrels of oil nor more
than 24,000,000 barrels"
Sees High Costs.
1.-THE higher figure is but frac-
tion of the estimate of I35.000,000
barrels made prior to the develop
ment by the bureau of mines." said
Mr.. Lewis. Attractive profits from
drilling and producing this oil will
not be made unless future prices
average considerably better than at
present, and unless production proves
to be nearest the maximum estimate.
These estimates are only for the
Wall creek tor second) sands, but
the possibilities from deeper sands
are, in my opinion. not attractive
In addition to the prospective oil
production from Teapot Dome, Mr..
Clapp estimated that its natural gas
content was 100000 cubic feet.
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