Evening star., 1948-12-26
Neither Side Expected
To Win TideIands Oil
Battle Next Year
BY the Associated Press


HOUSTON, Tex, Dec. 25-By th'
time tempers simmered down thi
week one could only conclude Wash
ington win be quite a tidelandl
battle-ground next year.
State officials reacted with strons
words Tuesday when informed At
torney General Tom Clark had asked
the Supreme Court to recognize tht
Federal Governments paramount
rights to the tidelanGs of Texas ane
Louisiana.
The battle lines already were
formed. This latest action simpl,
added a Tightening effect.
The action had been expected
off and on ever since the Supreme
Court, by 6-to-2 decision, recog'
nized Government claim to Cali.
fornias tidelands June %, 1947. Th'
Texas action points II
another long congressional fight be-
tween State and Federal ownership
advocates.
State officials contend it wa!
timed to head of congressional
legislation favorable to the States
Chances are neither side will wiz
next year in Congress.
Blocked by Veto.
Proponents of State ownership
claim majorities in both houses
but admit the strength probably
would not override presidential
veto.
They are confident no Fedora
ownership bill will have a chance
President Truman once used the
veto on a State ownership bill. Or
December 16 he told press con-
ference there has been no change
in his position.
Earlier this year, Senate COM
mittee, in reporting favorably or
State ownership, said that regard.
less of the California decision con-
gressional legislation would be nee
essary before the Federal Govern
ment could assume management Of
the tidelands.
Should a presidential veto bloch
one course and State ownership sup.
porters block the others, where
would this leave the tidelands and
it's oil?
A compromise? Perhaps, but II
would require a shrewd diplomat tC
successfully maneuver plan to ac-
ceptance by both factions.
What about oil explorations?
Several companies, with attrac-
tive leases signed, have taken a
hands-off policy until the dispute
Is settled.
A few have gone ahead with en-
couraging results.
This week, Humble Oil and Refin-
ing Co. brought in another Gulf Of
Mexico deep-water crude producer
off Louisiana. 1t was the flftth such
producer to be completed since full
scale operations began there last
year.
OIL Men Worried.
Oil company spokesmen for the
most part had no comment on the
Attorney Generals action, but they
were active observers and there were
numerous -the-record comments
of worry.
1t may take years, but present
indications are that 1t will take q
clean-cut congressional bill to settle
the issue, regardless Of the outcome
of pending Supreme Court decisions.
The court won't stop State owner
ship leaders from battling on the
floor Of Congress.
Texas, Louisiana and California
are the only three costal States
whose tidelands are believed to con-
tain substantial amounts Of oil
reserves.
California fought-and lost-its
Supreme Court case while contend
ing the Attorney General had not
been authorized by Congress to seek
Federal ownership, that coastal
States always have held title to sub
merged lands, and that numerous
Federal agency opinions and rulings
in the past gave recognition to such
title.
Louisiana's defense probably will
be basically the same as that OF
California. but Texas believes it has
a special case.
The State retained its public lands,
neld under the Republic Of Texas,
when it was admitted to the Union.
Attorney General Clark, native
Texan, maintains in his court petit
ton that Texas was admitted Into
the Union on an equal footing with
the original States in all respects
whatever"
Face Heavy Loss.
Both States stand to lose heavily
financially.
Louisiana estimates the State has
received $34 ,259 900 in bonuses and
rentals on leases Of offshore lands,
including bays and inlets.
Only last week, Texas announced
leasing of another 10000 acres OF
tidelands, with bonuses totaling
$2,O55, ,709 The money goes into the
permanent school fund, an endoW-
ment now totaling nearly $l40, 900 600.