Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-24
u. S. is PAID IL AND 81 PER CENT
OF SINCLAIR-DOHENY OIL LEASES
California Field More Extensively Exploited Than
Wyoming-Creat alaska Reserve, Created BY
Harding, Remains in Government Hands.

"On June 4, 1920. at the instance Of
the Secretary of the Navy, and not on
the recommendation Of or with the
knowledge Of the Interior Department,
there was included in the naval appro-
priation act of that date al Stat, S13)
direction that the Secretary of the
Navy take possession of all properties
within naval reserves, on which there
are no pending claims or applications
for permits or leases under the provi-
sions of an act of Congress approved
February %, 1920 or pending
applications for United States patent
under any law: to conserve. develop, use
and operate the same, in his discretion.
directly or by contract, lease, OF other
wise, and to use, store, exchange. or
sell the oil and gas products thereof,
and those from all royalty oil from lands
in the naval reserves for the benefit of
the United States: And provided fur
Their, that the rights of any claimant
under said act of February 25. 1920.
are not affected adversely thereby
Jurisdiction of Secretary.
Under the act just cited. June 4,
1920, it will be perceived that the Secre-
tary of the Navy was given juris-
diction over all lands in the naval
petroleum reserves that were not
covered by the former mining claims
recognized and provided for under
the general mining laws and under
section Is OF the general leasing act.
IN naval reserves Nos. and ..
California, therefore, leases have been
issued under two different acts of
Congress: First, leases by the Secre-
tary of the Interior or with the ap-
prevail OF the President under section Is
OF the act OF February %, 1920; second,
leases issued under the authority or pre-
sumner authority OF the naval appropra-
ton act of June 4, 1920
In naval reserve No. s, wyoming,
no leases We're given under the
general leasing act of February %,
1920. The Mammoth or Sinclair lease
covering the entire structure was
given under the act of June 4, 1920.
understand the situation, IT
must be borne in mind that at time
dent Taft, every alternate section in
reserve No. had been patented 10
the Southern Pacific Railroad Conn
pany' and the remaining sections.
by placer mining locations made
under the general mining law. There
were but few of these old mining
iocStionS of any validity or equity
IN the other two reserves.
Recognized Equities
When Congress passed the gen.
eral leasing law Of February %.
1920, il recognized the rights or
equities OF these placer mining
cisimants by the provisions of Sec
tlon ~, hereinbcfore outlined and il
was pursuant TO this recognition and
preference right specifically carried
In the act of Congress that most of
the leases in the attached list were
granted. These were of two classes
-(a) for existing producing wells
and OBJ for the remaining area of
mining claims on which there were
such wells.
The remaining lands not covered
by placer mining locations were
subject to lease only under the
Daniels act OF June 4, 1920, and all
leases made under that act were
after competitive bidding and to pro-
tee. the lands from drainage. except
the so-called Doheny and Sinclair
Ten leases We're authorized under
the Wilson administration by SeCre-
tary Payne under the general leas-
ing act and based on mining loca-
tons: fifteen leases were authorized
under the administration of Presi-
based on mining claims asserted
under tho general leasing act: ten
leases were authorized under Secre-
tary Fall through competitive bid
ding under the act of June :, 1920,
and three leases were authorized by
Secretary Fall under the June 4.
1890, act upon what may be describ-
ed as private negotiations. Three
leases have been authorized under
the administration of Secretary
Work, all after competitive bidding
and under the act of June 4, 1920"