Show OIL LAND RULING ANNOUNCED washington jan 14 where commercial oil Is discovered on land embraced in a prospecting permit granted under section 13 of the oil leasing act and other applications tor for prospecting permits have been filed for lands in the immediate vicinity and such other applications have not been granted prior to the discovery of oil such unapproved applications shall immediately be rejected according to a ruling today by the in perlor department where applications tor for adjoining lands have been filed and prospecting permits have been issued by the secretary of the interior even though drilling operations have not begun under those permits the permits will stand notwithstanding the discovery of oil and those holding the permits will be allowed to proceed as though no oil had been discovered la in the immediate vicinity whenever oil la Is struck lo 10 commercial quantity by anyone operating under a prospecting permit a representative senta tive of the geological survey is at once sent to the well to 0 make an investigation and determine the area which probably will be productive and this area will then be designated as proved oil area the size of the area designated varies narles according to the geological formation and other natural conditions which the geologist takes into consideration and his recommendation is accepted by the land office in designating an area surrounding a producing well as a known or proved oil area there is no standard size of such designations salt lake tribune |