Evening star., 1948-03-04
21-BiIIion Oil Barrel
Yield Seen by Krug
In TideIand' Areas
By John A. Giles

Submerged coastal lands contigu-
Gus to the United States and Alaska
.may contain nearly 100000, ,ooo, 900
barrels Of oil compared with
the proved reserves Of approximate
ly 21,0OO, 100000 barrels" on the
continent, Interior Secretary Krug
estimated late yesterday.
He made the statement before a
Joint senate-HouSe Judiciary Com
mittee considering bill to establish
title to such lands in the States.
The Supreme Court has ruled that
such areas off the State of Cali
fornia belong to the Federal Gov
ernment. Similar suits are planned
to establish Federal ownership OIL
the coast of other States.
Mr.. Krug estimating that the
aggregate area of such continental
shelves off the United States Is
about 262,5O0 acres, declared that
the people of the United States
cannot afford to make g. gift OF
these tremendously valuable re-
sources to few coastal States" He
not only stressed the possible tre-
mendous monetary value OF the
submerged areas, but asserted that
they would be of great defense value
in time of war.
Clark Quizzed Seven Hours.
He took the stand after Attorney
General Clark spent more than
seven hours undergoing questioning
by committee members.
Both Chairman Thomas, Repub-
lican, of Oklahoma, and Senator
McCarran, Democrat, of Nevada,
predicted the measure establishing
title in the States would pass. Such
a measure won congressional ap-
proval prior to the Supreme Court
decision In the California case, but
President Truman vetoed it. Sec
retary Krug predicted the President
would veto it again this year, should
1t pass.
Take my word for it, this Con-
gress will pass this bill even more
emphatically than before" Senator
McCarran declared.
Only Senator Donnell, Republican,
of Missouri, among the committee
members regularly attending the
hearing, sided with Mr.. Krug and
Mr.. Clark in opposing the measure.
Two Administration Bills.
The administration has had in
troduced two bills on submerged
lands, one of which would set up
so-called management policy on
coastal lands and the other which
would assert that the Federal Gov
ernment does not claim submerged
land in inland waters. These meas
ufes are being considered by an
other committee, however.
The Association of Attorneys
General has strongly favored the
passage of the measure to place
title in the States, and representa-
tives of 46 States have either ap-
peared or submitted briefs.
The hearing, which begins its 10th
day today, has been crowded with
;. State and oil company officials.
Touching on this, Mr.. Clark COM
mented 4en the striking similarity
of resolutions adopted by bar as
sociations, service clubs, ETC., ask
ing that the States be given the
lands. He said he had received a
large number of these papers.
: Mr.. Krug described the value OF
the submerged coastal lands as be-
ing greater than "all our national
reserves" t.
;-:svital to United States Defense"
The oil reserves in the !conti-
mental shelves contiguous to the
coasts Of the United States are vital
to the economy and defense OF the
United States as whole" he de-
clared. 1.-THE people of the United
States, acting through their Gov
ernment, ought to manage and con-
serve these oil reserves for the eco
nonic benefit and common defense
of the Nation as whole.
Mr.. Krug, terming the States
ownership measure as altogether
unsound," added that Il have every
reason to believe that the President
is of the same opinion"
There is no reason to believe
that the President has changed his
view during the intervening period" !"
he said, particularly as the Su-
preme Court has now resolved the
doubt that previously existed by de-
claring that California is not the
owner of the 3-mle marginal belt
along its coast, and that the Federal
Government has paramount rights
a., and r,ouer over that belt"