Evening star., 1938-03-30
ELK HILLS CLAIM
OF j. s. UPHELD
General Land Office Rules
on Ownership of Oil
Lands on Coast.
BY the Associated Press

By the Associated Press.
The General Land Office today ruled
the Federal Government and not pri-
vate oil companies is the rightful
owner of millions of dollars of oil
lands in the famed Elk Hills Naval Re-
serve. in California.
These lands, indirectly associated
with the oil scandals of the Harding
administration, were claimed by the
State of California, the General Pc
troleum Co. of California, Thomas A
ODonnell, Homer l. Tupman and the
Potter Oil Co., all of whom have 80
days in which to file appeals to Secre-
tary of Interior Ickes.
The lands involved in the General
Land Office ruling are known as sec
ton 16," 1-mile-square area on the
southwestern border of the San
Joaquin Valley in Kern County. They
constitute the second of two oil prop
critics considered essential by the Fed
eral Government to national defense
and for which Secretary Ickes has
been fighting for return to Govern
ment ownership.
Section SO Won Back.
The other part of the Elk Hills
properties. section 36, OF the same size,
was won back by Mr.. Ickes in recent
Federal District Court decision and
is on appeal in the Circuit Court OF
| Appeals. Titles formerly were held
by the Standard Oil Co. of California,
Mrs. Sydney H. Greeley. Frank j.
Carman, Charles o. Fairbank, Edward
L. Doheny, Thomas A. ODonnell
Pan American Petroleum Co., Valley
Natural Gas Co. and Associated Oil Co
Both cases had their background in
legislation passed by Congress in
March, 1858, Under that law, it was
stipulated in part that sections Is and
36 of every township of public lands
in California, shall be and hereby are
granted to the State for the use OF
the public schools. The courts SUBJ
sequently construed this law to mean
agricultural lands and not general
mineral lands. title to which remained
in the Federal Government.
When oil development activities
struck the Elk Hills territory private
prospectors bought up portions of
these school land sections and, after
numerous negotiations and reorgani-
cations, they were acquired by the
Standard Oil Co. of California.
70 ;v,tn 81 /.
in the present litigation on the ground
that the property had not been recog-
nized as mineral in character in 1903
when the General Land Office ap-
proved survey of the land.
Contention Raised.
Commissioner Fred w. johnson of
the General Land Office contended,
however, the land was known to be
mineral in character prior to 1908 and
therefore not subject to private own
ers hip and development.
This was direct reversal of the posi-
ton taken by Albert B. Fall, former
Secretary of the Interior, which led
to private exploitation of naval oil re-
serves and to the fight which resulted
in Mr.. Falls imprisonment for accept
ing bribe from the late Edward L.
Doheny, oil magnate, who had ac-
quired title to large holdings.
On assuming Office in 1888, Mr..
Ickes learned that the Elk Hills prop
critics had been awarded to private
interests by the then Commissioner
c. c. Moore of the land Office and
promptly removed him, appointing Mr..
Johnson in his place He reversed Mr..
Moore's action in 1885, after long pub
lie hearings, and started the present
suits to recapture the land.
Some geologists hold that private
operations would drain off oil reserves
OF incalculable Importance to the
Navy because of their proximity to
Pacific Coast naval bases. Private
concerns. the Land Office said, have
extracted from section 36 4,978, 900
barrels of crude oil valued at $4,000,
600. 60,140,0 100000 cubic feet of dry
gas valued at $4,000, 900 and 1891 900
gallons of gasoline valued at 81, ,104, 900.