The Kevin review. [volume] (Kevin, Mont.) 1922-1929, 1929-03-21
new OIL Law
FELT HERE
A Vast Government Acreage In State
Brings Pittance In Tax Returns.

Washington, March 13- Starting
the machinery in motion to carry out
the complete government oil conserva-
ton policy of the Hoover administra-
tion, Secretary Of Interior Wilbur
today directed that the land ofices
scattered over the public domain
states receive no more applications
/ for permits to prospect for oil and gas,
and reject all pending applications.
The next step will be comprehen-
sive study of the $4,000 prospecting
permits now outstanding, with the
practical revocation of those held by
prospectors who have not made
reasonable expenditure in the actual
effort to take oil out of the ground.
just what percentage of the total
will be made imperative by this sur
vey can not be estimated at this time
by land Office officials, but the impress
sion is that it will be very large
AS further details of the administra-
ton policy became known today. it was
found that it was much broader in
scope than appeared with its disclosure
yesterday by President Hoover in re-
ply to questions from newspaper cor
respondents.
Permittees who have made reason
able expenditures in their effort to de-
velop oil wells will be granted leases
under the general leasing act, but
there will be no leasing of adjacent
lands as is authorized by the general
leasing act OF 1920.
Aside from the leases which the
government may feel in duty bound to
issue to holders of prospecting permits,
the only others which it is proposed to
grant will be for Offset wells which
may be necessary to prevent the drain
age OF oil from public lands through
wells on contagious private property.
In issuing orders that the land ON
GERS reject pending applications for
permits and receive no more such ap-
plications, Secretary Wilbur made pub
ic the Interpretation the general land
office has placed upon the 1920 act.
which states that the secretary Of the
Interior is hereby authorized under
;uch necessary and proper rules and
regulations as he may prescribe, to
yrant to an applicant qualified under
his act, prospecting permit
The general land Office circulars is
ued under this act contained this
paragraph:
1T should be understood that under
he act, the granting Of prospecting
'ermit for oil and gas is discretionary
nth the secretary Of the interior,
nd application may be granted or de-
lied, either in part or its entirety, as
he facts may be deemed to warrant"
This construction has been disputed
Y some senators from the public land
tates and others, and it may be that
be case will be taken to the United
tates supreme court for an official
nd final pronouncement OF the intent
congress in passing the 1920 leasing
Ct
Senator Walsh said after his visit
1at he would be heartily in favor Of
le administration policy if it could
: made effective as to undeveloped
rivateIy owned oil and gas lands. The
,vernment has no direct control over
lch lands.
The senator holds that under the
sneral leasing act permits must be
'anted by the interior secretary, and
= asserted that if they were cut OF
lere could be no future development
public oil land in his state a de-
,lopment which began less than nine
.ars ago and which, he believes, has
us far only scratchd the surface.
Calling attention that there were
mething like 2O,0OOoO0 acres Of pub
lands in Montana, the senator said
at state could realize no additional
venue from those lands since they
e not subject to state taxation The
ate gets s21k per cent Of the royalty
e government collects from developed