Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-02-07
DENLY Gives Reasons
Continued from Page One)

Continued from Page Ono
Mr.. DENLY declared that "such a
demonstration Of faith requires that
shall give you the reasons why that
faith is not misplaced
when / came into Office" his
message continued, IT was very
shortly convinced that the oil reserve
lands which had been set aside by
congress for the benefit Of the Uni
ted States Navy were being drained
by private owned wells adjoining
those reserves. That they were drain
ed Is undisputed.
Congress. under date Of June 4.
1920. gave fle following powers to the
secretary OF the navy:
THAT the secretary OF the navy Is
directed TO take possession OF all such
properties within the naval petroleum
reserves as are or may become subject
10 the control and use by the United
States for naval purposes -: to con
serve, develop, use, and operate. tho
same In his discretion. directly or by
contract. lease or othcrW Use, and to use.
storG. exchange or sell the oil and gas
products thereof, and those from all
royalty oil farm lands in tho naval re-
serves, for the benefit OF tho United
States
"Cpdnr these powers the secretary
Of the navy was charged with The duty
Of protecting the oil thus confldcd to
his care. In carrying out the will of
congress | had three courses open to
luc.
"1D 10 do nothing and guard what
would have been ultimately an empty
she'll because most of the OH would
uave been drained away from IT;
"f2I TO cndcavor to create the ma
chillcr,. for handling tho situation un-
dor the navy department by govern
mental drilling etc: or
"t3D 10 lease the right to drill under
proper conditions to private enterprise.
In the execution &C this last course 1
had two alternatives: one. to lease the
drilling privilege and have paid into
tho treasury the value OF tho royalty
al belonging to ~" navy under such
leasing contract. or TO retain and pre-
a"fV" the OIL above INC surface since
u could not he preserved below Tor
the US" ana Dement, OF the Chlted
states
The interior department has under
MS jurisdiction l'.G22.50o acres of
ruhlic lands already leased to private
tni' rprl5eS. Tho total naval oil reserve
lands now under discussion amount to
"I''-] acres ne policy "i the adfnih-
lS'f"'loi was coordination or govern
m'E'ai actlVit'es ana not dnpllcal ION
therefore 700" UP win 'he secretary
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