Evening star., 1923-10-22

OF the governments lease to the
Sinclair interests, Mr.. Lewis said:
The special conditions now known
70 occur made the leasing of the re-
serve as unit even more desirable
than could have been anticipated
when the lease was executed. The
risk of damage was not so urgent in
itself as TO necessitate the immediate
leasing of the reserve. which could
nave been delayed for some months
TO compensate for probable losses,
but that question leads into import
ant considerations not within the
scope OF my instructions"
Leasing Necessary.
On the same points Mr.. Clapp re-
ported as follows:
Some sort of leasing was neces-
sarY, Possible alternatives to the
present lease exist, but physical Con
ditions are such that the present one
appears to offer as many points of
wisdom, If not more. than would the
suggested substitutes with one pos
sible exception"
This exception, he added. was the
lease or the 20 per cent he found sub
ject to drainage and retention of the
80 per cent he believes immune
In agreeing that it was impossible
Tor the government to hold the Teapot
Dome, without DEVELOPMENT. Indefinite
two biologists said the certainty of
drainage and reduction of gas pressure.
reducing oil yields, precluded such a
policy.
BY 1922 1t had become question: bic
whether even part of the reserve
could be safely held for many years
longer" said Mr.. Lewis. The ultra
conservative viewpoint had to be the
guiding policy. No reliance could be
placed on Teapot Dome as a reserve
let 30 ~al
thing like the desired quantities had
been demonstrated by test wells. The
conditions known of in 1922, but not
in 1915 (when the reserve was set
aside) demonstrated that the original
conception of a reserve to be held in
the ground indefinitely was not feasible:
that important parts of the reserve
would soon be subject to loss by
drainage, and that no part could be
counted on as sufficiently protected to
be held for more than few years
1T was questionable whether the
underlying policy was as practicable
As the policy of storing fuel in oil at
strategic points. The reserve will
produce but fraction of the oil ex-
pected."
When the Sinclair lease was made.
Mr.. Clapp said. it was demonstrable
that 43 per cent of the oil bearing
field was subject to drainage, and
he added that the drilling of the Sim
clair wells had rendered this fact
even clearer.
"An estimated area of 1900 acres"
Mr.. Clapp reported, will prove oil
bearing and 1,400 gas bearing, while
the balance, amounting to about $500
acres, will be barren of oil or gas
in every known producing forma-
ton
Mr.. Lewis estimated that "2.43O
acres only will be oil bearing instead
of 5,670 acres estimated by the bu-
reau of mines.''
Both reports agreed that not only in
oil but gas pressure as well, the Teapot
Dome field was subject to partial de-
pletion by private operators in the ad-
joining Salt Creek field
II estimate that 1000 acres, or 20
per cent of the estimated oil-bearing
area said Mr. Clapp's report, ARE
suceptible to imminent drainage or the
reduction Of percentage or recoverable
oil by wells drilled in the adjoining edge
of Salt Creek field and that about 80
per cent of the oil-bearing area is in
susceptible of such drainage or reduc-
tion to any commercial degree"
Mr.. Lewis did not estimate the per-
centage subject to drainage, but said
that few rows of protection" wells
drilled along the Salt Creek border
would have given partial protection
against drainage.