One of the difficulties presented, especially in the California fields, is that the Southern Pacific Railroad owns every other section of land in the oil fields, and in those fields the oil seems to be in a common reservoir, or series of reservoirs, communicating through the oil sands, so that the excessive draining of oil at one well, or on the railroad territory generally, would exhaust the oil in the Government land. Hence it is important that if the Government is to have its share of the oil, it should begin the opening and development of wells on its own property. (Laughter and applause)
In view of the joint ownership which the Government and the adjoining land-owners, like the Southern Pacific Railroad, have in the oil reservoirs below the surface, it is a most interesting and intricate question, difficult of solution, but one which ought to address itself at once to the State law-makers, how far the State legislature might impose appropriate restrictions to secure an equitable enjoyment of the common reservoir, and to prevent waste and excessive drainage by the various owners having access to this reservoir (applause). It has been suggested, and I believe the suggestion to be a sound one, that permits be issued to a prospector for oil, giving him the right to prospect for two years over a certain tract of Government land for the discovery of oil, the right to be evidenced by a license for which he pays a small sum. When the oil is discovered, then he acquires title to a certain tract, much in the same way as he would acquire title under a mining law. Of course, if the system of leasing is adopted, then he would be given the benefit of a lease upon terms like that above suggested. What has been said in respect to oil applies also to Government gas lands.
Under the proposed oil legislation, especially where the Government oil lands embrace an entire oil field, as in many cases, prospectors, operators, consumers, and the public can be benefitted by the adoption of the leasing system. The prospector can be protected in the very expensive work that necessarily antedates discovery. The operator can be protected against impairment of productiveness of the wells which he has leased by reason of the control of drilling and pumping of other wells too closely adjacent or by the prevention of imperfect methods as employed by careless, ignorant or irresponsible operators in the same field, which result in the admission of water to the oil sand; while, of course, the consumer will profit by whatever benefits the prospector or operator receives in reducing the first cost of the oil.
PHOSPHATE LAND
Phosphorus is one of the three essentials to plant growth, the other elements being nitrogen and potash. Of these three, phosphorus is by all odds the greatest element in nature. It is easily extracted in useful form from the phosphate rock, and the United States contains the greatest known deposits of this rock in the world. They are found in Wyoming, Utah and Florida, as well as in South Carolina, Georgia and Tennessee. The Government phosphate lands are confined to Wyoming, Utah and Florida. Prior to March 4, 1909, there were four million acres withdrawn from agricultural entry on the ground that the land covered phosphate rock. Since that time 2,322,000 acres of the land thus withdrawn was found not to contain phosphate in profitable quantities, while 1,678,000 acres was classified properly as phosphate land. During this Administration there has been withdrawn and classified 437,000 acres, so that today there is classified as phosphate rock land 2,115,000 acres.
The rock is most important in the composition of fertilizers to improve the soil, and as the future is certain to create an enormous demand throughout this country for fertilization, the value to the public of such deposits as these can hardly be exaggerated. Certainly with respect to these deposits a careful policy of Conservation should be followed. Half of the phosphate of the rock that is mined in private fields in the United States is now exported. As our farming methods grow better the demand for the phosphate will become greater, and it must be arranged so that the supply shall equal the needs of the country. It is uncertain whether the placer or lode law applies to the Government phosphate rock. There is, therefore, a necessity for some definite and well-considered legislation on this subject, and in aid of such legislation all of the Government lands known to contain valuable phosphate rock are now withdrawn from entry.
A law that would provide a leasing system for the phosphate deposits, together with a provision for the separation of the surface and mineral rights as is already provided for in the case of coal, would seem to meet the need of promoting the development of these deposits and their utilization in the agricultural lands of the West. If it is thought desirable to discourage the exportation of phosphate rock and the saving of it for our own lands, this purpose could be accomplished by conditions in the lease granted by the Government to its lessee. Of course, under the Constitution the Government could not tax and could not prohibit the exportation of phosphate, but as proprietor and owner of the lands in which the phosphate is deposited it could impose conditions upon the kind of sales, whether foreign or domestic, which the lessee might make of the phosphate mined. (Applause)
The tonnage represented by the phosphate lands in Government ownership is very great. But the lesson has been learned in the case of such lands as have passed into private ownership in South Carolina, Florida and Tennessee, that the phosphate deposits there are in no sense inexhaustible. Moreover, it is also well understood that in the process of mining phosphate, as it has been pursued, much of the lower grade of phosphate rock which will eventually all be needed has been wasted beyond recovery. Such wasteful methods can easily be prevented, so far as the Government land is concerned, by conditions inserted in the leases.
WATER-POWER SITES
Prior to March 4, 1909, there had been, on the recommendation of the Reclamation Service, withdrawn from agricultural entry, because they were regarded as useful for power sites which ought not to be disposed of as agricultural lands, tracts amounting to about 4,000,000 acres. The withdrawals were hastily made and included a great deal of land that was not useful for power sites. They were intended to include the power sites on twenty-nine rivers in nine States. Since that time 3,475,442 acres have been restored for settlement of the original 4,000,000, because they do not contain power sites; and meantime there have been newly withdrawn 1,245,892 acres on vacant public land and 211,007 acres on entered public land, or a total of 1,456,899 acres. These withdrawals made from time to time cover all the power sites included in the first withdrawals, and many more, on 135 rivers and in 11 States. The disposition of these power sites involves one of the most difficult questions presented in carrying out practical Conservation.