Show IMPORT IMPORTANT ANT DECISION ON OIL PERMITS ISSUED In a a new ruling by Secretary of the Interior Albert B. B Fa Fall made public recently by Gould B. B Blakely of the Salt Lake land office applications applications applications for permits to prospect for oil and gas under the oil and gas leasing bill of February 25 1920 which w were re filed prior to the discovery of oil on ona a structure will be held valid Applications Applications Applications Ap Ap- filed after the declaration of the structure to be oil or gas bearing bearing bearing bear bear- ing however will be invalid according according according accord accord- ing to the ruling The ruling of Secretary Fall Fan means that the striking of oil in a field or structure which has not yet been defined defined defined de de- de- de fined by the federal government as being within a geological structure containing oil or gas will not invalidate invalidate invalidate date applications filed for oil prospecting prospecting prospecting pros pros- permits prior to the striking of oil or the by the government government government gov gov- of the structure as oil bear bear- ing In Utah the ruling will affect approximately applications it is said covering more than 1 I acres of land The ruling is a aI I 1 reversal of the decision made by John Barton Payne former Secretary of I the Interior which provided that applications applications applications ap ap- ap- ap for permits for oil or gas prospecting permits would be denied in cases where oil or gas was encountered encountered encountered ered before the permit was actually granted Applying the principle so announced announced announced an an- says the secretary's ruling it is clear that not only equitably but legally persons who filed proper applications for oil and gas prospecting permits under the act of February 25 1920 cannot and should not be deprived of their rights if because of delay in inaction action upon the applications So filed there intervenes a designation by this department of the lands as bein being within the geological cal structure of a producing oil or orgas orgas gaS gas field by a discovery of oil or gas to the filing of the application in the local land office Accordingly said regulation J Jis I is h hereby reby revoked and in future application application application ap ap- ap- ap will be adjudicated in in inac accordance accordance accordance ac ac- ac- ac with the views herein ex ex- pressed The ruling of the secretary secretary- provides provid provid- es however that nothing in his opinion opinion opinion ion shall be construed as modifying or affecting previous decisions of the department to the effect that permits cannot be allowed allowed allow allow- ed within the geological structure of ofa a producing oil or gas field so BO known and existing at and prIor to the filing of the application for the prospecting permit The ruling ruling- of the secretary virtually makes unnecessary unnecessary unnecessary un un- necessary the amendment to the oil leasing act offered by Senator Smoot at the last session of congress and sets at rest a controversy which came almost as soon as the act became became became be be- came a law I Persons who have filed applications applications applications for oil prospecting pe permits its would had not Secretary Fall n trade ade his rulin ruling have lost their rights on valuable claims in case oil had been struck by any of the big companies now drilling before their permits permit's had been granted The ruling from Secretary Secretary Secretary Sec Sec- Fall is in the form of a communication communication communication com com- to William iam Spry commissioner commissioner com com- l missioner of the general land office copies being sent to the local land of of- I In another such opinion Secretary Secretary Sec Sec- sec sec-j i Fall also gives notice that he has revoked a ruling of former Secretary Secretary Secretary Sec Sec- Payne relating to section 19 of the oil and gas leasing act which affects virtually only the San Juan oil fields fieldg in this state The opinion states that there should not be a limit of one prospecting permit on on a structure structure structure ture and only three in a state to the same person or company and he says there is no limitations in section 19 as asto asto to the number of permits which ma may maybe maybe be obtained by a person or persons who held placer mining claims and are able to meet the conditions conditions con con- of the act While the intent of the act is to prevent monopoly says the opinion its primary purpose was to encourage prospecting for and the developement developement ope deve ment of the oil and gas resources of I Ithe the tho United States In localities remote re- re mote from transportation refineries pipe lines and sources of supply It may be difficult to to secure the exploration exploration exploration ex ex- of a wild-cat wild territory if the person o 0 corporation conducting the exploration and developement is limited to a maximum of 2560 acres Moreover as stated above section 19 is a remedial section designed to take care of equitable claims of those who had initiated claims under the placer mining laws applicable to oil and gas deposits and consequently no limitation limitation limitation lim lim- was made in the statue as to the number of such locations which might be surrendered and made the basis of pro prospecting permits The Opinion then holds that for developement developement developement de de- de- de purposes assignment of prospecting permits secured under section 19 of the act to qualified individuals individuals individuals in in- corp corporations rations or associations outside producing oil and i gas fields and in loc without transportation transportation transportation tran tran- facilities refineries pipe pipelines pipelines pipelines lines or nearby sources of supply for not exceeding five such permits in a state and near enough to each other for common developement whether or noncontiguous ous may be presented f for r th the consideration consideration consideration con con- of the secretary of the interior interior interior in in- and his approval if he shall find the same to be in the public in- in |