Show EXEMPTION OF MINERAL LAND WRITTEN FOR THE MINING REVIEW the state of california has the most productive oil field in the united states during the year 1910 it produced over 75 barrels of oil and the production for 1911 will exceed this figure however the price of crude oil has been very low here being only 30 cents per barrel in the field and 70 cents per barrel delivered at the bay cities this price is very much less than the intrinsic value of the oil which is probably due to the enormous production during the last few years and the lack of adequate transportation facilities from the fields the standard oil company is installing a large refinery at el segunda Se gundi gundl one of the ocean harbors just out of los angeles when its refinery is ready to receive oil it is very likely that the price will increase the demand for oil in the united states and especially abroad during the year 1911 was greatly increased the price of oil in the oklahoma fields has increased from 42 to 50 cents per barrel since the beginning of 1911 there has been a corresponding increase in price in some of the other fields in the united states the principal question now interesting the oil men in this state is the reservation of mineral lands in the railroad grant to the southern pacific railroad company the railroad company has always main caned that it took title to all oil lands not known at the date of the grant the grant covers the most productive oil lands in california the railroad company and the purchasers of its lands are taking vast quantities of oil out of the railroad lands the act of july 27 1866 making the grant contains the following provided that all mineral lands be and the same are hereby excluded from the operations of this act the patents issued to the railroad company have this exception in them yet excluding and excepting all mineral lands should any such be found in the tracts aforesaid even the deeds which the railroad company gave to its purchasers contain the following clause reserving all calim of the united states to the same as mineral land it is exceedingly difficult in view of these exceptions to see how the railroad company got title to the untold of oil in the granted lands the supreme court of the united states in ill the case of barden v northern pacific railroad company united states has held in a similar grant that all mineral lands whether known or unknown are arc excluded from the operation of the grant the supreme court of california as late as june ath this year in the case of van ness v rooney in construing the mineral exception in a patent to the railroad held that a mining location duly perfected prior to the issuance of patent is excluded from the patent although the granting clause in the patent covers the mining claim judge bean of the united states district court of oregon recently said in the case of eastern oregon land co v willow river land irrigation company complainant insists however that the issuance of patent by the government of the united states to its predecessor in interest is a conclusive adjudication that the lands described therein are non mineral that would probably be true if the patent contained no reservation barden v N P R ra R U S but it contains a clause excluding and excepting all mineral lands should any such be found in the tract afore aforesaid said this manifests an unmistakable intention on the part of the government not to convey mineral lands and repels any inference that no part of the land described in the patent was mineral however on the other hand judge ross in a decision rendered early this summer held that the oil lands passed under the patent his decision was appealed to the circuit court of appeals of the ninth cir auit where it was argued last month the case is burke v southern pacific railroad company and kern trading and oil co it was argued before circuit judges gilbert and morrow and district judge wolverton the california oil men are on the que vive waiting for a decision in this case it is reported that the government is about to bring a suit to test the validity of the mineral exceptions in the patent and it is certain that if such a suit be brought it will ultimately be taken to the supreme court of the united states where the question will be finally settled and put at rest FRANK PIERCE los angeles california |