Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-04-05
l,233O|[ PERMITS
CANCELLED IN WEEK.
1900 Called on to Show
Cause, as Total Acted
Upon Reaches 5,079.
~ the Annoeiated. rress.

that 1888 permits to prospect for oil
and gas on the public domain had been
Cancelled during the past week. In adj
dition 1850 holders Of such permits
were called upon to show cause why
their permits should not be Cancelled.
Commissioner Spry of the General
Land once reported to the Secretary
that during the week 3,463 permits had
been acted upon. During the first week
of activity by the Interior Department
committee appointed to carry out Presi-
rent Hoovers oil conservation program
1915 such cases were handled, making
the total number of cases acted upon to
date 5,o7e.
OF the pending applications for per-
mits to prospect which the depart-
ment had on file, 2,606 have been final
~ rejected and the cases closed.
Senator Borah, Republican, Of Idaho
spoke out yesterday in defense OF the
Hoover conservation policy as nothing
less than ordinary prudence"
Beneht as whole.
Answering a protest from the Idaho
Falls Chamber of Commerce, Senator
Borah declared in letter to its presi-
dent. Charles j. Carlson, that he did
not want "fof any advantage which We
might gain ct this particular time to
discourage or to oppose program
which may result in great benefit to
the people as whole"
The Senator expressed fear of a
world oil trust. resulting from conces-
sions gained in the Russian fields, and
added that 1t is not to be presumed
that the effort to protect our OIL re-
serve and 20 protect the people against
monopoly IN oil will stop with this first
Step-it is not to be presumed that
these reserves are being preserved for
the future advantage of a world
monopoly"
Referring to the concessions in the
Russian oil fields, Senator Borah, an ad-
vocate of Soviet recognition. stated that
Charles Evans Hughes as Secretary of
State warned all men to stay away
from these people-so these companies
have bravely gone in and taken the risk
and secured such concessions as will en-
able them to lay a solid foundation for
q world monopoly in OIL"
Oil Conservation Step.
"I am in sympathy with the Presi-
dents effort to conserve our OIL" the
Senator wrote. 1T seems to me the Or
der which he has made is the first step
in that direction. It is true that it will
retard the development of our oil fields
in the West. But We can make no bet
ter investment as State than to keep
these oil deposits for future develop
nent. They will increase in value as
rapidly as anything the State could
possess.
Some Of our leading experts have de-
clared that the oil supply in this coun-
try, based on present information, will
not last beyond or 10 years. A coun-
try which should be dependent upon
other countries for oil under present
conditions would be at an almost meal
culable disadvantage, not only in the
industrial world but in the matter Of
defense. I feel. therefore, that it is
nothing less than ordinary prudence to
take all reasonable steps to conserve our
oil and to prevent the exploitation and
waste of the same
But in view of the policy which has
obtained, citizens who have gone for
ward in good faith under the old policy
to discover and develop oil ought to
be dealt with literally and in good
faith. While it is within the province
of the Government to change its policy,
that change ought not to be put into
effect under circumstances and condi-
tons as will cause those who had gone
forward in good faith to lose their in
veStments. I shall be glad, therefore,
to give such assistance as can to pro-
tect those who had made application
for permits or who were holding permits
In good faith and see that they are
fully protected If practicable to do So"
Explanation by Wilbur.
Secretary Wilbur in answering COM
nittee OF attorneys representing group
of oil companies said yesterday that the
Presidents oil conservation policy clear
~ contemplates the disalowance of un-
approved permits for drilling on the
public domain.
The attorneys had placed before the
Interior Department a request for
amplification on five points of the
Secretary's orders placing into effect
President Hoover's oil conservation
policy. in which they questioned the
justice of disallowing all pending APP
plications without first investigating the
circumstances of each permit.
The Secretary on the second point
raised ruled that where production of
natural gas is shown on lands in ex-
1sting permits in good standing, il there
be an economic demand for such gas
the particular circumstances in ea:h
case or locality should govern"
Dr. Wilbur said that because of public
interest involved an effort should be
made to meet the needs of all existing
contracts with municipalities or public
utilities, but the approval of each pro-
gram of development for such gas sup
plies should be conditioned upon meet
ing present demand without waste"
Limited Extension Possibilities.
In cases where there have been group
or contributory development, DR.. Wilbur
said that where the operator had shown
good faith limited extensions of permits
may be made. but that it must be un-
derstood that the department had never
agreed to extend permits until a large
area had been proved and permit the
operator to delay selection of leasing
areas until that end has been accom-
plished.
The attorneys maintained that ain
event of discovery on a permit both A
and B leases covering all the land in
said permit should issue upon applica-
ton therefor" In answer Secretary
Wilbur declared that 1.-THE law nnanda-
toriiy requires the lease of fourth
upon discovery. Leasing of the re-
nlainder is discretionary and should not
issue upon application unless and until
such action Is required in public In
terest"
The fifth point raised was whether
true conservation did not depend on the
department not demanding the drilling
of wells in individual permits, except in
response to market requirements. Prae-
tical effect to this, the attorneys MAIN
tanned. should be given by extension or
suspension of drilling requirements
under both permits and leases, thus
preserving existing rights and equities
hereunder. With that point the Secre-
tary agreed.