Show MAY KILL OFF PROMISING LOCAL INDUSTRY applications tor for a preference right leaa on eighteen hundred acres of land jib in the cisco dome gas field in grand county by A 33 barncs of denver celo calo was rejected la in a decision by land commissioner C C moore received last tuesday by ell F taylor register ot of the government land office at salt lake city tn in applying tor for the lease barney barnes alio alao asked for a discovery lease or on six hundred acres on which he drilled a well and found gas the discovery was waa granted and may 7 continue operating the well upon ne returning turning 5 6 per cent royalty on the gas produced the rejection of the preference right lease indicates a vr strict interpretation of tho the government oil and gas gaa conservation policy taylor said in the past such leases were granted in accord with the policy to give a discovery leass on a fourth of the property included in an oil and gas prospecting permit and a preference right leasa on the remainder through rejection of the latter the government gov will lose eighteen hundred dollars in rentals since a dollar an aare per year Is ia charged oh arged of this six hundred and seventy tive five would have accused to utah to be used for schools and roads the government will swill also stand to lose several hundred dollars annually from royalties on gas which might have been developed on the remaining eight hundred h acres three eights of the total royalties from oil and gas gaa is to the state it Is further burth er reported that an infant industry in the state may lose because of moores decision gas produced from the barnes barnea well has been used by two oil companies to 40 manufacture carbon black a product used tor for paint and carbon materials to date according to Te reports deports ports the single well is to anicet the comp companas company anys 3 dema demands ads but the land offices decision prohibits further exploitation of the field |