Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-24

Leases of the two naval oil re-
serves No. 1, in California, and No.
| o. In wyoming, which are now being
investigated by the public land COM
mlttee of the Senate, bring royalties
IN Oil of 81 and II Der cent respect
Velv tn the government. Naval
OIL reserve No. I, the Doheny lease.
has been more extensively exploited
than has naval oil reserve No. 5, the
Sinclair or Teapot Dome lease, in
which comparatively few wells have
been drilled. and there has therefore
been relatively small return to the
government from this leaae, accord
ing to records of the bureau of mines.
Another naval oil reserve in Cali
fornia, reserve No. >. with a total
acreage of 30.0So acres, is now leased
to between thirty and forty different
companies, all of which pay royalties
for the leases to the government.
The committee has not yet discussed
this lease at length. The royalties
age between IS and SO per cent
Big Alaska Reserve.
There still remains one other
naval oil reserve. No. 4, located in
Alaska, with q greater acreage than
all the others combined, comprising
e. 4oo.ooo acres, covering $4,000
square miles, and two naval shalc oil
reserves, one in Colorado and another
in Utah, none of which has been
leased. Tho Alaskan oil reserve was
created by President Harding i'll
February, 1923.
The Doheny losse on naval oil re-
serve. No. l. which was withdrawn
by President Taft in 1912, covered a
total area of 3S.069 acres. Reserve
No. 3, the Teapot Dome reserve, ere
ated by President Wilson in 1915,
contained 9,4Sl acres, and was leased
to Sinclair.
The government Is specifically au-
thorized and directed to issue per-
mits and leases to develop oil, gas,
oil shale. coal, phosphate and sodium
belonging to the United States, under
the general leasing act of February
20, 1920, provided that 1t should not
apply to lands withdrawn or reserved
for military or naval uses except as
hereinafter provided"
Wells on Mining Claims.
Section is of the act was TO the
effect that. as to any placer mining
claims possessed prior to July 8.
had been drilled. the Secretary of
the Interior might, within naval pc
troleum reserves. lease the produc-
ing well thereon only" together with
an area of land sufficient for opera
ton.
The section also provides that the
President, in his discretion, might
lease the remainder or any part of
The claims on which such wells had
been drilled, the claimant or his sue
cessor TO have the preference right
to any such lease. Another proviso
authorized the President to permit
the drilling of additional wells by
the claimant or his successor within
the limits of any former mining
claim.
Moneys accruing to the United States
under the provisions of the act from
lands with naval petroleum reserves
should be deposited in the Treasury as
miscellaneous receipts, the law states
General Leasing law.
From the foregoing it is shown that
the general leasing law of 1920 au-
thorizes the Secretary of the Interior
TO lease producing oil wells In naval re-
serves The President could authorize
!eas or the remainder of the former
mining claims on which any wells were
situated, preference being given to the
mining claimant and he was also en-
powered to permit the drilling Of addi-
ttonal wells
The following quotations and inter-
pretatlons of the law covering the spe-
cine cases now under investigat ton have
been given to special counsel appointed
to investigate the leases: