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Show September 28, 1956 Page 3 THE WESTERN MINERAL SURVEY Stanolind Oil 'Evades' Lease Law Purpose Drillings In Louisiana Senator Claims At Trial New Mexico S urvey Bureau Testimony before a Senate investigating subcommittee established that Stanolind Oil and Gas Co. is evading the purpose of the federal land lease laws, chairman Sen. Clinton Anderson (D., N.M.) said at the end of the first phase of the subcommittee hearing in Albuquerque, N. M. Sen. Andersons statement was made after Standolind officials had spent the first two days of the hearing describing the company's policies in leasing and optioning public domain land and for the lease itself, that youre the reporting of acreage held. going to have any control over Much of the testimony was de- that lease that you desire, dont voted to questions about the com- you? Whitford added, Yes, I know panys policy of having brokers or invitees lease public domain were going to have an option or land and give an option to Stan- assignment when somebody files olind for exploration and developlease for us. ment. Whitford then answered yes to Oil One of the chief issues being the question and doesnt the Mininvestigated by the subcommittee eral Leasing Act require you to has Pineco Uranium Corp. just is whether oil and gas firms are report all property you have conconcluded a cash royalty agree exceeding federal land acreage trol over? ment on four producing oil wells limits by getting individuals to The Mineral Leasing Act perlocated in the oil rich area of acquire the acreage for them mits an individual or firm to hold Caddo Parrish, Louisiana. The At the end of testimony by the 46,080 acres of federal land in a cash Royalty will be pa!id to Stanolind officials, Sen. Ander state and 200,000 acres of land Pineco each month by the Ar- - son told representatives of (13 leased to someone else but optionkansas Fuel & Oil Co. of Lou- - other oil and gas firms that if ed to the firm for exploration. isiana. Stanolind now has 31,969 acres they would submit statements on Most of the companys Indian any differences between their under lease in New Mexico and Utah, properties have been erations and Stanolinds, the hear 60,358 under option leased to Eureka Mineral Man-- ing could be shortened, Neil F. Stull, a Washington, D. The additional statements were C. attorney who has handled all agement Co. of Kansas who are the to be submitted by Gulf Oil Co., Stanolind federal land leases drilling and developing claims. Reports show that the Amerada Petroleum Co., Magno- - since 1944 said that the firm has uranium deposit carries with it lia Oil Co., Southern Union Gas him file for leases, not to get a high gold content as well as Co., Three States Oil Co., Skelly around acreage limitations but be-other profitable minerals, the Phillips Petroleum, Humble, Del-- Cause he is "in Washington can company reports. Reynolds Metal Co., Ue acquired with ease and speed. Shell and Standard Oil of Texas. Let me say at the outset that Sen. Anderson said at the con-- j am a strawman and intend to be elusion of Stanolinds testimony Until the law is changed, Stull that the firm is not reporting all said. He added, however, that COMMUNITY federal land it had under its con-- while he acquired land for Stano-tro- l and that its interpretation hind and other firms, he had nev-o- f the lease laws is not the same er acquired a lease for a firm as the U. SI Senates. that put that company over the You know in advance of hav- - acreage limitation. apply for a lease in- During his testimony, Stull UNITED FUND ing a person of the company applying g0 commented that, not 3 per cent of the people who file for federal oil and gas leases "have the remotest intention of developing the leases. During the first day of testimony, Sen. Anderson hammered at two points. The first was the companys interpretation of options. Stanolind officials said that the firm makes a practice of taking options on the same land at the expiration of the old option, although he says such opYOUR HOSTS FOR tions shall be Pineo Enters Royalty Pact Efficiency . . . Economy on Wells I op-Cree- Hercules Powder Co. k, 1 L. s V. hi-Tayl- Early, Mgr. Kearns Bldg. - EM Salt Lake City 4-55- We Are Pleased 13 STRENGTH THROUGH al-ste- to Represent Utah and Colorado in the .Gas and Oil Industry Make the NEWHOUSE SOCIAL FUNCTIONS and for Everday Good Eating ROYAL ROOM or the COMPANY COFFEE SHOP New Offices hotel 214 EAST FIFTH SOUTH Newhouse Salt Lake City, Utah EMpire 4-55- EMpire 71 SALT LAKE CITY, 4-55- 72 UTAH We wish to express our sincere thanks to our many Stockholders for making these offices possible non-renewabl- e- non-renewabl- e. CONVENTIONS - BUSINESS MEETINGS SUNDOWN MINING ad , r ' ' A distinguished member of Western Hotels, Inc. . f Sen. Anderson contended that nonrenewable Congress by meant that the options could not be renewed. Mr. Witford testified that his interpretation was that the firms were obtaining 'successive options and that tn options cannot bear a clause them renewable at the pleasure of the leaseholder. The other point stressed was whether unitization ,of federal land is not Just a gimmick to (Continued on Page 8) OIL NEWS LETTER Free on request. Includes map showing recent successful well completions, new field, discoveries, etc. Also drilling wildcats and their progress, oil and gas news items regarding an area that offers you the chance of a lifetime by filing oil and gas leases on U.S. Govt. land. OIL LEASE SERVICE, INC., Ronded Lease Brokei, Dept. WM 8943 Wilshiie Blvd.. Beverly Hills. Calif. |