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Show NAVY AWARDS OIL CONTRACTS; I I i Sinclair Will Build Long Pipe Line From Reserve I in Wyoming j WASHINGTON, April 19 Contracts j jfor the opening of the naval oil re- j jserves in Wvomlng to prlvato enter-1 prise, and the operation of those al- ready opened in California in n man- ner designe d to assure the navy per-1 manent Btorag of fuel oil above ground, were announced by Acting Secretary Sec-retary of the Interior Finney, with the Mammouth oil company of Delaware and tb I'.m-American Petroleum com. pany of California The contract with the MammoutU loij company, a new coiuvrn, of Which II r. Sinclair of the Sinclair Oil com-panv com-panv la president, provides for the tapping of the so-ealled Teapot dome In navel reserve Xo In Wyoming. I the government to receive graduated royalties ranging from ifVs per cent, 'to 5m pei cent for the entire area of the reserve, Under the Fan-American Petroleum Icontract, handling and exchange of crude oils from naval reserves N'os. 1 and 2, in California, is provided for. involving the exchange of the navy's royalty In oil from the reserves for I fuel oil in storage at points designated bj the navy on the- Pacific coast I The contracts are in line with th recently announced policy of the cm 'eminent with reference to the dlposl-j tion of the naval oil iand worked out by Secretaries Kail and Denby and instituting in-stituting a departure from the formOi" polir of .storing naval oil in the ground. LANDS BEING DKAINT.D. "For more than a vear." Jurisre Pin- 'ney's announcement said, 'the secretary secre-tary of the interior and the secretary .of the navy have had under consideration considera-tion the handling of the two naval reserves In Cullfornla and the navul reserve In Wyoming, the latter known as the Teapot dome, with the Idea of working out a policy which would secure se-cure the greatest conservation and use for the navy of the oils In such reserves, re-serves, prevent dalnage by well9 of private pri-vate owners on adjoining lands, and secure to the navy an available storage stor-age of fuel oil at convenient polnt3 readily accessible when ut and when- i r needed. I found that oil was being drained from all of these reserves re-serves in large quantities, amounting to millions of dollars loss up to the present time by well on adjoining lands, and that In all probability within with-in a few years the government reserves would be depleted.'' The Mammouth company will drill in at least 20 wells within a limited lime. Judge Kinney said, and will construct .c pipe from the Wyom ing fields to existing pipe lines In Missouri for the exchange ot crud for fuel oils for naval USS, through' which navy specified bunker A oil will be delivered at any point named from I Guaitanamo. Cuba, to the northeast Corner of the t'nlted States? MILLIONS kok LINK. A line of crpdit Is provided tor the exchange and storace of oil 'without leash outlay by the government," at 'any point fixed by the navy depart- n it along the Atlantic- coast- The i Mammouth oompany as lessee of the 'field .shall at Its own expense, and without obligation on the navy's part. provide gasoline kerosene luhricatins" land cylinder oil at market prices I The pipe line when bull' will bo a "'common carrier" for all goernment i oils which will be given priority of transportation both from th' Teapot dome and the ndjoinlntr Salt Creek fields over the use of the pipe line b the lessee The pipe lines already constructed con-structed with which the new pipeline will connect Judge Kinney said represent rep-resent an Investment of $ 1 1 ",000,00o and th- contract calls for an investment invest-ment of not less than $.26,000,000 in addition. HELPS INDUP B N D B NTS. A featuiv of the now scheme, "not the least in Importance," officials said, i tiie opening up to competition of the Salt Croek field and the probability) : or increasing tne price oi oil troni 1111s1 field, which adjoins the Teapot, to the I mid-continent price ' ! Through lack of competition be- of lack of pipeline and refining facilltle.s. it was pointed 'jut. many of jthe small independents were unable to 1 find a market, for more than 40 per cent of the Irregular capacity which I Was sold through an operating '"in-'pany '"in-'pany at a price usually muh lower than ihe mid-continent price. |