Show AMENDMENT ENT TO LEASING BILL KILLED BY OLD CONGRESS all eff efforts orts to get action on the smoot amendment to the oil leasing law before adjournment of the old congress went glimmering in the last days of the session because of an adverse report filed by secretary of the interior payne wires sent out from washington gave the news concerning the fate of the bill and prospects for its introduction early in the new session of congress soon to convene as follows under the smoot bill which intends to amend the oil leasing act if oil is struck in any given structure persons prospecting for oil in that same structure under permit would be allowed to proceed with their own development whereas under regulations promulgated by the department when oil is struck in any given structure every other prospecting permit in that structure is automatically mati cally canceled and the whole area is designated as known oil territory and thereafter must be developed solely under that clause of the law applying to known oil lands secretary payne objected to the smoot bill on two grounds first he pointed out that the bill would greatly diminish the governments revenues under the oil leasing law for development under a prospecting permit brings in a revenue of only 5 per cent whereas the royalty paid by lessees lessels is 12 1212 per cent the probabilities are that each successful prospect would be surrounded by scores of others and if other prospectors were permitted under the smoot bill to continue on the 5 per cent basis the federal revenues would be greatly diminished furthermore secretary payne objected to the smoot bill on the ground that 1 it t would stimulate speculation in permits especially in districts where some one sinks a well and where there are geological indications that he is likely to strike oil under the bill the secretary holds one such development would create a heavy demand denland for applications in the general vicinity of the well being drilled and such speculation he believes to be contrary to the intent of congress the adverse report of secretary payne would make it difficult if not impossible impossible smoot bill bi to get favorable action on the deci decided e last session so the senator promptly until the t to let the whole subject go over special session when he will reintroduce secretary secreta y his bill and have it referred to fall for report |