Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-13
. DRILLING PERMITS
: USED BY OIL MEN
! TOLURE INVESTORS
Letters on U. S. Files Reveal
How Prospects Are I'M
posed Upon.
81, 600 APPLICATIONS
DEVELOP 56 LEASES
Figures Result in Enthusiastic Re-
ception of Hoover's Con-
servation Policy.

During the past 10 years the Gov
eminent issued $4,000 permits to in
dividuals to prospect for oil and gas on
the public domain. From this host of
permits Sc leases have developed.
The significance of these figures,
which might escape the average per-
son, has become increasingly apparent
to Government officials and has re-
suited in an enthusiastic reception for
President HooverS oil conservation
policy by the Department of the In
terror, the governmental bureau direct
~ in charge of public lands.
Many letters are on file at the De-
partment of the Interior which reveal
the methods by which individuals have
been imposed upon in the matter of
these oil lands. Il subscribed for IS
acres of oil land" one enlisted Army
man wrote, ito be filed on at So an
acre. have already paid $40 and will
pay $40 more this pay day. The land
is supposed to be United States Gov
eminent land"
Asks Steps for Refund.
Another man, who had become sus-
picious of an oil development scheme,
wrote: What steps would take to get
my money back? My wife and l have
paid $120 and we cannot lose it. AS
the association claimed the Government
had granted it the permit to develop
I cannot see why the Government is
not liable for the refund of my money.
AS it has been some time since the
filing possibly the association has be-
gun operations, and if so. all is well.
However, 1 can get no communication
from them"
Hundreds of letters of this nature
make it obvious, department officials
saw. that the name of the United SelteS
Government has been used as a lure
to dupe prospective buyers of oil rights
into investing their life savings into
wildcat schemes. The total of their
losses will, in all probability, never be
known.
An oil and gas application is the
holders claim to the right to prospect
on 1850 acres of the public land. This
is filed in the local land office with a
description of the land. A permit Is
his right to prospect, growing out OF
the application The law requires that
drilling be done progressively within
time limits. Upon discovery OF OIL, the
permittee is entitled to a lease, paying
the Government royalty on all OIL
produced.
Thousands in wildcat Territory.
The department admits that many
permits have been acquired by leg1tl-
mate developers and the Government
has received millions of dollars in roy
alties from their efforts. 1t is an I'M
deniable fact, however, that thousands
upon thousands of applications for per-
mits were filed for land IN wildcat
territory, or in other words, land that
has no visible evidence of containing
gas or oil.
If permit is lapsed for non-deveiop--
ment, friend or partner of the original
holder in many instances has renewed
it. This enables INSCRIPTIONS persons
to hold land for an indefinite period
to reap a rich harvest from a gulllble
public, blinded by the vision of fabulous
wealth in oil and the suggestion OF gcv-
ernmental Endorsement of the land.
The department has tried numerous
methods for frustrating these oil-land
swindlers, but none of them has proved
very successful.
It is pointed out however, that the
exploitation of the public through these
permits to prospect will be automatical-
Nv stopped by the application OF PreSl-
Gent Hoover;s demonstration policy.
Under that policy permits to prospect
are not to be granted. One element OF
speculation that is likely to be part OF
the development of oil and mining areas
will have been removed.