Jackson advocate. [volume] (Jackson, Miss.) 1939-current, 1956-12-01
Louisiana Files
Reply In Suit
For Oil Lands

Baton Rouge. Louisiana has
filed an answer in the U. S. Su-
preme Court to Federal suit
against the state over ownership
of oil rich lands in the Gulf Of
Mexico. Louisiana claims its sea-
ward boundary extends at least
three leagues (10.5 miles) into the
Gulf.
The Justice Department early
this year filed suit charging that
Louisiana's seward boundary ex-
tends only three miles into the
Gulf.
At stake is a strip at least rs
miles wide off the Louisiana coast
from which both the state and fed
eral government wish to receive
royalties and bonus payments from
oil and gas leases.
Louisiana is centering its case
around the Submerged Lands Act
which was passed by Congress in
1853. This act provides that the
states have jurisdiction over coast
al waters out to this Historical"
boundaries.
The state contends that under
the Louisiana Purchase of 1903
and the Congressional act that adj
mitted Louisiana to the union, its
seward boundary was defined as
extending to the 9th parallel or
to a point three leagues from the
coast. 1t also pointed out that
several treaties made with Mexico
fixed boundaries of coastal states
on the Gulf Of Mexico at three
leagues from the coast
Louisiana also charged that the
federal government has dominion
over the offshore lands only for
purposes of interstate and foreign
commerce navigation and national
defense.
Prior to the discovery of oil in
the Gulf, Louisiana notes, the
United States recognized Louis
iana's title to the offshore lands
extending three leagues from the
coast. Consequently, it was added,
the state spent large sums of
money for the administration of
the disputed area and has incurred
debts based on income from the
offshore area.
Considerable dispute also centers
over Louisiana's actual coastline
because of the thousands of bays
and inlets along the coast
would average 494 900 barrels daily
compared with 100000 barrels in
1855. Output by the company in
Venezuela for the same period was
estimated to average $4,000 bar
rels daily against l28,600 barrels
in 1855.
Domestic production by Gulf for
this year was estimated at PIT 900
barrels daily compared to 230,700
barrels last year Swensrud esti-
mated Cuffs share of U. S. oil in
dustry production had risen from
3.3 per cent in 1854 to prospective
SO per cent in 1856. Daily crude
runs in the u. S. by Gulf were
placed at SGT 1000 barrels daily for
the current year or 60 per cent Of
the domestic industry's total and
daily petroleum products sales by
the firm were estimated at $780,,
600 barrels or 60 per cent Of the in
dustry total.
Swensrud attributed the COM
pany's AZ per cent increase in earn
ings to $206 million in the first
nine months this year mainly to a
gain in profit from U. S. opera
tons. He said these were con-
tributing a higher percentage of
overall income than at any time
in the past several years. Profits
from Venezuela and the Middle
East were also said to be running
above a year ago.
Capital expenditures by Gulf
this year will run somewhat over
$4OO million including 500 million
spent for new oil concessions in
Venezuela but not including eth
err the $12O million outlay for I'm
ion Oil Co. convertible debentures !
or the 100000 shares of Gulf
stock issued in exchange for War
rem Petroleum Corp. stock, Sven
srud stated. Capital OUTLAWS by the
company since the end of World
War II have Appropriated SIS
billion, he stated.