Show SENATOR SMOOT TO reintroduce INTRODUCE RE OIL LEASING BILL all efforts to get action on the smoot amendment to the oil leasing law before adjournment of the old congress went glimmering in the last days of the session because of an adverse report filed by secretary of the interior payne wires sent out from washington gave the news concerning the fate of the bill and prospects tor lor its introduction action early in the new session of congress soon to convene as follows under the smoot bill which intends tends to amend the oil leasing act it if oil is struck in any an given structure persons prospecting for oil in that same structure under permit would lo be 10 allowed to proceed with their own development whereas under regulations promulgated iby by tile ithe department when oil is struck in any given structure every other prospecting permit in that structure is automatically canceled and tho the whole area is designated as known oil territory and thereafter must be developed solely under that clause of the law applying to known oil lands secretary payne objected to the smoot bill on two grounds first he pointed out that the bill would greatly diminish the governments revenues under tho the oil leasing law for development under a prospecting permit brings in a revenue of only 5 per cent whereas the royalty paid by lessees lessels is 12 1 per cent the probabilities are that each successful prospect would be surrounded by scores of others and if other prospectors were permitted under tile the smoot bill to continue on the 5 per cent basis the federal revenues would bo be greatly diminished furthermore secretary payne objected to the smoot bill on the ground that it would stimulate speculation in permits especially in districts where some one sinks a well and where there are geological indications that he is likely to strike oil under the bill tho the secretary holds one such development would create a heavy demand for applications in the general vicinity of the well being drilled and such speculation he believes to bo be contrary to tile the intent of congress tho the adverse report 0 of secretary payne would make it difficult it if not impossible to get favorable action on the smoot bill wt last session so BO the senator promptly decided to let the whole subject go over until the special he will reintroduce his bill and have it referred to secretary pall fall for report |