, 1923-03-01
SHOULD WYOMING OFFER
bonus FOR A RAILROAD?
GEORGE E. BRIMHER, IN Wire TO REPUBLICAN GIVES
REASONS WHY WYOMING SHOULD NOT UNDER
WRITE 0L COMPANY RAILROAD


fact that the construction Of the pro-
posed raiload between Casper and
Sheridan and the lease of section
t%hirty-six and the sale OF royalty oil
are Joined in n proposition makes
itself evident that the applicants ex-
pect to pay for the railroad by an
indirect grant of money from the
State. In other words. to pay for
the construction Of q road through
the obtaining of state royalty oil at
less than mid-continent prices and
the jumping :! an existing oil lease
issued by the State.
All OF the people OF Wyoming are
entitled to all of the value OF our
state oil.
II it is desirable to have the State
aid in the constructions of railroads
we can change the constitution Of
our State. and then let the legisla-
ture Determine what projects should
be aided and appropriate state
money accordingly.
The sale OF state royalty oil at
less than mid-continent prices as the
price of the construction OF the pro-
posed railroad would be IN indirect
method OF violating a direct con-
stitutional mandate.
No reputable oil concern would
accept an oil and gas ease from a
private individual upon undeveloped
land extending over a period of five
years only. Government leases pro-
vide for a term OF twenty years with
preferential right of renewal so long
as oil and gas is produced.
i The State OF Wyoming Is unable
under the law to lease its lands for
a longer period than five Years.
1t is recognized generally that tho
farmer and rancher who d%evelopes
land leased from the State and the
holdings dependent upon such leased
land Is entitled to a preferential
right OF a renewal OF his state lease.
Those who have received oil and gas
leases from the State of Wyoming
covering undeveloped lands have
J, been justified In assuming and have
assumed that their development OF
oil and gas upon such leased lands
would entitle them to the preference
right to the renewal of the lease
upon fair terms. Such development
required expenditure Of large sums
OF money and the holders OF the lease
could not assume that their prefer
ence right would be denied any moro
than they would assume that II II
was denied they would be denied .
return OF their investment In the
development.
Tho development OF Section thirty
six has shown that the State should
receive higher royalties and higher
royalties were paid to the State upon
the first renewal OF the lease.
Development Of the oil industry
In Wyoming now shows that the
State should receive . higher price
for Its royalty oil and upon the ex-
piration OF tho present contract for
the sale OF State royalty oil the price
OF such oil as Is received from Salt
Creek should be raised to mid
continent level.
Tho State Ia entitled TO receive
the full value OF its property. Tho
oil industry had the right to assume
that the lease OF section thirty-six
would not be offered until near tho
time OF expiration OF the present
lease. Under any circumstances is
days notice OF the letter animation to
dispose OF Section t~hirty-six. eighteen
months In advance would be In
adequate.
II the policy OF tho State relative
TO tho preferential right OF renewal
OF leases Is to be changed and denied
then fifteen days notice II grossly In
adequate. Violation of tho implied
right OF renewal would b. a viola
tion of the honor OF tho State. II IL
u~nthinkablc hat our state officials
would either forget tho s~Arredncss
OF tho honor OF tho State or the
snncity OF Its express constitutional
and statutory innctmcnts.
We are all DESTROYS OF having the
ftaskon-Fcrris interests como into