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Show 'New New ' New Land Leasing Plan PlanI PlanHailed I Hailed Hailedas as Great Boon to toDevelopment I Development of West WestBenefits Benefits derived from m mcreased increased creased oil 011 and mineral mmeral pro ductIon production made possible by new newfederal newfederal federal leasing leasmg policies will WIn re resuIt resuit suIt in establshment estabi establ shment of thrIV thrIVmg thnvmg mg communities commumtIes in the west westSenator westSenator Senator Jose Joseph h C 0 Mal\oney Mal oney Mahoneyof Maloneyof \ of Wyoming Wyommg declared Monday Mondayat at Denver The senator spoke at ata ata a hearing hearmg on proposed regula regulatIons regulations tIons for granting grantmg leases and andoptIons andoptions optIons on oil 011 and mineral mmeral lands landson landson on the public domain domam domamIn domainIn In charge of the hearmg hearmgwhI hearingwhich whI h contIn continued ed thou throughout the week was Uscar Oscar Li L Chapman Chapmana I a former Denver man and now nowlundersecretary nowundersecretary of the interior mterlOr mterlOrToo interiorToo lundersecretary Too often in m the past ghost ghosttowns ghosttowns towns have been the onl mark markto markto , to show \ where \ here our resources resourceshave resourceshave : have been 0 Mahoey saId saIdI saidNow I ow however the funds denv denv'ed denved 'ed ed ' from subsurface development developmentw developmentwill w l enable us to make full utIl utIlIzatIon utilization IzatIon of f our water resources resourcesIn resourcesIn In the future instead mstead of ghost ghosttowns ghosttowns towns we will have thnv'mg thnvmg thnv'mgproductIve thrivingproductive ' productIve and permanent com commumtIes cornmunities cornmunitiesThe mumtIes mumtIesThe The proposed regulations are arebased arebased based upon terms of a bill by byo by0 o Mahonev Mahoney cassed passed bv by coneress congress , this year It < : calls alls for a flat ro roalty roalty alty of 121 12 ' % for oil 011 taken takenfrom takenfrom from unproved lands and a a12'2 a122 12 I ' 2 % to 25 % sliding slIdmg scale for foroil foroil oil taken from proven lands It ItprovIded Itprovided provIded that prospectors could couldhold couldhold hold as much as 100 000 acres of ofland ofland I land in m one state under optIon optionfor for two ears Opfions Opt'IOns OptIOns ' are renew renewable renewable able with permission of the sec secretary secretary retary of the interior mterIOr if pros prospectors prospectors pectors can show that adequate adequateexploration exploration was Impossible impossibleduring durmg the time the option was wasm wasin m fore forc " 0 o Mahoney . jsaid .saId saId the federal federalgovernment federalgovernment government already has collect collected collected ed $150 150 $ 000 000 in m oil royal royaltIes royalties tIes Of this money he said said37 37 % went to states for roads roadsand roadsand and schools and 52 % % to the thereclamatIon thereclamation reclamatIon service for develop development development ment of water resourcesRepresentatIve resources | Representative Antonio M MFernandez MFernandez Fernandez of New Mexico Me'Clco MeClco ' who whoalso whoalso also spoke at the opening openmg hear hearImg hearmg warned that unless the new newregulations newregulations I Img regulations are made to work workcongress workcongress congress will take up the sltua sltuatIon situation I tIon aga n If the fault lies with withthe withthe the interior mterIor department the theland theland I land may be returned to the thestates thestates states Fernandez said or if the thefault thefault fault is with the oil 011 Industry IndustryregulatIons industryregulations I regulatIons may be tightened |