Show B ARD i HANDS HAtm PROBLEM OF f OIl 10 STATES C Conservation Plan Will Thus Escape Antitrust Laws t 4 By JOSEPH H H. H BAIRD United Press Staff Correspondent WASHINGTON April 12 United Press The Press The The troublesome problem I of conserving Americas America's oil re replaces re- re places without running afoul of I federal d ral antitrust laws has been Landed fancied to fhe states where the the- federal fed fed- eral ct-al oil conservation board d believes il it belongs JA RL C compact ot t states In which the federal go government ment might be Ine in intruded In- In e through congressional action was as advocated ad In a letter from rom the f federal deral oil conservation board to the American Petroleum Institute made public today I f i Concurring In the attorney generals general's gen gem eral's cral's opinion the institutes institute's origl- origl Plan to r restrict prod production cUon 4 t rough agreement among the oil might violate the Sher Sher- Sherman man Act net the board said the sole J authority for Restrictive mea- mea tes lies with mth the states w PLAN PoLAN CO CONFERENCES S Secretary of at Interior Wilbur who ho patted the Jelter letter stated today he Vas ryas was sending sending- Dr George OUs Smith of the geological l survey to confer conCer with governors governess of or the three or four li JJ pest est oil all pr producing states He will learn their vl S on of the tile proposal i Taking what wha It termed a long Jong Sew cw of or the P oleum pr problem blem the board stated dated a program drafted only t 10 to restrict pre present nt production met mett t o all problem only half hale wa way t Scientific utilization ot or new oil aU oilfields oilfields fields was considered of at prime Im Importance importance im- im In con conserving the the- United i plates plates' tates tates' total oil BOARDS BOARD'S STAT STATEMENT ENT The positive t l thod of ot cons conservation conser conser- r. r atlon Is Js the control of or development de de- de- de through the control of at drilling drilling to the end end that upon discovery discovery dis dis- dis covery overy of or a new oil pool a a. plan for its Hs development should be established l sled which would prevent waste vaste q Qt t gas consequent loss of or gas pressures pres pres- ores lures and Its serious effect upon the total yield of or the th pool and to preVent prevent prevent pre pre- vent other great losses Josses which arise from rom flush Hush flows due t to periodic overproduction and from feverish comp competition and offset drilling the board oard stated Maintaining there was no constitutional constitutional 0 ground on which the federal fed fed- cal eral government could act to regulate regu- regu late fate ate drilling the tho board said sald said the pole legal authority for for- such action lies with the tha state governments themselves 8 |