Show Up p and Down the Street Vast Revenue Looms From Utah Oil Boom By Robert RobertV W. W Y Bernick Utah stands to garner from to for its schools and farms as a result of the 1948 1048 oil lease boom more is promIsed promised promised prom prom- when expected production is gained during 1949 on federal oil lands According to Ernest E. E House district manager of the federal land office bureau of land management management management man man- in the last 90 00 days over has been collected in royalties roy roy- and rentals through lease of acres on the eastern flank of the state Some 90 of that sum goes to the state 37 2 for schools and for reclamation The re remaining remaining re- re 10 goes to the federal government for administration purposes Emphasizes Points Mr Ho House se emphasized that the funds collected during 1948 from leasing activities is above and beyond what will accrue to the state if 1 the leases are continued continued continued con con- for the prescribed year five-year period and 2 if and when oil begins to flow from the federal areas If all the companies and individuals individuals indi indi- maintain their leases on the acres during the next five years Jears will pour into state and federal coffers atthe at atthe I the rate of 1 1 an acre he ex ex- exI ex- I Utah has three proven fields two of which are engaged in commercial commercial com corn mercial production Although the two producing wells on the Ashley Valley structure near Vernal Utah are arc on patented land out from under tInder the federal leasing law Jaw some other wells projected in that area next spring are arc on government plats Takes 25 Cut The government takes up to 25 of the production from wells making more than barrels ban a day Proceeds from sale of this oil is allocated on much the same basis as the funds collected by those renting or leasing federal oil lands Up to 16 3 2 2 of all gas wells making more than cubic ft per day clay is assigned as government government govern govern- ment royalty Production is based on daily average during the month Mr House whose appointment as manager of the Salt Lake land office was confirmed this week by the secretary of the interior says in the last few weeks eastern and southern San Juan county Utah has received the heaviest leasing load During one day last week 73 applications asking lease of m many ny thousands of acres of land were flIed filed The boom has been such a astrain astrain astrain strain on the office force hours during which applications can be made have been reduced he said This enables clerks to catch up upon upon upon on their recording and lease checking duties Mr House said |