OCR Text |
Show which oil and gas production is prorationed. In some states this prorationing is partially based on estimates of market demand and price levels. Federal administrators are legally charged with responsibility for proper conservation practices in the production of oil and gas from public lands,29 and state laws are not explicitly mentioned in Federal leasing laws. To date, Federal authorities have permitted state conservation regulations to be applied to public land production. Conservation of these public land resources is a Federal responsibility, and we oppose any effort to change existing laws to require compliance with state prorationing programs. Leasing laws typically establish minimum rentals and royalties on production. While the authority exists to use competitive royalty bidding, competitive sales have been made on the basis of the highest cash bonuses offered. We believe that greater flexibility should be authorized and practiced under the leasing system. The administrator should have the discretion to employ a combination of bonus, royalty, and rentals, or outright sale of the minerals in place as may be appropriate in particular situations. The tools available to him should permit the fullest exercise of sound business judgment. In recommending continuation of three mineral disposal systems, we further recommend that Congress should clearly specify the lands and the minerals to which each of the system applies. At present, the General Mining Law 30 applies to all minerals not covered by the various leasing provisions or the Materials Act.31 Our studies have established that there are a number of important legal questions concerning the applicability of these systems. For example, definition or identification of a common variety of building stone has been the source of difficult litigation in the administration of the Materials Act. In any event, assurance of environmental quality should be included in the statute setting forth the minerals to be sold under the sale system in a manner similar to that which we recommend under the location-patent and leasing systems. We recommend that Congress define or list those minerals to which the location-claim and leasing systems apply and provide that all other minerals be subject to sale under an act similar to the Materials Act. Likewise, there should be a statutory delineation of the categories of lands to which each system would be applicable. Uncertainty has occasionally arisen as a result of the fact that minerals disposable under one system may be found in a deposit also containing minerals disposable under another system. The occurrences of uranium in lignite and dawsonite in oil shale are 29 see 30 U.S.C. § 226(j) (1964). 30 n. 1, supra. 31 n. 4, supra. 134 prominent examples. A simple, comprehensive procedure should be established for allocating development rights to all intermixed minerals occurring in the same tract of land. Items of Special Concern Hobby Mineral Collections Recommendation 50: Statutory provision should be made to permit hobby collecting of minerals on the unappropriated public domain and the Secretary of the Interior should be required to promulgate regulations in accordance with statutory guidelines applicable to these activities. We recognize that the number of mineral collectors has increased to the point that regulation is now necessary. The general mineral development systems we propose are not pertinent to these hobbyists. Statutory guidelines and administrative regulations should be flexible in order to meet variable local conditions, but the permit requirements and fees to be charged should be set forth clearly. Oil Shale The reserves of oil shale in Colorado, Utah, and Wyoming constitute a tremendous energy resource. To date they have not been commercially developed, although pilot programs have been conducted from time to time. These deposits are principally on public lands, and our public land laws should provide a climate for their development when economically feasible. Resolution of Title Problems Recommendation 51: Legislation should be enacted which would authorize legal actions by the Government to acquire outstanding claims or interests in public land oil shale subject to judicial determination of value. At the present time there are serious problems arising from disputes over rights to public lands claimed as a result of mining claims and prospecting permits. Massive efforts have been directed at resolving these title problems through administrative and subsequent judicial procedures, but this is an expensive and tedious process. We believe additional authority to bring legal actions to acquire claimed interests should be granted to expedite resolution of these problems with regard to key tracts of shale-bearing lands. This would facilitate initiation of development programs. |