Evening star., 1924-04-10
[hf NaYYL

Referring to the Teapot Dome Iiti-
cation now pending. Secretary Wilbur
tt-said he would avoid --in every way
any act or proceeding which will in
any way involve the rights of the
government in such litigation and will
| avoid any conduct which may in any
way interfere with the contentious
advanced by the attorneys for the
| goyernment.'' g-,s...s- ...s.r..s s-s
Expfains New Policy.
mo further leases will be made
| until expressly authorized by Con-
gress," he continued unless it ap-
pears to my satisfaction that such
leases are absolutely essential to pre-
vent the draining OF oil in the re-
serves by wells drilled adjacent
| thereto, and unless 1t further appears
that such leases are fully authorized
by act of Congress, and in that event
such leases will be made only after
competitive bidding"
THE question as to whether or not
the oil reserves should be managed
by the Navy Department or the De-
partment OF the Interior or the extent
to which these departments should CO.
operate in the further management
Of the reserves" the letter said, lis
involved in the pending litigation. and
the Secretary of the Navy and the
Navy Department will be guided by
the judgment in the aforementioned
litigation, unless in the meantime
Congress enacts legislation for the
control of such reserves"
For the information of the Senate
committee, Secretary Wilbur said it
should be stated that both reserves
Wyoming) contains large quantities
of oil that can be preserved in the
ground, at least for the present" Re-
serve No. (California), he said, pre-
sents different situation by reason
Of the leases to the Honolulu Oil Com
pany."
Explains Onset Wells.
With reference to the drilling of
offset wells" the letter continued,
I'VE will submit to the commission
studying the situation the question
as to whether or not contracts award
ing the government a portion of the
oil drained from our reserves and
property cannot be arranged for,
based upon the consideration not to
drill such offset wells in lieu Of the
drilling of such wells and the conse-
quent additional drain upon the oil
reserves.
THE Navy Department has a COM
prehensive plan for oil tanks at
strategic points. This plan was
drawn up by the war plans division
and has been approved by the general
board. With slight notifications 1t is
the same as adopted in 1919.
"At this time the Navy Depart
| ment has 4.160,000 barrels of oil
tankage complete and filled with oil.
N. H, 100000 barrels of tankage be-
. ing constructed under the Mammoth
oil lease, and approximately 95 per
cent completed, and 2,63o.000 barrels
of tankage at Pearl Harbor, Hawaii,
being constructed under the pan
per cent completed. None of this un-
completed tankage contains oil, but
the leasers are at present continuing
| upon both projects s-f
Receivers Control Oil.
"Oil now being produced in the
territory covered by the leases in
litigation is being controlled by the
receivers under order Of court.
Il may add that 1 shall take per-
sonal charge of all matters of the
Navy Department pertaining to oil
leases, and no leases or contracts will
be made in this department without
the personal approval of the Secre-
tary. of the Navy.
I'm making this statement do not
wish to be understood as taking any
position either for or against the va
lidity of the executive order of May
, 81, 1921, under attack in the above
mentioned litigation.
II assume 1t is. not probable that
Congress will legislate on the subject
of oil reserves pending the decision
in the aforementioned cases, and
for that reason make no recommen-
uat z.n eonteSsins7 sacn legislation"