The Delta independent., 1924-05-16

ically resisted and refrained from
doing when he was Secretary and
Payne was in the Department Of the
Interior. At Philadelphia February 25,
1924, he said:
"If the Republican committee has
any information that l leased or
recommended leasing a single foot of
naval reserve oil land when the oil
could be retained in the ground, that
information is manufactured"
No one stated that he leased land in
reserve No. when the oil could be
retained in the ground" Neither did
DENLY and Fall lease when the oil
could be retained in the ground" The
fact is, it could not be retained in the
ground, and therefore he leased naval
reserve No. 2, the first one ON which
leases were granted. On August 81,
1920, Daniels informed Payne that the
lease to the Boston-Pacific Oil Co,
covering the drilling of the five new
wells on section 80 of naval petroleum
reserve No. 2, was satisfactory to the
navy. This lease called for a royalty
to the government OF 25 per cent. On
January %. 1921, Payne stated his
willingness to lease 120 acres in the
eastern part OF section 2S of naval
oil reserve No. to the Consolidated
Mutual Oil Co, without restriction on
the number of wells. This tract was
so leased just prior to the going out Of
the last Democratic administration at
graduated royalty of from 121a to 25
per cent.
Government Drilling Necessary to
Save OIL
And so as the drilling of private
wells on an adjacent ground made it
necessary, this policy of leasing to pre-
serve the government interest was
continued and necessarily enlarged.
Now, let it be recognized and ad-
mitted once and for all that the policy
of leasing naval reserves and preserv-
ing the naval oil in storage by ex-
change of the crude nonfuel oil as pro-
duced for fuel oil for the navy, out of
necessity, began and was accomplish
ed under Wilson, Daniels and Payne.
as to practically all of naval reserve
No. 2.
Then came similar conditions to be
met on reserve No. l. The govern
ment interests required that all Of the
government area of naval reserve No.
l Will be leased for the same reasons.
and of necessity and further for the
sake OF efficiency, for saving, for the
OF development ON a
systematic, businesslike basis, and TO
accomplish the proper storage policy
which would be most beneficial TO the
navy, and to place fuel oil ready for
use by the navy at stragetic points to
remain in storage permanently until
necessary for emergency war use, the
lease was let to Mr.. Doheny on naval
reserve No. l. At this time not Dan
iels and Payne but DENLY and Fall oc-
cupied the offices at the head Of the
Navy and Interior departments. re-
spectively. In naval reserve No. l,
l512 per cent Of the total acreage was
owned by private parties, who were
drilling and taking out the oil. At no
point in this structure was there a
greater distance than two miles be-
tween government area and privately
owned area on which wells were drill.
ing or would be drilled in the immedi-
ate present. The royalty provision
was 121a to 80 per cent, a higher
royalty than on No 2.
Teapot Dome Was Being Drained
Coming down to naval reserve No
3, known as the Teapot Dome, located
in my district, the state of Wyoming
and within 80 miles from the city Of
Casper. my residence OF the sItu-
alton here as to this reserve, do not
claim to know all. / do not claim to
know more or as much as some other
men, but l do know many facts which
have been ignored or overlooked with
reference to this matter. No amount
of quibbling or fine-haired theory can
change the fact that Teapot Dome
was being drained and had been in
the process OF draining for some time
into and through private wells in Salt
Creek field Immediately adjoining IL
on the northwest. It's pro
ducing power had been diminished
from an expected capacity per well
Of 300 to 500 barrels per well per day
to an average proven during the past
year of operation OF 10 barrels per
well per day Instead OF content Of
1875. 900. 900 barrels estimated by all,
1t was found after drilling had given
the necessary data OF the thickness OF
the sand, its porosity and the location
Of the water line In the sand around
the field that its contents is but 26.
000,0 barrels. The expert geologists
employed by the government reported
that drainage was taking place.
through one Of the two, | believe, testi.
fled that in his opinion the drainage