Evening star. [volume] (Washington, D.C.) 1854-1972, 1929-03-13
HOOVER OIL LEASE
POLICY MAY BRING
CLASH WITH WEST
Continued From First Page.)

for prospecting for oil on the public
lands, covering periods OF two years
and 1850 acres of land.
The Supreme Court, he said, had held
that permiSsive language must be con-
strued as mandatory. II the matter
goes into the court on the plea Of 4 q
prospector for permit to explore these
lands for oil, the Government may be
forced to issue the permit. he said. and
q lease to follow If the prospector de-
veloped oil.
Senator Walsh conferred with Presi-
dent Hoover at the White House today
in regard to his oil lease policy. Later.
Senator Walsh said he was convinced
that the President did not intend to
interfere in any way with the lessons
who have developed oil properties or to
deny leases to prospectors who had al
ready expended money in their ex-
plorations. He added that he believed
the President would be fair and just
to those who have undertaken to de-
velop the oil lands in the public domain.
Protective Steps Seen.
In cases where private wells adjoin
oil lands in the public domain, and
there is danger Of draining the oil from
the public domain via the privately
owned wells, Senator Walsh said he
thought steps would be taken to lease
the public lands 50 placed. so that the
Government might not lose the oil en-
tirely thereon
The Montana Senator said that he
would be in favor Of conserving the oil
In the ground now owned by the Gov
eminent with American production at
its present high level If the policy could
be made general.
shutting off the production in the Gov
eminent domain merely would have the
effect Of increasing the output in the
fields In Texas and Oklahoma and Cali
fornia, on private or State owned lands
Furthermore, II shutting of the produc-
ton on the public domain results. as it
has been claimed, in curtailing the total
production by very considerable
amount, Senator Walsh believes it will
have the effect Of increasing prices.
Under the Hoover policy the Govern
ment will cease its practice of issuing
permits to drill which carry with them
q priority to leases in case oil is struck.
About 5000 such permits are issued
annually at present. according to the
Interior Department. and there are
some lZ,VUU Outstanding. IneSe IaSt
will be honored, but no more will be
granted.
Usage Leases Mandatory.
The only leasing now mandatory is
In the Usage Indian Reservation. The
law requires the Interior Department to
put up $4,000 acres year of this land
for lease. Formerly 100000 acres were
leased annually.
The Interior Department estimates
roughly tenth of the Nations oil sup
ply comes from the Government fields
and therefore figures that the policy of
no leasing will have fairly important
effect in keeping down production and
thus sustaining the price of oil.
About the richest of all fields Is Salt
Creek. 1t Is checker boarded with Gov
eminent leases.
Mr.. Hoover's purpose is to put the
Government behind a rigid conserva-
ton policy and thus aid private indus
try In achieving more normal produc-
ton and stability of price. That is the
| motive behind the Hoover policy rather
than any apprehension that his ad-
ministration might witness another Sc
ries OF oil-leaSirg scandals.